The latest order in Kentucky v 141 Internet Domain Names has just come down from the Franklin Circuit Court. Remember that this case goes back to 2008 when the Commonwealth of Kentucky tried to seize certain domain names (including www.fulltiltpoker.com and www.pokerstars.com) on an ex parte basis because the domain names were said to be operating in breach of Kentucky law.
In an attempt to kick-start this litigation – which has been bogged down in procedural wranglings and appeals – Kentucky had proposed to divide the in rem defendants into smaller, more manageable groups. Each group would then be addressed by the court using a case management system. The idea was that the owner of the domain name in each group would be given notice and a chance to appear, prove his/her/its ownership of the domain name, and contest the seizure. The first group of domain names was limited to www.playersonly.com, www.sportsbook.com, www.sportsinteraction.com, www.mysportsbook.com, and www.linesmaker.com. The Interactive Media Entertainment & Gaming Association (iMEGA) had opposed Kentucky\’s motion and also sought to intervene in the case.
iMEGA has made a case for what\’s called associational standing. Associational standing, very generally, allows an organization or group to intervene in a judicial proceeding on behalf of its members. There are a number of tests that need to be met in order to obtain associational standing. While iMEGA would normally have associational standing, the Franklin Circuit Court has now held that it is unclear whether associational representation can extend to an in rem proceeding in Kentucky; this issue is novel and the court needs to consider it further. Accordingly, the next move is that the Court will keep the case management order sought by Kentucky on hold until the associational standing issue can be determined. This is a clear victory for the defendants in this matter, as Kentucky wanted to simply plough ahead with a case management structure and without vetting the associational standing issue.
The parties have 30 days to submit briefs on this issue, after which Kentucky or iMEGA can bring the matter on for an oral hearing.
Stay tuned for more developments in this fascinating state-level case.