Losing party ordered to pay costs in domain name dispute

Chile
The Court of Appeal has confirmed that the losing party in a domain name dispute can be condemned to pay the costs, and that the term for executing the costs order is independent from the date of the principal judgment.

The owner of the domain name 'saeco.cl' was the losing party in arbitral proceedings. It was ordered to transfer the domain name to Saeco International Group SpA and to pay the costs - the first time that an arbitrator had ordered the defendant to pay the costs in a domain name dispute.

In order to collect the costs, Saeco brought executory proceedings before the civil court. The defendant argued, among other things, that the period for bringing the executory proceedings had expired under the statute of limitations. However, on August 5 2008 the court rejected the defendant’s arguments and held that the period for bringing the proceedings had not expired.

The defendant appealed to the Santiago Court of Appeals, alleging that the statute of limitations had started to run when the arbitrator had ordered the transfer the domain name. In contrast, Saeco argued that the statute of limitations had started to run when the arbitrator had issued the complementary resolution ordering the defendant to pay the costs.

The Court of Appeal agreed with Saeco and dismissed the defendant's appeal. If the defendant does not appeal to the Supreme Court, the case will be remanded to the first instance court to proceed with the execution of the costs order.

Sergio Amenábar, Estudio Federico Villaseca, Santiago

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