updated 12:43 pm EDT, Sat July 12, 2014
Microsoft has little comment over the mishandled matter
The Microsoft and No-IP saga appears to be complete. Just one week after the dynamic domain name service (DNS) had its domains seized by Microsoft, all domains have been returned, users have reported restored functionality, and the lawsuit filed by Microsoft against parent company Vitalwerks has been dropped.
On June 30, Microsoft announced the suit, which led to a federal judge in Nevada ordering the 23 named domains be seized by Microsoft. The seizure moved the authority over and resolution for many of No-IP's domains to Microsoft Azure.
The shift didn't go very well. Five million hostnames were affected, with 1.8 million customers, many paid and not assisting the 22,000 hostnames associated with Bladabindi and Jenxcus malware packages going dark as well. Microsoft handed back the domains on July 3, with the lawsuit being settled this week.
No-IP has written some detail about the seizure, saying that "Microsoft promised the judge they would only block the hostnames alleged to be malicious, and would forward all the remaining traffic for the non-abusive hostnames on to No-IP. This did not happen. The Microsoft DNS servers were misconfigured, and failed to respond to our usual volume of billions of queries a day."
Microsoft claims that the innocent customers caught in the dragnet were only affected because of "a technical error." Microsoft also said that most fixes were applied by 6AM on June 30, but users experienced issues for nearly a week afterwards, despite Microsoft's claims of all service being restored. The company has little to say about the seizure itself, only trumpeting its success in dealing a blow to the malware.
The two companies reported earlier this week that the lawsuit has been settled. No terms were made public, but Electronista has learned that Microsoft has dropped the suit in its entirety. No-IP states that the whole issue could have been avoided. It writes that "to state this as emphatically as possible -- this entire situation could have been avoided if only Microsoft had followed industry standards. A quick email or call to the No-IP abuse team would have removed the abusive hostnames from the No-IP network."