January 21, 2009 — Writing for thedomains.com, domain name expert Michael Berkins states that the celebration over the (perhaps temporary) victory in yesterday's Kentucky Court of Appeals ruling should consider the fact that the problem raised by the state's domain name seizure has not really been fully solved.
The ruling is a "good news, bad news type of decision," writes Berkinds, "because all the appellate court found was that domain are not gambling devices within the definition of the Kentucky law.
"The court did not issue any opinion on the bigger issues of whether domains are subject to state regulation, whether domains can be seized without due process (although one judge did mention this in a separate opinion), whether domain registrars located outside a state are can still be subject to that state’s jurisdiction or whether a registrant located outside a state can still be subject to that state's jurisdiction.
"Moreover, the Legislature in Kentucky can simply amend the current laws definition of a 'gambling device' to specific include domain names and then seize the domains all over again.
"So bottom line, a win is a win, and the action of the appeals court solves the current crisis, but it does not give domainers, or gambling site owners, much reason to sleep any better."