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Microsoft Corp. v. John Does 1-27, 10-cv-00156-LMB-JFA (E.D. Va.; Sept. 17, 2010) (R&R re default judgment)

Microsoft Corp. v. John Does 1-27, 10-cv-00156-LMB-JFA (E.D. Va.; Sept. 17, 2010) (R&R re default judgment)

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Microsoft obtains possession of domain names allegedly used in conjunction with the creation of the "Waledac Botnet."
Microsoft obtains possession of domain names allegedly used in conjunction with the creation of the "Waledac Botnet."

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Published by: Venkat Balasubramani on Nov 19, 2010
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11/19/2010

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IN
THE
UNITED
STATESDISTRICT
COURT
FOR
THEEASTERN
DISTRICTOF
VIRGINIA
Alexandria
Division
MICROSOFT
CORPORATION,
Plaintiff,
v.
JOHNDOES
1-27,Defendants.
)
))))CivilActionNo.
I:10cv0156(LMB/JFA)
)
)
))
)
CLbRK,U.S.
DISTRICT
rniTn-
.ALEXANDRIA
Vi'pn,S?,Uni
PROPOSED
FINDINGS
OFFACT
AND
RECOMMENDATIONS
Thismatterisbeforethecourtonplaintiffssecondmotionfordefaultjudgmentpursuant
toFederalRule
of
CivilProcedure55(b)(2).(Docketno.84).Inthisaction,theplaintiff.MicrosoftCorporation('"Microsoft"),seeksadefaultjudgmentorderingthattheregistryfor276domainnamestransfertheregistrationsforthosedomainnamestoaspecifiedregistrarwhowill
thentransfertheregistrationsforthosedomainnamestoMicrosoft.Pursuantto28U.S.C.§
636(b)(1)(C),theundersignedmagistratejudgeisfilingwiththecourthisproposedfindings
of
factandrecommendations,acopyofwhichwillbeprovidedtoallinterestedparties.
Procedural
Background
OnFebruary22,2010,MicrosoftfileditsComplaintagainst27JohnDoeregistrants
of
273domainnamesallegingthatthedefendantshadusedthedomainnamesinconjunctionwith
thecreation
of
amaliciousbotnetknownastheWalcdacBotnct.(Docketno.
1).
Thatsameday,Microsoft
filed
amotiontosealthecase(Docketno.3),anApplicationforanEmergency
Temporary
Restraining
Order
and
Order
to
Show
Cause
rea
PreliminaryInjunction
("Application")(Docketnos.4,5).
The
Application
was
supportedbydeclarations
of
AndreM.Dimino(Docketno.6),Dean
Turner
(Docketno.7),DavidDittrich(Docketno.8),T.J.
Case 1:10-cv-00156-LMB-JFA Document 89 Filed 09/17/10 Page 1 of 33
 
Campana(Docketno.9),andGabrielM.Ramsey(Docketno.10)andbyamemoranduminsupport(Docketno.11).MicrosoftalsofiledaSupplementalApplicationforanEmergency
TemporaryRestrainingOrderandOrdertoShowCauserePreliminaryInjunctiononFebruary
22,2010.(Docketnos.14,15).Thesupplementalapplicationwassupportedbyamemoranduminsupport(Docketno.16)andbyadeclaration
of
T.J.Campana(Docketno.17).
OnFebruary22,2010,theDistrictJudgeheldahearingonMicrosoft'sApplicationand
supplementalapplication(Docketno.19)andenteredanOrdersealingthismatterforthree
businessdays(Docketno.12)aswellasanOrdertemporarilyrestrainingandenjoining
defendantsfromengaginginactivitiesrelatedtotheWaledacBotnet(Docketno.13).The
DistrictJudgeorderedthattheregistry
of
thedomainnamesatissue,VeriSign,Inc.
("VeriSign"),immediatelylockthedomainsattheregistrylevelandholdtheminescrow.
(Docketno.13).TheOrderalsosetahearingontherequestforapreliminaryinjunctionfor
March8,2010at9:00a.m.andrequiredMicrosofttoservethedefendantsbyanymeans
authorizedbylaw,including:(1)personaldeliveryupondefendantswhoprovidedcontact
informationintheUnitedStates;(2)personaldeliverythroughtheHagueConventiononService
AbroadupondefendantswhoprovidedcontactinformationinChina;(3)transmissionbye-mail,facsimileandmailtothecontactinformationdefendantsprovidedtotheirrespectivedomainnameregistrarsandasagreedtobydefendantsintheirdomainnameregistrationagreements;
and(4)publishinganotice
of
theseproceedingsonapubliclyavailableInternetwebsite.
Id.
TheOrdersetabondintheamount
of
$54,600.00,whichMicrosoftdepositedwiththecourtthat
sameday.(Docketno.18).AsecondOrder
of
February22,2010addedfouradditionaldomain
namesthatwerenotnamedinthecomplaintortheinitialapplicationforthetemporary
Case 1:10-cv-00156-LMB-JFA Document 89 Filed 09/17/10 Page 2 of 33
 
restrainingorder.(Docketno.27).PursuanttothatOrder,Microsoftdepositedanadditional
bondintheamount
of
$800.00.(Docketno.28).
OnFebruary
22,2010,
summonseswereissuedastothe27
John
Doedefendants
(Docketnos.
20,21,22).
Plaintifffiledamotionforaprotectiveordersealingdocuments(Docketno.24)andanon-confidentialmemoranduminsupport
of
thatmotion(Docketno.25)onFebruary22,2010.Thatmotionwasgrantedthatsameday.(Docketno.26).
OnMarch5,2010,Microsoftfiledastatusreportregardingitsmotionforpreliminary
injunction.(Docketno.32).Initsstatusreport,Microsoftdescribedtheeffortsithad
undertakentoservethedefendants.
Id.
Italsostatedthatitnolongersoughtapreliminary
injunctionastothedomain"name-services.com"becausetemporaryreliefastothatsitewasnot
longernecessarytoaddresstheinjurycausedbytheWaledacBotnet.
Id.
OnMarch8,2010the
hearingonMicrosoft'sapplicationforapreliminaryinjunctionwasheldbeforetheDistrictJudge(Docketno.33)andonMarch10,2010anOrderwasenteredgrantingMicrosoft'srequest
forapreliminaryinjunctionenjoiningcertainactivities
of
theJohnDoedefendantsandlocking
theregistrationsfor276domainnames(Docketno.38).OnMarch9,2010,MicrosoftfiledaMotionforLimitedAuthoritytoConductDiscoveryNecessarytoIdentifyandServeDoeDefendants(Docketno.34)alongwithamemorandumin
support(Docketno.35)andnoticeditforahearingonMarch19,2010(Docketno.36).Onthe
day
of
thehearing,nodefendantappearedandMicrosoft'smotionwasgrantedbyanOrder
of
March
19,2010.
(Docketno.40).
MicrosoftfileditssecondstatusreportregardingthepreliminaryinjunctiononApril7,2010.(Docketno.41).Thisstatusreportindicatedthatdespitediligentefforts,neitheritnorthe
domainnames'registrarshadreceivedanycommunicationfromany
of
theregistrants.
Id.
Case 1:10-cv-00156-LMB-JFA Document 89 Filed 09/17/10 Page 3 of 33

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