AuDA Refuses Settlement with Bottle Domains Following Accreditation Termination

According to a report in IT News, the Australian domain name regulator has refused to settle with Bottle Domains in their case where auDA initially terminated Bottle Domains’ accreditation.auDA terminated Bottle Domains’ accreditation, and hence ability to act as a registrar for .au domain names, due to what auDA considers to be a serious breach by Bottle Domains of its Registrar Agreement.However in their article IT News seems to misunderstand what an injunction actually means. The courts have not indicated whether the case is likely to be decided in auDA’s or Bottle Domains’ favour. Rather, the injunction has allowed the status quo to continue until the appeal by Bottle Domains can be heard in a court of law.”An injunction is usually issued only in cases where irreparable injury to the rights of an individual would result otherwise,” says TheFreeDictionary. And should Bottle Domains have their accreditation terminated and then appeal and win their accreditation back, their business would undoubtedly have suffered “irreparable injury” as they would have lost their entire business.The original decision by auDA to terminate Bottle Domains’ accreditation resulted when auDA says it was notified by the Australian Federal Police that there had been a security incident which affected customers of Bottle Domains.In our earlier report on the issue we noted that following this, auDA “discovered that Bottle Domains was the subject of an earlier security incident in April 2007, which auDA believes may have caused or contributed to the security incident in February 2009.”Bottle Domains failed to notify auDA at the time of the April 2007 security incident, which was a breach of its obligations under the Registrar Agreement.”Subsequently, information recently provided to auDA by Bottle Domains about the April 2007 incident revealed that it did not reset customer passwords or alert its customers to the possibility that their account information had been accessed by third parties. Bottle Domains also failed to conduct an independent security audit to verify that the security vulnerability had been fixed, and that there was no other unauthorised access to its systems.”‘auDA takes security issues very seriously,’ said auDA CEO, Chris Disspain. “‘In our view, Bottle Domains’ failure to deal properly with the security incident in April 2007 demonstrated an alarming disregard of the potential risks to its own customers, and to the overall stability and integrity of the Australian DNS.’””Given the seriousness of the matter, it is appropriate that auDA terminate Bottle Domains’ registrar accreditation.”

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