DECISION

 

The Neiman Marcus Group, Inc. v. Peter Carrington and Party Night, Inc.

Claim Number: FA0211000135019

 

PARTIES

Complainant is The Neiman Marcus Group, Inc., Dallas, TX, USA, (“Complainant”), represented by David J. Steele of Christie, Parker & Hale LLP.  Respondent is Peter Carrington and Party Night, Inc., Amsterdam, THE NETHERLANDS (“Respondent”)

 

REGISTRAR AND DISPUTED DOMAIN NAMES

The domain names at issue are <niemanmarcas.com> and <niemanmarkus.com>, registered with Key-Systems GmbH.

 

PANEL

The undersigned certifies that she has acted independently and impartially and that to the best of her knowledge she has no known conflict in serving as Panelist in this proceeding. Hon. Carolyn Marks Johnson sits as Panelist.

 

PROCEDURAL HISTORY

Complainant submitted a Complaint to the National Arbitration Forum (the “Forum”) electronically on November 27, 2002; the Forum received a hard copy of the Complaint on November 27, 2002.

 

On December 2, 2002, Key-Systems GmbH confirmed by e-mail to the Forum that the domain names <niemanmarcas.com> and <niemanmarkus.com> are registered with Key-Systems GmbH and that Respondent is the current registrant of the names.  Key-Systems GmbH has verified that Respondent is bound by the Key-Systems GmbH 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 December 9, 2002, a Notification of Complaint and Commencement of Administrative Proceeding (the “Commencement Notification”), setting a deadline of December 29, 2002 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@niemanmarcas.com and postmaster@niemanmarkus.com by e-mail.

 

Having received no Response from Respondent, using the same contact details and methods as were used for the Commencement Notification, the Forum transmitted to the parties a Notification of Respondent Default.

 

On January 6, 2003, pursuant to Complainant’s request to have the dispute decided by a single-member Panel, the Forum appointed Hon. Carolyn Marks Johnson 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 for Uniform Domain Name Dispute Resolution Policy (the “Rules”) “to employ reasonably available means calculated to achieve actual notice to Respondent.”  Therefore, the Panel may issue its decision based on the documents submitted and in accordance with the ICANN Policy, ICANN 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 makes the following allegations:

 

1.      Complainant urges that Respondent’s <niemanmarcas.com> and <niemanmarkus.com> domain names are confusingly similar to Complainant’s NEIMAN MARCUS mark.

 

2.      Complainant asserts that Respondent has no rights or legitimate interests in the <niemanmarcas.com> and <niemanmarkus.com> domain names.

 

3.      Complainant argues that Respondent registered and used the <niemanmarcas.com> and <niemanmarkus.com> domain names in bad faith.

 

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

 

FINDINGS

Complainant’s principal retail chain, The Neiman Marcus Company, was established in 1907 as a local specialty store. Complainant is an internationally recognized innovator in fashion and merchandising and currently runs 31 retail stores located in premier markets nationwide. Complainant developed a reputation for high quality and high prices, which has made the NEIMAN MARKUS name and mark synonymous with high fashion and world famous designers. Complainant expanded its services to include worldwide catalog sales and online ordering and purchasing at <neimanmarcus.com>.

 

Complainant is the owner of numerous trademarks for NEIMAN MARCUS and other variations of the mark, registered on the Principal Register with the United States Patent and Trademark Office (“USPTO”) (Reg. Nos. 601,375 and 601,864). Since Complainant’s inception in 1907, it has continuously used the mark worldwide and has not given permission to Respondent to use the mark in any manner.

 

Respondent registered the <niemanmarcas.com> and <niemanmarkus.com> domain names April 30, 2002. Respondent’s only use of the website is to misdirect Internet consumers to a pornographic website. Internet consumers intending to reach Complainant actually end up at <hanky-panky-college.com>.

 

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(e), 14(a) and 15(a) of the Rules and will draw such inferences as the Panel considers appropriate pursuant to paragraph 14(b) of the Rules.

 

Paragraph 4(a) of the Policy requires that 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 Respondent is identical or confusingly similar to a trademark or service mark in which Complainant has rights; and

(2) 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 established in this proceeding that it has established rights in the NEIMAN MARCUS mark and is a famous international leader in retail fashions. Complainant need not be registered in every international country in order to claim infringement on a mark under the UDRP. Trademark registration with the USPTO, combined with worldwide recognition of a distinctive mark, is sufficient to establish Complainant’s rights in the NEIMAN MARCUS name and mark. See Koninklijke KPN N.V. v. Telepathy Inc., D2001-0217 (WIPO May 7, 2001) (finding that the Policy does not require that the mark be registered in the country in which a Respondent operates.  It is sufficient that a Complainant can demonstrate a mark in some jurisdiction); see also British Broad. Corp. v. Renteria, D2000-0050 (WIPO Mar. 23, 2000) (noting that the Policy “does not distinguish between registered and unregistered trademarks and service marks in the context of abusive registration of domain names” and applying the Policy to “unregistered trademarks and service marks”).

 

The domain names registered by Respondent, <niemanmarcas.com> and <niemanmarkus.com>, are confusingly similar in nature. Respondent is engaging in typosquatting. Typosquatting is the intentional registration of a domain name that is a misspelling of a distinctive or famous mark, causing an Internet user who makes a slight spelling or typing error to reach an unintended website. Both disputed domain names transpose the “i” and the “e” in the NEIMAN portion of the NEIMAN MARCUS name. Respondent’s <niemanmarcas.com> domainn name also substitutes the “u” in MARCUS with an “a”. Respondent’s <niemanmarkus.com> domain name substitutes the “c” in MARCUS with a “k”. Both disputed domain names are examples of typosquatting and the transposition of letters within Complainant’s mark and intentional misspellings that fail to create unique marks in and of themselves capable of overcoming a Policy ¶ 4(a)(i) confusingly similar analysis. See Google Inc. v. Jon G., FA 106084 (Nat. Arb. Forum Apr. 26, 2002) (finding <googel.com> to be confusingly similar to Complainant’s GOOGLE mark and noting that “[t]he transposition of two letters does not create a distinct mark capable of overcoming a claim of confusing similarity, as the result reflects a very probable typographical error”); see also Hewlett-Packard Co. v. Zuccarini, FA 94454 (Nat. Arb. Forum May 30, 2000) (finding the domain name <hewlitpackard.com> to be identical or confusingly similar to Complainant’s HEWLETT-PACKARD mark).

 

Moreover, both of Respondent’s disputed domain names are phonetically similar to Complainant’s NEIMAN MARCUS name and mark. A domain name is still regarded as confusingly similar if the domain name is attempting to imitate a famous mark by means of being phonetically identical to the famous mark. See YAHOO! Inc. v. Murray, D2000-1013 (WIPO Nov. 17, 2000) (finding that the domain name <yawho.com> is confusingly similar to Complainant’s YAHOO mark); see also VeriSign Inc. v. VeneSign C.A., D2000-0303 (WIPO June 28, 2000) (finding that the pronunciation and spelling between the domain name <venesign.com> and Complainant’s mark, VERISIGN, are so close that confusion can arise in the mind of the consumer).

 

Accordingly, the Panel finds that Policy ¶ 4(a)(i) has thus been satisfied.

 

Rights or Legitimate Interests

 

When Respondent fails to file a Response, the Panel may accept all reasonable allegations made in the Complaint to be factually correct. Unless the assertions presented are clearly in conflict with the majority of the evidence on record, a presumption of validity favors the Complaint.  See 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”); see also Desotec N.V. v. Jacobi Carbons AB, D2000-1398 (WIPO Dec. 21, 2000) (finding that failing to respond allows a presumption that Complainant’s allegations are true unless clearly contradicted by the evidence).

 

Respondent’s <niemanmarcas.com> and <niemanmarkus.com> domain names are used as links to the website <hanky-panky-college.com>, a pornographic website.  Respondent’s use of the domain names shows that Respondent is intentionally using the fame of Complainant’s mark to attract Internet traffic to a pornographic website, which is not associated with Complainant. Respondent, by linking the disputed domain names to pornographic websites, is not making  a bona fide offering of goods and services pursuant to Policy ¶ 4(c)(i).  See MatchNet plc. v. MAC Trading, D2000-0205 (WIPO May 11, 2000) (finding that it is not a bona fide offering of goods or services to use a domain name for commercial gain by attracting Internet users to third party sites offering sexually explicit and pornographic material where such use is calculated to mislead consumers and to tarnish Complainant’s mark); see also Brown & Bigelow, Inc. v. Rodela, FA 96466 (Nat. Arb. Forum Mar. 5, 2001) (finding that infringing on another's well-known mark to provide a link to a pornographic site is not a legitimate or fair use).

 

By failing to submit evidence, Respondent has not given the Panel any plausible reason as to why the Panel should accept that Respondent is known by Complainant’s mark or that Respondent is known by the domain names <niemanmarcas.com> and <niemanmarkus.com>. Complainant has established itself as the exclusive holder of all rights and legitimate interests in the NEIMAN MARCUS name and mark. Complainant also established that Respondent has no authorization or consent to use Complainant’s mark or any variation thereof. The Panel therefore accepts as true Complainant’s assertion that Respondent has no rights or legitimate interests in the domain names under Policy ¶ 4(c)(ii). See Victoria’s Secret v. Asdak, FA 96542 (Nat. Arb. Forum Feb. 28, 2001) (finding sufficient proof that Respondent was not commonly known by a domain name confusingly similar to Complainant’s VICTORIA’S SECRET mark because of Complainant’s well-established use of the mark); see also Nokia Corp. v. Private, D2000-1271 (WIPO Nov. 3, 2000) (finding that Respondent is not commonly known by the mark contained in the domain name where Complainant has not permitted Respondent to use the NOKIA mark and no other facts or elements can justify prior rights or a legitimate connection to the names “Nokia” and/or “wwwNokia”).

 

Respondent used <niemanmarcas.com> and <niemanmarkus.com> to divert Internet users to a commercial website. Moreover, since Respondent intentionally engaged in the misspelling of a famous mark to attract Internet consumers, it is therefore deemed an unfair or non-commercial use of the disputed domain names. When one misleadingly diverts consumers to a commercial website, or intentionally attracts Internet users through misspelling of famous marks, it is not considered to be a legitimate noncommercial or fair use of the domain name under Policy 4(c)(iii). See Encyclopaedia Brittanica, Inc. v. Zuccarini, D2000-0330 (WIPO June 7, 2000) (finding that fair use does not apply where the domain names are misspellings of Complainant's mark); see also AltaVista v. Krotov, D2000-1091 (WIPO Oct. 25, 2000) (finding that use of the domain name to direct users to other, unconnected websites does not constitute a legitimate interest in the domain name).

 

Accordingly, the Panel finds that Policy ¶ 4(a)(ii) has thus been satisfied.

 

Registration and Use in Bad Faith

 

Given the worldwide identification of the NEIMAN MARCUS mark, the Panel is permitted to infer that Respondent was aware of the mark, and therefore had actual notice of Complainant’s rights. Since Complainant’s mark is so widely held as distinct and exclusive to Complainant, Respondent’s registration of the disputed domain names containing variations of Complainant’s mark is evidence of bad faith registration. See Exxon Mobil Corp. v. Fisher, D2000-1412 (WIPO Dec. 18. 2000) (finding that Respondent had actual and constructive knowledge of Complainant’s EXXON mark given the worldwide prominence of the mark and thus Respondent registered the domain name in bad faith); see also Yahoo! Inc. v. Ashby, D2000-0241 (WIPO June 14, 2000) (finding that the fame of the YAHOO! mark negated any plausible explanation for Respondent’s registration of the <yahooventures.com> domain name).

 

Respondent, by linking <niemanmarcas.com> and <niemanmarkus.com> to a pornographic website, used the domain names in bad faith. Respondent is intentionally trying to attract Internet consumers to its website for commercial gain, by deliberately trying to cause confusion between Respondent’s domain names and Complainant’s mark. This behavior is evidence of bad faith registration and use under Policy ¶ 4(b)(iv). See Geocities v. Geociites.com, D2000-0326 (WIPO June 19, 2000) (finding bad faith where the Respondent linked the domain name in question to websites displaying banner advertisements and pornographic material); see also Land O' Lakes Inc. v. Offbeat Media Inc., FA 96451 (Nat. Arb. Forum Feb. 23, 2001) (finding bad faith under Policy ¶ 4(b)(iv) where Respondent utilized a domain name confusingly similar to Complainant’s mark and used a confusingly similar pornographic depiction of Complainant’s registered trademark on its website to cause confusion as to the source or affiliation of the site).

 

Accordingly, the Panel finds that Policy ¶ 4(a)(iii) has thus been satisfied.

 

DECISION

Having established all three elements required under the ICANN Policy, the Panel hereby concludes that the requested relief shall be GRANTED.  Accordingly, it is ordered that the domain names <niemanmarcas.com> and <niemanmarkus.com> be TRANSFERRED from Respondent to Complainant.

 

 

Hon. Carolyn Marks Johnson, Panelist

Dated: January 15, 2003.

 

 

 

 

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