National Arbitration Forum

 

DECISION

 

Central Valley Automotive d/b/a Central Valley Hyundai v. Chris Shaffer

Claim Number: FA1006001327840

 

 

PARTIES

Complainant is Central Valley Automotive d/b/a Central Valley Hyundai (“Complainant”), represented by Christopher W. Ewing, of The Business Law Group, LLP, California, USA.  Respondent is Chris Shaffer (“Respondent”), California, USA.

 

REGISTRAR AND DISPUTED DOMAIN NAME 

The domain name at issue is <centralvalleyhyundai.com>, registered with NETWORK SOLUTIONS, LLC.

 

PANEL

The undersigned certify that they have acted independently and impartially and to the best of their knowledge have no known conflict in serving as Panelists in this proceeding.

 

Luiz Edgard Montaury Pimenta, Honorable Bruce E. Meyerson and Honorable Hong Oo Baak, as Panelists.

 

PROCEDURAL HISTORY

Complainant submitted a Complaint to the National Arbitration Forum electronically on June 2, 2010.

 

On June 3, 2010, NETWORK SOLUTIONS, LLC confirmed by e-mail to the National Arbitration Forum that the <centralvalleyhyundai.com> domain name is registered with NETWORK SOLUTIONS, LLC and that the Respondent is the current registrant of the name.  NETWORK SOLUTIONS, LLC has verified that Respondent is bound by the NETWORK SOLUTIONS, 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 June 8, 2010, the Forum served the Complaint and all Annexes, including a Written Notice of the Complaint, setting a deadline of June 28, 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@centralvalleyhyundai.com by e-mail.  Also on June 8, 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.

 

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

 

On July 06, 2010, pursuant to Complainant’s request to have the dispute decided by a three-member Panel, the National Arbitration Forum appointed Luiz Edgard Montaury Pimenta, Honorable Bruce E. Meyerson and Honorable Hong Oo Baak as Panelists.

 

RELIEF SOUGHT

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

 

PARTIES’ CONTENTIONS

A. Complainant

 

Complainant, Central Valley Automotive, Inc., DBA Central Valley Hyundai, informs that it has operated a car dealership under the CENTRAL VALLEY HYUNDAI mark in California since 2008. Complainant informs that it has sold vehicles, filled repair orders, and advertised in California.

 

Complainant informs that Respondent registered the <centralvalleyhyundai.com> domain name on April 16, 2008, the same day that the California DMV published the name in its official records. Complainant contends that the disputed domain name resolves to a competing website of <rosevillehyundai.com>, promoting an automobile dealership in the Roseville, California area.

 

Complainant asserts that it has acquired common law rights in the name CENTRAL VALLEY HYUNDAI and states that it has licensed use of the United States Federal Registered trademark HYUNDAI.

 

Complainant alleges that it has consistently used the CENTRAL VALLEY HYUNDAI mark in connection with its offering of automobile sales and servicing since 2008. Complainant asserts that it expended thousands of dollars in advertising and promoting the mark and has sold hundreds of vehicles in the last two years. Complainant used the mark CENTRAL VALLEY HYUNDAI on April 15, 2008 when signing the Dealership Agreement with Hyundai Motor America and before Respondent registered the disputed domain name <centralvalleyhyundai.com>. Thus, Complainant alleges that it has established secondary meaning in the CENTRAL VALLEY HYUNDAI mark, and demonstrated rights in the mark under Policy ¶ 4(a)(i) that predate Respondent’s registration of the <centralvalleyhyundai.com> domain name by at least one day.

 

Complainant argues that it has submitted sufficient evidence to show it has common law rights in the mark pursuant to Policy 4(a)(i).

 

Complainant states that Respondent’s <centralvalleyhyundai.com> domain name is confusingly similar to Complainant’s CENTRAL VALLEY HYUNDAI mark. Complainant asserts that Respondent’s disputed domain name incorporates Complainant’s mark in its entirety, with the omission of spaces and the addition of the generic top-level domain “.com.”.

 

Complainant contends that Respondent has no legitimate interest and has not made any legitimate use of the domain name <centralvalleyhyundai.com> in connection with a bona fide offering of goods and services. Complainant further contends that Respondent is not commonly known by the disputed domain name “CENTRALVALLEYHYUNDAI.COM” or by Central Valley Hyundai. Complainant contends that Respondent could not be known by any of the fore mentioned names due to the exclusive license agreement between the HYUNDAI mark owner and Complainant.

 

Complainant informs that Hyundai Motor Company, the parent company to Hyundai Motor America, has several federally registered trademarks for HYUNDAI and that it has exclusively licensed its trademark to Complainant for use in connection with CENTRAL

VALLEY. Therefore, Complainant concludes that Respondent can NOT have any legitimate rights or bona fide use on the disputed domain name.

 

Complainant asserts that Respondent is not making any legitimate noncommercial or fair use of the domain name. Complainant asserts that Respondent has not registered the domain name to use as a parody and that Respondent’s sole use and registration of the domain name is to trade on Complainant’s name and mark and to divert internet users in violation of both California and Federal laws.

 

Complainant informs that Respondent is not licensed, assigned, or authorized to use the CENTRAL VALLEY HYUNDAI mark in a domain name by Complainant and therefore lacks rights and legitimate interests pursuant to Policy ¶ 4(c)(ii).

 

Therefore, Complainant concludes that Respondent’s use of the disputed domain name does not constitute either a bona fide offering of goods or services pursuant to Policy ¶ 4(c)(i), or a noncommercial or fair use under Policy ¶ 4(c)(iii).

 

Complainant alleges that Respondent has registered and is using the disputed domain name in bad faith pursuant to Policy ¶ 4(b)(iv), because it is diverting Internet users seeking information on Complainant’s car dealership to <rosevillehyundai.com>, a website of a competing automobile dealership. Complainant asserts that Respondent is misleading consumers to believing that Complainant is connected with or sponsoring said site. Further, Complainant also asserts that Respondent is likely selling vehicles to consumers that would have purchased a vehicle directly from Complainant and is therefore profiting from this diversion scheme. As a result, Complainant concludes that Respondent has registered and is using the disputed domain name in bad faith according to Policy ¶ 4(b)(iv).

 

Complainant asserts that because Respondent registered the disputed domain name after Complainant’s name was published by the California DMV; after the Complainant had signed an Agreement with Hyundai Motor America; and after Complainant had gained valuable rights in the common law mark CENTRAL VALLEY HYUNDAI, the Panel should find that the Respondent has registered and is using the disputed domain name to disrupt Complainant’s business, which constitutes bad faith according to Policy ¶ 4(b)(iii).

 

Complainant also alleges that Respondent is preventing Complainant from reflecting its mark in a corresponding domain name. Also, Complainant contends that Respondent’s attempt to pass itself off as Complainant also disrupts Complainant’s operations because Internet users attempting to conduct business with Complainant may mistakenly attempt to complete a transaction with Respondent. Complainant states that this diverts business away from Complainant, and is therefore evidence of Respondent’s bad faith registration and use pursuant to Policy ¶ 4(b)(iii).

 

Finally, Complainant asserts that it is sufficient that Respondent can not utilize the domain name for any non-infringing way and that this is primarily due to the fact that the Respondent could not license the use of the trademarked term HYUNDAI.

 

B. Respondent

The Respondent did not reply to the Complainant’s contentions.

 

FINDINGS

Complainant claims that it has common law rights in the CENTRAL VALLEY HYUNDAI mark.  Complainant has submitted evidence to show that it filed its business name with the State of California on April 16, 2008 as well as signing the Dealership Agreement with third-party Hyundai Motor America on April 15, 2008.  Complainant argues that it has established secondary meaning in its CENTRAL VALLEY HYUNDAI mark through its continuous and extensive use of the mark in advertising and promotional items for its automobile dealership.  The Panel finds that Complainant has established rights in its mark under Policy ¶ 4(a)(i) where it has continuously and extensively used the mark in commerce since it began operating under the mark in 2008.  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 Kahn Dev. Co. v. RealtyPROshop.com, FA 568350 (Nat. Arb. Forum June 23, 2006) (holding that the complainant’s VILLAGE AT SANDHILL mark acquired secondary meaning among local consumers sufficient to establish common law rights where the complainant had been continuously and extensively promoting a real estate development under the mark for several years). 

 

DISCUSSION

Paragraph 15(a) of the Rules for Uniform Domain Name Dispute Resolution Policy (the “Rules”) instructs this Panel to “decide a complaint on the basis of the statements and documents submitted in accordance with the Policy, these Rules and any rules and principles of law that it deems applicable.”

 

Paragraph 4(a) of the Policy requires that the Complainant must prove each of the following three elements to obtain an order that a domain name should be cancelled or transferred:

 

(1)   the domain name registered by the Respondent is identical or confusingly similar to a trademark or service mark in which the Complainant has rights;

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

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

 

Identical and/or Confusingly Similar

 

Complainant argues that Respondent’s <centralvalleyhyundai.com> domain name is identical to Complainant’s CENTRAL VALLEY HYUNDAI mark.  Complainant notes that Respondent merely deletes the spaces between the terms of its mark and adds the generic top-level domain (“gTLD”) “.com.”   The Panel finds that Respondent’s disputed domain name is identical to Complainant’s mark under Policy ¶ 4(a)(i) where the disputed domain name contains Complainant’s mark entirely while deleting the spaces between the terms of the mark and adds the gTLD “.com.”, which clearly is not enough to characterize the disputed domain name as being distinct from Complainant’s trademark.  See Hannover Ruckversicherungs-AG v. Ryu, FA 102724 (Nat. Arb. Forum Jan. 7, 2001) (finding <hannoverre.com> to be identical to HANNOVER RE, “as spaces are impermissible in domain names and a generic top-level domain such as ‘.com’ or ‘.net’ is required in domain names”); see also Bond & Co. Jewelers, Inc. v. Tex. Int’l Prop. Assocs., FA 937650 (Nat. Arb. Forum Apr. 30, 2007) (finding that the elimination of spaces between terms and the addition of a gTLD do not establish distinctiveness from the complainant’s mark under Policy ¶ 4(a)(i).   

 

The Panel finds that the Complainant has established the first element of the Policy.

 

Rights or Legitimate Interests

 

A complainant is required to make out an initial prima facie case that the respondent lacks rights or legitimate interests. Once such prima facie case is made, respondent carries the burden of demonstrating rights or legitimate interests in the domain name. If the respondent fails to do so, a complainant is deemed to have satisfied paragraph 4(a)(ii) of the Policy. See Hanna-Barbera Prods., Inc. v. Entm’t Commentaries, FA 741828 (Nat. Arb. Forum Aug. 18, 2006) (holding that the complainant must first make a prima facie case that the respondent lacks rights and legitimate interests in the disputed domain name under UDRP ¶ 4(a)(ii) before the burden shifts to the respondent to show that it does have rights or legitimate interests in a domain name); see also AOL LLC v. Gerberg, FA 780200 (Nat. Arb. Forum Sept. 25, 2006) (“Complainant must first make a prima facie showing that Respondent does not have rights or legitimate interest in the subject domain names, which burden is light.  If Complainant satisfies its burden, then the burden shifts to Respondent to show that it does have rights or legitimate interests in the subject domain names.”).

 

With respect to paragraph 4(c)(ii) of the Policy, there is no evidence that indicates that Respondent has ever been commonly known by the disputed domain name. Complainant contends that Respondent is not, and cannot, be commonly known by the disputed domain name.  Further, Complainant argues that it has not licensed, assigned, or authorized Respondent to use its mark in a domain name.  The Panel finds that the WHOIS information for the disputed domain name identifies “Chris Shaffer” as the registrant of the domain name.  Therefore, the Panel finds that Respondent is not commonly known by the disputed domain name under Policy ¶ 4(c)(ii).  See IndyMac Bank F.S.B. v. Eshback, FA 830934 (Nat. Arb. Forum Dec. 7, 2006) (finding that the respondent failed to establish rights and legitimate interests in the <emitmortgage.com> domain name as the respondent was not authorized to register domain names featuring the complainant’s mark and failed to submit evidence of that it is commonly known by the disputed domain name); see also M. Shanken Commc’ns v. WORLDTRAVELERSONLINE.COM, FA 740335 (Nat. Arb. Forum Aug. 3, 2006) (finding that the respondent was not commonly known by the <cigaraficionada.com> domain name under Policy ¶ 4(c)(ii) based on the WHOIS information and other evidence in the record). 

 

With respect to paragraph 4(c)(iii) of the Policy, Respondent has not made and is not making a legitimate noncommercial or fair use of the disputed domain name and has not used the disputed domain name, or a name corresponding to it, in connection with a bona fide offering of goods or services. Complainant argues that Respondent is using the disputed domain name to resolve to a third-party website under the <rosevillehyundai.com> domain name, which is a direct competitor of Complainant.  Complainant contends that Respondent’s use of the disputed domain name to divert Internet users to a competitor of Complainant is evidence that Respondent lacks rights and legitimate interests in the disputed domain name.  The Panel finds that Respondent’s use of the disputed domain name to divert Internet users to the website and business of a competitor of Complainant is not a use in connection with 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 DLJ Long Term Inv. Corp. v. BargainDomainNames.com, FA 104580 (Nat. Arb. Forum Apr. 9, 2002) (“Respondent is not using the disputed domain name in connection with a bona fide offering of goods and services because Respondent is using the domain name to divert Internet users to <visual.com>, where services that compete with Complainant are advertised.”); see also Ameritrade Holdings Corp. v. Polanski, FA 102715 (Nat. Arb. Forum Jan. 11, 2002) (finding that the respondent’s use of the disputed domain name to redirect Internet users to a financial services website, which competed with the complainant, was not a bona fide offering of goods or services).

 

The Panel finds that the Complainant has established the second element of the Policy.

 

Registration and Use in Bad Faith

 

Under paragraph 4(b), a respondent has used and registered a domain name in bad faith if, inter alia, the respondent has used the domain name intentionally to attempt to attract, for commercial gain, Internet users to the respondent’s website or other online location by creating a likelihood of confusion with the complainant’s mark as to the source, sponsorship, affiliation or endorsement of the respondent’s site or of a product or service offered on the respondent’s site. Policy paragraph 4(b)(iv).

 

Also, it is evidence of registration and use in bad faith if the respondent has registered the domain name primarily for the purpose of disrupting the business of a competitor. Policy paragraph 4(b) (iii).

 

The Panel finds that Respondent registered the domain name in bad faith.

 

Complainant argues that Respondent is using the disputed domain name to redirect Internet users to the website of a direct competitor, and that such use results in a disruption of Complainant’s business.  Complainant alleges that some Internet users will be confused as to the affiliation and sponsorship of the website that resolves from the disputed domain name, because both Complainant and Respondent operate Hyundai automobile dealerships, and will ultimately purchase Hyundai automobiles from Respondent.  The Panel finds that Respondent’s use of the disputed domain name to resolve to the website of Complainant’s competitor is evidence of bad faith registration and use of the dispute domain name under Policy ¶ 4(b)(iii).  See St. Lawrence Univ. v. Nextnet Tech, FA 881234 (Nat. Arb. Forum Feb. 21, 2007) (“This Panel concludes that by redirecting Internet users seeking information on Complainant’s educational institution to competing websites, Respondent has engaged in bad faith registration and use pursuant to Policy ¶ 4(b)(iii).”); see also David Hall Rare Coins v. Tex. Int’l Prop. Assocs., FA 915206 (Nat. Arb. Forum Apr. 9, 2007) (finding that the respondent registered and used the disputed domain name in bad faith pursuant to Policy ¶ 4(b)(iii) because respondent used the disputed domain name to advertise goods and services of complainant’s competitors, thereby disrupting the complainant’s business).

 

Complainant also contends that Respondent registered and is using the disputed domain name in bad faith because Respondent is intentionally attracting Internet users to the disputed domain name for commercial gain.  Complainant argues that Respondent is diverting Internet users to a competing business and website in order to profit from the confusion caused by using the identical disputed domain name.  Complainant contends that Respondent is selling automobiles to Internet users who believe that they are on Complainant’s business website, not the website of Complainant’s competitor.  The Panel finds that internet users will likely be confused as to the source, sponsorship, affiliation or endorsement of the respondent’s site or of a product or service offered on the Respondent’s site. Therefore, the Panel finds that Respondent registered and is using the disputed domain name in bad faith under 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 Policy ¶ 4(b)(iv)); see also TM Acquisition Corp. v. Carroll, FA 97035 (Nat. Arb. Forum May 14, 2001) (finding bad faith where the respondent used the domain name, for commercial gain, to intentionally attract users to a direct competitor of the complainant).

 

Although Complainant does not argue that Respondent opportunistically registered the disputed domain name the Panel finds that Respondent’s conduct indicates such bad faith registration.  Complainant received a letter from third-party Hyundai Motors on April 15, 2008 indicating that Complainant had been accepted as a new Hyundai automobile dealership.  On April 16, 2008 Complainant filed its business application with the State of California.  Also on April 16, 2008 Respondent registered the <central valleyhyundai.com> domain name.  The Panel finds that the Respondent must have been aware of the Complainant’s rights and, further, that the disputed domain name was opportunistically registered. Therefore, the Panel finds that Respondent’s registration of the disputed domain name indicates opportunistic bad faith under Policy ¶ 4(a)(iii).  See Sota v. Waldron, D2001-0351 (WIPO June 18, 2001) (finding that the respondent’s registration of the <seveballesterostrophy.com> domain name at the time of the announcement of the Seve Ballesteros Trophy golf tournament “strongly indicates an opportunistic registration”); see also Thermo Electron Corp. v. Xu, FA 713851 (Nat. Arb. Forum July 12, 2006) (“If there had been any doubt as to bad faith, the fact that registration was on the same day the news leaked about the merger, which was put in evidence, is a compelling indication of bad faith that [the] respondent has to refute and which he has failed to do.  The panel finds a negative inference from this.”).  

 

Accordingly, the Panel finds that the Complainant has made out bad faith registration and use of the domain name by the Respondent.

 

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

 

 

Luiz E. Montaury Pimenta, Panel Chair

Honorable Bruce E. Meyerson, Panelist

Honorable Hong Oo Baak, Panelist


Dated: July 22, 2010

 

 

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