Court Sides With GoDaddy Over Adult Webcam Redirect Sites

SAN FRANCISCO — GoDaddy.com can't be held liable for damages after it registered two domain names that allegedly infringed on a company's trademark, the 9th U.S. Circuit Court of Appeals ruled this week.

The court ruled on the novel claim of "contributory cybersquatting" used by Malaysian national oil company Petronas, which accused GoDaddy of selling domains that included the company's trademark.

Those domains, PetronasTower.net and PetronasTowers.net, eventually were used to redirect traffic to adult webcam site CamFunChat.com.

In a 3-0 decision this week, the court ruled against Petronas, which appealed over a lower court granting summary judgment to the domain registrar.  

Petronas said it complained to GoDaddy over the two websites that were alleged to have cybersquatted on its name, but it was not until Petronas obtained two separate court orders that GoDaddy stopped forwarding traffic from those domains to CamFunChat.

GoDaddy attorney John Slafsky told the 9th Circuit in oral arguments in October that with more than 50 million domain names, registrars can't police every trademark dispute. Further, Slafsky said that GoDaddy's position all along is that Petronas should direct its complaints for damages to the operator of CamFunChat.

This week, the court agreed with GoDaddy, saying that trademark holders have sufficient remedies under the Anticybersquatting Consumer Protection Act (ACPA) without turning to contributory liability and that, otherwise, registrars would have herculean tasks of defining customer intent and arbitrating disputes.

"[I]mposing contributory liability for cybersquatting would incentivize 'false positives,' in which the lawful use of a domain name is restricted by a risk-averse third party service provider that receives a seemingly valid take-down request from a trademark holder," the 9th Circuit panel wrote. "Entities might then be able to assert effective control over domain names even when they could not successfully bring an ACPA action in court.

"In addition to the provisions imposing civil liability on cybersquatters, the ACPA authorizes an in rem action against a domain name if the registrant is not available to be sued personally. Finally, trademark holders may still bring claims for traditional direct or contributory trademark infringement that arises from cybersquatting activities."

View ruling

Related:  

Copyright © 2026 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

SinfulXAI to Launch New AI Generator

AI companion platform SinfulXAI has announced its new AI video generator, launching in February.

SCOTUS Won't Hear Appeal in NYC Adult Businesses Zoning Case

The U.S. Supreme Court has declined to hear an appeal by a group of adult businesses of a lower court’s decision allowing enforcement of a 2001 zoning law aimed at forcing adult retail stores out of most parts of New York City.

AEBN Publishes Popular Searches for November, December

AEBN has published the top search terms for November and December from its straight and gay theaters in all 50 states and the District of Columbia.

X3 Expo Day 2 Delivers Stars, Screenings and Fan Favorites

The sun once again shone brightly on the historic Hollywood Palladium as throngs of avid fans made their way through the doors, ready to experience Day 2 of the 2026 X3 Expo.

X3 Expo Kicks Into Gear With an All-Star Lineup

Outside the historic Hollywood Palladium on Friday, a huge crowd of fans lined Sunset Boulevard, eagerly awaiting the opening of the 2026 X3 Expo and their big chance to meet the cream of the crop of adult stars.

2026 XBIZ Honors Salutes Resilience Across the Online Adult Industry

The 2026 XBIZ Honors packed house Wednesday night, turning the Kimpton Everly Hotel’s Nichols Ballroom into a gala celebration of industry excellence.

Elevated X Integrates CCBill for Payment Processing

Elevated X has added CCBill payment processing integration to its ELXNexus traffic management and affiliate software.

Florida Congressman Files Latest Bill to Repeal Section 230

Rep. Jimmy Patronis of Florida has become the latest member of Congress to propose legislation that would repeal Section 230 of the Communications Decency Act, which protects interactive computer services — including adult platforms — from liability for user-generated content.

Irish Parliamentary Committee Weighs Stricter AV Laws

The Irish national parliament’s Joint Committee on Arts, Media, Communications, Culture and Sport met Wednesday to discuss regulation of online platforms and improving online safety, including calls for stricter age verification by adult sites.

Ofcom Issues Guidance on Age Check Placement for Adult Sites

U.K. media regulator Ofcom on Wednesday published its recommendations for where and how adult sites should deploy age checks as required for compliance with the Online Safety Act.

Show More