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That judge is a dumbass and any precedent that ‘justifies’ this ruling should be reviewed and struck down. This is called theft. And do eminent domain too while we’re at it.
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Theft is when something you own is taken away. The squatter never owned the domain, only registered to use it. In this case, ICANN owns the domain and allows a registrar to handle who can use that domain. ICANN sets strict rules on how domains can be used, and the squatter broke those rules.
Maybe the judge is a little smarter on actual laws than you are.
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