National Arbitration Forum

 

DECISION

 

Herbalife International of America, Inc., a wholly-owned subsidiary of Herbalife International, Inc. v. K J

Claim Number: FA0808001219775

 

PARTIES

Complainant is Herbalife International of America, Inc., a wholly-owned subsidiary of Herbalife International, Inc. (“Complainant”), represented by Susan Hwang, California, USA.  Respondent is K J (“Respondent”), Maryland, USA.

 

REGISTRAR AND DISPUTED DOMAIN NAME

The domain name at issue is <herbalifeinternational.com>, registered with Godaddy.com, 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.

 

Bruce E. Meyerson as Panelist.

 

PROCEDURAL HISTORY

Complainant submitted a Complaint to the National Arbitration Forum electronically on August 8, 2008; the National Arbitration Forum received a hard copy of the Complaint on August 11, 2008.

 

On August 11, 2008, Godaddy.com, Inc. confirmed by e-mail to the National Arbitration Forum that the <herbalifeinternational.com> domain name is registered with Godaddy.com, Inc. and that the Respondent is the current registrant of the name.  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 August 14, 2008, a Notification of Complaint and Commencement of Administrative Proceeding (the “Commencement Notification”), setting a deadline of September 3, 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@herbalifeinternational.com by e-mail.

 

A timely Response was received and determined to be complete on September 2, 2008.

 

An Additional Submission was received from Complainant on September 5, 2008, and was determined to be timely and complete pursuant to the National Arbitration Forum’s Supplemental Rule 7.

 

On September 10, 2008, pursuant to Complainant’s request to have the dispute decided by a single-member Panel, the National Arbitration Forum appointed Bruce E. Meyerson as Panelist.

 

RELIEF SOUGHT

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

 

PARTIES’ CONTENTIONS

A.     Complainant

 

Complainant, Herbalife International of America, Inc., is the wholly-owned subsidiary of Herbalife International, Inc., whose predecessor first began using the mark HERBALIFE in commerce in 1980.  Complainant has established rights in the HERBALIFE mark (Reg. No. 1,254,211 issued Oct. 18, 1983 by the United States Patent and Trademark Office (“USPTO”)).  Complainant is involved in the manufacture and sale of nutritional supplements to the general public.

 

Complainant contends that the domain name is confusingly similar to its HERBALIFE mark because it wholly incorporates the mark and adds the word “international” and the top-level domain indicator “.com.”   Complainant contends that Respondent has no rights or legitimate interests in using the domain name because it is not using the domain name in connection with a bona fide offering of goods or services.  According to Complainant, the domain name resolves to a parked web page that contains links to various sites, some of which offer products that compete with those offered by Complainant.

 

Complainant also contends that the domain name was registered and is being used in bad faith.  Complainant contends that Respondent has offered the domain name for sale for $50,000.00, well in excess of its out-of-pocket expenses associated with acquiring the domain name.  Complainant also contends that Respondent has used the domain name with the purpose or effect of interfering with Complainant’s business by resolving to a website that advertises and promotes products and services that compete directly with Complainant’s business.

 

B.     Respondent

 

Respondent states that he was a distributor of Herbalife products from 2000-2002.  Respondent “reserved” the domain name to develop and promote his business of selling these products.  He discontinued his status as a distributor with the intention of resuming the sale of Herbalife products at a later date.  Respondent states that he does not control what links are listed on the site and that Complainant has misrepresented his purpose for obtaining the domain name.  Respondent acknowledges that he has offered the domain name for sale.

 

C. Additional Submission

 

Complainant states that the distributorship agreement prohibits distributors from using Complainant’s marks “in domain names (URLs), the titles for any pages within websites … or email address.”  Complainant further argues that Respondent purposely hid its true identity from Complainant by listing itself as “K J” in the WHOIS records, and that it would be impossible to have discovered the past distribution agreement based on these allegedly misleading records. 

 

FINDINGS

Complainant. Herbalife International of America, Inc.. is the wholly-owned subsidiary of Herbalife International, Inc., whose predecessor first began using the mark HERBALIFE in commerce in 1980.  Complainant has established rights in the HERBALIFE mark (Reg. No. 1,254,211 issued Oct. 18, 1983 by the United States Patent and Trademark Office (“USPTO”)).   Respondent was a distributor of Herbalife products from 2000-2002.  Respondent “reserved” the domain name to develop and promote his business of selling these products.  Complainant’s distributorship agreement prohibits distributors from using Complainant’s marks “in domain names (URLs), the titles for any pages within websites . . . or email address.” 

 

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 established rights in the HERBALIFE mark (Reg. No. 1,254,211 issued Oct. 18, 1983 by the United States Patent and Trademark Office (“USPTO”)).  Thus, the Panel finds that Complainant has sufficient rights in the HERBALIFE mark under Policy ¶ 4(a)(i).  See Paisley Park Enters. v. Lawson, FA 384834 (Nat. Arb. Forum Feb. 1, 2005) (finding that the complainant had established rights in the PAISLEY PARK mark under Policy ¶ 4(a)(i) through registration of the mark with the USPTO); see also VICORP Rests., Inc. v. Triantafillos, FA 485933 (Nat. Arb. Forum July 14, 2005) (“Complainant has established rights in the BAKERS SQUARE mark by registering it with the United States Patent and Trademark Office (“USPTO”).”).

 

The Panel agrees with Complainant’s contention that Respondent’s disputed <herbalifeinternational.com> domain name is confusingly similar to Complainant’s HERBALIFE mark in that it incorporates Complainant’s entire mark, and adds the generic word “international” and the generic top-level domain “.com.”  Respondent’s disputed domain name fully incorporates Complainant’s mark with the descriptive term “international” which describes the geographic reach of Complainant’s business.  This descriptive term does not sufficiently distinguish the domain name from Complainant’s mark.  See American Int’l Group v. Mary Ellen Morris, FA 569033 (Nat. Arb. Forum Dec. 6, 2005) (finding <aigfraud.net> “confusingly similar to Complainant’s AIG mark because [the] domain name fully incorporates the mark with the addition of the generic or descriptive [term] ‘fraud’); see also Space Imaging LLC v. Brownell, AF-0298 (eResolution Sept. 22, 2000) (finding confusing similarity where the respondent’s domain name combines the complainant’s mark with a generic term that has an obvious relationship to the complainant’s business).  Additionally, it is well established that the generic top-level domain “.com” is considered immaterial when assessing whether a disputed domain name is confusingly similar to a mark.  See Trip Network Inc. v. Alviera, FA 914943 (Nat. Arb. Forum Mar. 27, 2007) (concluding that the addition of a gTLD, whether it be “.com,” “.net,” “.biz,” or “.org,” is irrelevant to a Policy ¶ 4(a)(i) analysis).

 

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

 

Rights or Legitimate Interests

 

Complainant has asserted that Respondent does not have rights or legitimate interests in the disputed domain name.  Once Complainant presents a prima facie case in support of these assertions, the burden shifts to Respondent to establish that it does have rights or legitimate interests in the disputed domain name pursuant to Policy ¶ 4(a)(ii).  The Panel finds that Complainant has established a prima facie case to support its assertions and thus, the burden has shifted to Respondent to show it does have rights or legitimate interests.  See Hanna-Barbara Prods., Inc. v. Net’s 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.”).

 

In considering that the burden has shifted to Respondent to establish its rights to the domain name, the Panel has considered the “contractual” argument made by Respondent.  Respondent contends that it was an independent distributor for Complainant during the years 2000-2002.  Respondent submits IRS 1099 forms evidencing this fiscal relationship.  In that time, Respondent contends, it registered the disputed domain name in order to develop and promote its distributor business.  Respondent alleges that it discontinued acting as a distributor for personal reasons, with the intention of potentially restarting at some later date.  Respondent then claims to have held the disputed domain name either to resume its distributorship or to sell the domain name to another distributor.  Respondent argues that Complainant directly or indirectly permits its independent distributors to use marketing methods and domain names incorporating Complainant’s mark.

 

As noted below, Complainant has asserted that the distributorship agreement forbids improper use of Complainant’s intellectual property, including use in domain names and corresponding websites.  Respondent has not come forward with evidence to respond to this point.  Thus, because Respondent has not offered any evidence that it had a contractual right to establish a domain name using Complainant’s mark, the Panel concludes that this is not a case involving competing contractual right in the disputed domain name. See, e.g., Love v. Barnett, FA 944826 (Nat. Arb. Forum May 14, 2007).

 

Complainant asserts that Respondent is not commonly known by the disputed domain name.  The WHOIS information lists Respondent as “K J.”  Thus, the Panel finds that Respondent is not commonly known by the disputed domain name under 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 M. Shanken Commc’ns v. WORLDTRAVELERSONLINE.COM, FA 740335 (Nat. Arb. Forum Aug. 3, 2006) (finding that the respondent was not commonly known by the <cigaraficionada.com> domain name under Policy ¶ 4(c)(ii) based on the WHOIS information and other evidence in the record).

 

The record also supports the contention of Complainant that Respondent’s disputed domain name resolves to a website displaying parked third-party advertisements for Complainant’s direct competitors.  The Panel infers that Respondent conducts (or has permitted) this activity in furtherance of commercial gain.  Accordingly, the Panel finds that Respondent has not made 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 Bank of Am. Corp. v. Northwest Free City.  Access, FA 180704 (Nat. Arb.Forum Sept. 30, 2003) (“Respondent’s demonstrated intent to divert Internet users seeking Complainant’s website to a website of Respondent and for Respondent’s benefit is not 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 also Disney Enters., Inc. v. Kamble, FA 918556 (Nat. Arb. Forum Mar. 27, 2007) (holding that the operation of a pay-per-click website at a confusingly similar domain name was not 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)).

 

Registration and Use in Bad Faith

 

Complainant asserts that Respondent is attempting to create an intentional likelihood of confusion with Complainant’s mark and the disputed domain name for commercial gain.  The Panel agrees; thus the Panel finds that Respondent engaged in bad faith registration and use under Policy ¶ 4(b)(iv).  See Allianz of Am. Corp. v. Bond, FA 680624 (Nat. Arb. Forum June 2, 2006) (finding bad faith registration and use under Policy ¶ 4(b)(iv) where the respondent was diverting Internet users searching for the complainant to its own website and likely profiting); see also University of Houston Sys. v. Salvia Corp., FA 637920 (Nat. Arb. Forum Mar. 21, 2006) (“Respondent is using the disputed domain name to operate a website which features links to competing and non-competing commercial websites from which Respondent presumably receives referral fees.   Such use for Respondent’s own commercial gain is evidence of bad faith registration and use pursuant to Policy ¶ 4(b)(iv).”).

 

Complainant asserts that Respondent was not allowed to register the disputed domain name bearing Complainant’s mark in accordance with its distributor agreement.  The record supports this contention.  This is another reason for finding that Respondent engaged in bad faith registration and use under Policy ¶ 4(a)(iii).  See Procter & Gamble Co. v. Hlad, FA 126656 (Nat. Arb. Forum Nov. 20, 2002) (finding that the disputed domain name was registered and used in bad faith where the respondent, a distributor of the complainant’s products who was not a licensee of the complainant, used the complainant’s mark in its domain name, suggesting a broader relationship with the complainant and fostering the inference that the respondent was the creator of the complainant’s products rather than a mere distributor). 

 

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 <herbalifeinternational.com> domain name be TRANSFERRED from Respondent to Complainant.

 

 

 

Bruce E. Meyerson, Panelist
Dated: September 24, 2008

 

 

 

 

 

 

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