BTQ Technologies Corporation et al v. Newton et al

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WO
IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF ARIZONA
BTQ Technologies Corporation, et al.,
Plaintiffs,
v.
Nicolas Roussy Newton, et al.,
Defendants.
No. CV-26-03103-PHX-SHD
ORDER
Upon consideration of Plaintiffs’ Application for Temporary Restraining Order
(“TRO”), (Doc. 21), the Court finds that Plaintiffs have, at a minimum, raised “serious
questions going to the merits” of their claims and that “the balance of hardships tips sharply
in [Plaintiffs’] favor.” All. for the Wild Rockies v. Cottrell, 632 F.3d 1127, 1131–35 (9th
Cir. 2011). Plaintiffs have also demonstrated a likelihood of irreparable harm and that a
TRO is in the public interest. See id. The TRO application will therefore be granted as
outlined below.
With respect to Plaintiffs’ likelihood of success on the merits, Plaintiffs have
presented compelling evidence that Defendant Nicolas Roussy Newton improperly
obtained access to the Latentcap.com domain, and as a result, is collecting confidential and
highly sensitive information, publishing that information to the public on the BTQfiles.com
domain, interrupting Plaintiffs’ business dealings, and impersonating and engaging in a
campaign of harassment against Plaintiffs. (See, e.g., Doc. 22 at ¶¶ 20–26.) These facts
are sufficient to establish that Plaintiffs have raised serious questions on the merits of their
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claims under the Computer Fraud and Abuse Act and the Stored Communications Act. See
18 U.S.C. §§ 1030(a)(2); 1030(a)(5), 2701(a). Plaintiffs have also raised serious questions
on their Lanham Act claims, as they have made a showing that they have trademark rights
in the “BTQ” mark and that Roussy Newton’s use of BTQfiles.com likely infringes on
those rights. See Reno Air Racing Ass'n., Inc. v. McCord, 452 F.3d 1126, 1134 (9th Cir.
2006) (“A claim of trademark infringement under § 1114(1)(a) of the Lanham Act requires
a trademark holder to demonstrate: (1) ownership of a valid mark (i.e., a protectable
interest), and (2) that the alleged infringer’s use of the mark is likely to cause confusion, or
to cause mistake, or to deceive consumers.” (cleaned up)).
Further, Plaintiffs have suffered and will continue to suffer significant injuries to
their business, goodwill, and reputation because of Roussy Newton’s conduct. (See Doc.
5 at 24–26 (describing injuries suffered to date).) Given both the harm Plaintiffs will suffer
without a TRO and that Defendants are unlikely to suffer any harm if it is issued, granting
the TRO is appropriate. Finally, an ex parte TRO is warranted. If notified of the pending
application for a TRO, Roussy Newton could inflict further injury on Plaintiffs or remove
the contested domains to a new registrar, perpetuating the existing harm caused to
Plaintiffs.
Accordingly,
IT IS ORDERED granting the Application for a TRO, (Doc. 21), as follows.
IT IS FURTHER ORDERED THAT:
1. Defendants GoDaddy.com, LLC and GoDaddy, Inc. (collectively, “GoDaddy”)
shall immediately cease permitting Roussy Newton to access or in any way
exercise control over the domain Latentcap.com (the “Latentcap Domain”), and
the domain BTQfiles.com (the “BTQfiles Domain”);
2. GoDaddy shall immediately disable or suspend the BTQfiles Domain;
3. GoDaddy shall immediately place a hold on the Latentcap Domain and the
BTQfiles Domain to prevent any transfers, DNS changes, modifications to
registrant or contact information, or any other changes to the domains;
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4. GoDaddy shall immediately restore the Latentcap Domain to its last known
operational status quo pending such transfer;
5. Roussy Newton is hereby temporarily enjoined from accessing, using,
controlling, or interfering with the Latentcap Domain, and the BTQfiles
Domain;
6. Roussy Newton is hereby temporarily enjoined from publishing, disseminating,
or otherwise disclosing any material obtained through his access to the Latentcap
Domain, including: (a) Plaintiffs’ trade secrets, confidential information, or
attorney-client privileged materials; or (b) the personal information of BTQ’s
officers, directors, and employees;
7. Plaintiffs shall post a nominal bond of one hundred dollars ($100.00) for the
domain names at issue because even if Defendants ultimately prevail, the
evidence indicates that Defendants would potentially suffer only minimal, if any,
damage by the issuance of this temporary restraining order. See Fed. R. Civ. P.
65(d).
8. This order shall take effect immediately, without advance notice to Roussy
Newton. See Fed. R. Civ. P. 65(b)(1).
9. This temporary restraining order shall remain in effect through Monday, May
11, 2026.
10. On Monday, May 11, 2026, at 9:30 a.m. the Court will hold a hearing, after
giving notice to Roussy Newton, to determine whether to extend the temporary
restraining order pending consideration of the motion for a preliminary
injunction.
11. If counsel for GoDaddy has not yet appeared in this action as of the entry of this
Order, Plaintiffs shall immediately provide a copy of all the papers filed in this
action, including this Order, to GoDaddy by email and by mail.
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12. Within 48 hours of the entry of this Order, Plaintiffs shall file a status report
informing the Court whether they believe that GoDaddy has complied with the
terms of this Order.
13. Plaintiffs shall provide a copy of all the papers filed in this action to Roussy
Newton by email within 48 hours of the entry of this Order.
14. Within 72 hours of the entry of this Order, Plaintiffs shall file a status report
informing the Court whether they believe that Roussy Newton has complied with
the terms of this Order.
Dated this 5th day of May, 2026 at 4:15 p.m.
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