National Arbitration Forum

 

DECISION

 

Texas Lottery Commission v. Demand Domains, Inc.

Claim Number: FA1004001318449

 

PARTIES

Complainant is Texas Lottery Commission (“Complainant”), represented by Dwayne K. Goetzel, Texas, USA.  Respondent is Demand Domains, Inc. (“Respondent”), represented by Christina G. Radacha, Washington, USA.

 

REGISTRAR AND DISPUTED DOMAIN NAME 

The domain name at issue is <txlotto.net>, registered with eNom, 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.

 

Mark McCormick as Panelist.

 

PROCEDURAL HISTORY

Complainant submitted a Complaint to the National Arbitration Forum electronically on April 9, 2010.

 

On April 12, 2010, eNom, Inc. confirmed by e-mail to the National Arbitration Forum that the <txlotto.net> domain name is registered with eNom, Inc. and that the Respondent is the current registrant of the name.  eNom, Inc. has verified that Respondent is bound by the eNom, 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 April 13, 2010, the Forum served the Complaint and all Annexes, including a Written Notice of the Complaint, setting a deadline of May 3, 2010 by which Respondent could file a Response to the Complaint, via e-mail to all entities and persons listed on Respondent’s registration as technical, administrative, and billing contacts, and to postmaster@txlotto.net.  Also on April 13, 2010, the Written Notice of the Complaint, notifying Respondent of the email addresses served and the deadline for a Response, was transmitted to Respondent via post and fax, to all entities and persons listed on Respondent’s registration as technical, administrative and billing contacts.

 

A timely Response was received on May 3, 2010 but was not in compliance with Rule 5(a) because the annexes were not separated from the response.

 

Complainant submitted an Additional Submission on May 6, 2010 that was deemed timely and in compliance with Supplemental Rule 7.

 

On May 14, 2010, pursuant to Complainant’s request to have the dispute decided by a single-member Panel, the National Arbitration Forum appointed Mark McCormick as Panelist.

 

RELIEF SOUGHT

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

 

PARTIES’ CONTENTIONS

A. Complainant.

The domain name <txlotto.net> is confusingly similar to Complainant’s registered service marks LOTTO TEXAS and LOTTO TEXAS & Design.  Respondent has no rights or legitimate interests in the disputed domain name and registered mark and is using the domain name in bad faith.

 

B. Respondent.

Respondent did not know of Complainant’s registered service marks or use of those marks at the time it registered the domain name <txlotto.net>.  The terms in the domain name are generic, and their registration and use by Respondent was not in bad faith.  Respondent has shown its good faith by its offer to transfer the domain name to Complainant.

 

C. Additional Submissions

Complainant.

Respondent has in bad faith registered and used the domain name in order to profit from its similarity to Complainant’s LOTTO TEXAS mark, which is distinctive and famous.  Respondent seeks to profit by obtaining click-through revenue by trading on the confusing similarity between the disputed domain name and Complainant’s mark.  Respondent’s denial of knowledge of Complainant’s rights is not credible.

 

FINDINGS

Complainant registered its LOTTO TEXAS mark with the United Sates Patent and Trademark Office in a registration issued February 10, 2004, and has used the mark in interstate commerce since 1992.  The disputed domain name <txlotto.net> was registered by Respondent on July 17, 2007.  Respondent is not commonly known by the disputed domain name and essentially uses it as a link to third-party sites in order to derive “click-through” revenue.  Respondent also has listed the domain name as being available for sale.  Respondent registered and is using the domain name to capitalize on its similarity to Complainant’s mark to obtain revenue for itself.  Respondent’s disclaimer of knowledge of Complainant’s rights in the mark is incredible.  It seems clear that Respondent chose the domain name to take advantage of its similarity to Complainant’s mark in an effort to make a profit through its confusing similarity to Complainant’s mark. 

 

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.”

 

Two preliminary issues are presented.  One is whether Respondent’s Response should be considered.  The annexes to the Response were not separated from the Response as required by ICANN Rule 5(a).  This is a technical breach but is not serious enough to affect the Panel’s decision of the case on its merits.  See J. W. Spear & Sons PLC v. Fun League Mgmt., FA180628 (Nat. Arb. Forum October 17, 2003).  The other preliminary issue is whether the Panel should simply order the disputed domain name transferred based on Respondent’s offer to allow that to be done.  Complainant has not consented to transfer without a decision on the merits.  The Panel has concluded the Complainant is entitled to have findings made on the merits of the Complaint.  See Graebal Van Lines, Inc. v. Texas International Property Associates, FA 1195954 (Nat. Arb. Forum July 17, 2008).

 

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’s registration and years of use in interstate commerce of its TEXAS LOTTO mark have sufficiently established its rights in the mark pursuant to Policy ¶4(a)(i).  See Expedia, Inc. v. Emmerson, FA 873346 (Nat. Arb. Forum Feb. 9, 2007).  Moreover, the <txlotto.net> domain name is confusingly similar to Complainant’s mark.  Mere abbreviation of Texas, inversion of the words and addition of the top-level domain “.net” are insufficient to prevent confusion.  See NCRAS Mgmt., LP v. Cupcake City, D2000-1803 (WIPO Feb. 26, 2001); SEMCO Prods., LLC v. dmg world media (uk) ltd, FA 913881 (Nat. Arb. Forum Apr. 9, 2007); and Trip Network Inc. v. Alviera, FA 914943 (Nat. Arb. Forum Mar. 27, 2007).

 

Rights or Legitimate Interests

 

Because Complainant made a prima facie case that Respondent lacks rights and legitimate interests in the disputed domain name, the burden shifted to Respondent to show it does have rights or legitimate interests in the name.  See Hanna-Barbera Prods., Inc. v. Entm’t Commentaries, FA 741828 (Nat. Arb. Forum Aug. 18, 2006).  No evidence exists that Respondent is commonly known by the disputed domain name or is in any way affiliated with Complainant or authorized by Complainant to use the name.  Respondent plainly lacks rights or legitimate interests in the domain name.  See Hartford Fire Ins. Co. v. Webdeal.com, Inc., FA 95162 (Nat. Arb. Forum Aug. 29, 2000).  Moreover, Respondent’s use of the disputed domain name to obtain “click-through” revenue is not legitimate or fair use of the domain name.  See Disney Enters., Inc. v. Kamble, FA 918556 (Nat. Arb. Forum Mar. 27, 2007). 

 

Complainant has established that Respondent lacks rights and legitimate interests in the disputed domain name within the meaning of Policy ¶4(a)(ii).

 

Registration and Use in Bad Faith

 

Respondent registered and is using the disputed domain name to capitalize on its similarity to Complainant’s mark to obtain revenue by redirecting Internet users to Respondent’s website for the purpose of inducing them to click on one of the third-party links.  This is bad faith registration and use within the meaning of Policy ¶4(b)(iv).  See Allianz of Am. Corp. v. Bond, FA 680624 (Nat. Arb. Forum June 2, 2006).  Respondent’s bad faith is also shown by its willingness to sell the disputed domain name.  See Bank of Am. Corp. v. Nw. Free Cmty. Access, FA 180704 (Nat. Arb. Forum Sept. 30, 2003). 

 

Complainant has demonstrated that Respondent registered and is using the disputed domain name in bad faith within the meaning of Policy ¶4(a)(iii).

 

DECISION

Having established all three elements required under the ICANN Policy, the Panel concludes that relief shall be GRANTED.

 

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

 

 

 

 

Mark McCormick, Panelist
Dated:  May 26, 2010

 

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