DECISION

 

China Daily News Group v. Rui Yang

Claim Number: FA0207000115042

 

PARTIES

Complainant is China Daily News Group, Bejing, CHINA (“Complainant”) represented by Joseph Zhu.  Respondent is Rui Yang, Ann Arbor, MI, USA (“Respondent”).

 

REGISTRAR AND DISPUTED DOMAIN NAME

The domain name at issue is <chinadaily.com>, registered with Network Solutions.

 

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.

 

Clive Elliott as Panelist.

 

PROCEDURAL HISTORY

Complainant submitted a Complaint to the National Arbitration Forum (the “Forum”) electronically on July 10, 2002; the Forum received a hard copy of the Complaint on July 16, 2002.

 

On July 12, 2002, Network Solutions confirmed by e-mail to the Forum that the domain name <chinadaily.com> is registered with Network Solutions and that the Respondent is the current registrant of the name.  Network Solutions has verified that Respondent is bound by the Network Solutions 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 July 22, 2002, a Notification of Complaint and Commencement of Administrative Proceeding (the “Commencement Notification”), setting a deadline of August 12, 2002 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@chinadaily.com by e-mail.

 

A timely Response was received and determined to be complete on August 12, 2002.

 

On September 9, 2002, pursuant to Complainant’s request to have the dispute decided by a single-member Panel, the Forum appointed Clive Elliott as Panelist.

 

The Panelist considered the papers. On September 20, 2002 he advised the Forum that further information was required. He stated:

 

"An issue in this case is whether the Respondent used/continues to use the domain name in good faith. He indicates that he is prepared to provide the Panel with a password to access his site. The Panel is of the view that such access is necessary in order to reach a proper decision. Accordingly, it is ordered that the Respondent provide within 5 days from the date of this order a password to his web site or alternatively full information on the content and provenance of his web site."

 

A password was provided to the Panelist on September 25, 2002. A decision issued on the same day.

 

RELIEF SOUGHT

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

 

PARTIES’ CONTENTIONS

A.     Complainant

 

Complainant claims to operate the first and only national English language newspaper in China.  Complainant founded the China Daily in 1981 and has developed the English newspaper service into a group of nine publications, including China Daily, China Daily Hong Kong edition, Reports from China, Business Weekly, Beijing Weekend, Shanghai Star and the China Daily website.  Complainant claims that China Daily is China’s most frequently quoted newspaper, with its stories often picked up by international wire services, newspapers, magazines and radio and television stations.  Complainant also argues that China Daily is recognized as China’s most authoritative English publication. 

 

Since 1983, Complainant’s North American Distribution Group has used CHINA DAILY throughout the United States and Canada.  Complainant was granted a trademark for the CHINA DAILY mark in 2000 by the U.S. Patent and Trademark Office (USPTO), registered with date of first use marked as June 1983. 

 

Complainant claims that the <chinadaily.com> domain name is identical to its CHINA DAILY mark.  It asserts that the <chinadaily.com> domain name was registered in 1998 and has never been actively used in association with a website.  Accordingly, it argues that passive holding of the domain name for four years does not represent a bona fide offering of goods or services, nor does it constitute fair use.

 

Complainant claims that Respondent has no connection with Complainant’s CHINA DAILY mark or China Daily publication.  It argues that Respondent was in no way authorized to use the CHINA DAILY mark in connection with anything, let alone incorporate it in a domain name.  Finally, Complainant maintains that Respondent is not commonly known by the <chinadaily.com> domain name. 

 

B. Respondent

 

Respondent claims that he registered the <chinadaily.com> domain name before the USPTO granted trademark status to Complainant for the CHINA DAILY mark.  Respondent asserts that “this fact gives Respondent common law right to continue to own and use the domain name after the trademark is granted to the Complainant.”  

 

Furthermore, Respondent argues that he has the right to use the word “China” since Respondent is “ethically Chinese” combined with the common word “Daily.”  He also asserts that the CHINA DAILY mark is not distinctive. 

 

Respondent asserts that Complainant registered the <chinadaily.com.cn> domain name in 1995.  Respondent then argues that Complainant was not truthful in its Complaint when Complainant claimed to have registered <chinadaily.com.cn> because Respondent had already registered <chinadaily.com>. 

 

Respondent claims to have made active use of the <chinadaily.com> domain name.  He says that he operated a website at no cost to its users, located at <chinadaily.com>, prior to initiation of this lawsuit.  Respondent claims that his website contains information about the stock market, which he has analyzed along with a friend.  He indicates that he values stock market information on his website and requires a password in order to access said information.  However, Respondent claims that he does not charge a fee for the information provided.  Since Respondent’s domain name points to a password protected website, he argues that he has not passively held the domain name for four years as alleged.  Thus, Respondent maintains that he uses the domain name in connection with a bona fide offering of services.

 

Based on the Panelist’s viewing of the site, it is apparent that Respondent’s website contains a series of reports under the headings:

“Thoughts on General Market” and “Trading Ideas”. The first report under “Thoughts on General Market” is dated and headed as follows:

“January 16, 2002

1. Market Update

2. News

3. Fundamental Analysis

4. Technical Analysis

5. Summary”

Under the head “Technical Analysis” are various charts depicting performance of the markets under discussion.

 

Subsequent reports are in much the same vein.

 

Respondent argues that he actively used the subject domain name for his password sensitive website and that Complainant initiated the bargaining process by offering $100,000 for registration rights in the domain name.  Respondent maintains that Complainant’s employee contacted and notified him that Complainant was interested in buying the rights to the domain name for $100,000.  His reply was reported as accurate by Complainant and Respondent maintains that he put too much work into the website development to sell rights in the domain name, especially for Complainant’s asking price.

 

FINDINGS

Pursuant to paragraph 4(a) of the Policy it is found that:

 

(1)    the domain name <chinadaily.com>  is identical or confusingly similar to the CHINA DAILY trade/service mark;

(2)    the Respondent has a right or legitimate interests in respect of the <chinadaily.com> domain name; and

(3) the <chinadaily.com> domain name is not being used in bad faith.

 

DISCUSSION

Paragraph 15(a) of the Rules for Uniform Domain Name Dispute Resolution Policy (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.”

 

Paragraph 4(a) of the Policy requires that the 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 the Respondent is identical or confusingly similar to a trademark or service mark in which the Complainant has rights;

(2)    the 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

 

Complainant operates the first and only national English language newspaper in China.  Complainant founded the China Daily in 1981 and has developed the English newspaper service into a group of nine publications, including China Daily, China Daily Hong Kong edition, Reports from China, Business Weekly, Beijing Weekend, Shanghai Star and the China Daily website.  Complainant claims that China Daily is China’s most frequently quoted newspaper, with its stories often picked up by international wire services, newspapers, magazines and radio and television stations.  Complainant also argues that China Daily is recognized as China’s most authoritative English publication. 

 

Since 1983, Complainant’s North American Distribution Group has used CHINA DAILY throughout the United States and Canada.  Complainant was granted a trademark for the CHINA DAILY mark in 2000 by the U.S. Patent and Trademark Office (USPTO), registered with date of first use marked as June 1983. 

 

The Panel may find that Complainant’s extensive use of the CHINA DAILY mark in international commerce for nearly twenty years is sufficient to establish common law rights in the CHINA DAILY mark by the time Respondent registered the <chinadaily.com> domain name in 1998.  Respondent in turn argues that the CHINA DAILY mark is not distinctive.  This is not accepted by the Panel.

 

Respondent claims that it registered the <chinadaily.com> domain name before the USPTO granted trademark status to Complainant for the CHINA DAILY mark. For the reasons identified above, this is not determinative

 

Complainant asserts that the <chinadaily.com> domain name is identical to its CHINA DAILY mark. This contention clearly has merit. If it is not identical it is certainly confusingly similar. Likewise, the counter arguments raised by Respondent do not seem to be relevant to this particular ground.

 

Accordingly, it is found that the ground is made out.

 

Rights or Legitimate Interests

 

Respondent claims to have developed an active use of the <chinadaily.com> domain name.  Respondent maintains that, contrary to the allegation that it passively held the domain name and did not provide a bona fide offering of goods or services, it did just that. It asserts that it operated a website at no cost to its users, located at <chinadaily.com>, prior to initiation of this dispute. 

 

As indicated above, Respondent also argues that it has the right to use the word “China” since Respondent is “ethically Chinese” combined with the common word “Daily.”

 

Respondent claims that its website contains information about the stock market. Since Respondent’s domain name points to a password protected website, Respondent argues that it has not passively held the domain name for four years.  Thus, Respondent maintains that it uses the domain name in connection with a bona fide offering of services pursuant to Policy ¶ 4(c)(i).  See 3Z Prod. v. Globaldomain, FA 94659 (Nat. Arb. Forum June 9, 2000) (finding a legitimate interest in a domain name is shown by website development); see also Sweeps Vacuum & Repair Ctr., Inc. v. Nett Corp., D2001-0031 (WIPO Apr. 13, 2001) (finding bona fide use of a generic domain name, <sweeps.com>, where Respondent used a legitimate locator service (goto.com) in connection with the domain name).

 

Having had the opportunity to view the website, the Panel is of the view that it represents, at least prima facie, a legitimate offering of services (namely stock exchange advice) albeit for no charge. It represents use of a website with reasonably regular stock market updates which seems, on the face of it, to be provided in a bona fide way to members of the public, notwithstanding that the group may be relatively small and the site password protected.

 

Having reached this view it seems that Respondent is able to rely on paragraphs 4(c)(i) and (iii) of the UDRP Policy, namely, before notice of the dispute he took steps to use the domain name in connection with a bona fide offering of services and has made legitimate non-commercial use of the domain name.

 

If Respondent’s use of the domain name commenced after The Complaint from Complainant the Panel would have not necessarily reached the same conclusion. However, under the present circumstances the Panelist is prepared to give Respondent the benefit of the doubt, as the Policy seems to contemplate he may or indeed should.

 

Accordingly, Complainant fails to make out this ground.

 

Registration and Use in Bad Faith

 

Respondent argues that it actively used the subject domain name for its password sensitive website and that Complainant initiated the bargaining process by offering $100,000 for registration rights in the domain name.  Respondent maintains that Complainant’s employee contacted and notified Respondent that Complainant was interested in buying the rights to the domain name for $100,000.  Respondent’s reply was reported as accurate by Complainant and Respondent maintains that it put too much work into the website development to sell rights in the domain name, especially for Complainant’s asking price.  See Open Sys. Computing AS v. Alessandri, D2000-1393 (WIPO Dec. 11, 2000) (finding that Respondent was not acting in bad faith by discussing a sale when Complainant initiated an offer to purchase it from Respondent); see also Gen. Mach. Prod. Co. v. Prime Domains, FA 92531 (Nat. Arb. Forum Mar. 16, 2000) (finding it significant that Complainant, and not Respondent had initiated contact, inquiring about purchasing the domain name <craftwork.com>, and that this fact tended to weigh against a finding of bad faith.

 

Given the findings in relation to bona fide interest and offering of services, the Panelist finds that the domain name has, at least on the face of it, been used in good faith. Obviously, such a finding is of a provisional nature, given the procedure and limited scope under which the enquiry is made. It is however sufficient to dispose of this ground for present purposes.

 

Accordingly, Complainant has failed to establish this ground.

 

DECISION    

                  In view of the above the Complaint is dismissed.

 

 

 

 

 

Clive Elliott, Panelist
Dated: September 25, 2002

 

 

 

 

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