Indeed.

Situation 1: Qaddafi's regime appropriates all .ly domains and redirects them to whatever the fuck they want (including clones of the originals).

Situation 2: Qaddafi's regime is overthrown by a coup, junta, popular uprising, or what-have-you, and then the new regime decides to repudiate business agreements made with the old regime, including domain names.

Neither is hugely unlikely. I cannot for the life of me understand why any business would sink the foundations of their brand into the sands of the questionably stable Libyan regime.