Joris DeeneAn order of the attachment judge at the Dutch-speaking court of first instance in Brussels brings clarification to a legal issue that is becoming increasingly relevant in our digital economy: can the domain name of a debtor be seized?
The case in brief
On July 9, 2024, the attachment judge in Brussels ruled in a case involving TSG Interactive Gaming Europe Limited and Rational Intellectual Holdings Limited (RIHL) acting against a creditor who had ordered the attachment of several domain names, including 'pokerstars.eu' and related domain names.
Based on an Austrian judgment, the creditor had had these domain names seized from EURid (European Registry for Internet Domains.), the administrator of .eu domain names. RIHL brought a revocation action in response, arguing that it was the owner of the domain names. TSG, in turn, challenged the validity of the seizure itself.
Key question: are domain names attachable?
The attachment judge first analyzed the legal nature of a domain name. According to the judge, it is not the domain name itself, but the right to use a domain name that has an asset value over which a person can exercise exclusive power. This right of use was labeled by the judge as a "sui generis asset right" - a special kind of asset right.
Because this right of use represents an economic value and is transferable to third parties (under conditions of EU regulation 2019/517), the attachment judge ruled that it was part of the domain name holder's assets and therefore subject to attachment.
The proper procedure for seizing a domain name
Although the attachment court basically allowed the attachment of domain names, there was an important procedural sticking point:
The court ruled that the seizure of the domain names had been irregularly executed. Instead of an executive attachment of movable property from a third party (as had happened in Eurid), the procedure of an executive attachment had to be among third parties (in the hands of Eurid) are followed (Articles 1539 et seq. Judicial Code).
The attachment was eventually lifted, not because domain names are unattachable, but because the wrong attachment procedure had been followed.
What does this mean for your domain names?
This ruling confirms an important principle: domain names - or rather, the right to use it - can indeed be seized by creditors. This has implications for companies whose domain name represents significant commercial value.
For companies operating in the digital sphere, it is advisable to:
- Critically examine the legal constructions surrounding their domain names
- Take into account the attachability of domain names in estate planning
- To ensure proper registration of ownership rights to domain names
Also read : Can a creditor seize your domain name? - ICT Lawyer
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