The system operates because registrants have signed up to PANDI's terms. The procedure is that the Complainant files a complaint to PPND PANDI based on one of 3 available grounds (based on a Registered trade mark, Registered Business Name or if it is contrary to public order - which means bad faith). The time frame under the rules is 2 months, but it may take longer since there are some steps during the process with no clear time frame in the regulations - such as the time limit for the PANDI to form the Panel once the objection and the response has been submitted by both parties.
The Netflix.co.id domain name was registered by a local registrant. The Arbitrator decided in favour of the US trademark owner on the basis of their prior registration and ordered the domain name to be transferred to Netflix, Inc.