- AFRINIC continued legal action against Cloud Innovation despite repeated losses in Mauritian courts, leading to the freezing of its own bank accounts.
- The legal dispute has raised concerns about AFRINIC’s governance, policy enforcement, and financial accountability.
AFRINIC’s legal action backfires as court orders asset freeze
AFRINIC, the African regional internet registry, has faced severe consequences following a prolonged legal conflict with Cloud Innovation Ltd. The registry’s continued litigation, despite multiple adverse court decisions, resulted in the freezing of its financial accounts by court order in Mauritius.
The dispute originated in 2021 when AFRINIC accused Cloud Innovation of violating its resource usage policies by assigning IP addresses outside of the African region. On that basis, AFRINIC attempted to revoke Cloud Innovation’s membership and reclaim the allocated IP address blocks.
However, Mauritian courts repeatedly ruled in favour of Cloud Innovation, blocking AFRINIC’s attempts to terminate the company’s account. The rulings established that AFRINIC had not adequately followed its own procedures and that the out-of-region use cited in the claims did not constitute a breach of policy.
Also read: EXPOSED: The letter that reveals who was really benefitting from AFRINIC’s lawsuits
Also read: Is the AFRINIC election process compliant with Mauritian corporate law?
Policy framework does not prohibit out-of-region use
At the core of AFRINIC’s allegation was the belief that Cloud Innovation had failed to comply with regional use requirements. Yet AFRINIC’s Consolidated Policy Manual provides for primarily in-region use but permits justified out-of-region deployment of IP resources.
This legal distinction became a key factor in the court’s assessment of the case. Cloud Innovation, as one of AFRINIC’s largest members, had previously received and maintained its IP allocations through formal request and review processes. These allocations were still valid at the time of litigation.
Financial fallout: AFRINIC accounts frozen
Following unsuccessful attempts to enforce its claims, AFRINIC continued filing lawsuits against Cloud Innovation. Over 50 cases were brought across a two-year period. Legal filings and public reporting indicated that AFRINIC spent tens of millions in legal fees during this campaign.
A letter, recently exposed by BTW Media, shows that there is good evidence suggesting that the individuals representing AFRINIC had personal financial interest in prolonging the legal processes.
As litigation escalated, Cloud Innovation filed counterclaims. In response, Mauritian courts issued freezing orders on AFRINIC’s bank accounts, to safeguard potential financial claims under dispute.
These measures were implemented under judicial authority and remain in effect, significantly limiting AFRINIC’s ability to operate. Meanwhile, the dispute has stalled AFRINIC’s governance processes, including delays in board elections and community engagement activities.
A growing governance concern
The AFRINIC–Cloud Innovation legal standoff has sparked broader debate about the registry’s role, accountability, and leadership. Observers within the global internet governance ecosystem have expressed concern over AFRINIC’s ability to function effectively while embroiled in litigation and operational paralysis.
The conflict also draws attention to the importance of policy clarity, procedural fairness, and financial transparency in managing shared internet infrastructure. AFRINIC’s handling of the case has highlighted potential vulnerabilities in how RIRs enforce policy and resolve disputes.
As of now, Cloud Innovation remains a recognised and active resource member within AFRINIC, and its IP allocations have not been revoked. The outcomes of further court proceedings may determine the long-term implications for both parties—and for regional internet governance as a whole.
