Web3 naming company dismisses its lawsuit, but the issue will still be litigated in the courts.
Blockchain naming company Unstoppable Domains has dismissed without prejudice a lawsuit it filed against Scott Florsck and Wallet Inc., which offered second level .wallet registrations in the Handshake system. But Florsck’s lawsuit against Unstoppable remains, meaning the saga isn’t over.
Unstoppable Domains originally sued Gateway Registry, the registry that managed Florsck’s .wallet domains, last year when the registry started offering second level registrations under .wallet on Handshake. Unstoppable offers a rival .wallet domain on a different blockchain and system.
Gateway quickly shut down shop instead of facing the lawsuit. Nevertheless, Unstoppable pushed the court to issue a judgment, even opposing Scott Florsck’s attempt to intervene in the case (the judge later allowed him to intervene).
Unstoppable and Florsck filed lawsuits against each other (within about an hour) on September 21, 2022.
The judge called for the cases to be consolidated, and Unstoppable and Florsck made their case for why their case should supersede the other.
But now Unstoppable has voluntarily dismissed its suit (pdf) against Florsck and Wallet Inc., stating the same reason as why it dropped the suit against Gateway in July this year: second level domains under Florsck’s .wallet are no longer offered:
Since this case was filed in September 2022, Defendants have not promoted or offered for sale domain names using Plaintiff’s WALLET marks. Therefore, the relief sought by Plaintiff now seems more of an academic exercise rather than an actual dispute sufficient to warrant the expense of litigation and use of the Court’s limited resources.
Yet Florsck hasn’t dropped his lawsuit, so the matter will still be litigated.
I’m not a lawyer, but I wonder if Unstoppable determined it would be in a better position to defend the lawsuit Florsck filed than to prosecute the lawsuit it filed. (Unstoppable declined to comment for this story.)