NATIONAL ARBITRATION FORUM

 

DECISION

 

Farouk Systems, Inc. v. John Smith

Claim Number: FA1001001304283

 

PARTIES

Complainant is Farouk Systems, Inc. (“Complainant”) represented by Anthony Matheny, of Greenberg Traurig LLP, Texas, USA.  Respondent is John Smith (“Respondent”), Georgia, USA.

 

REGISTRAR AND DISPUTED DOMAIN NAMES 

The domain names at issue are <chihairstraightener.us> and <flatironstore.us>, 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.

 

Judge Ralph Yachnin as Panelist.

 

PROCEDURAL HISTORY

Complainant submitted a Complaint to the National Arbitration Forum (the “Forum”) electronically on January 21, 2010; the Forum received a hard copy of the Complaint on January 22, 2010.

 

On January 25, 2010, Godaddy.com, Inc. confirmed by e-mail to the Forum that the <chihairstraightener.us> and <flatironstore.us> domain name are registered with Godaddy.com, Inc. and that 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 the U. S. Department of Commerce’s usTLD Dispute Resolution Policy (the “Policy”).

 

On January 26, 2010, a Notification of Complaint and Commencement of Administrative Proceeding (the “Commencement Notification”), setting a deadline of February 16, 2010 by which Respondent could file a Response to the Complaint, was transmitted to Respondent in compliance with Paragraph 2(a) of the Rules for usTLD Dispute Resolution Policy (the “Rules”).

 

Having received no Response from Respondent, the Forum transmitted to the parties a Notification of Respondent Default.

 

On February 26, 2010, pursuant to Complainant’s request to have the dispute decided by a single-member Panel, the Forum appointed Judge Ralph Yachnin as Panelist.

 

Having reviewed the communications records, the Administrative Panel (the “Panel”) finds that the Forum has discharged its responsibility under Paragraph 2(a) of the Rules.  Therefore, the Panel may issue its decision based on the documents submitted and in accordance with the Policy, the Rules, the Forum’s Supplemental Rules and any rules and principles of law that the Panel deems applicable, without the benefit of any Response from Respondent.

 

RELIEF SOUGHT

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

 

PARTIES’ CONTENTIONS

A. Complainant

 

1.      Respondent’s <chihairstraightener.us> and <flatironstore.us> domain names are confusingly similar to Complainant’s CHI mark.

 

2.      Respondent does not have any rights or legitimate interests in the <chihairstraightener.us> and <flatironstore.us> domain names.

 

3.      Respondent registered and used the <chihairstraightener.us> and <flatironstore.us> domain names in bad faith.

 

B. Respondent failed to submit a Response in this proceeding.

 

FINDINGS

Complainant, Farouk Systems Inc., is a designer, marketer and seller of hair products including curling irons and hair dryers.  Complaint owns several trademark registrations with the United States Patent and Trademark Office (“USPTO”) for its CHI mark (e.g., Reg. No. 2,660,257 issued on Dec. 8, 2002).

 

Respondent registered the <chihairstraightener.us> and <flatironstore.us> domain names on February 12, 2009 and March 30, 2009, respectively.  Respondent’s disputed domain names resolves to a website displaying CHI brand hair products for sale and counterfeit unauthorized products.

 

DISCUSSION

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.”

 

In view of Respondent's failure to submit a Response, the Panel shall decide this administrative proceeding on the basis of the Complainant's undisputed representations pursuant to Paragraphs 5(f), 14(a) and 15(a) of the Rules and draw such inferences it considers appropriate pursuant to Paragraph 14(b) of the Rules.  The Panel is entitled to accept all reasonable allegations and inferences set forth in the Complaint as true unless the evidence is clearly contradictory.  See Vertical Solutions Mgmt., Inc. v. webnet-marketing, inc., FA 95095 (Nat. Arb. Forum July 31, 2000) (holding that the respondent’s failure to respond allows all reasonable inferences of fact in the allegations of the complaint to be deemed true); see also Talk City, Inc. v. Robertson, D2000-0009 (WIPO Feb. 29, 2000) (“In the absence of a response, it is appropriate to accept as true all allegations of the Complaint.”).

 

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; and

(2) the Respondent has no rights or legitimate interests in respect of the domain name; and

(3) the domain name has been registered or is being used in bad faith.

 

Given the similarity between the Uniform Domain Name Dispute Resolution Policy (“UDRP”) and the usTLD Policy, the Panel will draw upon UDRP precedent as applicable in rendering its decision.

 

Identical and/or Confusingly Similar

 

Respondent registered the <chihairstraightener.us> and <flatironstore.us> domain names on February 12, 2009 and March 30, 2009, respectively. The Panel finds Complainant has established rights in the CHI mark under Policy ¶ 4(a)(i) through its registration with the USPTO (e.g., Reg. No. 2,660,257 issued on Dec. 8, 2002).  See Trip Network Inc. v. Alviera, FA 914943 (Nat. Arb. Forum Mar. 27, 2007) (finding that the complainant’s federal trademark registrations for the CHEAPTICKETS and CHEAPTICKETS.COM marks were adequate to establish its rights in the mark pursuant to UDRP ¶ 4(a)(i)); see also Metro. Life Ins. Co. v. Bonds, FA 873143 (Nat. Arb. Forum Feb. 16, 2007) (finding that a trademark registration adequately demonstrates a complainant’s rights in a mark under UDRP ¶ 4(a)(i)).

 

Complainant alleges that Respondent’s  <chihairstraightener.us> domain name is confusingly similar to Complainant’s CHI mark.  The disputed domain name contains Complainant’s entire mark and simply adds the descriptive terms “hair” and “straightener,” which describe Complainant’s hair products business, and adds the country-code top-level domain (“ccTLD”) “.us.”  The Panel finds the additions of descriptive terms and a ccTLD to Complainant’s marks fail to adequately distinguish the disputed domain name from Complainant’s mark.  See Kohler Co. v. Curley, FA 890812 (Nat. Arb. Forum Mar. 5, 2007) (finding confusing similarity where <kohlerbaths.com>, the disputed domain name, contained the complainant’s mark in its entirety adding “the descriptive term ‘baths,’ which is an obvious allusion to complainant’s business.”); see also Vance Int’l, Inc. v. Abend, FA 970871 (Nat. Arb. Forum June 8, 2007) (finding that by adding the term “security” to the complainant’s VANCE mark, which described the complainant’s business, the respondent “very significantly increased” the likelihood of confusion with the complainant’s mark); see also Tropar Mfg. Co. v. TSB, FA 127701 (Nat. Arb. Forum Dec. 4, 2002) (finding that since the addition of the country-code “.us” fails to add any distinguishing characteristic to the domain name, the <tropar.us> domain name is identical to the complainant’s TROPAR mark).  The Panel finds Respondent’s <chihairstraightener.us> domain name is confusingly similar to Complainant’s CHI mark under Policy ¶ 4(a)(i).

 

Complainant also contends that the <flatironstore.us> domain name is confusingly similar to Complainant’s CHI mark.  However, the disputed domain name does not contain Complainant’s mark, and Complainant has not provided evidence that it has established rights in any of the terms contained in the disputed domain name.  Therefore, the Panel finds that Respondent’s <flatironstore.us> domain name is not confusingly similar to Complainant’s CHI mark pursuant to Policy ¶ 4(a)(i).  See Entrepreneur Media, Inc. v. Smith, 279 F.3d 1135, 1147 (9th Cir. 2002) ("Similarity of marks or lack thereof are context-specific concepts. In the Internet context, consumers are aware that domain names for different Web sites are quite often similar, because of the need for language economy, and that very small differences matter."); see also Thomas Cook Holdings Ltd. v. Aydin, D2000-0676 (WIPO Sept. 11, 2000) (finding that the domain name, <hot18to30.com>, is neither identical nor confusingly similar to the complainant’s CLUB 18-30 trademark).

 

Since the Panel has concluded that Complainant has not satisfied Policy ¶ 4(a)(i), in relation to Respondent’s <flatironstore.us> domain name because the disputed domain name is not confusingly similar to Complainant’s CHI mark the Panel declines to analyze the other two elements of the Policy.  See Creative Curb v. Edgetec Int’l Pty. Ltd., FA 116765 (Nat. Arb. Forum Sept. 20, 2002) (finding that because the complainant must prove all three elements under the Policy, the complainant’s failure to prove one of the elements makes further inquiry into the remaining element unnecessary); see also Hugo Daniel Barbaca Bejinha v. Whois Guard Protected, FA 836538 (Nat. Arb. Forum Dec. 28, 2006) (deciding not to inquire into the respondent’s rights or legitimate interests or its registration and use in bad faith where the complainant could not satisfy the requirements of UDRP ¶ 4(a)(i)).

 

As to Respondent’s <chihairstraightener.us> domain name, the Panel finds Policy ¶ 4(a)(i) has been satisfied.

 

Rights or Legitimate Interests

 

Complainant has alleged that Respondent does not have any rights or legitimate interests in the <chihairstraightener.us> domain name.  The burden shifts to Respondent to prove it does have rights or legitimate interests once Complainant makes a prima facie case in support of its allegations under Policy ¶ 4(a)(ii).  The Panel finds Complainant made a sufficient prima facie case.  Respondent’s failure to respond to the Complaint allows the Panel to infer that Respondent does not have rights or legitimate interests in the disputed domain name.  However, the Panel will examine the record to determine whether Respondent has rights or legitimate interests in the disputed domain name under Policy ¶ 4(c).  See Vanguard Group, Inc. v. Collazo, FA 349074 (Nat. Arb. Forum Dec. 1, 2004) (finding that because the respondent failed to submit a Response, “Complainant’s submission has gone unopposed and its arguments undisputed.  In the absence of a Response, the Panel accepts as true all reasonable allegations . . . unless clearly contradicted by the evidence.”); see also Domtar, Inc. v. Theriault., FA 1089426 (Nat. Arb. Forum Jan. 4, 2008) (“It is well established that, once a complainant has made out 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 paragraph 4(a)(ii) of the [UDRP].”).

 

There is no evidence in the record to conclude that Respondent owns any service marks or trademarks that reflect the <chihairstraightener.us> domain name.  Therefore the Panel finds that Respondent does not have rights and legitimate interests pursuant to Policy ¶ 4(c)(i).  See Meow Media Inc. v. Basil, FA 113280 (Nat. Arb. Forum Aug. 20, 2002 (finding that there was no evidence that Respondent was the owner or beneficiary of a mark that is identical to the <persiankitty.com> domain name); see also Pepsico, Inc. v. Becky, FA 117014 (Nat. Arb. Forum Sep. 3, 2002) (holding that because Respondent did not own any trademarks or service marks reflecting the <pepsicola.us> domain name, it had no rights or legitimate interests pursuant to Policy ¶ 4(c)(i)).

 

Complainant asserts that Respondent has never been authorized to use the CHI mark.  Complainant further provides the WHOIS information which lists the domain name registrant as “John Smith.”  Respondent has failed to provide evidence that it is commonly known by the <chihairstraightener.us> domain name.  Furthermore, the Panel fails to find evidence in the record suggesting that Respondent is commonly known by the disputed domain name.  Therefore, the Panel finds Respondent is not commonly known by the disputed domain name under Policy ¶ 4(c)(iii).  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 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 UDRP ¶ 4(c)(ii) does not apply).

 

Respondent uses the <chihairstraightener.us> domain name to resolve to a website where Complainant’s hair products, as well as counterfeit or unauthorized versions of Complainant’s hair products, are offered for sale.  The Panel finds this use is not a bona fide offering of goods or services under Policy ¶ 4(c)(ii) or a legitimate noncommercial or fair use of the disputed domain name under Policy ¶ 4(c)(iv).  See Hewlett-Packard Co. v. Inversiones HP Milenium C.A., FA 105775 (Nat. Arb. Forum Apr. 12, 2002) (“Respondent’s use of the confusingly similar domain name [<hpmilenium.com>] to sell counterfeit versions of Complainant’s [HP] products is not a bona fide offering of goods or services pursuant to [UDRP] ¶ 4(c)(i).”); see also Am. Tool & Machining, Inc. v. EZ Hitch Inc., FA 113961 (Nat. Arb. Forum July 16, 2002) (holding that Respondent lacks rights and legitimate interests in the domain name because “Respondent is competing in the same industry as Complainant, selling a product that is arguably identical to Complainant's product and under the same name”). 

 

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

 

Registration and Use in Bad Faith

 

On the website resolving from the <chihairstraightener.us> domain name, Respondent offers to sell hair products that belong to Complainant and unauthorized or counterfeit versions of Complainant’s hair products.  Internet users interested in purchasing hair products from Complainant may instead purchase these products from Respondent because of Respondent’s use of the confusingly similar disputed domain name.  The Panel finds Respondent’s use of the <chihairstraightener.us> domain name disrupts Complainant’s hair products business, which constitutes bad faith registration and use under Policy ¶ 4(b)(iii).  See Lambros v. Brown, FA 198963 (Nat. Arb. Forum Nov. 19, 2003) (finding that the respondent registered a domain name primarily to disrupt its competitor when it sold similar goods as those offered by the complainant and “even included Complainant's personal name on the website, leaving Internet users with the assumption that it was Complainant's business they were doing business with”); see also Fossil, Inc. v. NAS, FA 92525 (Nat. Arb. Forum Feb. 23, 2000) (transferring the <fossilwatch.com> domain name from the respondent, a watch dealer not otherwise authorized to sell the complainant’s goods, to the complainant).

 

The Panel infers Respondent profits from the sale of counterfeit and competing hair products on the website resolving from the <chihairstraightener.us> domain name.  Internet users, searching for Complainant’s hair products, may become confused as to Complainant’s sponsorship of or affiliation with the disputed domain name and resolving website.  Respondent attempts to profit from this confusion.  The Panel finds Respondent’s use of the disputed domain name constitutes bad faith registration and use pursuant to Policy ¶ 4(b)(iv).  See Computerized Sec. Sys., Inc. v. Hu, FA 157321 (Nat. Arb. Forum June 23, 2003) (finding that the respondent’s use of the <saflock.com> domain name to offer goods competing with the complainant’s illustrates the respondent’s bad faith registration and use of the domain name, evidence of bad faith registration and use pursuant to UDRP ¶ 4(b)(iv)); see also Nokia Corp. v. Private, D2000-1271 (WIPO Nov. 3, 2000) (finding bad faith registration and use pursuant to UDRP ¶ 4(b)(iv) where the domain name resolved to a website that offered similar products as those sold under the complainant’s famous mark).

 

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

 

DECISION

Having established all three elements required under the usTLD Policy in relation to the <chihairstraightener.us> domain name, the Panel concludes that relief shall be GRANTED.

 

Having failed to establish all three elements required under the usTLD Policy in relation to the <flatironstore.us> domain name, the Panel concludes that relief shall be DENIED.

 

Accordingly, it is Ordered that the <chihairstraightener.us> domain name be TRANSFERRED from Respondent to Complainant and the <flatironstore.us> domain name to remain with Respondent.

 

 

Hon. Ralph Yachnin, Panelist

Justice, Supreme Court, NY (Ret.)

Dated: March 12, 2010

 

 

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