national arbitration forum

 

DECISION

 

Morgans Hotel Group Co. and Morgans Group LLC v. Wayne Nicholas d/b/a Beroca Holdings B.V.I. Limited

Claim Number:  FA0708001066665

 

PARTIES

Complainant is Morgans Hotel Group Co. and Morgans Group LLC (collectively “Complainant”), represented by Adele R. Frankel, of McDermott Will & Emery LLP, 227 West Monroe Street; Suite 4400, Chicago, IL 60606.  Respondent is Wayne Nicholas d/b/a Beroca Holdings B.V.I. Limited (“Respondent”), Suite 331, 8 Shepherd Market, Mayfair, London, W1J 7JY, UK.

 

REGISTRAR AND DISPUTED DOMAIN NAME

The domain name at issue is <morganshotelgroup.mobi>, registered with EuroDNS S.A.

 

PANEL

The undersigned certifies that she has acted independently and impartially and that to the best of her knowledge she has no known conflict in serving as Panelist in this proceeding.  Hon. Carolyn Marks Johnson sits as Panelist.

 

PROCEDURAL HISTORY

Complainant submitted a Complaint to the National Arbitration Forum electronically August 20, 2007; the National Arbitration Forum received a hard copy of the Complaint August 21, 2007.

 

On August 24, 2007, EuroDNS S.A. confirmed by e-mail to the National Arbitration Forum that the <morganshotelgroup.mobi> domain name is registered with EuroDNS S.A. and that Respondent is the current registrant of the name.  EuroDNS S.A. verified that Respondent is bound by the EuroDNS S.A. registration agreement and thereby has agreed to resolve domain-name disputes brought by third parties in accordance with ICANN's Uniform Domain Name Dispute Resolution Policy (the "Policy").

 

On September 5, 2007, a Notification of Complaint and Commencement of Administrative Proceeding (the "Commencement Notification"), setting a deadline of September 25, 2007, by which Respondent could file a response to the Complaint, was transmitted to Respondent via e-mail, post and fax, to all entities and persons listed on Respondent's registration as technical, administrative and billing contacts, and to postmaster@morganshotelgroup.mobi by e-mail.

 

Having received no response from Respondent, the National Arbitration Forum transmitted to the parties a Notification of Respondent Default.

 

On October 1, 2007, pursuant to Complainant's request to have the dispute decided by a single-member Panel, the National Arbitration Forum appointed Hon. Carolyn Marks Johnson as Panelist.

 

Having reviewed the communications records, the Administrative Panel (the "Panel") finds that the National Arbitration Forum discharged its responsibility under Paragraph 2(a) of the Rules for Uniform Domain Name Dispute Resolution Policy (the "Rules") "to employ reasonably available means calculated to achieve actual notice to Respondent."  Therefore, the Panel may issue its decision based on the documents submitted and in accordance with the ICANN Policy, ICANN Rules, the National Arbitration Forum's Supplemental Rules and any rules and principles of law that the Panel deems applicable, without the benefit of any response from Respondent.

 

RELIEF SOUGHT

Complainant requests that the domain name be transferred from Respondent to Complainant.

 

PARTIES' CONTENTIONS

A.  Complainant makes the following assertions:

 

1.      The domain name that Respondent registered, <morganshotelgroup.mobi>, is identical to Complainant’s MORGANS HOTEL GROUP mark.

 

2.      Respondent has no rights to or legitimate interests in the <morganshotelgroup.mobi> domain name.

 

3.      Respondent registered and used the <morganshotelgroup.mobi> domain name in bad faith.

 

B.  Respondent failed to submit a Response in this proceeding.

 

FINDINGS

Complainant continuously has used the MORGANS HOTEL GROUP mark in connection with an international family of brands of premier luxury hotel companies.  Complainant holds registrations of the mark with numerous jurisdictions worldwide, including with the United States Patent and Trademark Office (“USPTO”) (Reg. No. 3,212,536 issued Feb. 27, 2007, filed Sep. 30, 2005).

 

Respondent registered the disputed domain name, <morganshotelgroup.mobi>, was registered September 26, 2006, and it contains links to various third-parties who offer services in competition with those offered under Complainant’s mark.  On the same day Respondent registered this disputed domain name, Respondent registered numerous other domain names that have been the subject of dispute.  Three of these domain names have been transferred from Respondent.  See Geiger Ltd. v. Beroca Holdings B.V.A. Ltd., D2007-0195 (WIPO Apr. 17, 2007); see also Kuoni Reisen Holding AG v. Beroca Holdings B.V.A. Ltd., D2007-0216 (WIPO Apr. 17, 2007); see also Advance Magazine Publishers Inc. v. Beroca Holdings B.V.A. Ltd., D2007-0026 (WIPO Mar. 28, 2007).

 

DISCUSSION

Paragraph 15(a) of the Rules instructs this Panel to "decide a complaint on the basis of the statements and documents submitted in accordance with the Policy, these Rules and any rules and principles of law that it deems applicable."

 

Given Respondent's failure to submit a response, the Panel shall decide this administrative proceeding on the basis of Complainant's undisputed representations pursuant to paragraphs 5(e), 14(a) and 15(a) of the Rules and will draw such inferences as the Panel considers appropriate pursuant to paragraph 14(b) of the Rules.  The Panel is entitled to accept all reasonable allegations and inferences set forth in the Complaint as true unless the evidence is clearly contradictory.  See Vertical Solutions Mgmt., Inc. v. webnet-marketing, inc., FA 95095 (Nat. Arb. Forum July 31, 2000) (holding that the respondent’s failure to respond allows all reasonable inferences of fact in the allegations of the complaint to be deemed true); see also Talk City, Inc. v. Robertson, D2000-0009 (WIPO Feb. 29, 2000) (“In the absence of a response, it is appropriate to accept as true all allegations of the Complaint.”).

 

Paragraph 4(a) of the Policy requires Complainant to prove each of the following three elements to obtain an order that a domain name should be cancelled or transferred:

 

(1)   the domain name registered by Respondent is identical or confusingly similar to a trademark or service mark in which Complainant has rights; and

(2)   Respondent has no rights or legitimate interests in respect of the domain name; and

(3)   the domain name has been registered and is being used in bad faith.

 

Identical to and/or Confusingly Similar

 

Complainant sufficiently established its rights in the MORGANS HOTEL GROUP mark through registration with the USPTO pursuant to Policy ¶ 4(a)(i).  See U.S. Office of Pers. Mgmt. v. MS Tech. Inc., FA 198898 (Nat. Arb. Forum Dec. 9, 2003) (“[O]nce the USPTO has made a determination that a mark is registrable, by so issuing a registration, as indeed was the case here, an ICANN panel is not empowered to nor should it disturb that determination.”); see also Innomed Techs., Inc. v. DRP Servs., FA 221171 (Nat. Arb. Forum Feb. 18, 2004) (“Registration of the NASAL-AIRE mark with the USPTO establishes Complainant's rights in the mark.”).

 

Moreover, these rights date back to the filling date of Complainant’s application for registration with the USPTO.  See J. C. Hall Co. v. Hallmark Cards, Inc., 340 F.2d 960, 144 U.S.P.Q. 435 (C.C.P.A. 1965) (registration on the Principal Register is prima facie proof of continual use of the mark, dating back to the filing date of the application for registration); see also Thompson v. Zimmer, FA 190625 (Nat. Arb. Forum Oct. 27, 2003) (“As Complainant’s trademark application was subsequently approved by the U.S. Patent and Trademark Office, the relevant date for showing ‘rights’ in the mark for the purposes of Policy ¶ 4(a)(i) dates back to Complainant’s filing date.”).

 

The disputed domain name that Respondent registered, <morganshotelgroup.mobi>, contains in its entirety Complainant’s mark, omitting all spaces and including the generic top level domain (“gTLD”) “.mobi”.  It is well established that inclusion of a gTLD and omission of spaces in a mark do not distinguish a disputed domain name.  As such, the Panel finds pursuant to Policy ¶ 4(a)(i) that the disputed domain name is identical to Complainant’s mark.  See Hannover Ruckversicherungs-AG v. Ryu, FA 102724 (Nat. Arb. Forum Jan. 7, 2001) (finding <hannoverre.com> to be identical to HANNOVER RE, “as spaces are impermissible in domain names and a generic top-level domain . . .   is required in domain names”); see also Vanderbilt Univ. v. U Inc., FA 893000 (Nat. Arb. Forum Feb. 19, 2007) (finding the <vanderbilt.mobi> domain name to be identical to the VANDERBILT mark because it did not add anything except the generic top-level domain “.mobi”).

 

The Panel finds that Complainant satisfied Policy ¶ 4(a)(i).

 

Rights to or Legitimate Interests

 

Under Policy ¶ 4(a)(ii), Complainant must first establish a prima facie case that Respondent has no rights or legitimate interests in the disputed domain name.  See VeriSign Inc. v. VeneSign C.A., D2000-0303 (WIPO June 28, 2000) (“Respondent's default, however, does not lead to an automatic ruling for Complainant. Complainant still must establish a prima facie case showing that under the Uniform Domain Name Dispute Resolution Policy it is entitled to a transfer of the domain name.”).  The Panel finds that Complainant met this burden and accordingly, the burden is shifted to Respondent to demonstrate that it does have rights or legitimate interests in the disputed domain name.  See G.D. Searle v. Martin Mktg., FA 118277 (Nat. Arb. Forum Oct. 1, 2002) (“Because Complainant’s Submission constitutes a prima facie case under the Policy, the burden effectively shifts to Respondent.”); see also Do The Hustle, LLC v. Tropic Web, D2000-0624 (WIPO Aug. 21, 2000) (holding that once the complainant asserts that the respondent has no rights or legitimate interests with respect to the domain, the burden shifts to the respondent to provide “concrete evidence that it has rights to or legitimate interests in the domain name at issue”).

 

Respondent did not submit a response to the Complaint.  In such cases, the Panel is permitted to presume that Respondent has no rights or legitimate interests in the <morganshotelgroup.mobi> domain name.  The Panel still considers all available evidence in light of the factors listed under Policy ¶ 4(c) to see if evidence in the record shows that Respondent has rights and interests.  See G.D. Searle v. Martin Mktg., FA 118277 (Nat. Arb. Forum Oct. 1, 2002) (“Respondent’s failure to respond means that Respondent has not presented any circumstances that would promote its rights or legitimate interests in the subject domain name under Policy ¶ 4(a)(ii).”); see also Am. Express Co. v. Fang Suhendro, FA 129120 (Nat. Arb. Forum Dec. 30, 2002) (“[B]ased on Respondent's failure to respond, it is presumed that Respondent lacks all rights and legitimate interests in the disputed domain name.”).

 

Nowhere in Respondent’s WHOIS information or elsewhere in the record does it indicate that Respondent is or ever has been commonly known by the disputed domain name.  Moreover, Complainant has not granted a license to Respondent to use its mark.  Absent affirmative evidence to the contrary, the Panel finds pursuant to Policy ¶ (c)(ii) that Respondent is not commonly known by the disputed domain name.  See Tercent Inc. v. Lee Yi, FA 139720 (Nat. Arb. Forum Feb. 10, 2003) (stating “nothing in Respondent’s WHOIS information implies that Respondent is ‘commonly known by’ the disputed domain name” as one factor in determining that Policy ¶ 4(c)(ii) does not apply); see also Compagnie de Saint Gobain v. Com-Union Corp., D2000-0020 (WIPO Mar. 14, 2000) (finding no rights or legitimate interest where the respondent was not commonly known by the mark and never applied for a license or permission from the complainant to use the trademarked name).

 

The disputed domain name, <morganshotelgroup.mobi>, resolves to a website containing links to various third-parties, many of whom offer services in competition with those offered under Complainant’s MORGANS HOTEL GROUP mark.  The Panel finds this to be further evidence that Respondent has no rights or legitimate interests in the disputed domain name, because Respondent’s use is not a bona fide offering of goods or service pursuant to Policy ¶ 4(c)(i) and it is not a legitimate noncommercial or fair use pursuant to Policy ¶ 4(c)(iii).  See Golden Bear Int’l, Inc. v. Kangdeock-ho, FA 190644 (Nat. Arb. Forum Oct. 17, 2003) (“Respondent's use of a domain name confusingly similar to Complainant’s mark to divert Internet users to websites unrelated to Complainant's business does not represent a bona fide offering of goods or services under Policy ¶ 4(c)(i) or a legitimate noncommercial or fair use under Policy ¶ 4(c)(iii).”); see also Ameritrade Holdings Corp. v. Polanski, FA 102715 (Nat. Arb. Forum Jan. 11, 2002) (finding that the respondent’s use of the disputed domain name to redirect Internet users to a financial services website, which competed with the complainant, was not a bona fide offering of goods or services).

 

The Panel finds that Complainant satisfied Policy ¶ 4(a)(ii).

 

Registration and Use in Bad Faith

 

On the same day the disputed domain name was registered, Respondent registered numerous other disputed domain names.  Three of these domain names have been transferred from Respondent.  See Geiger Ltd. v. Beroca Holdings B.V.A. Ltd., D2007-0195 (WIPO Apr. 17, 2007); see also Kuoni Reisen Holding AG v. Beroca Holdings B.V.A. Ltd., D2007-0216 (WIPO Apr. 17, 2007); see also Advance Magazine Publishers Inc. v. Beroca Holdings B.V.A. Ltd., D2007-0026 (WIPO Mar. 28, 2007).  The Panel finds that this conduct by Respondent shows a pattern of preventing complainants from reflecting their mark in a corresponding domain name by registering names using the mark of another. This demonstrates pursuant to Policy ¶ 4(b)(ii) that Respondent has registered and is using the <morganshotelgroup.mobi> domain name in bad faith.  See Harcourt, Inc. v. Fadness, FA 95247 (Nat. Arb. Forum Sept. 8, 2000) (finding that one instance of registration of several infringing domain names satisfies the burden imposed by the Policy ¶ 4(b)(ii)); see also Caterpillar Inc. v. Miyar, FA 95623 (Nat. Arb. Forum Dec. 14, 2000) (finding that registering multiple domain names in a short time frame indicates an intention to prevent the mark holder from using its mark and provides evidence of a pattern of conduct).

 

Respondent’s <morganshotelgroup.mobi> domain name resolves to a web page featuring links to competitors of Complainant.  Consequently, the Panel finds this to be further evidence of bad faith pursuant to Policy ¶ 4(b)(iii).  See S. Exposure v. S. Exposure, Inc., FA 94864 (Nat. Arb. Forum July 18, 2000) (finding the respondent acted in bad faith by attracting Internet users to a website that competes with the complainant’s business); see also Puckett, Individually v. Miller, D2000-0297 (WIPO June 12, 2000) (finding that the respondent has diverted business from the complainant to a competitor’s website in violation of Policy ¶ 4(b)(iii)).

 

Moreover, the Panel presumes that Respondent is financially benefiting from providing links to competitors of Complainant through “click-through fees.”  Therefore, the Panel finds additional evidence pursuant to Policy ¶ 4(b)(iv) that Respondent registered and is using the disputed domain name in bad faith.  See Associated Newspapers Ltd. v. Domain Manager, FA 201976 (Nat. Arb. Forum Nov. 19, 2003) (“Respondent's prior use of the <mailonsunday.com> domain name is evidence of bad faith pursuant to Policy ¶ 4(b)(iv) because the domain name provided links to Complainant's competitors and Respondent presumably commercially benefited from the misleading domain name by receiving ‘click-through-fees.’”); see also Kmart v. Khan, FA 127708 (Nat. Arb. Forum Nov. 22, 2002) (finding that if the respondent profits from its diversionary use of the complainant's mark when the domain name resolves to commercial websites and the respondent fails to contest the complaint, it may be concluded that the respondent is using the domain name in bad faith pursuant to Policy ¶ 4(b)(iv)).

 

The Panel finds that Complainant satisfied Policy ¶ 4(a)(iii).

 

DECISION

Having established all three elements required under the ICANN Policy, the Panel concludes that relief shall be GRANTED.

 

Accordingly, it is Ordered that the <morganshotelgroup.mobi> domain name be TRANSFERRED from Respondent to Complainant.

 

 

Hon. Carolyn Marks Johnson, Panelist

Dated: October 15, 2007.

 

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