A Chinese court in Shanghai has ruled a domain name can be seized and auctioned off to pay a debt according to a report in the Shanghai Daily.
The case involved “a local debtor company that had avoided paying a 120,000 yuan (US$19,251) judgment to a local film and television company for five years.”
A company linked the debtor company has now paid the debt after the case came about when the debtor company claimed it had no money, and last year the flm company “discovered the profitable website and asked the court if the domain name could be seized and auctioned.”
It is believed to be the first decision of its type in China.
The original Shanhai Daily report can be found here.