Featured in the Wall Street Journal · ABC News · BBC News · Forbes ·  Newsweek · USA Today · New York Times · CNN/Money · Investor's Business Daily


August 27, 2012

Domain Sales

About Us

YTD Sales Charts

E-Mail Us

The Lowdown

News Headlines




Letters to Editor

The Lowdown Subscribe to our RSS Feed
Here's the The Lowdown from DN Journal,
updated daily
to fill you in on the latest buzz going around the domain name industry. 

The Lowdown is compiled by DN Journal Editor & Publisher Ron Jackson.

No Free Lunch: Despite UDRP Win Brazilian Company Decides to Settle the Tab for ChilliBeans.com After Being Sued By Frank Schilling

I got a note from Frank Schilling this week letting me know about a favorable outcome to a long running domain dispute centered around one his company's many generic domain names - ChilliBeans.com. Two years ago a Brazilian company, Balglow Finance, that makes sunglasses called Chilli Beans filed a UDRP against Frank's company, Name Administration Inc. (NAI) in an attempt to take the domain without paying for it, even though their trademark rights (like all trademark rights) were limited to a specific category of goods, not including the more commonly known food use that most would associate with this name and that NAI had in mind for it.

As happens way too often in UDRP cases the panel, despite the evidence, ruled against the domain owner even though Balglow Finance themselves just admitted that "the generic Chillibeans.com domain name violated no enforceable rights of Balglow Finance."

Frank Schilling
Name Administration


Everyone who knows Schilling knows he has always done things the right way and he is not going to knowingly violate anyone's legitimate trademark rights. By the same token, he insists that his rights be respected as well. Schilling has never let anyone usurp those rights and, as one of the most successful domain investors in history, he fortunately has the resources to fight back. Schilling has won close to 20 UDRP cases in the past and if necessary he will take the fight further than that to defend his assets. That is exactly what he did in this case as NAI wound up filing a lawsuit against Balglow that stopped transfer of his domain name in its tracks. 

Having been stymied in their effort to take NAI's property without paying for it, and their prospects for successfully defending their actions in the lawsuit tenuous, the company decided to settle and wound up doing what I think they should have done in the first place - negotiate a purchase price for the name that was fair to its owner. That has now been done and the dispute settled once and for all with the two sides mutually benefiting from a fair transaction. A joint announcement from the two companies follows:

Name Administration Inc.  ("NAI") and Balglow Finance SA ("Balglow Finance") are pleased to announce that they have come to a mutually beneficial agreement in regard to the domain name ChilliBeans.com and the settlement of the law-suit filed by NAI in the Cayman Islands concerning the domain name.  Both parties have agreed that NAI’s use of the generic Chillibeans.com domain name violated no enforceable rights of Balglow Finance. The settlement of this dispute will see NAI transfer title of this generic name to Balglow Finance to assist it in its online efforts relating to Balglow Finance’s expansion of the “Chilli Beans” brand of eyewear.

“While it’s unfortunate that this dispute necessitated a trip to the Cayman Court, we are most pleased to have resolved the matter in such a mutually beneficial way," said Frank Schilling, MD for NAI. He continued, “NAI’s only interest in the domain name was as a generic term.  Now that it’s been settled that NAI’s registration and use of the domain name violated no rights of Balglow Finance we are pleased to facilitate the transfer, as the domain name is beneficial in advancing the business of Balglow Fianance, and while valuable to NAI, has less long term value to our company."

It's too bad it took two years to get there, but at least this story closed with the appropriate ending.

(Posted Nov. 4, 2010) 

For all current Lowdown posts - Go Here

We need your help to keep giving domainers The Lowdown, so please email editor@dnjournal.com with any interesting information you might have. If possible, include the source of your information so we can check it out (for example a URL if you read it in a forum or on a site elsewhere). 

 Home  Domain Sales  YTD Sales Charts   Latest News  The Lowdown  Articles  
Legal Matters
  Dear Domey  Letters to Editor  Resources  Classified Ads  Archive  About Us

Hit Counter

Latest news of the domain name industry


Copyright 2010 DNJournal.com - an Internet Edge, Inc. company. 
No material may be copied from this site without expressed written consent.