It's intentionnal, admins double evey color character because parsing inside server browser seems to act differently.
Wow, I did not realize.. so if a server name has a color code, that one is stripped in the server browser.
I imagine the original intention was not to show colors in the server browser. This functionality is obviously broken, because colors show up, by using ^^dd instead of ^d.
EDIT: Willis said this is an OA bug, because the other ioquake3 games do not have this problem.
So if it is intentional (I hope not), it should be documented, otherwise it should be fixed.