National Arbitration Forum

 

DECISION

 

Horizon Hobby, Inc. v. Sonny Lambert

Claim Number: FA0804001176662

 

PARTIES

Complainant is Horizon Hobby, Inc. (“Complainant”), represented by Loius J. Alex, of Cook, Alex, McFarron, Manzo, Cummings & Mehler, Ltd., Illinois, USA.  Respondent is Sonny Lambert (“Respondent”), Montreal, Canada.

 

 

REGISTRAR AND DISPUTED DOMAIN NAMES 

The domain names at issue are <bladecxpro.com>, <bladecx-2.com>, <bladecx2.com>, <bladecx2.info>, <bladecx2.net>, <bladecx2.org>, <bladecppro.com>, <bladecppro.info>, <bladecppro.net>, <bladecppro.org>, <cx-2.com>, <bladecxpro.info>, <bladecxpro.net>, <bladecxpro.org>, <e-flite.info>, <e-flite.org>, <eflite.info>, <horizonhobby.biz>, <bladecx2pro.com>, <bladecx2pro.net>, <cx2pro.com>, <bladecx.net>, <bladecx.biz>, <bladecx.info>, <bladecx.org>, <bladecxforum.com>, <bladecxmod.com>, <bladecxmods.com>, <bladecxpart.com>, <bladecxparts.com> and <bladecx3.com>, registered with Godaddy.com, Inc.

 

PANEL

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

 

John J. Upchurch as Panelist.

 

PROCEDURAL HISTORY

Complainant submitted a Complaint to the National Arbitration Forum electronically on April 7, 2008; the National Arbitration Forum received a hard copy of the Complaint on April 8, 2008.

 

On April 8, 2008, Godaddy.com, Inc. confirmed by e-mail to the National Arbitration Forum that <bladecxpro.com>, <bladecx-2.com>, <bladecx2.com>, <bladecx2.info>, <bladecx2.net>, <bladecx2.org>, <bladecppro.com>, <bladecppro.info>, <bladecppro.net>, <bladecppro.org>, <cx-2.com>, <bladecxpro.info>, <bladecxpro.net>, <bladecxpro.org>, <e-flite.info>, <e-flite.org>, <eflite.info>, <horizonhobby.biz>, <bladecx2pro.com>, <bladecx2pro.net>, <cx2pro.com>, <bladecx.net>, <bladecx.biz>, <bladecx.info>, <bladecx.org>, <bladecxforum.com>, <bladecxmod.com>, <bladecxmods.com>, <bladecxpart.com>, <bladecxparts.com> and <bladecx3.com> domain names are registered with Godaddy.com, Inc. and that the Respondent is the current registrant of the names.  Godaddy.com, Inc. has verified that Respondent is bound by the Godaddy.com, 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 April 14, 2008, a Notification of Complaint and Commencement of Administrative Proceeding (the “Commencement Notification”), setting a deadline of April 14, 2008 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@bladecxpro.com, postmaster@bladecx-2.com, postmaster@bladecx2.com, postmaster@bladecx2.info, postmaster@bladecx2.net, postmaster@bladecx2.org, postmaster@bladecppro.com, postmaster@bladecppro.info, postmaster@bladecppro.net, postmaster@bladecppro.org, postmaster@cx-2.com, postmaster@bladecxpro.info, postmaster@bladecxpro.net, postmaster@bladecxpro.org, postmaster@e-flite.info, postmaster@e-flite.org, postmaster@eflite.info, postmaster@horizonhobby.biz, postmaster@bladecx2pro.com, postmaster@bladecx2pro.net, postmaster@cx2pro.com, postmaster@bladecx.net, postmaster@bladecx.biz, postmaster@bladecx.info, postmaster@bladecx.org, postmaster@bladecxforum.com, postmaster@bladecxmod.com, postmaster@bladecxmods.com, postmaster@bladecxpart.com, postmaster@bladecxparts.com and postmaster@bladecx3.com by e-mail.

 

A Response was received but considered deficient pursuant to ICANN Rule 5 because it was received late in hard copy.

 

On May 14, 2008, pursuant to Complainant’s request to have the dispute decided by a single-member Panel, the National Arbitration Forum appointed John J. Upchurch as Panelist.

 

RELIEF SOUGHT

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

 

PARTIES’ CONTENTIONS

A.     Complainant

1.      The disputed domain names are each identical to or confusingly similar to Complainant’s marks;

2.      Respondent lacks rights and legitimate interests in the disputed domain names; and

3.      The disputed domain names were registered and are being used in bad faith.

 

FINDINGS

The Panel finds in favor of the Complainant and finds that all of the disputed domain names should be transferred from Respondent to Complainant.

 

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 has asserted rights in the E-FLITE, BLADE, HORIZON HOBBY and CX2 marks.  Complainant has provided evidence of the registration of its E-FLITE and BLADE marks with the USPTO on March 14, 2006 (Reg. No. 3,068,160) and November 7, 2007 (Reg. No. 3,342,743) respectively.  The Panel finds Complainant’s registration of its E-FLITE and BLADE marks establishes Complainant’s rights in the marks 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 Koninklijke KPN N.V. v. Telepathy Inc., D2001-0217 (WIPO May 7, 2001) (finding that the Policy does not require that the mark be registered in the country in which the respondent operates; therefore it is sufficient that the complainant can demonstrate a mark in some jurisdiction).

 

Additionally, Complainant has asserted common law rights in its BLADE, HORIZON HOBBY and CX2 marks.  The Panel finds registration of a mark with a governmental authority is not necessary to confer rights in a mark provided Complainant can provide evidence of common law rights in its BLADE, HORIZON HOBBY and CX2 marks pursuant to Policy ¶ 4(a)(i).  See SeekAmerica Networks Inc. v. Masood, D2000-0131 (WIPO Apr. 13, 2000) (finding that the Rules do not require that the complainant's trademark or service mark be registered by a government authority or agency for such rights to exist); 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 used its BLADE mark to market its product line of remote controlled hobby products since November 15, 2001.  Complainant has provided evidence of the continuous use of its mark to introduce new product lines and market them through advertisements in commerce.  Therefore, the Panel finds Complainant has sufficiently established common law rights in its BLADE mark pursuant to Policy ¶ 4(a)(i) dating back to November 15, 2001.  See BroadcastAmerica.com, Inc. v. Quo, DTV2000-0001 (WIPO Oct. 4, 2000) (finding that the complainant has common law rights in BROADCASTAMERICA.COM, given extensive use of that mark to identify the complainant as the source of broadcast services over the Internet, and evidence that there is wide recognition with the BROADCASTAMERICA.COM mark among Internet users as to the source of broadcast services); see also Nat’l Ass’n of Prof’l Baseball Leagues v. Zuccarini, D2002-1011 (WIPO Jan. 21, 2003) (finding that the complainant had provided evidence that it had valuable goodwill in the <minorleaguebaseball.com> domain name, establishing common law rights in the MINOR LEAGUE BASEBALL mark).

 

Additionally, Complainant has continuously used its HORIZON HOBBY mark to manufacture and sell hobby model products including radio controlled aircrafts, parts and accessories since 1985.  Complainant has provided evidence of the use of its HORIZON HOBBY mark in commerce over this time period including press releases and advertisements.  The Panel finds Complainant has sufficiently established common law rights in its HORIZON HOBBY mark pursuant to Policy ¶ 4(a)(i) dating back to 1985.  See Keppel TatLee Bank v. Taylor, D2001-0168 (WIPO Mar. 28, 2001) (“[O]n account of long and substantial use of [KEPPEL BANK] in connection with its banking business, it has acquired rights under the common law.”); see also 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).

 

Complainant also provides evidence it has used its CX2 mark continuously in commerce to produce and market a specific line of remote controlled hobby aircraft.  Complainant has continuously advertised and offered products under its CX2 mark since October 12, 2006.  Complainant has provided evidence demonstrating the online and print advertisement of the products under its CX2 mark.  The Panel finds Complainant has adequately established common law rights in its CX2 mark pursuant to 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 Bibbero Sys., Inc. v. Tseu & Assoc., FA 94416 (Nat. Arb. Forum May 9, 2000) (finding, while the complainant had registered the BIBBERO SYSTEMS, INC. mark, it also had common law rights in the BIBBERO mark because it had developed brand name recognition with the word “bibbero”).

 

Respondent’s disputed domain names incorporate Complainant’s alleged marks with the addition of typos, the addition of generic or descriptive terms or their abbreviations, the addition or deletion of punctuation such as hyphens and the addition of top-level domains.  The Panel finds that none of these alterations sufficiently distinguish Respondent’s disputed domain names from Complainant’s E-FLITE, BLADE, HORIZON HOBBY or CX2 marks.  Therefore, the Panel finds Respondent’s disputed domain names are confusingly similar to Complainant’s marks pursuant to Policy ¶ 4(a)(i).  See Dow Jones & Co., Inc. v. Powerclick, Inc., D2000-1259 (WIPO Dec. 1, 2000) (holding that the deliberate introduction of errors or changes, such as the addition of a fourth “w” or the omission of periods or other such “generic” typos do not change respondent’s infringement on a core trademark held by the complainant); see also Arthur Guinness Son & Co. (Dublin) Ltd. v. Healy/BOSTH, D2001-0026 (WIPO Mar. 23, 2001) (finding confusing similarity where the domain name in dispute contains the identical mark of the complainant combined with a generic word or term); see also Modern Props, Inc. v. Wallis, FA 152458 (Nat. Arb. Forum June 2, 2003) (“Notwithstanding the analysis by Respondent, ‘modprops’ is a contraction or shorthand for ‘Modern Props.’ ‘Mod’ cononotes [sic] ‘modern’ regardless of any other dictionary meanings, so the names are substantially similar in meaning.”); see also Chernow Commc’ns, Inc. v. Kimball, D2000-0119 (WIPO May 18, 2000) (holding “that the use or absence of punctuation marks, such as hyphens, does not alter the fact that a name is identical to a mark"); see also Gardline Surveys Ltd. v. Domain Fin. Ltd., FA 153545 (Nat. Arb. Forum May 27, 2003) (“The addition of a top-level domain is irrelevant when establishing whether or not a mark is identical or confusingly similar, because top-level domains are a required element of every domain name.”).

 

Rights or Legitimate Interests

Complainant must first make a prima facie case that Respondent lacks rights and legitimate interests in the disputed domains names pursuant to Policy ¶ 4(a)(ii), and then the burden shifts to Respondent to show it does have rights or legitimate interests in the disputed domain names.  See Hanna-Barbera Prods., Inc. v. Entm’t Commentaries, FA 741828 (Nat. Arb. Forum Aug. 18, 2006) (holding that the complainant must first make a prima facie case that the respondent lacks rights and legitimate interests in the disputed domain name under UDRP ¶ 4(a)(ii) before the burden shifts to the respondent to show that it does have rights or legitimate interests in a domain name); see also AOL LLC v. Gerberg, FA 780200 (Nat. Arb. Forum Sept. 25, 2006) (“Complainant must first make a prima facie showing that Respondent does not have rights or legitimate interest in the subject domain names, which burden is light.  If Complainant satisfies its burden, then the burden shifts to Respondent to show that it does have rights or legitimate interests in the subject domain names.”).

 

The WHOIS information lists Respondent as “Sonny Lambert.”  Complainant alleges Respondent applied to be an authorized dealer of Complainant’s products but Complainant rejected that application.  Therefore, the Panel finds Respondent is not commonly known by the disputed domain names pursuant to Policy ¶ 4(c)(ii).  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 RMO, Inc. v. Burbridge, FA 96949 (Nat. Arb. Forum May 16, 2001) (interpreting Policy ¶ 4(c)(ii) "to require a showing that one has been commonly known by the domain name prior to registration of the domain name to prevail").

 

Respondent is using all of the disputed domain names to advertise and offer for sale unauthorized parts and accessories for Complainant’s hobby radio controlled aircrafts.  The Panel finds Respondent’s use of the disputed domain names is not a bona fide offering of goods or services pursuant to Policy ¶ 4(c)(i), or a legitimate noncommercial or fair use pursuant to Policy ¶ 4(c)(iii).  See Caterpillar Inc. v. Huth, FA 169056 (Nat. Arb. Forum Sept. 2, 2003) (“Respondent lacks rights in the disputed domain names because Respondent competes with Complainant by selling Complainant's used parts without a license from Complainant to do so.”); see also Ultimate Elecs., Inc. v. Nichols, FA 195683 (Nat. Arb. Forum Oct. 27, 2003) (finding that the respondent's “use of the domain name (and Complainant’s mark) to sell products in competition with Complainant demonstrates neither a bona fide offering of goods or services nor a legitimate noncommercial or fair use of the name”).

 

The Panel finds that Respondent’s offer to sell the disputed domain names indicates that Respondent lacks rights and legitimate interests under Policy ¶ 4(a)(ii).  See Am. Nat’l Red Cross v. Domains, FA 143684 (Nat. Arb. Forum Mar. 4, 2003) (“Respondent’s lack of rights and legitimate interests in the domain name is further evidenced by Respondent’s attempt to sell its domain name registration to Complainant, the rightful holder of the RED CROSS mark.”); see also Wal-Mart Stores, Inc. v. Stork, D2000-0628 (WIPO Aug. 11, 2000) (finding the respondent’s conduct purporting to sell the domain name suggests it has no legitimate use).

 

Registration and Use in Bad Faith

Complainant states Respondent offered to sell the disputed domain names for two million dollars each or eight million dollars collectively.  The Panel finds Respondent’s apparent willingness to dispose of the disputed domain names in return for compensation exceeding the expenses is evidence of bad faith registration and use pursuant to Policy ¶ 4(b)(i).  See Neiman Marcus Group, Inc. v. AchievementTec, Inc., FA 192316 (Nat. Arb. Forum Oct. 15, 2003) (finding the respondent’s offer to sell the domain name for $2,000 sufficient evidence of bad faith registration and use under Policy ¶ 4(b)(i)); see also Bank of Am. Corp. v. Nw. Free Cmty. Access, FA 180704 (Nat. Arb. Forum Sept. 30, 2003) (“Respondent's general offer of the disputed domain name registration for sale establishes that the domain name was registered in bad faith under Policy ¶ 4(b)(i).”).

 

Respondent registered thirty-one domain names incorporating Complainant’s marks.  The Panel finds these registrations constitute a pattern and are evidence of bad faith registration and use pursuant to Policy ¶ 4(b)(ii).  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 EPA European Pressphoto Agency B.V. v. Wilson, D2004-1012 (WIPO Feb. 9, 2005) (finding that the respondent’s registration of the <epa-photo.com>, <epaphoto.com> and <epaphotos.com> domain names was sufficient to constitute a pattern pursuant to Policy ¶ 4(b)(ii)).

 

 

Respondent’s disputed domain names all offer for sale unauthorized products of parts and upgrades for Complainant’s products.  The Panel finds Respondent’s uses of these disputed domain names constitute disruption and are evidence of bad faith registration and use pursuant to Policy ¶ 4(b)(iii).  See Fossil, Inc. v. NAS, FA 92525 (Nat. Arb. Forum Feb. 23, 2000) (transferring the <fossilwatch.com> domain name from the respondent, a watch dealer not otherwise authorized to sell the complainant’s goods, to the complainant); see also 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).

 

Complainant contends that Respondent is using the confusingly similar disputed domain names to sell unauthorized parts and upgrades for Complainant’s products.  Respondent presumably profits from this use.  Additionally, the Panel determines that Respondent’s use of Complainant’s marks creates a likelihood of confusion regarding the source of the content resolving from the disputed domain names.  The Panel finds this is an attempt by Respondent to profit from the goodwill associated with Complainant’s marks.  Therefore, the Panel finds Respondent’s actions constitute bad faith registration and use pursuant to Policy ¶ 4(b)(iv).  See Nokia Corp. v. Private, D2000-1271 (WIPO Nov. 3, 2000) (finding bad faith registration and use pursuant to Policy ¶ 4(b)(iv) where the domain name resolved to a website that offered similar products as those sold under the complainant’s famous mark); see also Identigene, Inc. v. Genetest Labs., D2000-1100 (WIPO Nov. 30, 2000) (finding bad faith where the respondent's use of the domain name at issue to resolve to a website where similar services are offered to Internet users is likely to confuse the user into believing that the complainant is the source of or is sponsoring the services offered at the site).

 

Additionally, Complainant alleges Respondent registered some of the disputed domain names within days or months of Complainant’s press releases regarding new product lines.  The Panel finds Respondent’s registration and use of these disputed domain names is opportunistic and evidence of bad faith registration and use pursuant to Policy ¶ 4(a)(iii).  See Sota v. Waldron, D2001-0351 (WIPO June 18, 2001) (finding that the respondent’s registration of the <seveballesterostrophy.com> domain name at the time of the announcement of the Seve Ballesteros Trophy golf tournament “strongly indicates an opportunistic registration”); see also Reuters Ltd. v. Teletrust IPR Ltd., D2000-0471 (WIPO Sept. 8, 2000) (finding that the respondent demonstrated bad faith where the respondent was aware of the complainant’s famous mark when registering the domain name as well as aware of the deception and confusion that would inevitably follow if he used the domain names).

 

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 <bladecxpro.com>, <bladecx-2.com>, <bladecx2.com>, <bladecx2.info>, <bladecx2.net>, <bladecx2.org>, <bladecppro.com>, <bladecppro.info>, <bladecppro.net>, <bladecppro.org>, <cx-2.com>, <bladecxpro.info>, <bladecxpro.net>, <bladecxpro.org>, <e-flite.info>, <e-flite.org>, <eflite.info>, <horizonhobby.biz>, <bladecx2pro.com>, <bladecx2pro.net>, <cx2pro.com>, <bladecx.net>, <bladecx.biz>, <bladecx.info>, <bladecx.org>, <bladecxforum.com>, <bladecxmod.com>, <bladecxmods.com>,

 

 

 

 

<bladecxpart.com>, <bladecxparts.com> and <bladecx3.com> domain names be TRANSFERRED from Respondent to Complainant.

 

 

                                                                                               

                                                                       

                                                                                                            John J. Upchurch, Panelist

            Dated:  May 28, 2008

 

 

National Arbitration Forum

 

 

 

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