Excellent test case Nic that will send a warning shot over the bows of any registrar which doesn't try to prevent domain theft taking place.
A good quote from the article:
"For over two hundred years, courts have consistently said that when a thief presents a forgery, the responsibility for the loss lies with the business in a position to detect and prevent the forgery, not with the innocent customer. Here, Network Solutions actively deprived Mr. Kremen of the opportunity to assist in thwarting the forgery before it was permitted to occur."
And another:
"There can be little question that a domain name is inherently a lucrative piece of cyber real estate, generating substantial revenue from its web surfers," says Pamela Urueta, an attorney representing Kremen. "As anyone who owns a domain name knows, they are valuable property. Even domain name thieves such as Mr. Cohen appreciate that reality."