Ariix LLC v Mahilall (No 2)

In the case of Ariix LLC v Mahilall, the applicant sought an extension of time to transfer a domain name and the imposition of indemnity costs against the respondent. The matter was heard in the Federal Circuit Court of Australia. The applicant, Ariix LLC, made an amended claim for the respondent to pay its costs on an indemnity basis, following earlier proceedings where the respondent had been found liable for passing off and cybersquatting. The respondent opposed the application for costs, arguing that the amount sought was excessive and that Ariix had not provided reasonable offers of compromise.

The legal issues before the court included whether the time for compliance with the transfer of the domain name should be extended and whether the applicant was entitled to indemnity costs in the amount of $140,000. The respondent contended that the proposed timeframe for the transfer was impractical and that the application for indemnity costs was inappropriate due to the size of the amount sought and the lack of reasonable offers of compromise. The court needed to consider the respondent’s arguments and determine whether the draft orders proposed by Ariix should be modified or if the application for indemnity costs should be granted in full, reduced, or denied.

The court accepted the respondent’s submission that there might be difficulties with the form of the draft order for the domain name assignment. It proposed that Ariix should provide the necessary documents for the assignment within seven days, with the respondent having a further seven days to execute and return those documents. This mechanism would allow for the assignment to proceed effectively if the respondent failed to comply within the stipulated time. Regarding the indemnity costs, the court did not accept the respondent's arguments that the amount sought was excessive or that Ariix had failed to make reasonable offers of compromise. The court found that the application for indemnity costs should be granted in full.

In conclusion, the court ordered that the respondent must provide the necessary documents for the domain name assignment within seven days, with an additional seven days for the respondent to execute and return those documents. The court also ordered that the respondent pay the applicant’s costs of the proceeding, including the indemnity costs, in the amount of $140,000.