Not only did Microsoft bungle the facts and the tech underlying its seizure of No-IP.com’s core business, its case against the provider was based on a downright dangerous legal theory. Microsoft argued that, as a provider of free network services, No-IP.com was negligent. Indeed, Microsoft claims that No-IP.com had a legal obligation to:

Require all users to provide their real name, address, and telephone number.
Put that information in a public database.
Use a “web reputation” service to identify bad actors.
And encrypt its customers’ usernames and passwords.

Every one of those points is rubbish, and none is a legal duty of service providers.