National Arbitration Forum

 

DECISION

 

Cardiff Seaside Market, Inc. v. Texas International Property Associates-NA NA

Claim Number: FA0807001217394

 

PARTIES

Complainant is Cardiff Seaside Market, Inc. (“Complainant”), represented by Mark I. Reichenthal of Branfman & Associates, California, USA.  Respondent is Texas International Property Associates-NA NA (“Respondent”), represented by Gary Wayne Tucker of the Law Office of Gary Wayne Tucker, Texas, USA.

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REGISTRAR AND DISPUTED DOMAIN NAME 

The domain name at issue is <cardiffseasidemarket.com>, registered with Compana, LLC.

 

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 July 25, 2008; the National Arbitration Forum received a hard copy of the Complaint July 25, 2008.

 

On July 30, 2008, Compana, LLC confirmed by e-mail to the National Arbitration Forum that the <cardiffseasidemarket.com> domain name is registered with Compana, LLC and that Respondent is the current registrant of the name.  Compana, LLC verified that Respondent is bound by the Compana, LLC 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 July 31, 2008, a Notification of Complaint and Commencement of Administrative Proceeding (the “Commencement Notification”), setting a deadline of August 20, 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@cardiffseasidemarket.com by e-mail.

 

A timely Response was received and determined to be complete August 20, 2008.

 

The Arbitrator received no additional filings.

 

On August 28, 2008, pursuant to Complainant’s request to have the dispute decided by a single-member Panel, the National Arbitration Forum appointed Hon. Carolyn Marks Johnson to sit as Panelist.

 

RELIEF SOUGHT

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

 

Preliminary Issue: Consent to Transfer

 

Respondent consents to transfer the <cardiffseasidemarket.com> domain name to Complainant.  However, after the initiation of this proceeding, the registrar, Compana LLC, placed a hold on Respondent’s account and therefore Respondent cannot transfer the disputed domain name while this proceeding is still pending.  Although Respondent has not contested the transfer of the disputed domain name but instead agrees to transfer the domain name in question to Complainant, the Panel may forego the traditional UDRP analysis and order an immediate transfer of the <cardiffseasidemarket.com> domain name.  See Boehringer Ingelheim Int’l GmbH v. Modern Ltd. – Cayman Web Dev., FA 133625 (Nat. Arb. Forum Jan. 9, 2003) (transferring the domain name registration where the respondent stipulated to the transfer); see also Malev Hungarian Airlines, Ltd. v. Vertical Axis Inc., FA 212653 (Nat Arb. Forum Jan. 13, 2004) (“In this case, the parties have both asked for the domain name to be transferred to the Complainant . . . Since the requests of the parties in this case are identical, the Panel has no scope to do anything other than to recognize the common request, and it has no mandate to make findings of fact or of compliance (or not) with the Policy.”); see also Disney Enters., Inc. v. Morales, FA 475191 (Nat. Arb. Forum June 24, 2005) (“[U]nder such circumstances, where Respondent has agreed to comply with Complainant’s request, the Panel felt it to be expedient and judicial to forego the traditional UDRP analysis and order the transfer of the domain names.”).

 

However, inasmuch as Complainant has not implicitly consented in its Complaint to the transfer of the <cardiffseasidemarket.com> domain name without a decision on the merits by the Panel, this Panel finds that the better course is to do the analysis under the Policy.  Sometimes, the “consent-to-transfer” approach is but one way for cybersquatters to avoid adverse findings against them.  In Graebel Van Lines, Inc. v. Texas International Property Associates, FA 1195954 (Nat. Arb. Forum July 17, 2008), the panel stated that:

 

Respondent has admitted in its response to the complaint of Complainant that it is ready to offer the transfer without inviting the decision of the Panel in accordance with the Policy.  However, in the facts of this case, the Panel is of the view that the transfer of the disputed domain name deserves to be along with the findings in accordance with the Policy.

 

PARTIES’ CONTENTIONS

 

A.     Complainant makes the following allegations in this proceeding:

1.      Respondent registered the <cardiffseasidemarket.com> domain name, which is identical to or confusingly similar to Complainant’s protected mark.

2.      Respondent has no rights to or legitimate interests in the disputed domain name.

3.      Respondent registered the disputed doman name in bad faith.

 

B.      Respondent made the following points in the Response:

1.      That Respondent agrees to the transfer of the disputed domain name while not conceding that the three elements of ICANN Policy 4(a)(i) apply.

2.      That the “most expeditious course” is to transfer the domain name.

3.      “Judicial economy” is served the responding to the unilateral agreement to transfer.

4.      That “when a respondent consents to a complainant’s requested relief and that complainant has rights in the at-issue domain name(s), then only under particular circumstance that call into question the validity of the respondent’s consent, or for similar other good cause, might a panel need to proceed to consider the merits of the complaint via further analysis under Paragraph 4(1).

5.      Such circumstances are not present in the instant dispute.

6.      Respondent does not address the three elements other than to note that it does not concede that Complainant’s position as to them is correct.

 

C. The Arbitrator received no Additional Submissions.

 

FINDINGS

 

Complainant established sufficient secondary meaning to confer common law rights in the CARDIFF SEASIDE MARKET mark.

 

Complainant has multiple trademark registrations of the mark with the state of California, where Complainant exclusively conducts its business.

 

The disputed <cardiffseasidemarket.com> domain name is identical to the CARDIFF SEASIDE MARKET mark.

 

Respondent purchased the domain name after Complainant inadvertently failed to timely renew the domain name, which Complainant originally owned, and then proceeded to use it in a manner that competed with Complainant or helped others to do so.

 

Respondent used the mark in the domain name in a manner that prevented Complainant from using the mark in that manner; Respondent mislead those who sought Complainant’s services and goods on the Internet into thinking that Complainant sponsored the domain name; and that Respondent benefitted financially from such use.  

 

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 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 the Respondent is identical or confusingly similar to a trademark or service mark in which the Complainant has rights;

(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

 

Complainant need not own a federal trademark registration to establish rights in a mark pursuant to Policy ¶ 4(a)(i).  Rather, a complainant can establish common law rights in the mark pursuant to Policy ¶ 4(a)(i) through a showing of secondary meaning associated with the mark.  See Zee TV USA, Inc. v. Siddiqi, FA 721969 (Nat. Arb. Forum July 18, 2006) (finding that the complainant need not own a valid trademark registration for the ZEE CINEMA mark in order to demonstrate its rights in the mark under Policy ¶ 4(a)(i)); see also Hiatt v. Pers. Fan & Official Site Builders : we build great sites, FA 881460 (Nat. Arb. Forum Feb. 21, 2007) (“Registration with a trademark authority is unnecessary under Policy ¶ 4(a)(i) in instances where a mark has gained secondary meaning through extensive commercial use and common law rights have been established ….”).

 

While Complainant does not currently hold registered trademarks with the United States Patent and Trademark Office (“USPTO”) for the CARDIFF SEASIDE MARKET mark, Complainant has two pending trademark applications before the USPTO.  Complainant also evidenced multiple trademark registrations of the mark with the state of California, where Complainant exclusively conducts its business.  Complainant alleges it has continuously conducted business in Cardiff by the Sea, California, since June 1985 to operate a high end market that stocks high-quality fresh food products.  Complainant also provides various catering and restaurant services at that location.  Based upon this evidence, the Panel finds that Complainant established sufficient secondary meaning to confer common law rights in the CARDIFF SEASIDE MARKET mark pursuant to Policy ¶ 4(a)(i).  See Jerry Damson, Inc. v. Tex. Int’l Prop. Assocs., FA 916991 (Nat. Arb. Forum Apr. 10, 2007) (finding that the complainant had common law rights in the JERRY DAMSON ACURA mark because it provided sufficient evidence of its continuous use of the mark since 1989 in connection with a car dealership); see also Kahn Dev. Co. v. RealtyPROshop.com, FA 568350 (Nat. Arb. Forum June 23, 2006) (holding that the complainant’s VILLAGE AT SANDHILL mark acquired secondary meaning among local consumers sufficient to establish common law rights where the complainant had been continuously and extensively promoting a real estate development under the mark for several years).

 

Respondent’s disputed <cardiffseasidemarket.com> domain name contains the CARDIFF SEASIDE MARKET mark in its entirety, but removes the spaces between the terms and adds the generic top-level domain (“gTLD”) “.com.”  The Panel finds that these changes are insignificant under an analysis of the Policy since domain names cannot contain spaces and must all possess a top-level domain.  Therefore, the Panel finds that the <cardiffseasidemarket.com> domain name is identical to the CARDIFF SEASIDE MARKET mark pursuant to Policy ¶ 4(a)(i).  See Diesel v. LMN, FA 804924 (Nat. Arb. Forum Nov. 7, 2006) (finding <vindiesel.com> to be identical to complainant’s mark because “simply eliminat[ing] the space between terms and add[ing] the generic top-level domain (“gTLD”) ‘.com’ … [is] insufficient to differentiate the disputed domain name from Complainant’s VIN DIESEL mark under Policy ¶ 4(a)(i)”); see also Bond & Co. Jewelers, Inc. v. Tex. Int’l Prop. Assocs., FA 937650 (Nat. Arb. Forum Apr. 30, 2007) (finding that the elimination of spaces between terms and the addition of a gTLD do not establish distinctiveness from the complainant’s mark under Policy ¶ 4(a)(i)).

 

Respondent expressly consents to transfer the disputed domain name, and makes no allegations with regards to Policy ¶ 4(a)(i). 

 

The Panel finds that Complainant satisfied the elements of ICANN Policy ¶ 4(a)(i).

 

Rights to or Legitimate Interests

 

Once Complainant makes a prima facie case in support of its allegations, the burden shifts to Respondent to show that it does have rights or legitimate interests pursuant to Policy ¶ 4(a)(ii).  See Do The Hustle, LLC v. Tropic Web, D2000-0624 (WIPO Aug. 21, 2000) (holding that, where the complainant has asserted that the respondent has no rights or legitimate interests with respect to the domain name, it is incumbent on the respondent to come forward with concrete evidence rebutting this assertion because this information is “uniquely within the knowledge and control of the respondent”); 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).

 

Complainant asserts that Respondent is not commonly known by the <cardiffseasidemarket.com> domain name, and has not obtained trademark or service mark rights in the disputed domain name.  Complainant also claims that Respondent is not affiliated with Complainant, and has not been licensed or otherwise authorized to use Complainant’s mark in a domain name.  The Panel finds that, based upon these assertions, Respondent is not commonly known by the <cardiffseasidemarket.com> domain name pursuant to Policy ¶ 4(c)(ii).  See Braun Corp. v. Loney, FA 699652 (Nat. Arb. Forum July 7, 2006) (concluding that the respondent was not commonly known by the disputed domain names where the WHOIS information, as well as all other information in the record, gave no indication that the respondent was commonly known by the disputed domain names, and the complainant had not authorized the respondent to register a domain name containing its registered mark); see also Reese v. Morgan, FA 917029 (Nat. Arb. Forum Apr. 5, 2007) (concluding that the respondent was not commonly known by the <lilpunk.com> domain name as there was no evidence in the record showing that the respondent was commonly known by that domain name, including the WHOIS information as well as the complainant’s assertion that it did not authorize or license the respondent’s use of its mark in a domain name).

 

Respondent is allegedly using the <cardiffseasidemarket.com> domain name to display hyperlinks related to “Cardiff” and “Wales,” which are presumably unrelated to Complainant’s business.  However, the Panel assumes that Respondent earns click-through fees for each redirected Internet user.  Thus, the Panel finds that Respondent’s use of the <cardiffseasidemarket.com> domain name does not constitute a bona fide offering of goods or services under Policy ¶ 4(c)(i) and it is not a legitimate noncommercial or fair use under Policy ¶ 4(c)(iii).  See Constellation Wines U.S., Inc. v. Tex. Int’l Prop. Assocs., FA 948436 (Nat. Arb. Forum May 8, 2007) (finding that the respondent had no rights or legitimate interests under Policy ¶¶ 4(c)(i) or 4(c)(iii) by using the disputed domain name to operate a website featuring links to goods and services unrelated to the complainant); see also Bank of Am. Fork v. Shen, FA 699645 (Nat. Arb. Forum June 11, 2006) (finding that the respondent’s use of a domain name to redirect Internet users to websites unrelated to a complainant’s mark is not a bona fide use under Policy ¶ 4(c)(i)).

 

Complainant previously registered and used the <cardiffseasidemarket.com> domain name, but inadvertently allowed the registration to lapse.  Respondent registered the disputed domain name at that time.  The Panel considers this to be further evidence that Respondent lacks rights and legitimate interests in the <cardiffseasidemarket.com> domain name pursuant to Policy ¶ 4(a)(ii).  See Zappos.com, Inc. v. Turvill Consultants, FA 404546 (Nat. Arb. Forum Feb. 28, 2005) (“[T]he fact that Complainant had previously held the <wwwzappos.com> domain name registration and has mistakenly allowed it to expire is further evidence that Respondent lacks rights and legitimate interests in the domain name under Policy ¶ 4(a)(ii).”); see also Am. Anti-Vivisection Soc’y v. “Infa dot Net” Web Servs., FA 95685 (Nat. Arb. Forum Nov. 6, 2000) (finding that the complainant’s prior registration of the same domain name is a factor in considering the respondent’s rights or legitimate interests in the domain name).

 

Respondent expressly consents to transfer the disputed domain name, and makes no allegations with regards to Policy ¶ 4(a)(ii). 

 

The Panel finds that Complainant satisfied the elements of ICANN Policy ¶ 4(a)(ii).

 

Registration and Use in Bad Faith

 

Complainant contends that Respondent’s registration and use of the <cardiffseasidemarket.com> domain name is likely to cause confusion as to the source, sponsorship, affiliation, or endorsement of the resolving website.  The Panel finds that Respondent is attempting to use this likelihood of confusion for commercial benefit through the accrual of click-through fees.  Therefore, the Panel finds that Respondent’s registration and use of the <cardiffseasidemarket.com> domain name constitutes bad faith pursuant to Policy ¶ 4(b)(iv).  See Ass’n of Junior Leagues Int’l Inc. v. This Domain Name My Be For Sale, FA 857581 (Nat. Arb. Forum Jan. 4, 2007) (holding that the respondent’s use of the disputed domain name to maintain a pay-per-click site displaying links unrelated to the complainant and to generate click-through revenue suggested bad faith registration and use under Policy ¶ 4(b)(iv)); see also T-Mobile USA, Inc. v. utahhealth, FA 697821 (Nat. Arb. Forum June 7, 2006) (holding that the registration and use of a domain name confusingly similar to a complainant’s mark to direct Internet traffic to a commercial “links page” in order to profit from click-through fees or other revenue sources constitutes bad faith under Policy ¶ 4(b)(iv)).

 

The Panel also finds that Complainant’s previous registration and use of the <cardiffseasidemarket.com> domain name, and Respondent’s subsequent registration and use, supports findings that Respondent acted in bad faith pursuant to Policy ¶ 4(a)(iii).  See RH-Interactive Jobfinance v. Mooburi Servs., FA 137041 (Nat. Arb. Forum Jan. 16, 2003) (finding that the respondent’s registration of the <jobfinance.com> domain name “immediately after Complainant failed to timely renew the domain name registration” was evidence of bad faith); see also InTest Corp. v. Servicepoint, FA 95291 (Nat. Arb. Forum Aug. 30, 2000) (“Where the domain name has been previously used by the Complainant, subsequent registration of the domain name by anyone else indicates bad faith, absent evidence to the contrary.”).

 

Respondent expressly consents to transfer the disputed domain name, and makes no allegations with regards to Policy ¶ 4(a)(iii). 

 

The Panel finds that Complainant satisfied the elements of ICANN 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 <cardiffseasidemarket.com> domain name be TRANSFERRED from Respondent to Complainant.

 

 

 

Hon. Carolyn Marks Johnson, Panelist
Dated: September 11, 2008.

 

 

 

 

 

 

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