National Arbitration Forum

 

DECISION

 

Allcaneat Foods, Ltd. v. Karma Ventures LLC and Dave's Domain's

Claim Number: FA1007001335801

 

PARTIES

Complainant is Allcaneat Foods, Ltd. (“Complainant”), represented by Deborah Peckham, of Burns & Levinson LLP, Massachusetts, USA.  Respondent is Karma Ventures LLC and Dave's Domain's (“Respondent”), represented by Douglas R. Wolf, of Wolf, Greenfield & Sacks, P.C., Massachusetts, USA.

 

REGISTRAR AND DISPUTED DOMAIN NAMES

The domain names at issue are <allcaneat.net>, <allcaneat.org>, <allcaneat.info>, <allcaneat.biz>, <allcaneatfoods.com>, <allcaneatfoods.net>, <allcaneatfoods.org>, <allcaneatfoods.info>, <allcaneatfoods.biz>, <allcaneatfood.com>, <allcaneatfood.net>, <allcaneatfood.org>, <allcaneatfood.biz>, <allcaneatfood.info>, and <allcaneat.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.

 

Jonas Gulliksson as Panelist.

 

PROCEDURAL HISTORY

Complainant submitted a Complaint to the National Arbitration Forum electronically on July 16, 2010.

 

On July 19, 2010, GoDaddy.com, Inc. confirmed by e-mail to the National Arbitration Forum that the <allcaneat.net>, <allcaneat.org>, <allcaneat.info>, <allcaneat.biz>, <allcaneatfoods.com>, <allcaneatfoods.net>, <allcaneatfoods.org>, <allcaneatfoods.info>, <allcaneatfoods.biz>, <allcaneatfood.com>, <allcaneatfood.net>, <allcaneatfood.org>, <allcaneatfood.biz>, <allcaneatfood.info>, and <allcaneat.com> domain names are registered with GoDaddy.com, Inc. and that the Respondent is the current registrant of the names.  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 20, 2010, the Forum served the Complaint and all Annexes, including a Written Notice of Complaint, setting a deadline of August 9, 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@allcaneat.net, postmaster@allcaneat.org, postmaster@allcaneat.info, postmaster@allcaneat.biz, postmaster@allcaneatfoods.com, postmaster@allcaneatfoods.net, postmaster@allcaneatfoods.org, postmaster@allcaneatfoods.info, postmaster@allcaneatfoods.biz, postmaster@allcaneatfood.com, postmaster@allcaneatfood.net, postmaster@allcaneatfood.org, postmaster@allcaneatfood.biz, postmaster@allcaneatfood.info, and postmaster@allcaneat.com.  Also on July 20, 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 and determined to be complete on August 9, 2010.

 

Complainant submitted an Additional Submission that was received and determined to be compliant with Forum Supplemental Rule 7 on August 16, 2010.

 

On August 24, 2010, pursuant to Complainant’s request to have the dispute decided by a single-member Panel, the National Arbitration Forum appointed Jonas Gulliksson as Panelist.

 

RELIEF SOUGHT

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

 

PARTIES’ CONTENTIONS

A. Complainant

 

In or about April 2009, George Moufarrej, founder of the Complainant’s business, approached the Respondents Obey and Ford about assisting with opening a new business venture creating and selling specialty foods intended for consumers looking for wheat free and/or gluten free alternatives. Obey agreed to act as CFO of the company, and Ford agreed to act as Sales and Marketing director of the company. 

 

On or about June 1, 2009, Moufarrej, Obey, Ford, Sterrett and other individuals involved in the new business met and decided that the new name of the business would be “Allcaneat Foods.”  

 

On or about June 6, 2009, Ford, acting in his role as Sales and Marketing Director for the company, on behalf of founder Moufarrej and in furtherance of the activities of Complainant’s business, undertook to register the domain names <allcaneat.com> and <allcaneatfoods.com>. The domain names were registered in the name of Moufarrej and in Complainant’s chosen business name, “Allcaneat Foods Ltd.” Subsequently, on July 7, 2009, on behalf of the Complainant, a trademark application was filed for ALLCANEAT FOODS LTD.

During the period August 17-19, 2009, either Ford, Obey and/or agents acting on its or their direction, acting in furtherance of the business of Complainant, registered, the other domain names in dispute. The registration record has been updated or changed on several times after the registration to show the Respondents or the name of a third party who was previously engaged as the web designer of the Complainant.

 

Between June 2009, and March 17, 2010, all of the original participants in Complainant’s business, including David Ford and Douglas Obey, continued to cooperate in the activities of the fledgling business. Because of a disagreement over management of the Complainant’s business, Obey was then terminated from his position with the Complainant’s business and Ford subsequently withdrew from the Complainant.

 

Around April 26, 2010, the Complainant discovered that it no longer had control over the disputed domain names. The Complainant requested the Respondents to return control of the disputed domain names to the Complainant. This was refused, however, a third party, Jason Stadtlander, demanded $200 per domain for their return to Complainant. 

 

On April 29, 2010, the Complainant again demanded the transfer of the domain names in dispute. The Respondents’ counsel responded on May 4, 2010 refusing said transfer and indicated that David Ford had some sort of “ownership interest” in the “ALLCANEAT name” because he allegedly first conceived it.   On that same day the registration records for several of the disputed domain names apparently were once again updated or changed, without authorization of Complainant. Specifically, the record for <allcaneat.com> was changed to indicate, falsely, that Ford and “Dave’s Domains” owned said domain name.  In addition, the registration records for many of the other Disputed Domain Names were changed to indicate, falsely, that they belonged to Doug Obey and/or “Karma Ventures LLC.” Another domain name in dispute, <allcaneat.net> was registered by one of the Respondents around April 29, 2010.

 

Confusingly Similar

The Disputed Domain Names are identical or confusingly similar to the Allcaneat Marks inasmuch as all of them are comprised of or include some or all of the words ALLCANEAT or ALLCANEAT FOODS (or the singularized ALLCANEAT FOOD), which are identical to one or more of the Allcaneat Marks. 

 

The Complainant began using its ALLCANEAT FOODS mark in U.S. commerce on May 2, 2010 when it opened its first retail location.  Accordingly, the Complainant also claims common law trademark rights in ALLCANEAT and ALLCANEAT FOODS since May 2, 2010. 

 

Furthermore, the Complainant already has suffered actual confusion because of the Respondents’ refusal to release the Disputed Domain Names.  On or about April 28 - 29, 2010, the Respondents seized absolute control of the disputed domain names, and in particular, <allcaneat.com> and <allcaneatfoods.com>.  Until that time, those two domain names had displayed information about the Complainant and the upcoming grand opening of its first retail outlet.  Because the Respondents refused to transfer what had been the Complainant’s active domains, the Complainant was unable to update the content at these domains to indicate to its growing consumer base that its retail store actually had opened.  The Complainant was able to scramble and create content at a related domain (<allcaneatbakery.com>), but not until several days had passed and customers asked questions about the conflicting content displayed at these two Disputed Domain Names. 

 

No Legitimate Interest

The Respondents have no legitimate earlier claim to any of the disputed domain names or any corresponding name.  The Complainant conceived of its business in about April 2009 and selected the ALLCANEAT FOODS name, with the Respondents’ actual knowledge, around June 1, 2009.  Complainant filed its U.S. federal application for the ALLCANEAT FOODS mark on July 7, 2009, after Respondent Obey and Ford helped select the name of the business.  Ford, with full knowledge of Complainant’s plans, acting in his role as Sales and Marketing Director for Complainant, and in furtherance of the goals of the Complainant, initially registered  <allcaneat.com>  and  <allcaneatfoods.com>  in the name of Moufarrej and the Complainant’s on June 6, 2009. To wit, none of the Respondents had any use of or demonstrable preparations to use any of the disputed domain names prior to the date of the dispute except due to their prior involvement as consultants and/or agents of Complainant. They have continued to exercise control and dominion over said disputed domain names despite direct knowledge of said rights, all in bad faith. 

 

The Respondents have not been commonly known by the ALLCANEAT Marks.  Indeed, the Respondents’ only involvement with the ALLCANEAT designation occurred when Obey and Ford were previously legitimately associated as CFO and Sales and Marketing Director of the Complainant’s business.  The Respondents have made no bona fide offering of goods or services using the disputed domain names and they never had authorization from Complainant to use, own or control the Disputed Domain Names for Respondents’ own use or enjoyment. Rather, the Disputed Domain Names are all either pay-per-click sites, or pointed at Complainant’s websites. 

 

The Respondent is not making a legitimate noncommercial or fair use of any of the Disputed Domain Names. The Respondents acquired or had the registration records for the disputed domain names updated to show Respondents as owners only after a dispute between them and Complainant occurred and the Respondents’ apparent sole motivation for acquiring, retaining control and using the disputed domain names seems to have been to disrupt Complainant’s legitimate business, or to broker a business deal with Complainant. 

 

Bad Faith

The Respondents’ agent demanded payment for the Disputed Domain Names –even though there was no evidence that Stadtlander had paid anywhere near that amount to register them. It is well settled that the offer to sell the domain name to the legitimate rights holder is evidence of bad faith under the Policy. 

 

Furthermore, it is worth noting that the Respondent registered at least one of the disputed domain names (allcaneat.net) on April 29, 2010, probably in response to demands made by Complainant, and with knowledge of Complainant’s earlier trademark rights and without regard for Complainant’s trademark rights.  Furthermore, Respondents are holding all of the disputed domain names despite knowledge of these rights. 

 

The Respondents’ unauthorized changing of the registration details of the disputed domain names, particularly in light of Respondents’ knowledge of Complainant’s trademark rights and business plans to use ALLCANEAT, is strong evidence of its bad faith.  In particular, it is well settled that gaining access over an employer or agent’s domain names and retaining control despite termination from the business are acts of bad faith.  

 

Finally, the domain names in dispute all either point to pay-per-click (“PPC”) sites, or are pointed at the Complainant’s legitimate website. Such use does not constitute a bona fide offering of goods or services and is evidence of bad faith use of the domain names.

 

B. Respondent

 

The Complainant omits critical facts about the underlying business dispute that gave rise to the Complaint.

 

Prior to starting the new AllCanEat business with Mr. Obey and Mr. Ford, Mr. Moufarrej had previously operated a small bakery called “Fresh Start.”  Mr. Moufarrej initially considered naming the new business “Fresh Start 2.”  However, Mr. Ford had a better idea.  Given his family’s interest in gluten-free meals tasty enough for everyone to enjoy, as well as his marketing background, Mr. Ford recognized the branding value in “AllCanEat” as soon as he conceived of the name. The AllCanEat Foods, Ltd. business was formed on July 30, 2009, as a Delaware corporation.  Initially, five founding members made up the Board: Mr. Moufarrej as CEO; Diane Sterrett as President; Mr. Ford as director of Sales and Marketing; Mr. Obey as CFO; and Mr. Summers as General Counsel.  These five met on a weekly basis throughout the latter half of 2009 and up until March 2010. 

 

As director of sales and marketing, Mr. Ford understood the importance of securing the AllCanEat domain name.  Because Mr. Moufarrej was more actively involved with preparations to form the new business on a daily basis in June 2009, Mr. Ford thought it would be convenient to register the <allcaneat.com> and <allcaneatfoods.com> domain names in the name of Mr. Moufarrej. Shortly thereafter, Mr. Obey arranged for Jason Stadtlander, an acquaintance with valuable technical support experience, to design and maintain the company’s computer system and website.  Recognizing the importance of securing similar variants of the domain name, Mr. Obey had Mr. Stadtlander purchase twelve additional domain names in August 2009 using funds from Mr. Obey’s business, Karma Ventures. 

 

Because it was convenient for Mr. Stadtlander, in his technical support role, to have control over the fourteen domain names then in existence, in about October 2009 Mr. Ford updated the domain name contact information for the two domain names registered in June with Mr. Stadtlander’s information.  Once the Respondents were removed from the Board and from their roles as directors of Complainant in late March 2010, they had no need for Mr. Stadtlander to continue maintaining their websites. Thus, in about April 2010, the Respondents had Mr. Stadtlander update the contact information for the fourteen domain names to reflect Respondents’ ownership. 

 

In or about January 2010, the weekly meetings of the five Board members grew increasingly contentious.  The dispute centered on whether the company would be directed by the Board in the interests of the investors, or directed by the majority shareholder, Mr. Moufarrej.  Mr. Obey and Mr. Ford, along with many of the investors, had entered into the venture with the belief that it would be Board-directed. 

 

When drafting the corporation’s bylaws, Mr. Summers included a clause that effectively gave his friend and majority shareholder, Mr. Moufarrej, the power to unilaterally rewrite the bylaws, leaving investors and minority shareholders vulnerable.  When the Board adopted these bylaws, Mr. Summers did not inform Mr. Obey or Mr. Ford that he had included this clause in an obscure portion of the bylaws. Adding to this rift was the fact that the company was running dangerously low on funding by about March 2010. Faced with imminent insolvency, Mr. Obey did what he could as CFO to salvage the company.  He temporarily ordered a reduction of all non-essential expenditures until additional funding could be secured.  In response, Mr. Summers, Mr. Moufarrej and Ms. Sterrett decided to form a new Board which did not include Mr. Obey and Mr. Ford, and removed the two from their roles as officers of AllCanEat near the end of March 2010. 

 

            In the days leading up to the grand opening of Complainant’s bakery on May 1, 2010, it was frustrating to the Respondents to observe the other Board members’ incompetent use of the Respondents’ website.  For example, just two days before the grand opening of Complainant’s bakery, the <allcaneat.com> website continued to show a boarded-up store. Mr. Ford thus shut down the website to avoid confusing would-be customers as to whether the store would be open on May 1, 2010.  However, several days later, Mr. Ford permitted Complainant’s to use <allcaneat.com>, and it now redirects to an updated website showcasing Complainant’s bakery. 

 

Given the fundamental dispute over the corporate structure and control of Complainant, the lack of trust between Respondents and the de facto Board, and Complainant’s current financial instability, Respondents do not trust Complainant to hold and maintain the disputed domain names.  Nevertheless, Respondents hope that Complainant will be a successful business, given their role as minority shareholders and their tremendous personal investment in the business.  Thus, Respondents have no plans to sell their fifteen domain names to any third party.  Rather, they intend to hold them, permitting Complainant to use them in the meantime, in the hope that the domain names will be used for promoting the bakery once the underlying corporate dispute is resolved. 

 

Business Dispute Outside the Scope of the UDRP

As described above, this matter is primarily a business dispute between Messrs. Obey and Ford and the three Board members who retain de facto control over Complainant. 

 

The UDRP was implemented to address abusive cyber squatting, not contractual or legitimate business disputes. Here, the domain name dispute is part of an underlying business dispute which falls outside the scope of the UDRP.

 

However, even if the Panel finds that this dispute is properly within the scope of the UDRP Policy, the Complainant fails to establish the three required elements for the reasons discussed below.

 

No Established Rights in the Mark

Firstly, the Complainant cannot rely on Ms. Sterrett’s intent-to-use application and any resulting trademark registration to demonstrate rights in the ALLCANEAT FOODS mark because both are void. Under United States trademark law, 15 U.S.C. § 1060 (Ex. A), an intent-to-use application may not be assigned prior to filing a verified statement of use unless the assignee is a successor to the assignor’s business. 

 

Secondly, Ms. Sterrett’s intent-to-use application and any resulting trademark registration are also void because Ms. Sterrett was not the owner of the ALLCANEAT FOODS mark.

 

Thirdly, the Complainant cannot establish sufficient rights in the ALLCANEAT FOODS mark because the domain name registrations predate any trademark rights. In its trademark application, Complainant acknowledges it did not use the mark in commerce until May 2, 2010, and did not use the mark anywhere until April 30, 2010. About three months after first using the mark, Complainant initiated this action but has not provided evidence of a validly registered trademark or secondary meaning. 

 

Legitimate Interest

The Complainant alleges in that Mr. Ford acted as an agent of the Complainant when he registered the some of the domain names in dispute. However, by Complainant’s own admission, it did not come into existence until July 30, 2009, nearly two months after the June 6 registration, when it was formed as a Delaware Corporation.  In Massachusetts, where the agency action allegedly occurred, it is black-letter law that an individual may not be an agent of a corporation not yet in existence. Thus, Mr. Ford could not have been an agent of Complainant when he registered the first two domain names. Nevertheless, Mr. Ford’s actions were preparations to use the domain names at some time in the future in connection with a bona fide offering of goods. This satisfies the Respondents’ burden to rebut the Complainant’s allegations as to the two domain names registered in June 2009.

 

Bad Faith

The Complainant’s only allegation regarding bad faith registration is when it alleges that one domain name, <allcaneat.net>, was registered “on April 29, 2010, probably in response to demands made by Complainant”. The Complainant is unable to allege bad faith registration for the remaining 14 domain names because these occurred in June and August 2009, long before relations had soured, and thus before there could exist any bad faith intent. Indeed, as noted earlier, these fourteen registrations occurred before Complainant either used or registered the ALLCANEAT FOODS mark. As to the lone domain name registered in 2010, Complainant fails to provide any evidence that <allcaneat.net> was registered in bad faith, and instead simply speculates that this was probable.  To support this theory, Complainant is forced to misstate the registration date as April 29, 2010, the day that the demand letter was sent.  This contradicts Complainant’s own evidence, which demonstrates the domain name was registered on April 28, a day before the demand letter was sent.

 

In addition to failing to prove bad faith registration, Complainant has also failed to establish bad faith use for the same reason that this dispute falls outside the scope of the UDRP.  Unlike the typical cyber squatting case, which the UDRP was designed to remedy, this case involves former business partners embroiled in a complex dispute over the structure and control of the corporation.

 

C. Additional Submissions

 

Complainant

This is a case of abusive domain name registration over which the Panel should exercise jurisdiction.

 

The Complainant has established rights in the ALLCANEAT Marks. The assignment of the trademark application from Diane Sterrett to the company was perfectly valid under U.S. law. Although its application and common law rights were perfected after registration of at least some of the disputed domain names, the law is well settled that Respondents with “insider information” of plans to use a mark cannot escape a “bad faith” finding when evidence of prior knowledge of intended use exists.

 

All of the Disputed Domain Names were registered and used in bad faith. The fact that Ford or Obey may have had authorization at the time of the initial registration(s) of some of the domains to register them does not change the fact that the authorization was limited to registering them on behalf of and in the name of Allcaneat Foods (or, for those done before the corporate founding – to George Moufarrej).

 

Before the entity was incorporated Ford, Obey, Sterrett and Summers acted as agents of Moufarrej and the to-be-formed corporation. Contrary to many of the factual allegations set out by the Respondents, none of the original participants were “founders,” nor were they "employees," "investors," "business partners," or "co-venturers" as those terms are defined legally. Rather, they were all agents of George Moufarrej, whose prowess as a master baker provided the impetus for building the new Allcaneat Foods business.

Moreover, contrary to Respondents’ allegations, Ford and Obey were not “board members.” Nor were they or are they “minority shareholders” to Complainant. They were, at most, agents of Moufarrej and later, agents of the fledgling start up corporation.

 

Whatever disagreements there may be between the Complainant and Ford and Obey, those disagreements never involved the named Respondents Karma Ventures and Dave’s Domains. Those entities have never been involved with Complainant except with respect to their illicit and unauthorized ownership and control of the disputed domain names.

 

Respondent

Complainant alleges the existence of several important agency relationships. These relationships are addressed at the outset because the issues of UDRP jurisdiction, Complainant’s rights in the ALLCANEAT FOODS Mark, and bad faith depend in part on whether an agency relationship exists under Massachusetts law.

 

Firstly, Karma Ventures is Mr. Obey’s agent and Dave’s Domains is Mr. Ford’s agent.  Indeed, Complainant alleges as much in the Complaint when requesting to consolidate multiple cases.  Complainant correctly notes that Karma Ventures, Mr. Obey, Mr. Ford and Dave’s Domains are all represented by the same legal counsel, and has previously asserted that Messrs Obey and Ford control the named Respondents.

 

Secondly, the Complainant correctly asserts that Mr. Stadtlander was the agent of Messrs Ford and Obey while he was providing technical assistance with their respective Domain Names. 

 

Thirdly, Mr. Ford and Mr. Obey were never agents of Mr. Moufarrej.  Though Complainant has repeatedly made this allegation, Complainant has provided no evidence of any such agreement.  Moreover, under Massachusetts agency law, which controls, there can be no agency relationship where the purported agent has not consented to act as another’s agent.  Here, Mr. Obey and Mr. Ford, as cofounders with Mr. Moufarrej, never consented to act as an agent for Mr. Moufarrej.

 

The Complainant attempts to view the domain name dispute in a vacuum.  Complainant argues that the business dispute between Messrs Ford and Obey, on the one hand, and the other initial founders of AllCanEat Foods and Complainant, on the other, is “irrelevant and utterly unrelated to the trademarks and domain names.”  This is simply false.  The domain name dispute is a byproduct of and intertwined with a much larger dispute over corporate control of Complainant and of competing rights among Complainant’s cofounders and Board members. The Complainant further fails to appreciate that whether the underlying business disputes involve express contractual agreements – which they often do – or involve other legal issues is not what makes a case jurisdictionally improper.  Rather, many types of disputes involving fact patterns other than the typical cyber squatting cases for which the UDRP was designed can place a case beyond the scope of the Policy. 

 

Mr. Ford and Mr. Obey were elected Directors of Complainant’s Board on August 4, 2009, as evidenced by the minutes from that meeting. The fact that Respondents are Board members is also reflected in the filing receipt of Complainant’s 2009 Annual Report in Delaware, which identifies Respondents as Directors.  

 

Moreover, both Respondents are shareholders – a fact reflected in the August 4 minutes, which refers to those in attendance, including Messrs Ford and Obey, as “share holders”.  Of the 30,000,000 outstanding shares of Common Stock in Complainant, Mr. Ford owns 3,600,000 and Mr. Obey owns 4,800,000 – a combined total of about 28% of the outstanding shares.  The other cofounders – Mr. Moufarrej, Mrs. Sterrett and Mr. Summers – argue that none of these shares have vested.  Respondents dispute the validity of the other cofounders’ vesting argument on the ground that it is based on the improper tactics of Mr. Summers when he drafted the documents on which the vesting argument depends.

 

The Complainant’s attempt to characterize as bad faith “re-registration” Respondents’ grant of control over the Disputed Domain Names to Mr. Stadtlander contradicts Complainant’s assertions regarding agency. 

 

FINDINGS AND 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.

 

Preliminary Issue:  Multiple Respondents

 

In the instant proceedings, Complainant has alleged that the entities which control the domain names at issue are effectively controlled by the same person and/or entity, which is operating under several aliases.  Paragraph 3(c) of the Rules for Uniform Domain Name Dispute Resolution Policy (the “Rules”) provides that a “complainant may relate to more than one domain name holder, provided that the domain names are registered by the same domain name holder.”

 

The issue of multiple respondents has been discussed in a number of decisions. It should be noted that the wording of the applicable paragraph is quite clear and unambiguous, see e.g.  Accor v. Jose Garcia, Jan Cerny, N/A, Dopici Nasrat, WIPO Case No. D2010-0471 [“ The starting point is that normally it is not possible to commence a single UDRP proceeding in relation to domain names registered in the name of more than one person. Paragraph 3(c) of the Rules state that “The complaint may relate to more than one domain name, provided that the domain names are registered by the same domain-name holder”, and although this is permissive rather than a proscriptive provision, the intent of the drafters of the Rules seems reasonably clear. So in a case where a complaint is filed against multiple unconnected respondents, a panel may continue that case against one of the respondents and dismiss it against the others…”]

 

Nevertheless, in cases where Panels have found that there exists sufficient common control, or at least common interest, a consolidation has been allowed. Circumstances indicating common control or interest may be shared administrative or technical contacts, shared postal or email addresses or that the domain names in dispute resolve into essentially identical websites. A comprehensive overview discussion thereof can be found in the case Speedo Holdings B.V. v. Programmer, Miss Kathy Beckerson, John Smitt, Matthew Simmons, WIPO Case No. D2010-0281 and the decisions cited therein.

 

The Panel notes that the burden of proof to show such circumstances lies with the Complainant. In this case the Complainant has asserted that the two identified Respondents are acting in concert with or are under common control. Moreover it is asserted that the Respondents are working together to keep the Complainant from properly exercising control over its domain names. Finally, the Respondents are represented by the same legal counsel.   

 

Based on the assertions of the Complainant, as well as the submission of the Respondents where circumstances of common interest are clearly presented this Panel is persuaded that this dispute allows for the consolidation of Respondents. Moreover, the Respondents appear to tacitly agree to the request of the Complainant of consolidation of the Respondents in its joint Response through the one representative. Another circumstance adding to the appearance of one Respondent is the fact that the domain names, with two exceptions, are resolved into essentially the same website, a circumstance which is elaborated upon in the Response as well. Therefore, the Panel concludes that this case allows for a single decision with regard to both Respondents. Moreover, this conclusion will not, considering the aims and purpose of the Policy, be contrary to it.

 

Preliminary Issue:  Business/Contractual Dispute Outside the Scope of the UDRP

 

It is evident that the relationship between the parties in this dispute is complex and the object of discord. The issues between the parties are not limited to the law of trademarks but there appears to be issues where typically the appropriate jurisdiction would be the general courts. This stand point is not least supported by the legal arguments of the parties relating to the validity of the trademark which forms the foundation of this dispute.  

 

It appears as obvious to this Panel that the Respondents have initially registered the domain names in dispute in the capacity of agents, for the benefit of the company, the Complainant. Although the parties have referred to Massachusetts law and federal law, the international principles of agency would lead to no other conclusion. However, the exact nature of the parties’ relationship and to what extent the scope of that agency permitted the different actions taken by the parties remains to be proven.    

 

The Panel therefore wishes to remind the parties that any dispute of abusive domain name registration and use adjudicated by the administrative Panels are governed solely by the UDRP and its elements. Questions regarding the validity of the Complainant’s trademark under U.S. federal or state law are better evaluated by the national court; see e.g. Love v. Barnett, FA 944826 (Nat. Arb. Forum, May 14, 2007), “The two parties present very different accounts of the facts, and use those accounts to support their claims for common law trademark rights in the disputed domain names.  The written evidence submitted by the parties is inconclusive. When the parties differ markedly with respect to the basic facts, and there is no clear and conclusive written evidence, it is difficult for a Panel operating under the Rules to determine which presentation of the facts is more credible.  National courts are better equipped to take evidence and to evaluate its credibility. Further, the purpose of the Policy is not to resolve disputes between parties who might each have legitimate rights in a domain name.  The purpose of the Policy is to protect trademark owners from cyber squatters, that is, from people who abuse the domain name system in a very specific way, which specific way is outlined in Paragraph 4(a) of the Policy.”

 

Based on the above reasoning, this Panel finds that the present dispute is outside the UDRP and declines to consider the case under the three elements of the Policy. See also Fuze Beverage, LLC v. CGEYE, Inc., FA 844252 (Nat. Arb. Forum Jan. 8, 2007) (concluding that when the respondent registers a domain name on behalf of the complainant and then refuses to relinquish control over the domain name registration, the cause of action is for breach of contract or fiduciary duty and is thus outside the scope of the UDRP); see also Frazier Winery LLC v. Hernandez, FA 841081 (Nat. Arb. Forum Jan. 2, 2007) (holding that disputes arising out of a business relationship between the complainant and the respondent regarding control over the domain name registration are outside the scope of the UDRP).

 

DECISION

For the reasons presented above, the Panel concludes that relief shall be DENIED.

 

 

Jonas Gulliksson, Panelist
Dated: September 8, 2010

 

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