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Aramco Wins Domain Dispute in Chile: Sole Arbitrator Rules in Favor
Aramco Wins Domain Dispute in Chile: Sole Arbitrator Rules in Favor
Background of the Dispute:
In a landmark decision dated April 8, 2024, a sole arbitrator seated in Santiago de Chile ruled in favour of the Saudi Arabian Oil Company (“Aramco”) in an internet domain property dispute. The dispute arose when Mr Joaquín Poblete registered the domain “Aramco. cl” on September 15, 2023, shortly after Aramco acquired the Chilean entity Esmax Distribución. Believing it had implicit ownership due to its established global presence and ownership of “aramco.com” and several related social media profiles, Aramco initiated a domain revocation arbitration proceeding on October 2, 2023.
Jurisdiction and Arbitration Rules:
The dispute was adjudicated under the auspices of NIC-Chile, an institution managed by the University of Chile responsible for registering ".cl" domains. NIC-Chile’s Arbitration Center, operating under its Arbitration Rules and the Policy for the Resolution of Disputes of Name Domain, grants arbitrators jurisdiction over such disputes. According to Articles 19 and 20 of the Rules, claimants can pursue domain revocation based on either a preferential interest or an abusive registration standard.
Aramco's Claims and Arguments:
Aramco promptly resorted to the early domain revocation proceeding, needing only to prove its preferential interest over the domain. Aramco also argued that Mr. Poblete’s registration was in bad faith, meeting the higher standard of Article 20. Aramco submitted extensive evidence of its global trademark rights, including registrations in the EU, US, Chile, Brazil, Canada, Mexico, Monaco, Cambodia, the UK, Malaysia, and Indonesia.
Arbitrator's Decision:
The sole arbitrator ruled in favour of Aramco, revoking Mr Poblete’s ownership of “Aramco. cl” and transferring it to Aramco. The arbitrator's decision was based on two main considerations:
- Preferential Interest: Aramco successfully demonstrated its preferential interest in the domain due to its extensive worldwide commercial use of the term “Aramco.” The arbitrator recognized the public and notorious fact of Aramco’s international trademark ownership.
- Respondent's Conduct: The arbitrator stated that any person of average intelligence could not plausibly claim ignorance of Aramco’s ownership of the “Aramco” trademark. This acknowledgement further supported the claim of bad faith in the registration.
Implications and Key Takeaways:
While the dispute itself was not overly complex, the decision highlights critical points for companies operating internationally:
- Proactive Monitoring: Companies entering new markets should closely monitor domain name registrations to protect their interests. Swift action, as demonstrated by Aramco, allows reliance on a lower standard of proof for domain revocation.
- Importance of Fairness in Arbitration: NIC-Chile disputes are resolved by sole arbitrators applying principles of fairness. Companies must clearly articulate the commercial rationale behind their domain ownership claims to effectively argue their case.
Conclusion:
The Aramco case serves as a reminder for businesses to be vigilant in protecting their digital assets and underscores the importance of understanding local domain registration and arbitration procedures. By acting promptly and presenting a well-documented case, companies can safeguard their trademarks and domain names from opportunistic registrations.
- Aramco also argued that Mr. Poblete’s registration was in bad faith, meeting the higher standard of Article 20.
- The sole arbitrator ruled in favor of Aramco, revoking Mr. Poblete’s ownership of “aramco.cl” and transferring it to Aramco.
- Companies must clearly articulate the commercial rationale behind their domain ownership claims to effectively argue their case.
