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Funko, BrandShield speak out about itch.io takedown
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That's not even in their calculation for most of their customers. They aren't going to eat a court case if they don't have to and every refusal risks a court case. A customer has to be truly large to actually be defended by their ISP.
They wouldn't get a court case over this. Firstly because registrars are not responsible for the content on their websites, And social media sites and other sites that allow users to post-content to them are themselves not directly responsible for the content users choose to post.
The appropriate action for a registrar is to contact the owner of the website in question, If it is getting close to the allotted time and they haven't had a response then they take the website down. All allowable under the law without getting sued.
This registrar didn't even bother trying to contact the site, they did not do a totally automatable and essentially free action, simply because they couldn't be bothered.
In the US record companies are busy making everyone responsible via court cases. That's the problem.