Restrictions on the amount of domain names a Registrant Entity may own
On May 20, 2009, the Ministry of Foreign Affairs, by means of Resolution No 203/2009 (the “Resolution”), limited the number of country code domain names “.com.ar” or “.org.ar” that a Registrant Entity may register to 200.
In Argentina, the registration of domain names is gratuitous. According to statistics provided by Nic-Argentina, (an entity run by the Ministry of Foreign Affairs, and in charge of the administration and registration system of domain names in Argentina) there are approximately 1,800,000 registered domain names, of which 450,000 are registered to only 800 registrant entities (out of the 511,815 existing registrant entities with Nic-Argentina). The Ministry of Foreign Affairs understands that approximately 450,000 of the domain names registered are merely speculative.
In order to reduce the above-mentioned abuse, the Ministry of Foreign Affairs has passed the present Resolution to limit the number of domain names a Registrant Entity may register to 200.
The Resolution establishes that a Registrant Entity that already holds the maximum number of 200 domain names may not register new domain names, renew more than 200, nor receive assignments of domain names from third parties. In the event of pending registrations by a registrant entity that already holds 200 domain names, Nic-Argentina will proceed to eliminate the domain name applications.
However, the Resolution does not specify if a Registrant Entity with more than 200 domain names may transfer the excess domain names (those over 200) to third parties, or if Nic-Argentina will directly eliminate them.
Because the Resolution does not prohibit transferring excessive domain names, we understand that a Registrant Entity would be able to assign those domain names over 200 to another registrant entity.
In exceptional cases, Nic-Argentina may authorize a registrant entity that has reached the limit of 200 domain names to register new domain names. Under these circumstances, the registrant entity must file a written petition:
b) Proving it has goods and/or services associated with the given domain name, or
c) Proving that it is publicly known through the domain name in question.
Domain names registered through this exceptional proceeding will not be transferable to third parties.
It is worth noting that the most effective method to discourage the registration of domain names that are merely speculative is openly discussed worldwide, and so far there is no consensus opinion as to the most effective measure. Some analysts are inclined to support the elimination of gratuitous registration and instead favor a shift to a system where a basic registration fee is charged. While no consensus has been reached, the discussion for the best method is ongoing.
The Resolution came into effect on May 21, 2009.
This insight is a brief comment on legal news in Argentina; it does not purport to be an exhaustive analysis or to provide legal advice.
