Judge Ricardo Martinez decided against dismissal on January 12, 2011, affirming that Microsoft had a possible case against Shah. The court first noted that while contributory trademark infringement is well established, the ACPA, unlike trademark law, required a showing of "bad faith intent." Previous courts, notably in Ford Motor Co. v. Greatdomains.com, reasoned that a higher standard was required for claims of contributory cybersquatting.
The court noted that the decision of the Ford court indicated that the court had recognized a cause of action under contributory cybersquatting, but found in favor of GreatDomains.com since Ford failed to show the requisite bad faith by GreatDomains.com. The Judge noted that in this particular case, the facts clearly demonstrated bad faith with an intent to profit, and as such denied the defendants' motion to dismiss. While the ACPA does not explicitly address causes of action under contributory liability, the court noted that action under the ACPA is a tort-like cause of action, and traditional principles of tort law impose liability on those who assist or contribute in the infringement.
The court's decision notably expanded liability under the ACPA to include contributory damages, basing its decision on traditional principles of liability of tort law. Several scholars noted that the court's decision provides a precedent for expanding ACPA liability, beyond actions explicitly prohibited by the text of the law. This was particularly notable since Microsoft did not have to prove that the defendant actually sold any domain names to third parties or helped third parties acquire domain names.