XML 33 R22.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 16 - Contingencies
3 Months Ended
Mar. 31, 2018
Notes to Financial Statements  
Commitments and Contingencies Disclosure [Text Block]
16.
Contingencies
 
On
August 30, 2017,
Namecheap, Inc. (“Namecheap”) filed a complaint against the Company, eNom, Inc., and unknown John Does in the United States District Court for the Western District of Washington alleging breach of contract, breach of the implied duty of good faith and fair dealing, and unjust enrichment (the “Namecheap Federal Action”).  Namecheap voluntarily dismissed the Namecheap Federal Action without prejudice on
October 10, 2017.
That same day, Namecheap filed a substantially similar complaint against Tucows Inc., eNom, LLC, and unknown John Does alleging breach of contract and breach of the implied duty of good faith and fair dealing in Washington State Court, King County (the “Namecheap State Action”). In the Namecheap State Action, Namecheap sought preliminary and ultimate equitable relief by way of the transfer of approximately
2.65
million domain names from the eNom, LLC platform to the Namecheap platform using BTAPPA. By Order dated
November 15, 2017,
the Court granted Namecheap’s Motion for Preliminary Injunction and the Company complied therewith in taking steps with Namecheap towards the BTAPPA. The Court ordered Namecheap to post a bond against damages sustained by the Company. The Company sought clarification from the Court on
one
BTAPPA requirement which the Court provided in the
January 5, 2018
Order. The BTAPPA transfer was initiated on
January 8, 2018
and completed on
January 16, 2018.
In addition to the equitable relief it has sought, Namecheap also seeks direct and consequential damages in the Namecheap State Action. The Company believes that the claims lack merit and intends to continue to defend them vigorously.  The Company does
not
believe that this litigation is a material pending legal proceeding.
 
The Company has other legal claims and lawsuits in connection with its ordinary business operations. The Company intends to vigorously defend these claims. While the final outcome with respect to any actions or claims outstanding or pending as of
March 31, 2018
cannot be predicted with certainty, management does
not
believe that the resolution of these claims, individually or in the aggregate, will have a material adverse effect on the Company's financial position.