National Arbitration Forum

 

DECISION

 

American Airlines, Inc. v. Texas International Property Associates - NA NA

Claim Number: FA0809001223585

 

PARTIES

Complainant is American Airlines, Inc (“Complainant”), represented by Kristin Jordan Harkins, of Conley Rose, P.C., Texas, USA.  Respondent is Texas International Property Associates - NA NA (“Respondent”), represented by Gary Wayne Tucker, of Law Office of Gary Wayne Tucker, Texas, USA.

 

REGISTRAR AND DISPUTED DOMAIN NAME 

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

 

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.

 

Houston Putnam Lowry, Chartered Arbitrator, as Panelist.

 

PROCEDURAL HISTORY

Complainant submitted a Complaint to the National Arbitration Forum electronically on September 8, 2008; the National Arbitration Forum received a hard copy of the Complaint on September 10, 2008.

 

On September 9, 2008, Compana, LLC confirmed by e-mail to the National Arbitration Forum that the <aadvantageshoping.com> domain name is registered with Compana, LLC and that the Respondent is the current registrant of the name.  Compana, LLC has verified that Respondent is bound by the Compana, LLC 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 11, 2008, a Notification of Complaint and Commencement of Administrative Proceeding (the “Commencement Notification”), setting a deadline of October 1, 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@aadvantageshoping.com by e-mail.

 

A timely Response was received and determined to be complete on October 1, 2008.

 

A timely Additional Submission was received from Complainant on October 6, 2008.

 

On October 15, 2008, pursuant to Complainant’s request to have the dispute decided by a single-member Panel, the National Arbitration Forum appointed Houston Putnam Lowry, Chartered Arbitrator, as Panelist.

 

RELIEF SOUGHT

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

 

PARTIES’ CONTENTIONS

A. Complainant

 

Complainant is the owner of the following U.S. Trademark registrations that are relevant to the present administrative proceeding.

 

Trademark

U.S.

Reg. No.

Goods/Services

First Use in Commerce

AADVANTAGE

2,187,483

Promoting the goods and services of others by means of an incentive awards programs, whereby purchase points are awarded for purchase made from vendor subscribers, which can then be redeemed for merchandise and travel; providing air transportation services featuring a program of bonus flights for frequent travelers.

At least as early as April 20, 1981

AADVANTAGE

(and Design)

1,228,737

Providing a Program of Bonus Flights for Frequent Travelers.

At least as early as April 20, 1981

AADVANTAGE

(and Design)

2,006,172

Promoting travel services, credit card use, long-distance service car rentals, and hotel accommodations through the administration of award programs.

At least as early as April 20, 1981

AADVANTAGE PLATINUM (and Design)

1,788,496

Transportation of passengers by air; namely, providing a program of bonus flights for frequent travelers.

At least as early as June 15, 1992

AADVANTAGE

DIAL-IN

1,832,881

Providing travel, lodging and frequent flyer account balance information via automated voice response.

At least as early as Dec. 14, 1992

AADVANTAGE GOLD (and Design)

2,001,368

Transportation of passengers by air, namely providing a program of bonus flights for frequent travelers.

At least as early as Nov. 12, 1982

AADVANTAGE EXECUTIVE PLATINUM

2,247,386

Transportation of passengers by air, namely, providing a program of bonus flights for frequent travelers.

At least as early as Jan. 21, 1998

AADVANTAGE EXECUTIVE PLATINUM (and Design)

2,444,458

Transportation of passengers by air, namely, providing a program of bonus flights for frequent travelers.

At least as early as Jan. 21, 1998

AADVANTAGE VACATION AWARDS

2,419,098

Travel services, namely, custom vacation redemption program using miles and/or cash for hotels, resorts, car rental, theme park tickets, ski lifts tickets, or other travel related services.

At least as early as June 1, 1999

AADVANTAGE VACATION AWARDS

(and Design)

2,413,986

Travel services, namely, custom vacation redemption program using miles and/or cash for hotels, resorts, car rental, theme park tickets, ski lifts tickets, or other travel related services.

At least as early

as June 1, 1999

AADVANTAGE GOLF

2,577,106

Promoting the goods and services of others through the administration of an incentive award loyalty program for sports membership.

At least as early as April 27, 1999

AADVANTAGE GOLF (and Design)

2,577,072

Promoting the goods and services of others through the administration of incentive award loyalty program for sports membership.

At least as early as April 27, 1999

 

            FACTUAL AND LEGAL GROUNDS

This Complaint is based on the following grounds:

 

A.     Complainant’s Legitimate Rights to the Marks AADVANTAGE® and AAdvantage eShopping™

 

Complainant, American Airlines, Inc. is engaged in the business of air transportation and related services and is one of the world’s largest airlines.  Complainant has acquired a nationwide reputation for quality goods and services, and has accumulated substantial public goodwill.  In the course of its business, Complainant has acquired extensive rights in numerous trade names, trademarks and service marks.  Complainant advertises, promotes and sells its goods and services directly to the ultimate consumer as well as through travel agencies and other third parties.  The methods of advertising, promoting and sales are many, including on the Internet.

 

In the course of its business, Complainant administers a customer loyalty and travel awards program under the mark AADVANTAGE®, as used alone and with various designs, which Complainant has continuously used since at least as early as April 20, 1981. 

 

The AADVANTAGE® customer loyalty program was the original travel awards program and today is the world’s largest such program.  AADVANTAGE® program members earn frequent flyer miles when they fly on American Airlines or any of over 21 partner airlines, stay at any of over 35 partner hotels, or rent a car from any of the 7 major car rental agencies, all of which are AADVANTAGE® partners.  Program members can also earn frequent flyer miles by making purchases or donations through various non-travel related companies that participate in American Airlines’ programs, including charities, credit and debit card companies, restaurants, financial services companies, phone and Internet companies, real estate and mortgage companies, and consumer retail companies.

 

Complainant has also adopted and developed substantial rights and goodwill in an entire family of trademarks and service marks that incorporate the term “AADVANTAGE”, including the marks AADVANTAGE PLATINUM (and Design)®, AADVANTAGE DIAL-IN®, AADVANTAGE GOLD (and Design)®, AADVANTAGE EXECUTIVE PLATINUM®, AADVANTAGE EXECUTIVE PLATINUM (and Design)®, AADVANTAGE VACATION AWARDS, AADVANTAGE VACATION AWARDS (and Design)®, AADVANTAGE GOLF® and AADVANTAGE GOLF (and Design)®.  These marks are all used in commerce in connection with the advertising and administration of various aspects of the AADVANTAGE® customer loyalty program in the United States and throughout the world.

 

Complainant has devoted considerable efforts to advertise and promote its services offered under its family of AADVANTAGE® marks and has developed widespread recognition and fame in the marketplace for its customer loyalty program offered under the mark AADVANTAGE®.  Because A ADVANTAGE® is a well-known and famous mark by which Complainant American Airlines, Inc. is identified, and also as a result of longstanding, continuous use throughout the United States and the world for over 27 years, AADVANTAGE® is accepted by the purchasing public as distinguishing Complainant’s customer loyalty program services from the goods and services of others. 

 

Complainant has also extensively advertised and promoted its customer loyalty services offered under the mark AADVANTAGE® on the Internet.  Complainant is the owner of the domain name AAdvantageeShopping.com, which contains the Complainant’s mark AADVANTAGE®.

 

Moreover, Complainant has developed substantial common law rights in the service mark AAdvantage eShopping™, which is prominently displayed on Complainant’s web site <AAdvantageeShopping.com> to advertise and promote Complainant’s online retail shopping mall services, administered as part of the AADVANTAGE® customer loyalty program.  The AAdvantage eShopping™ mall allows AADVANTAGE® members to earn frequent flyer miles by shopping with over 200 brand-name retailers, earning miles for every dollar spent.  These retailers sell merchandise in a variety of different categories, including apparel, baby and maternity, books and magazines, computers, department stores, electronics, flowers, gifts, gourmet and entertaining, health and beauty, home and garden, jewelry and watches, music and movies, office and school supplies, pets, photo, services, shoes and accessories, small business, sports and recreation, toys, and travel and leisure.

 

Complainant has enjoyed continuous and substantially exclusive use of the service mark AAdvantage eShopping™ since at least as early as January 2004.  Through the <AAdvantageeShopping.com> web site, approximately $49,500,000 in annual sales were made during 2007 in connection with the AAdvantage eShopping™ mark, and these sales were associated with over 386,000 separate transactions.  In addition, the <AAdvantageeShopping.com> web site is viewed by Internet users an average of approximately 9,000,000 times annually.  As such, the AAdvantage eShopping™ mark has come to be accepted by the purchasing public as distinguishing Complainant’s online retail mall services, as provided in connection with the AADVANTAGE® customer loyalty program, from the goods and services of others.

 

Complainant’s presence on the Internet promotes Complainant’s AADVANTAGE® and AAdvantage eShopping™ services and identifies Complainant as the source of such services.  Complainant has acquired and now enjoys substantial goodwill and a valuable reputation through its registered AADVANTAGE® mark, through its common law AAdvantage eShopping™ mark, and through its <AAdvantageeShopping.com> web site.  The maintenance of high standards of quality and excellence for Complainant’s customer loyalty program services and associated online retail mall services has contributed to this valuable goodwill and reputation.  The goodwill embodied in the Complainant’s AADVANTAGE® family of marks, and consequently Complainant’s valuable reputation and credibility in the airline industry, depend on the integrity of the marks as identifying Complainant as the sole source of its customer loyalty program services and not any other source. 

 

B.  Respondent’s Illegitimate Activities Relating to the Disputed Domain Name

 

[a].       In accordance with ICANN Rule 3(b)(ix)(1); ICANN Policy ¶4(a)(i):

The Disputed Domain Name is Confusingly Similar to the Marks in which Complainant has Rights:

 

The disputed domain name <aadvantageshoping.com> is confusingly similar to Complainant’s registered AADVANTAGE® mark because the domain name incorporates Complainant’s mark in its entirety, merely adding the misspelled descriptive term “shoping” and the generic top-level domain (gTLD) “.com”.  Thus, the dominant portion of the disputed domain name is identical to the Complainant’s mark AADVANTAGE®, and adding a misspelled descriptive term fails to detract from the overall commercial impression provided by the AADVANTAGE® mark.  See Sony Kabushiki Kaisha v. Inja, Kil, D2000-1409 (WIPO Dec. 9, 2000) (finding that the addition of an ordinary descriptive word did not detract from the overall commercial impression of the dominant part of the domain name, which was the SONY mark).  See also Am. Airlines, Inc. v. Tex. Int’l Prop. Assocs., FA 914854 (Nat. Arb. Forum Apr. 10, 2007) (finding that the addition of a gTLD is not significant when examining whether a disputed domain name is identical or confusingly similar to Complainant's mark under Policy ¶4(a)(i)); Isleworth Land Co. v. Lost in Space, SA, FA 117330 (Nat. Arb. Forum Sept. 27, 2002) (“[I]t is a well established principle that generic top-level domains are irrelevant when conducting a Policy ¶4(a)(i) analysis.”).

 

The disputed domain name <aadvantageshoping.com> is also essentially identical and/or confusingly similar to Complainant’s common law mark AAdvantage eShopping™ because the domain name differs from Complainant’s mark only by misspelling the term “eShopping” and by adding the generic top-level domain “.com.”  Thus, the dominant portion of the disputed domain name is essentially identical to the Complainant’s mark AAdvantage eShopping™, and misspelling the term “eShopping” fails to detract from the overall commercial impression provided by the AAdvantage eShopping™ mark.  See Interflora, Inc. v. Whois Privacy Protection Serv., Inc., FA0609000796384 (Nat. Arb. Forum Nov. 1, 2006) (holding that creating a domain name that mimics a common typing or spelling error does not distinguish the domain name inteflora.com from Complainant’s mark INTERFLORA).

 

Respondent’s registration and use of the disputed domain name, which is confusingly similar to Complainant’s registered AADVANTAGE® mark, and also represents likely spelling and typographical errors of Complainant’s common law AAdvantage eShopping™ mark and web site <AAdvantageeShopping.com>, is misleading and causes confusion to consumers who are diverted away from Complainant’s web site AAdvantageeShopping.com where Internet users can earn AADVANTAGE® miles through Complainant’s customer loyalty program.  Clearly, Respondent has registered a confusingly similar variation of the Complainant’s marks and domain name so that Internet users attempting to reach the Complainant’s web site at <AAdvantageeShopping.com> will be redirected to Respondent’s web site.

 

[b].       In accordance with ICANN Rule 3(b)(ix)(2); ICANN Policy ¶¶4(a)(ii), 4(c):

The Respondent Has No Rights or Legitimate Interests in the Disputed Domain Name:

 

Upon information and belief, Respondent has not and does not use the disputed domain name in connection with a bona fide offering of goods or services.  When an Internet user types in <aadvantageshoping.com>, the disputed domain name resolves to a web site featuring category links displayed under the heading “Related Searches”, with the category “Shopping Advantage” presented first.  Clicking on the “Shopping Advantage” category link brings the Internet user to a list of “Sponsored Results” with links to various commercial web sites, from which Respondent presumably receives click-through or referral fees.  The “Sponsored Results” listing includes large-print headings above each commercial web site link, most of which include the word “Advantage” or “Shopping” or both.  A link to Complainant’s web site <AAdvantageeShopping.com> is listed under the heading “Aadvantage eShopping Mall” and links to other retail shopping web sites that compete with Complainant’s retail mall services and that do not offer AADVANTAGE® miles are listed under such headings as “Shop Online, Earn Rewards” and “Shopping Advances.” 

 

Clearly, the Respondent is using the disputed domain name <aadvantageshoping.com> as an opportunistic attempt to attract Internet users to Respondent’s web site by creating a likelihood of confusion with Complainant.  Respondent is profiting from Internet users who unintentionally misspell Complainant’s common law mark AAdvantage eShopping™ when attempting to access Complainant’s web site <AAdvantageeShopping.com>.  Such Internet users may mistakenly believe that all of the online retail shopping web sites listed on Respondent’s web site are associated with Complainant’s AADVANTAGE® awards program due to the misleading headings above the web site links.  Respondent’s use of a domain name that is confusingly similar to Complainant’s marks for the purpose of diverting Internet users to Respondent’s site for its own commercial gain is neither a bona fide offering of goods or services nor a legitimate noncommercial or fair use.  Tahoe Joe’s, Inc. v. Manila Indus., Inc., FA 721976 (Nat. Arb. Forum July 14, 2006); see also Intrawest ULC v. Tex. Int’l Prop. Assocs., FA 1108455 (Nat. Arb. Forum Jan. 17, 2008) (finding no bona fide offering of goods or services or legitimate noncommercial or fair use where the disputed domain name resolved to a web site displaying links to Complainant’s web site and other web sites offering services in direct competition with Complainant).

 

Nothing in the WHOIS domain name information, nor any other evidence, suggests that Respondent is now or has ever been commonly known by the disputed domain name.  Moreover, the domain name at issue is not, nor could it be contended to be, the nickname of Respondent Texas International Property Associates – NA NA, or in any other way identified with or related to a legitimate interest of Respondent. 

 

Complainant has also not licensed or otherwise permitted Respondent to use any of Complainant’s marks or to apply for or use any domain name incorporating any of Complainant’s marks, including the marks AADVANTAGE® and AAdvantage eShopping™.

 

[c].       In accordance with ICANN Rule 3(b)(ix)(3); ICANN Policy ¶¶4(a)(iii), 4(b):

Respondent Has Registered and Is Using the Disputed Domain Names in Bad Faith:

 

Respondent is a “typo domain name pirate” or “typo squatter” because it registered and is using a domain name comprising a misspelled variation of the Complainant’s domain name <AAdvantageeShopping.com> based on Complainant’s famous AADVANTAGE® mark and Complainant’s common law mark AAdvantage eShopping™.  Typosquatting is evidence of bad faith registration and use in violation of Policy ¶4(a)(iii).  See Ganz v. Tex. Int’l Prop. Assocs., FA 991778 (Nat. Arb. Forum July 19, 2007) (holding that registration of typosquatted versions of Complainant's mark is evidence of bad faith registration and use under Policy ¶4(a)(iii)). 

 

The registration and use by Respondent of the domain name at issue also clearly disrupts the Complainant’s business by diverting Internet traffic away from Complainant’s web site <AAdvantageeShopping.com>.  Such disruption is evidence of bad faith registration and use in violation of Policy ¶4(b)(iii). See Hospira, Inc. v. Tex. Int’l Prop. Assocs., FA 959934 (Nat. Arb. Forum June 4, 2007) (holding that use of a confusingly similar domain name to display hyperlinks to various third-party web sites, including some in direct competition with Complainant, constitutes disruption under Policy ¶4(b)(iii) and is thus evidence of bad faith registration and use). 

 

Respondent registered a domain name that is confusingly similar to Complainant’s mark AADVANTAGE® and essentially identical to Complainant’s mark AAdvantage eShopping™, and the Respondent is not commonly known by the domain name.  The disputed domain name resolves to a web site featuring “Sponsored Listings” of various commercial web sites from which Respondent presumably receives referral fees, and some of these links are online retail shopping web sites listed under headings that imply an affiliation with Complainant’s AADVANTAGE® customer loyalty program when no such affiliation exists.  These factors support a conclusion that Respondent registered the domain name <aadvantageshoping.com> for the primary purpose of intentionally attempting to attract, for commercial gain, Internet users to Respondent’s web site or other online locations, by creating a likelihood of confusion with the Complainant’s marks as to the source, sponsorship, affiliation or endorsement of Respondent’s web site or of a product or service on Respondent’s web site.  See Grounded Nomads, LLC d/b/a Vocation Vacations v. Tex. Int’l Prop. Assocs., FA 999659 (Nat. Arb. Forum Aug. 1, 2007) ("Respondent is benefiting from the likelihood of confusion between Complainant's mark and Respondent's disputed domain name for commercial gain, and has therefore demonstrated bad faith registration and use under Policy ¶4(b)(iv).”).

 

Upon information and belief, Respondent registered the aadvantageshoping.com domain name with knowledge of Complainant’s rights in the AADVANTAGE® and the AAdvantage eShopping™ marks, as well as Complainant’s rights in the domain name <AAdvantageeShopping.com>.  Respondent’s registration of a domain name that contains Complainant’s famous AADVANTAGE® mark, and misspells Complainant’s common law AAdvantage eShopping™ mark, with knowledge of Complainant’s rights in these marks, is evidence of bad faith registration and use in violation of ICANN Policy ¶4(a)(iii).  See Mattel, Inc. v. Nexpert, Inc.; FA 245930 (Nat. Arb. Forum April 27, 2004)(finding bad faith registration and use of the domain name barbiekorea.com based on Nexpert’s actual knowledge of Mattel’s rights in the famous BARBIE mark); see also Endurance Specialty Holdings Ltd. v. Tex. Int’l Prop. Assocs. - NA NA, FA 1103617 (Nat. Arb. Forum Dec. 27, 2007) (finding bad faith registration and use where the disputed domain name was registered with at least constructive use of Complainant's common law mark, evidenced by Respondent's web site containing links to Complainant's web site).

 

Respondent has registered numerous domain names and has been the subject of multiple ICANN proceedings.  In particular, Respondent has engaged in a bad faith pattern of registering and using trademark-related domain names, which evidences bad faith registration and use.  See Xojet Inc. v. Tex. Int’l Prop. Assocs., FA 1105705 (Nat. Arb. Forum Dec. 24, 2007).  To date, at least forty-four (44) National Arbitration Forum panels and thirty-one (31) World Intellectual Property Organization panels have decided that the Respondent registered and used a domain name in bad faith, and therefore ruled that the domain name should be transferred from the Respondent to the rightful trademark owner.

 

Respondent’s conduct, knowing full well that it has no right to use Complainant’s marks, demonstrates that it is knowingly, willfully and with a bad faith intent, trading on the value of, and interfering with, Complainant’s right to use its marks in commerce.

 

B. Respondent

 

Had Complainant contacted Respondent prior to the institution of this proceeding it could have saved itself the filing fee as well as the cost of preparation of the Complaint.  Respondent herein agrees to the relief requested by the Complainant and will, upon order of the Panel, do so.  This is not an admission to the three elements of 4(a) of the policy but rather an offer of “unilateral consent to transfer” as prior Panels have deemed it.

 

In The Cartoon Network LP, LLLP v. Mike Morgan, Case No. D2005-1132 (WIPO January 5, 2006), the Panel noted that where the Respondent has made an offer to transfer there were numerous ways the Panel could proceed:

 

(i)         to grant the relief requested by the Complainant on the basis of the Respondent’s consent without reviewing the facts supporting the claim (see Williams-Sonoma, Inc. v. EZ-Port, WIPO Case No. D2000-0207; Slumberland France v. Chadia Acohuri, WIPO Case No. D2000-0195);

(ii)       to find that consent to transfer means that the three elements of paragraph 4(a) are deemed to be satisfied, and so transfer should be ordered on this basis (Qosina Corp. v. Qosmedix Group, WIPO Case No. D2003-0620; Desotec N.V. v. Jacobi Carbons AB, WIPO Case No. D2000-1398); and

(iii)      to proceed to consider whether on the evidence the three elements of paragraph 4(a) are satisfied because the Respondent’s offer to transfer is not an admission of the Complainant’s right (Koninklijke Philips Electronics N.V. v. Manageware, WIPO Case No. D2001-0796) or because there is some reason to doubt the genuineness of the Respondent’s consent (Société Française du Radiotéléphone-SFR v. Karen, WIPO Case No. D2004-0386; Eurobet UK Ltd. v. Grand Slam Co., WIPO Case No. D2003-0745).

 

The Panel, conscious of Rule 10(c)’s caution for “due expedition” decided that the best and most expeditious course was that “a genuine unilateral consent to transfer by the Respondent provides a basis for an immediate order for transfer without consideration of the paragraph 4(a) elements. Where the Complainant has sought transfer of a disputed domain name, and the Respondent consents to transfer, then pursuant to paragraph 10 of the Rules the Panel can proceed immediately to make an order for transfer. This is clearly the most expeditious course.” (citing from Williams-Sonoma, Inc. v. EZ-Port, Case No. D2000-0207 WIPO May 5, 2000)

 

The Panel in Citigroup Inc. v. Tex. Int’l Prop. Assocs.- NA NA, FA 1210904 (Nat. Arb. Forum August 5, 2008)  noted:

 

Judicial economy dictates that the Panel should simply proceed to its decision since there is no dispute between the parties.  Thus, this Panel disagrees with the proposition that even though a respondent consents to transferring an at-issue domain name, a substantive review may be required.  See Graebel Van Lines, Inc. v. Tex. Int’l Prop. Assocs., FA 1195954 (Nat. Arb. Forum July 17, 2008).  There is no need for a decision or findings on the merits where the respondent, by consenting to the requested relief, obviates the necessity for such a ruling. Similarly, there is no requirement for a decision on the merits after the complainant dismisses the complaint.  Likewise a domain name registrant may not file a UDRP complainant requesting declarative relief against a trademark holder.  While the Graebel Van Lines panel decision may suggest an inference that allowing a domain name to be  transferred by consent alone shields cybersquatters from adverse findings, the UDRP has no business serving a policing function or exposing cybersquatters apart from that which is entailed in deciding an instant dispute.

 

Judicial economy and the very purpose of the UDRP demands expeditious and economical resolution of UDRP disputes.  A respondent that consents to requested relief avoids having to expend the time and resources necessary to respond.  Furthermore, having consented to the relief requested, the respondent’s pleadings will normally not offer a substantive defense.  Why should it?  A panel’s focus on Policy 4(a) elements in a dispute where the respondent avoids a substantive response for reasons of economy may thus result in a bias toward the complainant’s position. Alternatively, requiring a respondent that consents to the requested relief to substantively respond to a complaint or face a decision and adverse findings based solely on the aversions of the complainant does not further the UDRP’s interest in providing an abbreviated economical procedure for resolving domain name disputes.

 

Importantly, the singularly narrow task before this Panel is to determine whether or not the requested relief should be granted, denied or dismissed.

 

The remedies available to a complainant pursuant to any proceeding before an Administrative Panel shall be limited to requiring the cancellation of [the] domain name or the transfer of [the] domain name registration to the complainant.

Policy  4(i). 

 

A panel’s only purpose in rendering substantive Paragraph 4(a) findings is relegated to that end, and that end alone. What amounts to advisory opinions are not authorized by the Policy, Rules, or otherwise.  Therefore, 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(a).  Such circumstances are not present in the instant dispute, and so the requested relief must be granted.

 

If the Panel decides that analysis is required, Respondent respectfully requests that Respondent be given the opportunity to prepare a more formal response.

 

For the foregoing reasons, Respondent requests that the Panel order the immediate transfer of the disputed domain name.

 

C. Additional Submissions

 

Complainant’s additionally responded:

 

REPLY TO FACTUAL AND LEGAL ALLEGATIONS MADE IN RESPONSE

 

In its Response to the Complaint, the Respondent: (1) asserts that it would have transferred the domain name to the Complainant without the need for an ICANN proceeding had the Complainant only asked, and (2) agrees to the relief requested by the Complainant, urging the Panel to order the immediate transfer of the domain name to the Complainant without deciding the case on the merits. 

 

Despite the Respondent’s attempts to portray itself as a helpful and cooperative party, ready and willing to efficiently resolve this matter, the Respondent is merely attempting to divert the Panel’s attention away from its clearly egregious behavior and avoid an adverse finding that reveals the Respondent’s illegitimate and bad faith use of the <aadvantageshoping.com> web site.  The Complainant responds to each of the Respondent’s points, as follows:

 

A.     The Respondent Has Demonstrated an Unwillingness to Transfer Domain Names Outside of ICANN Proceedings.

 

The Respondent suggests that it would have transferred the domain name to the Complainant had it merely asked, and the Complainant could have thereby avoided the costs associated with preparing and filing a UDRP Complaint.  This is absolutely untrue.  As evidenced by prior Decisions, the Respondent has demonstrated a pattern of unwillingness to cooperate with trademark owners to transfer a domain name until after a UDRP Complaint is filed.  See Rockstar Games v. Tex. Int’l Prop. Assocs., D2007-0501 (WIPO June 8, 2007) (documenting communications between Complainant and Respondent where Respondent refused to transfer the domain name, but once the UDRP Complaint was filed, Respondent agreed to the transfer in its Response); Yurman Studio, Inc. v. Tex. Int’l Prop. Assocs. – NA NA, FA 1218785 (Nat. Arb. Forum Sept. 23, 2008) (noting that Respondent delayed transfer for five months, but once the UDRP Complaint was filed, Respondent agreed to the transfer in its Response); Lomont Molding, Inc. v. Tex. Int’l Prop. Assocs. – NA NA, FA 1144231 (Nat. Arb. Forum April 3, 2008) (noting that Respondent’s President ignored Complainant’s attempts to make contact outside of the ICANN proceeding, but once the UDRP Complaint was filed, Respondent agreed to the transfer in its Response).

 

Therefore, while the Respondent represents that it would have been willing to cooperate with the Complainant to transfer the domain name, the Respondent’s conduct in prior proceedings evidences the exact opposite.  The Respondent has made a lucrative business out of collecting click-through fees by trading on the rights of trademark owners, and the Respondent has no incentive whatsoever to transfer a domain name to its rightful owner unless it is ordered to do so.  The Respondent has established a pattern of forcing trademark owners to file UDRP Complaints to obtain such transfers, and once a UDRP Complaint is filed, the Respondent waits until the last day of the response period before filing its Response agreeing to the transfer.  The longer it delays the longer the Respondent can continue collecting click-through fees.

 

B.     The Respondent Concedes to Transfer of the Domain Name to Avoid an Adverse Decision.

 

In its Response, the Respondent does not dispute any of the allegations presented in the Complaint and instead stipulates to the relief requested by the Complainant in the form of a “unilateral consent to transfer” without an admission to the three elements of ICANN Policy ¶4(a).  The Respondent then goes on for nearly three pages urging the Panel to forego the traditional UDRP analysis and order immediate transfer of the domain name without a decision on the merits. 

 

After holding the disputed domain name for nearly three (3) years, why is the Respondent so anxious to agree to the transfer, and why is the Respondent so insistent that the Panel forego a decision on the merits?  The Respondent obviously recognizes that it cannot offer any plausible explanation for its selection of the disputed domain name or the web site content or otherwise defend against the allegations set out in the Complaint.  As such, the Respondent’s ready willingness to transfer the domain name to the Complainant actually evidences that it has no rights or legitimate interests in the disputed domain name, and that it registered and is using the disputed domain name in bad faith.  The Respondent employs the tactic of readily agreeing to transfer the domain name in an effort to avoid another adverse decision against it. 

 

The Respondent is a notorious cyber squatter, and it should not be permitted to avoid a decision on the merits merely because it has agreed to transfer the disputed domain name.  Based on the Complainant’s review of the NAF Decisions to date, Texas International Property Associates has been the Respondent in 105 Decisions since April 2007, 92 of which resulted in transfer of the domain name.  Of those 92 transfer cases, the Respondent argued against transfer 47 times and agreed to transfer 45 times. 

 

The Respondent’s filing of a stipulation to transfer does not preclude the Panel from ruling on the merits.  Indeed, prior panels have recognized that the “consent-to-transfer” tactic employed by the Respondent is but one way cyber squatters avoid adverse findings against them, and so these Panels have determined that it is appropriate to do the analysis under the Policy.  See Lomont Molding, Inc. v. Tex. Int’l Prop. Assocs. – NA NA, FA 1144231 (Nat. Arb. Forum April 3, 2008) (“Having given the matter due consideration, this Panel is of the view that it should proceed to consider Complainant’s application on the merits.”); Graebel Van Lines, Inc. v. Tex. Int’l Prop. Assocs. – NA NA, FA 1195954 (Nat. Arb. Forum July 17, 2008) (“the transfer of the disputed domain name deserves to be along with the findings in accordance with the Policy.”); LFP Video Group, LLC and VCA Labs, Inc. v. Tex. Int’l Prop. Assocs. – NA NA, FA 1215365 (Nat. Arb. Forum Sept. 3, 2008) (completing the analysis under the Policy, in part, because Complainant had not consented in its Complaint to transfer without a decision on the merits); Cardiff Seaside Market, Inc. v. Tex. Int’l Prop. Assocs. – NA NA, FA 1217394 (Nat. Arb. Forum Sept. 11, 2008) (“the better course is to do the analysis under the Policy”); Yurman Studio, Inc. v. Tex. Int’l Prop. Assocs. – NA NA, FA 1218785 (Nat. Arb. Forum Sept. 23, 2008) (determining that “it is appropriate that a finding on the merits be issued, along with a direction to transfer” due in part to Respondent’s pattern of failing to transfer until a UDRP case has been filed).

 

In accordance with the foregoing precedent, a decision on the merits is warranted in the present case to prevent the Respondent from avoiding the consequences associated with its egregious cyber squatting and typo squatting practices.  Merely transferring the disputed domain name without finding that the Respondent has violated the three elements of ICANN Policy ¶4(a) would allow the Respondent to continue its infringing practices largely without consequence or penalty.  Such a course of action is not only inconsistent with the Policy, but also works injustice on Complainants.  Therefore, notwithstanding the Respondent’s stipulation to transfer the disputed domain name, the Complainant submits that it is entitled to a decision on the merits.

 

Respondent further replied:

 

I.          Introduction

            On October 6, 2008, the Respondent received an email from the Complainant containing what is purported to be an Additional Submission in accordance with the Uniform Domain Name Dispute Resolution Policy (the Policy), approved by the Internet Corporation for Assigned Names and Numbers (ICANN) on October 24, 1999, the Rules for Uniform Domain Name Dispute Resolution Policy (the Rules), approved by ICANN on October 24, 1999, and the NAF Supplemental Rules for Uniform Domain Name Dispute Resolution Policy (the Supplemental Rules).  Respondent objects to such filing as will be detailed below.  The five (5) day deadline for the Respondent to reply fell on October 11, 2008, a Saturday.  Pursuant to NAF Supplemental Rule 1(g)(ii) the date was extended to October 13, 2008.  As such this Objection & Reply is timely filed.

 

II.        Objections to the Filing of Complainant’s Additional Submission

(UDRP Rules  12, NAF Supplemental Rules ’s 7(a) and (b))

 

a.         Such submission is beyond the scope of the UDRP Rules

Prior to any discussion of the merits, if any, of Complainant’s Additional Submission, Respondent vigorously objects to such a filing.  Under Rule 12 of the Rules for Uniform Domain Name Dispute Resolution Policy (the “Rules”), it is quite clearly stated that “In addition to the complaint and the response, the Panel may request, in its sole discretion, further statements or documents from either of the Parties.”  Under the Forum’s Supplemental Rules, Rule 7 (“Rule 7”) allows for the filing of such statements and documents without a request from the Panel.  Respondent believes that Rule 7 is an improper modification of the Rules.  According to 1 of the Rules, Supplemental Rules are defined as follows:  “Supplemental Rules shall not be inconsistent with the Policy or these Rules and shall cover such topics as fees, word and page limits and guidelines, the means for communicating with the Provider and the Panel, and the form of cover sheets.”  Clearly the Rules anticipate that the Supplemental Rules of any Provider are housekeeping in nature and are not meant to allow substantial modifications of the rights of the parties under the Policy.  WIPO panelists, by way of example, generally hold to a “one filing rule” as observed by one recent panel, “[t]he normal procedure under these proceedings, is that Complainant is allowed to submit a Complaint, and Respondent is allowed to submit a Response. Even though the Response in this case was filed late, this should not alter the main principle of one shot each.” Internationale Spar Centrale B.V. v. Scientific Process & Research, Inc., Case No. D2005-0603 (WIPO October 6, 2005).   By allowing such unsolicited material, the Forum allows Complainant to thwart the very streamlined procedure of “one shot each” envisioned by the Policy.

 

III.       Response to Complainant’s Additional Submission

(NAF Supplemental Rules’s 7(c) and (d))

Complainant’s additional submission in this proceeding is akin to the child at a birthday party who has been given cake and vanilla ice cream and looks up and says, “What, no chocolate?”  Having received the Respondent’s consent to transfer, Complainant has decided to spend an additional $400.00 because, apparently, an expeditious order transferring the domain is not enough.  While the Respondent does not begrudge the Forum any extra monies, it does marvel at Complainant’s apparent need to waste the same.

 

Respondent could have argued against the relief requested by Complainant but did not.  Whether the Panel makes a finding under the three (3) elements of the Policy or simply orders a transfer, the only relief sought here is a transfer of the domain.  A full finding by the Panel requires time and thought as opposed to an expeditious transfer which merely requires an order of transfer.

 

FINDINGS

Respondent consents to the transfer of the domain name.

 

DISCUSSION

The Panel wants to thank the parties and their representatives for a through discussion of the issues at hand.  Although this case involved more than the usual single exchange, it was helpful for the Panel.

 

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.

 

Respondent claims consenting to a transfer does not mean Respondent admitted to the elements that normally must underlie a UDRP proceeding.  This Panel believes otherwise; consenting to a transfer means the parties all agree the underlying elements must be prima facie found.  To hold otherwise would mean the Panel could not examine its own jurisdiction and the parties could fraudulently confer jurisdiction upon the Panel.  This Panel is not convinced the parties’ power is so great.  This Panel finds it has the sufficient jurisdiction to transfer the domain name at issue, which means the Panel believes the necessary elements to support the requested relief are prima facie present.

 

The real question is whether or not this Panel’s findings have any res judicata effect on the parties.  That interesting question is beyond this Panel’s jurisdiction.

 

In order to avoid all doubt about this Panel’s jurisdiction and the prima facie existence of the necessary elements to support a transfer order, the Panel finds:

 

Identical and/or Confusingly Similar

 

Complainant has established rights in the AADVANTAGE mark for purposes of Policy ¶4(a)(i) through its trademark registration with the USPTO.  See Vivendi Universal Games v. XBNetVentures Inc., FA 198803 (Nat. Arb. Forum Nov. 11, 2003) (“Complainant's federal trademark registrations establish Complainant's rights in the BLIZZARD mark.”); see also Innomed Techs., Inc. v. DRP Servs., FA 221171 (Nat. Arb. Forum Feb. 18, 2004) (“Registration of the NASAL-AIRE mark with the USPTO establishes Complainant's rights in the mark.”).

 

Respondent’s <aadvantageshoping.com> domain name is confusingly similar to Complainant’s AADVANTAGE mark.  The <aadvantageshoping.com> domain name differs from Complainant’s mark in three ways: (1) “shoping,” a misspelling of the descriptive term “shopping” by just one letter, has been added to the end of the mark; (2) Complainant’s mark contains two “e”s - AAdvantage eShopping and (3) the generic top-level domain (gTLD) “.com” has been added.  The addition of a descriptive term does not sufficiently distinguish a domain name from an incorporated mark for the purposes of Policy ¶4(a)(i), nor does the misspelling of a term in a domain name.  See Brambles Indus. Ltd. v. Geelong Car Co. Pty. Ltd., D2000-1153 (WIPO Oct. 17, 2000) (finding that the domain name <bramblesequipment.com> is confusingly similar because the combination of the two words "brambles" and "equipment" in the domain name implies that there is an association with the complainant’s business); see also Victoria’s Secret v. Zuccarini, FA 95762 (Nat. Arb. Forum Nov. 18, 2000) (finding that, by misspelling words and adding letters to words, a respondent does not create a distinct mark but nevertheless renders the domain name confusingly similar to the complainant’s marks).  Likewise, the addition of a gTLD fails to sufficiently distinguish a domain name from the mark it incorporates, because every domain name must include a top-level domain.  See Nev. State Bank v. Modern Ltd. – Cayman Web Dev., FA 204063 (Nat. Arb. Forum Dec. 6, 2003) (“It has been established that the addition of a generic top-level domain is irrelevant when considering whether a domain name is identical or confusingly similar under the Policy.”).  The lack of a space in the domain name does not affect the analysis because spaces are not allowed in domain names.  Therefore, the Panel finds these changes do not minimize or eliminate the resulting likelihood of confusion, and so Respondent’s disputed domain name is not sufficiently distinguished from Complainant’s mark pursuant to Policy ¶4(a)(i).  See PG&E Corp. v. Anderson, D2000-1264 (WIPO Nov. 22, 2000) (finding that “Respondent does not by adding the common descriptive or generic terms ‘corp’, ‘corporation’ and ‘2000’ following ‘PGE’, create new or different marks in which it has rights or legitimate interests, nor does it alter the underlying [PG&E] mark held by Complainant”); 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.”).

 

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

 

 

Rights 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).

 

Respondent is not commonly known by the <aadvantageshoping.com> domain name nor has it ever been the owner or licensee of the AADVANTAGE mark.  Respondent has been identified as “Texas International Property Associates – NA NA,” and nothing in the WHOIS record for the disputed domain name lists Respondent as any variant on the AADVANTAGE mark.  Respondent also has failed to show any evidence contrary to Complainant’s contentions.  Respondent is not commonly known by the <aadvantageshoping.com> domain name pursuant to Policy ¶4(c)(ii).  See Am. Online, Inc. v. World Photo Video & Imaging Corp., FA 109031 (Nat. Arb. Forum May 13, 2002) (finding that the respondent was not commonly known by <aolcamera.com> or <aolcameras.com> because the respondent was doing business as “Sunset Camera” and “World Photo Video & Imaging Corp.”); see also MRA Holding, LLC v. Costnet, FA 140454 (Nat. Arb. Forum Feb. 20, 2003) (noting that “the disputed domain name does not even correctly spell a cognizable phrase” in finding that the respondent was not “commonly known by” the name “girls gon wild” or <girlsgonwild.com>).

 

Respondent maintains a website at the <aadvantageshoping.com> domain name that features links to third-party websites offering services that compete with Complainant’s business.  Respondent commercially benefits from these links through the receipt of “click-through” fees.  This use of the <aadvantageshoping.com> domain name is neither a bona fide offering of goods or services under Policy ¶4(c)(i) nor a legitimate noncommercial or fair use under Policy ¶4(c)(iii).  See Pioneer Hi-Bred Int’l Inc. v. Chan, FA 154119 (Nat. Arb. Forum May 12, 2003) (finding that the respondent did not have rights or legitimate interests in a domain name that used the complainant’s mark and redirected Internet users to a website that pays domain name registrants for referring those users to its search engine and pop-up advertisements); see also Wells Fargo & Co. v. Lin Shun Shing, FA 205699 (Nat. Arb. Forum Dec. 8, 2003) (finding that using a domain name to direct Internet traffic to a website featuring pop-up advertisements and links to various third-party websites is neither a bona fide offering of goods or services under Policy ¶4(c)(i) nor a legitimate noncommercial or fair use under Policy ¶4(c)(iii) because the registrant presumably receives compensation for each misdirected Internet user).

 

The Panel finds Policy ¶4(a)(ii) satisfied.

 

 

Registration and Use in Bad Faith

 

This Panel finds Respondent diverts Internet customers from Complainant’s website to Respondent’s website that resolves from the disputed domain name, through the confusion caused by the similarity between the AADVANTAGE mark and the <aadvantageshoping.com> domain name.  Respondent intentionally disrupts Complainant’s business by its diversionary tactics.  The Panel finds the disruption of Complainant’s business is evidence of Respondent’s registration and use of the disputed domain name in bad faith pursuant to Policy ¶4(b)(iii).  See Tesco Pers. Fin. Ltd. v. Domain Mgmt. Servs., FA 877982 (Nat. Arb. Forum Feb. 13, 2007) (concluding that the use of a confusingly similar domain name to attract Internet users to a directory website containing commercial links to the websites of a complainant’s competitors represents bad faith registration and use under Policy ¶4(b)(iii)); see also 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). 

 

Respondent gains commercially from this diversion through the click-through fees Respondent receives from the third-party websites.  This is an intentional use of the disputed domain name for commercial gain through a likelihood of confusion with Complainant’s mark, and so, pursuant to Policy ¶4(b)(iv), the Panel finds this use is also evidence of Respondent’s registration and use in bad faith.  See Kmart v. Khan, FA 127708 (Nat. Arb. Forum Nov. 22, 2002) (finding that if the respondent profits from its diversionary use of the complainant's mark when the domain name resolves to commercial websites and the respondent fails to contest the complaint, it may be concluded that the respondent is using the domain name in bad faith pursuant to Policy ¶4(b)(iv)); see also Drs. Foster & Smith, Inc. v. Lalli, FA 95284 (Nat. Arb. Forum Aug. 21, 2000) (finding bad faith where the respondent directed Internet users seeking the complainant’s site to its own website for commercial gain).

               

This Panel makes no findings about whether or not Respondent has a pattern of cyber squatting because such a finding is not necessary for the purposes of this decision.

 

The Panel finds Policy ¶4(a)(iii) satisfied.

 

 

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

 

 

 

Houston Putnam Lowry, Chartered Arbitrator, Panelist
Dated: October 29, 2008

 

 

 

 

 

 

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