national arbitration forum

 

DECISION

 

First Quality Musical Supplies, Inc. d/b/a First Quality Music v. Vertical Axis, Inc c/o Domain Administrator

Claim Number: FA0708001070187

 

PARTIES

Complainant is First Quality Musical Supplies, Inc. d/b/a First Quality Music (“Complainant”), represented by Hanly A. Ingram, of Stoll Keenon Ogden PLLC, 300 West Vine Street, Suite 2100, Lexington, KY 40507-1801.  Respondent is Vertical Axis, Inc c/o Domain Administrator (“Respondent”), Po Box #49 Yongin-suji Post Office, Pungdeokcheon2-dong, Yongin-si, Gyeonggi-do, II 449-846 KR.

 

REGISTRAR AND DISPUTED DOMAIN NAME

The domain name at issue is <firstqualitymusic.com>, registered with Nameview, Inc.

 

PANEL

The undersigned certifies that he has acted independently and impartially and to the best of his knowledge has no known conflict in serving as Panelist in this proceeding.

 

Honorable Karl V. Fink (Ret.) as Panelist.

 

PROCEDURAL HISTORY

Complainant submitted a Complaint to the National Arbitration Forum electronically on August 28, 2007; the National Arbitration Forum received a hard copy of the Complaint on August 29, 2007.

 

On September 13, 2007, Nameview, Inc. confirmed by e-mail to the National Arbitration Forum that the <firstqualitymusic.com> domain name is registered with Nameview, Inc. and that Respondent is the current registrant of the name.  Nameview, Inc. has verified that Respondent is bound by the Nameview, Inc. registration agreement and has thereby 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 21, 2007, a Notification of Complaint and Commencement of Administrative Proceeding (the "Commencement Notification"), setting a deadline of October 11, 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@firstqualitymusic.com by e-mail.

 

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

 

Complainant submitted a timely Additional Submission on October 16, 2007.

 

On October 17, 2007, pursuant to Complainant's request to have the dispute decided by a single-member Panel, the National Arbitration Forum appointed Honorable Karl V. Fink (Ret.) as Panelist.

 

Having reviewed the communications records, the Administrative Panel (the "Panel") finds that the National Arbitration Forum has 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.      Respondent’s <firstqualitymusic.com> domain name is confusingly similar to Complainant’s FIRST QUALITY MUSICAL SUPPLIES mark.

 

2.      Respondent does not have any rights or legitimate interests in the <firstqualitymusic.com> domain name.

 

3.      Respondent registered and used the <firstqualitymusic.com> domain name in bad faith.

 

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

 

FINDINGS

Complainant, First Quality Musical Supplies, Inc. d/b/a First Quality Music, has continuously provided acoustic and electric instruments and related products for thirty-seven years under the FIRST QUALITY MUSICAL SUPPLIES mark.  In fact, Complainant is one of only seven authorized Internet resellers of Gibson products in the United States.  Complainant registered its company with Kentucky’s Secretary of State (Org. No. 465,416 issued January 1, 1999).  Complainant also holds several active assumed name corporation registrations with Kentucky’s Secretary of State, including FQMS, FIRST QUALITY MUSICAL, FIRST QUALITY MUSIC, and FIRST QUALITY.  Further, Complainant applied for registration with the United States Patent and Trademark Office (“USPTO”) for its FIRST QUALITY MUSIC mark on May 23, 2007 (Ser. No. 77/188,850).  Complainant has also used the FIRST QUALITY MUSIC mark in its advertising materials, including through its retail store in Louisville, Kentucky, its mail order catalog, and its website (since 2004) located at the <fqms.com> domain name.

 

Respondent, Vertical Axis, Inc c/o Domain Administrator, registered the disputed domain name on November 30, 2001.  The wesbite located at the disputed domain name displays hyperlinks to third-party websites, including those of Complainant’s competitors, through which Respondent presumably generates click-through revenue.

 

Complainant sent Respondent two cease and desist letters dated June 12, 2007 and July 24, 2007, respectively, to which Respondent never replied.

 

Additionally, per Complainant’s Additional Submission, Respondent has served as the respondent in several previous UDRP proceedings in which the disputed domain names in those case were transferred to the respective complainants.  See MBNA Am. Bank, N.A. v. Vertical Axis, Inc., FA133632 (Nat. Arb. Forum Jan. 6, 2003); see also Candid Color Sys., Inc. v. Vertical Axis c/o Adm’r, FA 702669 (Nat. Arb. Forum June 27, 2006).

 

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."

 

In view of 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 draw such inferences it 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 that Complainant must 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 and/or Confusingly Similar

 

Under Policy ¶ 4(a)(i), Complainant is not required to hold a trademark registration to establish rights in the FIRST QUALITY MUSICAL SUPPLIES mark.  See McCarthy on Trademarks and Unfair Competition, § 25:74.2 (4th ed. 2002) (The ICANN dispute resolution policy is “broad in scope” in that “the reference to a trademark or service mark ‘in which the complainant has rights’ means that ownership of a registered mark is not required–unregistered or common law trademark or service mark rights will suffice” to support a domain name complaint under the Policy); see also Great Plains Metromall, LLC v. Creach, FA 97044 (Nat. Arb. Forum May 18, 2001) (“The Policy does not require that a trademark be registered by a governmental authority for such rights to exist.”).

 

Complainant has continuously and extensively used the FIRST QUALITY MUSICAL SUPPLIES mark for the past thirty-seven years.  Further, Complainant provided proof of its corporate registration with Kentucky’s Secretary of State on January 1, 1999, as well as several other assumed names predating Respondent’s registration of the disputed domain name.  The Panel finds that Complainant’s FIRST QUALITY MUSICAL SUPPLIES mark has acquired secondary meaning sufficent to establish Complianant’s common law rights in the mark under Policy ¶ 4(a)(i).  See Tuxedos By Rose v. Nunez, FA 95248 (Nat. Arb. Forum Aug. 17, 2000) (finding common law rights in a mark where its use was continuous and ongoing, and secondary meaning was established); see also S.A. Bendheim Co., Inc. v. Hollander Glass, FA 142318 (Nat. Arb. Forum Mar. 13, 2003) (holding that the complainant established rights in the descriptive RESTORATION GLASS mark through proof of secondary meaning associated with the mark).

 

The <firstqualitymusic.com> domain name takes Complainant’s mark and removes everything after “MUSIC” and simply appends the mark with the generic top-level domain (“gTLD”) “.com.”  Such minor edits are insufficient to distinguish the disputed domain name from Complainant’s mark.  Accordingly, the Panel finds the disputed domain name confusingly similar to Complainant’s mark under Policy ¶ 4(a)(i).  See Rollerblade, Inc. v. McCrady, D2000-0429 (WIPO June 25, 2000) (finding that the top level of the domain name such as “.net” or “.com” does not affect the domain name for the purpose of determining whether it is identical or confusingly similar); see also WestJet Air Ctr., Inc. v. W. Jets LLC, FA 96882 (Nat. Arb. Forum Apr. 20, 2001) (finding that the <westjets.com> domain name is confusingly similar to the complainant’s mark, where the complainant holds the WEST JET AIR CENTER mark).

 

The Panel finds that Complainant has met the requirements under Policy ¶ 4(a)(i).

 

Rights or Legitimate Interests

 

Complainant is required, under Policy ¶ 4(a)(ii), to first present a prima facie case that Respondent lacks rights and legitimate interests in the disputed domain name.  However, Complainant’s allegation is sufficient to shift the burden to Respondent to establish that rights or legitimate interests exist.  See 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”); see also Clerical Med. Inv. Group Ltd. v. Clericalmedical.com, D2000-1228 (WIPO Nov. 28, 2000) (finding that, under certain circumstances, the mere assertion by the complainant that the respondent has no right or legitimate interest is sufficient to shift the burden of proof to the respondent to demonstrate that such a right or legitimate interest does exist). 

 

In this case, Respondent chose not to submit a Response to the Complaint.  Respondent’s failure to produce a Response permits the Panel to presume that Respondent lacks rights and legitimate interests in the disputed domain name under Policy ¶ 4(a)(ii).  See 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.”); see also Parfums Christian Dior v. QTR Corp., D2000-0023 (WIPO Mar. 9, 2000) (finding that by not submitting a response, the respondent has failed to invoke any circumstance which could demonstrate any rights or legitimate interests in the domain name).  Although required to make no further inquiry, the Panel will now review the evidence to determine if Respondent is able to establish rights or legitimate interests under Policy ¶ 4(c).

 

The Panel finds nothing in the record to support a finding that Respondent, “Vertical Axis, Inc c/o Domain Administrator,” is commonly known by the <firstqualitymusic.com> domain name.  Thus, the Panel finds that Respondent is unable to establish rights or legitimate interests in the disputed domain name under Policy ¶ 4(c)(ii).  See Gallup, Inc. v. Amish Country Store, FA 96209 (Nat. Arb. Forum Jan. 23, 2001) (finding that the respondent does not have rights in a domain name when the respondent is not known by the mark); see also Brown v. Sarrault, FA 99584 (Nat. Arb. Forum Oct. 16, 2001) (finding that the respondent was not commonly known by the <mobilitytrans.com> domain name because it was doing business as “Mobility Connections”).

 

Further, the website located at the disputed domain name displays hyperlinks to third-party websites, including Complainant’s competitors, through which Respondent presumably generates click-through revenue for each Internet user clicking on the displayed hyperlinks.  This conduct is inconsistent with 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).  Therefore, the Panel determines that Respondent is unable to establish rights under either section of the Policy.  See Black & Decker Corp. v. Clinical Evaluations, FA 112629 (Nat. Arb. Forum June 24, 2002) (holding that the respondent’s use of the disputed domain name to redirect Internet users to commercial websites, unrelated to the complainant and presumably with the purpose of earning a commission or pay-per-click referral fee did not evidence rights or legitimate interests in the domain name); see also TM Acquisition Corp. v. Sign Guards, FA 132439 (Nat. Arb. Forum Dec. 31, 2002) (finding that the respondent’s diversionary use of the complainant’s marks to send Internet users to a website which displayed a series of links, some of which linked to the complainant’s competitors, was not a bona fide offering of goods or services).

 

The Panel finds that Complainant has met the requirements under Policy ¶ 4(a)(ii).

 

Registration and Use in Bad Faith

 

Respondent uses the disputed domain name to disrupt Complainant’s business by diverting Internet users to Complainant’s competitors through the use of hyperlinks displayed on the website located at the disputed domain name.  The Panel finds this disrupting activity representative of bad faith registration and use under Policy ¶ 4(b)(iii).  See EthnicGrocer.com, Inc. v. Latingrocer.com, FA 94384 (Nat. Arb. Forum July 7, 2000) (finding bad faith where the respondent’s sites pass users through to the respondent’s competing business); see also EBAY, Inc. v. MEOdesigns, D2000-1368 (WIPO Dec. 15, 2000) (finding that the respondent registered and used the domain name <eebay.com> in bad faith where the respondent has used the domain name to promote competing auction sites).

 

Further, Respondent uses the confusion as to Complainant’s affiliation with the disputed domain name to attract Internet users for Respondent’s own commercial gain by presumably generating click-through revenue with the hyperlinks displayed on the website located at the disputed domain name.  The Panel finds that Respondent registered and used the disputed domain name in bad faith under Policy ¶ 4(b)(iv).  See Am. Univ. v. Cook, FA 208629 (Nat. Arb. Forum Dec. 22, 2003) (“Registration and use of a domain name that incorporates another's mark with the intent to deceive Internet users in regard to the source or affiliation of the domain name is evidence of bad faith.”); see also 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.’”).

 

Additionally, Complainant submitted sufficient evidence demonstrating that Respondent has served as the respondent in several previous UDRP proceedings in which the domain names in those disputes were transferred from Respondent to the respective complainants in those disputes.  The Panel finds Respondent’s pattern of registering domain names that incorporate other’s marks is a further indication of Respondent’s bad faith registration and use of the <firstqualitymusic.com> domain name under Policy ¶ 4(b)(ii).  See Nabisco Brands Co. v. Patron Group, Inc., D2000-0032 (WIPO Feb. 23, 2000) (holding that registration of numerous domain names is one factor in determining registration and use in bad faith); see also Armstrong Holdings, Inc. v. JAZ Assocs., FA 95234 (Nat. Arb. Forum Aug. 17, 2000) (finding that the respondent has registered numerous domain names that infringe upon the complainant’s marks and in addition, the respondent has registered domain names that infringe upon other entities’ marks).

 

The Panel finds that Complainant has met the requirements under 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 <firstqualitymusic.com> domain name be TRANSFERRED from Respondent to Complainant.

 

 

Honorable Karl V. Fink (Ret.), Panelist

Dated:  October 24, 2007

 

 

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