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It was reported a while back that EURID put a hold on some 74,000 domains, accusing registrars of warehousing. A Brussels court has now said they must release the domains to the registrars.

Quote:October 8, 2006 - In July, EURid denied access to its systems for 397 accredited registrars and placed approximately 74,000 domain names on hold. EURid thereafter filed a legal action against the registrars seeking termination of their accredited status on the basis of alleged warehousing activities.

Following unsuccessful attempts to contact EURid, the registrars filed an action in Brussels seeking injunctive relief. The registrants of a majority of the effected domains joined in the action.
Among the relief sought was an order declaring as invalid EURid’s placing the 74,000 domain names on hold. The Court has ruled that EURid must immediately free the 74,000 domain names from any restrictions.
The Court found that EURid acted without authority and in contradiction of both the governing regulations and its own rules. “The blocking of the domain names…has prima facie been done unlawfully.” (free translation).

In deciding that the domain names must be released from any hold, the court recognized the registrants’ direct navigation business model. “A full, unobstructed and free disposal of the domain names is indispensable for the activities that the [registrants] want to undertake with these domain names, namely direct navigation.” (free translation).
Prior to the ruling, EURid had conceded a number of other points requested in the injunction filing. For example, although having initially blocked the registrars from the EURid system, EURid reinstated the connection following the filing of the registrars’ legal action. Also, while EURid initially claimed that the registrars had engaged in warehousing, it abandoned this claim, never referencing it in the court action. Finally, while EURid had argued that the registrars had been acting as a front for non-existent registrants, the court specifically found the opposite was the case. The registrants have a normal contractual relationship with the registrars.
EURid must now return the roughly 74,000 domains to normal status. The court directed that if EURid failed to act within 48 hours, it would be subject to a fine of €25,000 per domain per hour. The domain registrants can now resume their use of the domains and, most importantly resume their previously established policy of returning domains to trademark holders (free of charge) if the domain names conflict with prior rights.