Navigation Catalyst Systems, previously known as Vendare, First Look, and qsrch.net, was a pay-per-click advertising company that specialized in monetizing parked domain names and registrars' wildcard DNS records.
It claimed that it was merely "reserving" the domain names by taking advantage of Basic Fusion's Add Grace Period.
Basic Fusion attempted to argue that it was not the same legal entity as Navigation Catalyst Systems, but the court stated that they were the same for the purposes of a preliminary injunction motion.
Navigation further asserted an unclean hands defense, arguing that Verizon used a similar pay-per-click program to monetize its wildcard DNS records.
In so doing, the court held that Navigation Catalyst Systems had intended to profit in bad faith from the typographical errors of Internet users that mistyped Verizon's trademarks in the URL bar of their web browsers: It is clear that their intent was to profit from the poor typing abilities of consumers trying to reach Plaintiffs' sites: what other value could there be in a name like ve3rizon.com?