National Arbitration Forum

 

DECISION

 

Coding Clan, LLC v. Steven Clayton

Claim Number: FA0906001271178

 

PARTIES

Complainant is Coding Clan, LLC (“Complainant”), represented by Kathryn Hodsden, California, USA.  Respondent is Steven Clayton (“Respondent”), North Carolina, USA.

 

REGISTRAR AND DISPUTED DOMAIN NAME

The domain name at issue is <codingclan.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.

 

Richard Hill as Panelist.

 

PROCEDURAL HISTORY

Complainant submitted a Complaint to the National Arbitration Forum electronically on June 29, 2009; the National Arbitration Forum received a hard copy of the Complaint on July 1, 2009.

 

On June 30, 2009, Godaddy.com, Inc. confirmed by e-mail to the National Arbitration Forum that the <codingclan.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 July 14, 2009, a Notification of Complaint and Commencement of Administrative Proceeding (the “Commencement Notification”), setting a deadline of August 3, 2009 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@codingclan.com by e-mail.

 

A timely Response was received and determined to be complete on July 30, 2009.

 

An Additional Submission from the Complainant was received on August 3, 2009.  It was deemed to be in compliance with Supplemental Rule 7.

An Additional Submission from the Respondent was received on August 10, 2009.  It was deemed to be receivable.

 

On August 4, 2009, pursuant to Complainant’s request to have the dispute decided by a single-member Panel, the National Arbitration Forum appointed Richard Hill as Panelist.

 

RELIEF SOUGHT

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

 

PARTIES’ CONTENTIONS

A. Complainant

The Complainant alleges that it is a company whose business is to build websites for a variety of customers.  It was incorporated in 2005 and has been in business since then.  The Complainant registered the disputed domain name in 2005 and has used it to promote its business since then.  The Complainant’s website at the disputed domain name included a distinctive design, logos, and copyrighted material.

 

According to the Complainant, it used its trade name CODING CLAN on business cards, marketing material, and invoices, thus becoming known under that name.

 

The Complainant states that, in May 2009, its registration for the disputed domain name was cancelled due to an administrative failure in the renewal of the annual fees.  The Respondent immediately acquired the domain name and proceeded to copy the contents (“scrape the contents”) of the Complainant’s web site onto his own server, thus displaying the same content as before at the disputed domain name.  The content in question includes material that is protected by the Complainant’s trademarks and copyrights.

 

According to the Complainant, this has disrupted its business.  Further, it constitutes violation of various laws related to trademarks and copyrights.  This constitutes bad faith registration and use under the Policy.  The Respondent does not have any legitimate interests or rights in the disputed domain name.

 

The Complainant requests that the Panel issue an award transferring the disputed domain name to the Complainant and awarding the costs of the arbitration to the Complainant.

 

B. Respondent

The Respondent states: “We buy lots of domains at auction, and we routinely get contacted by people like the complainant that, through their own neglect, don’t renew their domains.  It is our policy to give these domains back after recouping our costs for the auction itself and our initial registration cost.  If the complainant had simply contacted us through the domains by proxy email and asked for the domain back, we would have given it immediately after being reimbursed for our expenses.  This is our policy and why we ‘scrape the content’ as well.”

 

He continues: “The complainant talks about our ‘scraping’ of the site and putting up their protected content back up on the site after we obtained control of the site.  We absolutely did this, and we do it ALL the time for EVERY domain we buy and leave it like that for a period of time in case someone wants the domain back.” 

 

He concludes: “We are more than willing to give control of this domain back, just as we would have had the complainant contacted us through domains by proxy.  We simply ask for a reimbursement of our cost for the auction and the registration of the domain ($515.89).”

 

C. Additional Submissions

In its Additional Submission, the Complainant notes that the Respondent has made no effort, and presented no evidence, to establish that it was using (or planning to use) the disputed domain name in connection with a bona fide offering of goods or service; or that he had been commonly known by the domain name; or that he was making a legitimate noncommercial or fair use of the domain name.

 

Further, says the Complainant, the Respondent has admitted that he copied onto his own website the Complainant’s logo, contact information, trademark, graphics, and copyrighted material.  This constitutes violation of trademark and copyright laws.

 

According to the Complainant, it did send E-Mails to the Respondent (through the domain-name proxy service), but never received a reply.

 

In his Additional Submission, the Respondent reiterates that he does not wish to keep the disputed domain name.  He denies engaging in certain activities alleged by the Complainant.  In particular, he denies diverting customers: although he admits that the E-Mail link on the web site was no longer operational, the address and phone number of the Complainant were still correct.  The Respondent denies that he intended to sell the disputed domain name and he denies cybersquatting.  He reiterates that he never received a communication from the Complainant: the E-Mail cited by the Complainant did not identify the Complainant as the source.  The Respondent reiterates his conclusion, namely that the disputed domain name be returned to the Complainant in return for reimbursement of the Respondent’s costs.

 

FINDINGS

The Complainant has common law trademark rights in the name CODING CLAN.

 

The disputed domain name is identical to the Complainant’s mark.

 

The Respondent copied onto his own website the content of the Complainant’s website, which content included protected trademarks and material protected by copyright.

 

The Respondent has not indicated that he has any plans to use the disputed domain name for any particular business.  On the contrary, he indicates that he is willing to return the disputed domain name to the 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.

 

Procedural issues

 

Before dealing with the merits of the case, the Panel will deal with a procedural issues raised by the prayers for relief.

 

The Complainant requests that the disputed domain name be transferred to it and that it be awarded the costs of the present proceedings.

 

The Respondent requests that the Panel award control of the disputed domain name to the Complainant after the Complainant pays him a certain monetary amount.

 

According to Paragraph 4(i) of the Policy, the remedies available to a Complainant pursuant to any proceeding before an Administrative Panel shall be limited to requiring the cancellation of a domain name or the transfer of a domain name registration to the Complainant.  Symmetrically, the remedies available to a Respondent are limited to the acceptance or the rejection of the Complaint’s request regarding the cancellation or the transfer of a domain name.  See, e.g., Telekom Austria AG v. Reginaldo Mercatello, D2002-0235 (WIPO June 5, 2002).

 

It is settled case law under the Policy that a Panel may not award monetary amounts, whether for costs or damages.  See, e.g., Indian Farmers Fertiliser Cooperative Limited v. International Foodstuffs Company, D2001-1110 (WIPO Jan 4, 2002).

 

As a consequence, the monetary claims of the parties are not receivable and cannot be considered by this panel.

 

Thus, with respect to what can be considered by this Panel, the prayer for relief by the Complainant (that the name be transferred) is identical to the prayer for relief by the Respondent.

 

As noted above, Paragraph 15(a) of 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” (emphasis added).

 

In this case, the parties have both asked for the domain name to be transferred to the Complainant.  This Panel holds that in this UDRP proceeding, in accordance with a general legal principle governing arbitrations as well as national court proceedings, that it would not be appropriate for it to act nec ultra petita nec infra petita, that is, that it should not here issue a decision that would be either less than requested, nor more than requested by the parties.  Since the requests of the parties in this case are identical, the Panel recognizes the common request, and it will order the transfer of the disputed domain name.

 

A similar conclusion was reached by the Panel in Boehringer Ingelheim International GmbH v. Modern Limited ‑ Cayman Web Development, FA 133625 (Nat. Arb. Forum, Jan. 9, 2003); in Alstyle Apparel/Active Wear v. John Schwab d/b/a Alstyle de Mexico, FA 170616 (Nat. Arb. Forum, Sept. 5, 2003); and in United Pet Group, Inc. v. Texas International Property Associates, D2007‑1039 (WIPO, Sept. 25, 2007); 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.”).

 

In such cases, it is not necessary for the Panel to analyze the three elements of the Policy, nor to make findings of fact.  However, in this particular case, the Panel will proceed to make findings and to discuss the elements of the Policy.

 

Identical and/or Confusingly Similar

 

It is established case law under the Policy that a Complainant need not hold a registration of its mark with a governmental authority in order to establish rights in that mark under Policy ¶ 4(a)(i) provided that it can sufficiently establish common law rights in that mark through a sufficient showing of secondary meaning in that mark.  See Artistic Pursuit LLC v. calcuttawebdevelopers.com, FA 894477 (Nat. Arb. Forum Mar. 8, 2007) (finding that Policy ¶ 4(a)(i) does not require a trademark registration if a complainant can establish common law rights in its mark); 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.”).

 

The Complainant provides evidence showing that it began using the CODING CLAN mark in September 2005 in connection with building websites for customers such as magazine publishers, universities, and large corporations, in particular using the mark on its business cards and on invoices to customers located within the United States and England.  Consequently, the Panel finds that the Complainant has established common law rights in the mark under Policy ¶ 4(a)(i) that predate the Respondent’s registration of the disputed domain name.  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 Toyota Sunnyvale v. Adfero Publ’g Co., FA 921194 (Nat. Arb. Forum Apr. 10, 2007) (concluding that the complainant’s TOYOTA SUNNYVALE mark had acquired secondary meaning sufficient for it to establish common law rights in the mark through continuous and extensive use of the mark since 2003 in connection with a car dealership under that mark).

 

The disputed domain name contains the Complainant’s CODING CLAN mark in its entirety, deletes the space within the mark, and adds the generic top-level domain “.com.”  The Panel finds that the disputed domain name is identical to the Complainant’s CODING CLAN mark under Policy ¶ 4(a)(i).  See U.S. News & World Report, Inc. v. Zhongqi, FA 917070 (Nat. Arb. Forum Apr. 9, 2007) (“Elimination of punctuation and the space between the words of Complainant’s mark, as well as the addition of a gTLD does not sufficiently distinguish the disputed domain name from the mark pursuant to Policy ¶ 4(a)(i).”); see also 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)”).   

 

The Panel finds that the Complainant has satisfied its burden of proof for this element of the Policy.

 

Rights or Legitimate Interests

 

The Complainant asserts that the Respondent copied, exactly and with no changes, the Complainant’s website layout, logos, and business address to its own website at the disputed domain name.  The Respondent admits that this is the case.

 

As the Complainant correctly points out, such copying violates the Complainant’s copyrights.  Further, it violates the Complainant’s trademark rights.

 

As a consequence, the Respondent’s use of the disputed domain name cannot represent 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 also the discussion below regarding registration and use in bad faith.

 

The Panel finds that the Complainant has satisfied its burden of proof for this element of the Policy.

 

Registration and Use in Bad Faith

 

As noted above, it is not contested that the Respondent copied the Complainant’s website onto its own website.  The Respondent states that it did that as a convenience to the Complainant, and requests that the Complainant pay it a certain sum of money before it returns control of the contested domain name.

 

But misuse of a party’s trademark and copyright-protected material constitutes evidence of bad faith registration and use under the Policy, in particular when the purpose of such misuse is to obtain money from the Complainant.  See Target Brands, Inc. v. JK Internet Servs., FA 349108 (Nat. Arb. Forum Dec. 14, 2004) (finding bad faith because the respondent not only registered Complainant’s famous TARGET mark, but “reproduced . . . Complainant’s TARGET mark . . . [and] added Complainant’s distinctive red bull’s eye [at the domain name] . . . to a point of being indistinguishable from the original.”).

 

The Panel finds that the Complainant has satisfied its burden of proof for this element of the Policy.

 

DECISION

For all the reasons set for above, the Panel concludes that relief shall be GRANTED.

 

Accordingly, it is Ordered that the <codingclan.com> domain name be TRANSFERRED from Respondent to Complainant.

 

 

 

 

Richard Hill, Panelist
Dated: August 11, 2009

 

 

 

 

 

 

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