national arbitration forum

 

DECISION

 

Chan Luu Inc. v. Cheri Kulp

Claim Number: FA1210001467160

PARTIES

Complainant is Chan Luu Inc. (“Complainant”), represented by David J. Steele of Christie, Parker & Hale, LLP, California, USA.  Respondent is Cheri Kulp (“Respondent”), Virgin Islands, USA.

 

REGISTRAR AND DISPUTED DOMAIN NAMES

The domain names at issue are <chanluuhotsale.com> and <chanluuforsale.com>, registered with GoDaddy.com, LLC.

 

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.

 

James A. Carmody, Esq., as Panelist.

 

PROCEDURAL HISTORY

Complainant submitted a Complaint to the National Arbitration Forum electronically on October 12, 2012; the National Arbitration Forum received payment on October 12, 2012.

 

On October 15, 2012, GoDaddy.com, LLC confirmed by e-mail to the National Arbitration Forum that the <chanluuhotsale.com> and <chanluuforsale.com> domain names are registered with GoDaddy.com, LLC and that Respondent is the current registrant of the names.  GoDaddy.com, LLC has verified that Respondent is bound by the GoDaddy.com, LLC registration agreement and has thereby agreed to resolve domain disputes brought by third parties in accordance with ICANN’s Uniform Domain Name Dispute Resolution Policy (the “Policy”).

 

On October 16, 2012, the Forum served the Complaint and all Annexes, including a Written Notice of the Complaint, setting a deadline of November 5, 2012 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@chanluuhotsale.com and postmaster@chanluuforsale.com.  Also on October 16, 2012, the Written Notice of the Complaint, notifying Respondent of the e-mail 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 November 21, 2012, pursuant to Complainant's request to have the dispute decided by a single-member Panel, the National Arbitration Forum appointed James A. Carmody, Esq., as Panelist.

 

Having reviewed the communications records, the Administrative Panel (the "Panel") finds that the National Arbitration 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" through submission of Electronic and Written Notices, as defined in Rule 1 and Rule 2. Therefore, the Panel may issue its decision based on the documents submitted and in accordance with the ICANN Policy, ICANN Rules, the National Arbitration 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 assertions:

 

1.    Respondent’s <chanluuhotsale.com> and <chanluuforsale.com> domain names, the domain names at issue, are confusingly similar to Complainant’s CHAN LUU mark.

 

2.    Respondent does not have any rights or legitimate interests in the domain names at issue.

 

3.    Respondent registered and used the domain names at issue in bad faith.

 

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

 

FINDINGS

            Complainant, Chan Luu Inc., is a clothing, jewelry, handbag, and accessory             business, selling products all over the world via major retail stores and operates            a website accessible at <chanluu.com>, which provides information on its          products and retail store services.  Complainant owns and has provided evidence for several trademark registrations with the United States Patent and Trademark     Office (“USPTO”) for the CHAN LUU mark (e.g., Reg. No. 2,869,029, registered      August 3, 2004).  Respondent’s <chanluuhotsale.com> and     <chanluuforsale.com> domain names are confusingly similar to Complainant’s          CHAN LUU marks because the addition of the generic terms “hot” and “for”, and             the descriptive term “sale” do not distinguish Respondent’s disputed domain             names from Complainant’s CHAN LUU marks. Further, the addition of the    generic top-level domain (“gTLD”) “.com” has been found to be irrelevant to a      Policy ¶ 4(a)(i) analysis.  Respondent has not been commonly known by the      disputed domain names since the WHOIS information identifies the registrant as             “Cheri Kulp” and Complainant has not given Respondent permission to use the       CHAN LUU marks.  Respondent is using the disputed domain names to sell          competing and counterfeit goods and to divert Internet users seeking      Complainant’s website to Respondent’s websites, which is not a bona fide      offering of goods and services under Policy ¶ 4(c)(i) nor a legitimate   noncommercial fair use under Policy ¶ 4(c)(iii).  Respondent has registered the             disputed domain names to misdirect Internet users searching for Complainant’s           website, showing bad faith registration and use under Policy ¶ 4(b)(iii)  and has          registered the confusingly similar domain name to offer goods in direct           competition with Complainant’s business,  showing bad faith under Policy ¶      4(b)(iv).  Respondent had actual knowledge of Complainant’s rights in the CHAN         LUU marks, as evidenced by Respondent’s use of the CHAN LUU marks in its       websites and the visual similarity between <chanluu.com> and the disputed             domain names. Respondent did not submit a Response to this case and      registered the <chanluuhotsale.com> domain name on July 27, 2012 and the       <chanluuforsale.com> domain name on July 30, 2012.

 

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."

 

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.

 

In view of Respondent's failure to submit a response, the Panel shall decide this administrative proceeding on the basis of Complainant's undisputed representations pursuant to paragraphs 5(e), 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.”).

 

Identical and/or Confusingly Similar

Complainant, Chan Luu Inc., is a clothing, jewelry, handbag, and accessory business, selling products all over the world via major retail stores. Complainant operates a website accessible at <chanluu.com>, which provides information on its products and retail store services. Complainant owns several trademark registrations with the USPTO for the CHAN LUU mark (e.g., Reg. No. 2,869,029, registered August 3, 2004).  Complainant also owns trademark registrations in various other countries around the world including Canada, China, Hong Kong, India, Japan, and others. The Panel finds that Complainant’s trademark registrations with the USPTO are sufficient to show rights in the CHAN LUU marks under Policy ¶ 4(a)(i). See Metro. Life Ins. Co. v. Bonds, FA 873143 (Nat. Arb. Forum Feb. 16, 2007) (finding that a USPTO trademark registration adequately demonstrates a complainant’s rights in a mark under Policy ¶ 4(a)(i)).

 

Respondent’s <chanluuhotsale.com> and <chanluuforsale.com> domain names are confusingly similar to Complainant’s CHAN LUU marks as the addition of the generic terms “hot” and “for” and the descriptive term “sale” does not distinguish Respondent’s disputed domain names from Complainant’s CHAN LUU mark. Respondent’s use of Complainant’s mark combined with a generic term renders the disputed domain name confusingly similar to the mark. See Arthur Guinness Son & Co. (Dublin) Ltd. v. Healy/BOSTH, D2001-0026 (WIPO Mar. 23, 2001) (finding confusing similarity where the domain name in dispute contains the identical mark of the complainant combined with a generic word or term); see also Novell, Inc. v. Taeho Kim, FA 167964 (Nat. Arb. Forum Oct. 24, 2003) (finding the <novellsolutions.com> domain name confusingly similar to the NOVELL mark despite the addition of the descriptive term “solutions” because even though “the word ‘solutions’ is descriptive when used for software, Respondent has used this word paired with Complainant's trademark NOVELL”). Respondent has removed the spaces in Complainant’s CHAN LUU mark and added the gTLD “.com”, which has been found to be irrelevant to a Policy ¶ 4(a)(i) analysis. 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”).

 

The Panel finds that Policy ¶ 4(a)(i) has been established. 

 

Rights or Legitimate Interests

Complainant must first make a prima facie case that Respondent lacks rights and legitimate interests in the disputed domain names under Policy ¶ 4(a)(ii), and then the burden shifts to Respondent to show it does have rights or legitimate interests.  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.”).

 

Respondent has not been commonly known by the disputed domain names since the WHOIS information identifies the registrant as “Cheri Kulp.”  Complainant has not given Respondent permission to use the CHAN LUU marks. Respondent is not commonly known by Complainant’s CHAN LUU mark under Policy ¶ 4(c)(ii) based upon the WHOIS information and other information on record. See Coppertown Drive-Thru Sys., LLC v. Snowden, FA 715089 (Nat. Arb. Forum July 17, 2006) (concluding that the respondent was not commonly known by the <coppertown.com> domain name where there was no evidence in the record, including the WHOIS information, suggesting that the respondent was commonly known by the disputed domain name).

 

Respondent’s website features many products for sale, including counterfeit CHAN LUU goods.  The sale of counterfeit goods does not show rights or legitimate interests in the domain name. See Keihin Corp. v. Youli Ltd., FA 1106190 (Nat. Arb. Forum Dec. 18, 2007) (finding no rights and legitimate interests when the respondent sold counterfeit versions of the complainant’s products in competition with the complainant’s business).  Respondent is using the disputed domain names to sell goods that directly compete with Complainant’s CHAN LUU goods. The use of a domain name to sell competing goods is not a bona fide offering or goods or services under Policy ¶ 4(c)(i). See Or. State Bar v. A Special Day, Inc., FA 99657 (Nat. Arb. Forum Dec. 4, 2001) (“Respondent's advertising of legal services and sale of law-related books under Complainant's name is not a bona fide offering of goods and services because Respondent is using a mark confusingly similar to the Complainant's to sell competing goods.”).  Therefore, Respondent is not using the <chanluuhotsale.com> and <chanluuforsale.com> domain names for 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).

 

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

 

Registration and Use in Bad Faith

Respondent is using the disputed domain names to misdirect Internet users searching for Complainant’s website.  Diverting Internet users from Complainant’s website constitutes disruption under Policy ¶ 4(b)(iii). See DatingDirect.com Ltd. v. Aston, FA 593977 (Nat. Arb. Forum Dec. 28, 2005) (“Respondent is appropriating Complainant’s mark to divert Complainant’s customers to Respondent’s competing business. The Panel finds this diversion is evidence of bad faith registration and use pursuant to Policy ¶ 4(b)(iii).”). Additionally, Respondent is using the disputed domain name to sell counterfeit CHAN LUU goods. The use of a domain name to sell counterfeit goods constitutes disruption of Complainant’s business. See Louis Vuitton Malletier S.A., L.L.C. v. David, FA 1138296 (Nat. Arb. Forum Mar. 5, 2008) (concluding that the complainant’s business is disrupted by the respondent’s registration and use of the disputed domain name for the purpose of selling counterfeit products). The Panel finds that bad faith exists under Policy ¶ 4(b)(iii).

Finally, Respondent had actual knowledge of Complainant’s rights in the CHAN LUU mark, as evidenced by Respondent’s use of the CHAN LUU marks on the websites resolving from the disputed domain names and the visual similarities between Complainant’s <chanluu.com> domain name and the disputed domain names.  Respondent’s use of Complainant’s mark shows that Respondent registered the disputed domain names with actual knowledge of the CHAN LUU marks. The Panel also finds that Respondent has registered and is using the disputed domain names in bad faith pursuant to Policy ¶ 4(a)(iii). See Pfizer, Inc. v. Suger, D2002-0187 (WIPO Apr. 24, 2002) (finding that because the link between the complainant's mark and the content advertised on the respondent's website was obvious, the respondent "must have known about the Complainant's mark when it registered the subject domain name").

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

 

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 <chanluuhotsale.com> and <chanluuforsale.com> domain names be TRANSFERRED from Respondent to Complainant.

 

James A. Carmody, Esq., Panelist

Dated:  December 3, 2012

 

 

 

 

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