IO Group, Inc. et al v. GLBT, Ltd. et al

Filing 103

ORDER GRANTING IN PART PLAINTIFFS' MOTION FOR PRELIMINARY INJUNCTION. Signed by Judge Maxine M. Chesney on August 30, 2011. (mmclc1, COURT STAFF) (Filed on 8/30/2011)

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IN THE UNITED STATES DISTRICT COURT

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FOR THE NORTHERN DISTRICT OF CALIFORNIA

For the Northern District of California

United States District Court

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IO GROUP, INC., et al.,
Plaintiff,

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ORDER GRANTING IN PART
PLAINTIFFS’ MOTION FOR
PRELIMINARY INJUNCTION

v.

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No. C-10-1282 MMC

GLBT, LTD., et al.,
Defendants.

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/

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Before the Court is the “Motion for Temporary Restraining Order, Order for Seizure,

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and Appointment of Receiver,” which motion the Court has construed as a motion for a

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preliminary injunction, filed August 11, 2011 by Plaintiffs IO Group, Inc., Channel One

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Releasing, Inc., and Liberty Media Holdings, LLC (“Plaintiffs”). Defendants GLBT, Ltd.,

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Mash and New, Ltd., Port 80, Ltd., Steven John Compton, and David Graham Compton

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(“Defendants”) have filed opposition, to which Plaintiffs have replied. The matter came on

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regularly for hearing August 29, 2011. Marc John Randazza of Liberty Media Holdings,

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LLC, and D. Gill Sperlein appeared on behalf of Plaintiffs. Jonathan Capp appeared on

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behalf of Defendants. Having read and considered the papers filed in support of and in

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opposition to the motion, and having considered the arguments of counsel, the Court rules

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as follows.

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//

Plaintiffs request that the Court use its equitable powers to issue an order to stop

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Defendants from dissipating assets. For the reasons stated at the hearing conducted

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August 29, 2011, the Court finds Plaintiffs have demonstrated they have a likelihood of

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success on the merits of their claims, they are likely to suffer irreparable harm in the

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absence of the requested injunctive relief, the balance of equities tips sharply in their favor,

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and the injunction is in the public interest.

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Accordingly, Plaintiffs’ Motion is hereby GRANTED in part as follows:

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1. The request to appoint a receiver is GRANTED. Ann Bradley, whose business

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address is Foley & Lardner LLP, 555 South Flower Street, Suite 3500, Los Angeles, CA

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90071-2411 is APPOINTED as the Receiver. The Receiver shall perform the following:
a. The Receiver shall promptly file her oath of Receiver with the Court,

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whereby she shall undertake fully and faithfully to perform her duties as Receiver;
b. The Receiver is authorized to collect and take immediate possession and

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control of the following domain name registrations:

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Registered through Key-Systems GmbH

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1. Gayforit.com

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2. Jerkyourtube.com

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3. Gayforit.eu

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4. Jerkyourtube.eu

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5. Itsallgay.eu

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Registered through Homestead Ltd., d/b/a namevault.com

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1. Itsallgay.com

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and shall deliver a copy of this Order to Key-Systems GmbH and Homestead Ltd. and shall

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take all necessary steps to assist Key-Systems GmbH and Homestead Ltd. in the transfer

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of the domain name registrations into an account controlled by the Receiver. Such

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registrations must include the title to the domain name registrations and not simply control

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of the WHOIS information;

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//
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c. The Receiver shall act in accordance with and shall have all of the usual,

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necessary, and incidental powers of a receiver to maintain and preserve Defendants’

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domain name portfolio;
d. Except as otherwise provided in this Order, the Receiver shall hold the

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domains in their current configuration unless the Court issues a further order to the

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Receiver;

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e. Discharge of the Receivership shall require a Court Order after a properly

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noticed motion approving the Receiver’s Final Report and Accounting is filed with the Court

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and served on the Parties;

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f. The Receiver is directed to obtain a bond in the amount of $1,000.00

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securing performance by the Receiver of the duties and obligations of her office of

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receivership. The bond shall provide coverage to Plaintiffs and Defendants for loss due to

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acts of any agent, servant, or employee of the Receiver. However, the Receiver shall not

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be personally liable for losses, provided that the Receiver has acted in good faith to

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perform her duties and has not committed gross negligence or other gross misconduct.

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The bond shall be submitted to the Clerk of the Court within 10 days of the date of this

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Order. Given the limited nature of this injunction, no further bond is required.

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2. Defendants are ORDERED to comply with the following directives:

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a. Defendants shall instruct Key-Systems GmbH and Homestead Ltd. to

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transfer the six domain name registrations identified in ¶ 1.b above to an account controlled

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by the Receiver and take all necessary action to facilitate these transfers. Such

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registrations must include the title to the domain name registrations and not simply control

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of the WHOIS information.

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b. Defendants shall take any and all steps necessary to effectuate the

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Receiver’s compliance with this Order, including gathering domain name transfer codes for

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all six relevant domain names and communicating the codes to the Receiver.

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c. During the pendency of this action, if Defendants desire to change the
records or nameservers that control where any such domain name points, they may file an
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administrative motion requesting an order from the Court instructing the Receiver to make

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the desired change.

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3. IT IS FURTHER ORDERED that Defendants are enjoined from:
a. directing traffic away from any of the domains turned over to the control of

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the Receiver;
b. reorganizing the current websites to operate at any domain names other

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than those turned over to the control of the Receiver, including, but not limited to,

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registering or using domain names (in any TLD) corresponding to the terms “gayforit”

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“jerkyourtube” or “itsallgay”;

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c. taking any other action designed to transfer the value of the domain
names controlled by the Receiver to alternative domain names;
d. taking any action to cause damage or harm to the assets transferred to the
Receiver; and
e. taking any action in furtherance of dissipation of assets.
4. IT IS FURTHER ORDERED that Plaintiffs shall advance to the Receiver fees

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and costs associated with administration of the receivership estate, such fees and costs to

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be recoverable pursuant to 17 U.S.C. § 505 and/or Civil Local Rule 54-3(f) if Plaintiffs

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subsequently establish their entitlement thereto.

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5. IT IS FURTHER ORDERED that all persons receiving notice of this Order,

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including without limitation all domain name registrars and all domain name registry

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operators, shall comply promptly with the Receiver's directives as provided for in this Order,

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including without limitation any directives by the Receiver to transfer any and all domain

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names between registrants, or between registrars, or the reassignment of the registrant or

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registrar of any domain names. In the event that Defendants do not cooperate with the

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portions of this Order compelling them to transfer the six domain names to the Receiver,

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Verisign (operator of the .com registry) and EurID (operator of the .eu registry) shall

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transfer the three domain names in each of their registries to the Receiver, with or without

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the consent or cooperation of Defendants.
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6. This ORDER shall take effect immediately upon entry.

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IT IS SO ORDERED.

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Dated: August 30, 2011
MAXINE M. CHESNEY
United States District Judge

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