Register.com Wins Injunction Against Verio
by Ryan Naraine
Alley domain name keeper Register.com on Monday celebrated a big victory over a main competitor when a federal count granted its motion seeking a preliminary injunction against Verio Inc.
The court decision temporarily brings a halt to the public sniping between the two registrars which erupted in late July when Register.com accused Verio of poaching its "WHOIS" database to market competitive services. In a suit filed on August 3, Register.com claimed this was in direct violation of several privacy-related registration terms and conditions.
In a statement issued Monday, Register.com said the U.S District Court for the Southern District of New York granted the motion enjoining Verio from accessing Register.com's "WHOIS" database to target its customers with unsolicited commercial electronic mail and telemarketing.
As a result of the order "Verio is preliminarily enjoined from engaging in conduct that misleads register.com's customers into believing that register.com is affiliated with Verio or its services," the statement said.
As previously reported by atNewYork, Register.com accused Verio of deceiving its customers with misleading marketing tactics.
Shares in Register.com jumped 8 percent on the news by mid-session on Monday, trading at .50, up from the .06 opening price. In recent weeks, the stock has been trading almost 100 percent below the 52-week, post IPO high of 16.00. The year-low is .50.
The court ruled that Verio is prevented from the following under the temporary stay:
* Using the register.com or "first step on the websm" marks, or any similar designation in connection with the advertising, marketing or promotion of Verio services
* Committing any act which is likely to cause third parties to believe that Verio's products or services are sponsored by register.com.
* Using any data in Verio's possession, that using its best efforts Verio can identify as having been obtained from register.com's computer networks, to enable the transmission of unsolicited commercial email, telephone calls, direct mail to register.com customers, with limited exceptions.