Domainmonster.com Industry News
News > February 2007
Israeli Court Holds On DNS Decision
On December 17, 2006 The Israeli Magistrates Court of Tiberias held that a DNS (Domain Name Server) definition is an asset which may be retained by a creditor as means to persuade a debtor to pay its debt. The Court stated that even if it seemed intangible, the DNS requires physical maintenance work and therefore can be said to be "physically held" and is thus capable of being retained as security for ensuring payment.
Here a company called Kineret, which registered its Domain Name with a domain name server maintained by ISP Netvision, requested that the ISP release its domain by changing the DNS definition. Kineret owes monies to Netvision for services previously rendered to it, who decided to retain the DNS definition pending repayment of the debt by Kineret.
A similar decision was made by the Israeli Execution Authority (responsible for the enforcement of judgments and collection of debts) which stated that a Domains are valuable assets which may be used for the repayment of outstanding debt. The Authority appointed a receiver over the rights of the holder of domain www.hakosem.com and ordered that the domain be auctioned, and the monies acquired from such auction used for the repayment of wages which had not been paid to an employee of the domain holder.
Being decisions of low instances, these decisions do not hold any precedential value for the Israeli courts in future cases.

