Indigo Networks, a Nassau, Bahamas-based telecommunications company found itself hit with a complaint last November, alleging that it had no legitimate interests or rights to the domain name it owned.

The complaint, filed by OnePhone Holding, a Stockholm-based telecommunications investment company, went to the World Intellectual Property Organisation (WIPO). The Geneva-based United Nations agency is one of four ICANN-approved domain-name dispute-resolution service providers.

OnePhone asked WIPO to have the domain name transferred because it was the rightful owner of a European registration under the name "ONEPHONE." The Swedish company also claimed that it had registrations or pending registrations of the name in several other countries - though not in the Bahamas.

The disputed domain name itself had been originally registered by Patrick Low in 1999. OnePhone said that it had tried purchasing the domain name in 2005 from Low for $1,800. Low refused, eventually selling the domain name to Indigo for $10,000 in 2007.

In requesting the transfer, OnePhone said that its registered business name was identical to the domain name used by Indigo. The company pointed out that Indigo did not do business in the name OnePhone prior to the registration of the domain name, nor was it commonly known by that name. It argued that Indigo acted in bad faith when it registered the domain under its name.

OnePhone went on to claim that Indigo was a competitor that more than likely was aware, or should have been aware, of the existence of OnePhone and the fact that the company had tried to buy the domain name from Low.

After OnePhone filed its compliant, Indigo's domain registrar locked the disputed domain to prevent it from being transferred to another registrar during the arbitration fight. As is customary, Indigo had 20 days to respond.

The company decided to fight back.