National Arbitration Forum

 

DECISION

 

Choice Hotels International, Inc. v. Ajay Patel

Claim Number: FA0712001119805

 

PARTIES

Complainant is Choice Hotels International, Inc. (“Complainant”), represented by Halle B. Markus, of Arent Fox LLP, 1050 Connecticut Avenue, N.W., Washington, DC 20036-5339.  Respondent is Ajay Patel (“Respondent”), PO Box 1000, Ruther Glen, VA 22546.

 

 

REGISTRAR AND DISPUTED DOMAIN NAMES 

The domain names at issue are <comfortinnandsuites.com> and <sleepinnandsuites.com>, registered with Register.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.

 

Hon. Charles A. Kuechenmeister (Ret.)

 

PROCEDURAL HISTORY

Complainant submitted a Complaint to the National Arbitration Forum electronically on December 14, 2007; the National Arbitration Forum received a hard copy of the Complaint on December 17, 2007.

 

On December 19, 2007, Register.com, Inc. confirmed by e-mail to the National Arbitration Forum that the <comfortinnandsuites.com> and <sleepinnandsuites.com> domain names are registered with Register.com, Inc. and that the Respondent is the current registrant of the names.  Register.com, Inc. has verified that Respondent is bound by the Register.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 December 20, 2007, a Notification of Complaint and Commencement of Administrative Proceeding (the “Commencement Notification”), setting a deadline of January 9, 2008 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@comfortinnandsuites.com and postmaster@sleepinnandsuites.com by e-mail.

 

A timely Response was received and determined to be complete on January 8, 2008.

 

A timely Additional Submission by Complainant conforming to Forum Supplemental Rule 7 was received by the Forum on January 11, 2008 and was considered by the Panel.

 

On January 16, 2008, pursuant to Complainant’s request to have the dispute decided by a single-member Panel, the National Arbitration Forum appointed the Honorable Charles A. Kuechenmeister (Retired) as Panelist.

 

RELIEF SOUGHT

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

 

PARTIES’ CONTENTIONS

A. Complainant

1.                  Choice Hotels International, Inc. (“Complainant”) owns numerous trademark registrations in the United States and around the world for marks containing the terms COMFORT INN, COMFORT SUITES, COMFORT INN & SUITES, SLEEP INN, and SLEEP INN & SUITES.  Most relevant to this proceeding among the U.S. trademark registrations are the following:  COMFORT INN & SUITES, U.S. Registration No. 2,264,704, registered July 27, 1999 (Incontestable) for hotel and motel services, and SLEEP INN & SUITES, U.S. Registration No. 2,456,170, registered May 29, 2001 (Incontestable) for hotel and motel services and hotel and motel reservation services.

 

2.                  Complainant has also established common law rights in its COMFORT INN, COMFORT SUITES, COMFORT INN & SUITES, SLEEP INN, and SLEEP INN & SUITES marks. There are over 2,350 hotels operating under these marks in countries and territories throughout the world.

 

3.                                      Complainant has continuously used the mark COMFORT INN since at least as early as June 1981, COMFORT SUITES since at least as early as October 1985, COMFORT INN & SUITES since at least as early as December 1996, SLEEP INN since at least as early as October 1987, and SLEEP INN & SUITES since at least as early as May 2000.

 

4.                  Complainant has invested substantial sums of money in developing and marketing its COMFORT INN, COMFORT SUITES, COMFORT INN & SUITES, SLEEP INN, and SLEEP INN & SUTIES marks.  They have been and continue to be widely advertised throughout the U.S. and other countries, and consumers have come to associate them with Complainant’s services.

 

5.                  Complainant owns and uses the domain names <comfortinn.com>, <comfortsuite.com>, <comfortsuites.com>, <sleepinn.com>, and <sleepinns.com>, among others, to: (i) redirect Internet users to Complainant's web pages at <choicehotels.com>; (ii) advertise its hotel services; (iii) advertise and facilitate its online hotel reservation services; and (iv) promote its hotel franchising services.

 

6.                  Complainant uses its marks extensively on its websites, which represent an important marketing channel for the company, to advertise its hotel services and facilitate its online hotel reservation services for its hotel properties.

 

7.                  Ajay Patel ("Respondent") registered the disputed domain name <comfortinnandsuites.com> on October 23, 1999 and <sleepinnandsuites.com> on October 25, 1999.

 

8.                  Respondent's domain names wholly incorporate Complainant's marks.  Further, they are identical in sound, connotation, and commercial impression to Complainant's registered and famous COMFORT INN & SUITES and SLEEP INN & SUITES marks.  Respondent's use of the word "and" rather than the ampersand symbol ("&") used in Complainant's registered and famous COMFORT INN & SUITES and SLEEP INN & SUITES marks does not negate the confusing similarity of Respondent's domain names. See Wright & Lado, Inc. v. Epstein, D2000-0621 (WIPO Sept. 9, 2000) (finding that the <wrightandlado.com> domain name is identical to the complainant's WRIGHT & LADO mark because the ampersand symbol is not reproducible in a URL). Therefore, the disputed domain names are identical and/or confusingly similar to Complainant's marks under ICANN Rule 3(b)(ix)(1); ICANN Policy 4(a)(i).

 

9.                   Respondent was not authorized by Complainant to register either of the disputed domain names.

 

10.              At the time Respondent registered <comfortinnandsuites.com>, he was a licensee of Complainant with authorization to operate a COMFORT INN hotel property in Carmel Church, Virginia.  Respondent's Franchise Agreement was terminated by Complainant on January 5, 2006.  Respondent is no longer authorized to operate a COMFORT INN hotel property or make use of any of Complainant's marks in any manner.

 

11.              COMFORT INN & SUITES, SLEEP INN, and SLEEP INN & SUITES are wholly separate brands within Complainant’s hotel system, distinct from COMFORT INN, and Respondent has never been authorized by Complainant to use any of these marks in any manner.

 

12.              At no time was Respondent authorized by Complainant to operate a COMFORT INN & SUITES, SLEEP INN, or SLEEP INN & SUITES hotel property, use any of these marks in any manner, or register domain names incorporating any of these marks.

 

13.              Respondent has no rights or legitimate interests of his own in the disputed domain names under ICANN Rule 3(b)(ix)(2); ICANN Policy 4(a)(ii), or ¶¶ 4(c)(i)-(iii)).  There is no evidence that Respondent owns any trademark or service mark rights or registrations that are identical, similar, or in any way related to the disputed domain names, or that Respondent is commonly known by either of the disputed domain names.  Any rights he may have had while a franchisee of Complainant for the COMFORT INN hotel property in Carmel Church, VA terminated upon termination of his franchise, and he has no continuing right to use the mark COMFORT INN based thereon. See Mariah Boats, Inc. v. Shoreline Marina, LLC, FA 94392 (Nat. Arb. Forum May 5, 2000) ("Once a license has expired, use of a formerly licensed trademark constitutes infringement.").  Respondent cannot make any good faith claim that he (as an individual business or other organization) has ever been named or commonly known as COMFORT INN & SUITES and/or the domain name <comfortinnandsuites.com>.

 

14.                               The disputed domain names were registered and are being used in bad faith. See ICANN Rule 3(b)(ix)(3); ICANN Policy ¶¶ 4(a)(i) and (iii), and 4(b).

 

15.              As a franchisee of Complainant's, Respondent was undoubtedly aware of Complainant's many hotel brands.  Further, Respondent was only authorized to operate a COMFORT INN hotel property, yet he registered the disputed domain names without authorization from Complainant to use its COMFORT INN & SUITES or SLEEP INN & SUITES marks.

 

16.              Respondent does not currently use the disputed domain names for any legitimate purpose.  The disputed domain names both resolve to a web site where Respondent is offering to sell them for $300,000 each or $500,000 for both.  These amounts are well in excess of Respondent's out-of-pocket costs directly related to such domain names. An offer to sell domain names in excess of the direct out-of-pocket expenses related to the registration of a domain name is evidence of bad faith.  See Bank of Am. Corp. v. Nw. Free Cmty. Access, FA180704 (Nat. Arb. Forum Sept. 30, 2003) ("Respondent's general offer of the disputed domain name registration for sale establishes that the domain name was registered in bad faith."); see also Morgan Stanley v. Guerilla Freedom Fighter c/o Bethesda Prop. LLC, FA1061232 (Nat. Arb. Forum Oct. 2, 2007) (finding respondent's offer to sell the domain name to complainant indicated respondent's bad faith registration and use of the disputed domain name); Wal-Mart Stores, Inc. v. Lars Stork, D2000-0628 (WIPO Aug. 11, 2000) (finding respondent's attempt to sell the domain name evidenced a lack of legitimate non-commercial or fair use of the disputed domain name).

 

17.              Respondent’s bad faith is further evidenced by the fact that he posted his offers to sell the disputed domain names after receiving a letter from Complainant demanding that he cease-and-desist from using them.

 

B. Respondent

1.         Respondent has been contacted by representatives of Complainant concerning their interest in acquiring the websites Respondent obtained in 1999.  Respondent has asked Complainant to make an offer but Complainant has not done so.

 

2.         Respondent is willing to negotiate based upon prices other than those posted on his website.

 

3.         Respondent has not misrepresented or used any trademark items claimed by Complainant.

 

4.         Respondent obtained <comfortinnandsuites.com> prior to the articles that were amended, <sleepinnandsuites.com> afterward.  Respondent was not aware that he was in violation of legal ownership of these sites and will turn them over upon being presented by the legal information.

 

C. Additional Submission by Complainant

1.                  Complainant’s mark COMFORT INN & SUITES is separate and distinct from its mark COMFORT INN, which applied to the hotel Respondent operated as a franchisee.  Its mark SLEEP INN & SUITES is separate and distinct from both of the COMFORT marks.  Respondent’s status as a franchisee never gave him any rights or interest in either COMFORT INN & SUITES or SLEEP INN & SUITES, which are incorporated into the disputed domain names.

 

2.                  The Response only underscores Respondent’s bad faith by reaffirming his “willingness” to negotiate transferring the disputed domain names to Complainant for amounts based upon the offer displayed at his websites ($300,000 each or $500,000 for both).  These amounts are grossly disproportionate to the actual costs generally incurred by a registrant for registering and maintaining two domain names.

 

3.                  Respondent states that Complainant has not offered in good faith to purchase the disputed domain names, but in fact, notwithstanding repeated efforts, Complainant has been unable to contact Respondent at all, for any purpose.

 

DISCUSSION AND FINDINGS

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.

 

The Panel makes the findings and determinations set forth below with respect to the matters at issue between the parties.

 

Respondent did not deny any of the material allegations in the Complaint, and the Panel has for the most part taken those allegations as proven.

 

Identical and/or Confusingly Similar

 

Complainant registered its COMFORT INN & SUITES mark (Reg. No. 2,264,702 issued July 27, 1999) and the SLEEP INN & SUITES mark (Reg. No. 2,456,170 issued May 29, 2001) with the United States Patent and Trademark Office (“USPTO”).  See Complaint, Annex A.  Although the registration date for the SLEEP INN & SUITES mark does not predate Respondent’s registration of the <sleepinnandsuites.com> domain name on October 25, 1999, the relevant date of Complainant’s rights in this mark is the filing date, June 17, 1999.  See Annex A, Registration No. 2,456,170.  Thus, these registrations sufficiently establish Complainant’s rights in the marks pursuant to Policy ¶ 4(a)(i).  See Innomed Techs., Inc. v. DRP Servs., FA 221171 (Nat. Arb. Forum Feb. 18, 2004) (“Registration of the NASAL-AIRE mark with the USPTO establishes Complainant's rights in the mark.”); see also Planetary Soc’y v. Rosillo, D2001-1228 (WIPO Feb. 12, 2002) (holding that the effective date of Complainant’s trademark rights date back to the application’s filing date); see also Thompson v. Zimmer, FA 190625 (Nat. Arb. Forum Oct. 27, 2003) (“As Complainant’s trademark application was subsequently approved by the U.S. Patent and Trademark Office, the relevant date for showing ‘rights’ in the mark for the purposes of Policy ¶ 4(a)(i) dates back to Complainant’s filing date.”).

 

Complainant has continuously used the mark COMFORT INN & SUITES since at least as early as December 1996, and SLEEP INN & SUITES since at least as early as May 2000.  It has invested substantial sums of money in developing and marketing its COMFORT INN & SUITES and SLEEP INN & SUTIES marks.  They have been and continue to be widely advertised throughout the U.S. and other countries, and consumers have come to associate them with Complainant’s services.  Complainant has thus also established common law rights in its COMFORT INN & SUITES and SLEEP INN & SUITES marks.

 

Complainant uses its marks extensively on its web sites, which represent an important marketing channel for the company, to advertise its hotel services and
facilitate its online hotel reservation services for its
hotel properties.

 

Ajay Patel ("Respondent") registered <comfortinnandsuites.com> on October 23, 1999 and <sleepinnandsuites.com> on October 25, 1999.

 

Respondent's domain names wholly incorporate Complainant's COMFORT INN & SUITES and SLEEP INN & SUITES marks.  They are identical in sound, connotation, and commercial impression to those marks.  Respondent's use of the word "and" rather than the ampersand used in Complainant's COMFORT INN & SUITES and SLEEP INN & SUITES marks does not negate the confusing similarity of Respondent's domain names. See Wright & Lado, Inc. v. Epstein, D2000-0621 (WIPO Sept. 9, 2000) (finding that the <wrightandlado.com> domain name is identical to the complainant's WRIGHT & LADO mark because the ampersand symbol is not reproducible in a URL); see also EarthSky Commc’ns, Inc. v. eCommerce Adver., FA 944811 (Nat. Arb. Forum Apr. 26, 2007) (finding that the <earthandsky.org> domain name is confusingly similar to the EARTH & SKY mark because “the mere substitution of the ampersand with the word ‘and’ does not sufficiently distinguish the domain name from Complainant’s mark under Policy ¶ 4(a)(i), particularly since an ampersand cannot be reproduced in a URL.”); see also McKinsey Holdings, Inc. v. Indidom, D2000-1616 (WIPO Jan. 31, 2001) (finding that the removal of the ampersand from “McKinsey & Company” does not affect the user’s understanding of the domain name, and therefore the domain name <mckinseycompany.com> is identical and/or confusingly similar to the mark “McKinsey & Company”).

 

Furthermore, since a top-level domain is required of all domain names, the Respondent’s addition of the generic top-level domain “.com” to the disputed domain names is irrelevant under Policy ¶ 4(a)(i).  See Rollerblade, Inc. v. McCrady, D2000-0429 (WIPO June 25, 2000) (finding that the top level of the domain name such as “.net” or “.com” does not affect the domain name for the purpose of determining whether it is identical or confusingly similar); see also Nev. State Bank v. Modern Ltd. – Cayman Web Dev., FA 204063 (Nat. Arb. Forum Dec. 6, 2003) (“It has been established that the addition of a generic top-level domain is irrelevant when considering whether a domain name is identical or confusingly similar under the Policy.”).

 

For the foregoing reasons, the Panel finds and determines that the domain names are identical or confusingly similar to the COMFORT INN & SUITES and SLEEP INN & SUITES trademarks, in which the Complainant has substantial and demonstrated rights.

 

           Rights or Legitimate Interests

 

Complainant asserts and has presented evidence that Respondent has not used and is not using either of the disputed domain names in connection with a bona fide offering of goods or services, and that he is not making a legitimate noncommercial or fair use of it, within the meaning of Policy ¶¶ 4(c)(i) and (iii).  Complainant further asserts and has presented evidence that the Respondent has no trademark or other intellectual property right in either of said names, and that that Respondent has never been known by the name COMFORT INN & SUITES or SLEEP INN & SUITES, <comfortinnandsuites.com>, or <sleepinnandsuites.com>. 

 

At the time Respondent registered the disputed domain names he was a licensee of Complainant with authorization to operate a COMFORT INN hotel property in Carmel Church, Virginia, but that franchise agreement was terminated on January 5, 2006.  Respondent is no longer authorized to operate a COMFORT INN hotel property or make use of any of Complainant's marks in any manner.  Further, Complainant’s mark COMFORT INN & SUITES is separate and distinct from its mark COMFORT INN, which applied to the hotel Respondent operated as a franchisee.  Its mark SLEEP INN & SUITES is separate and distinct from both of the COMFORT marks.  Respondent’s status as a franchisee never gave him any rights or interest in either of the marks COMFORT INN & SUITES or SLEEP INN & SUITES, which are incorporated into the disputed domain names.

 

Complainants having thus made a prima facie case in support of its claim that Respondent has no right or legitimate interest in respect of either domain name, the burden shifts to Respondent to show that he does possess rights or legitimate interests pursuant to Policy ¶ 4(c).  See Do The Hustle, LLC v. Tropic Web, D2000-0624 (WIPO Aug. 21, 2000) (holding that, where the complainant has asserted that the respondent has no rights or legitimate interests with respect to the domain name, it is incumbent on the respondent to come forward with concrete evidence rebutting this assertion because this information is “uniquely within the knowledge and control of the respondent”); see also 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 Policy ¶ 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 utterly failed to produce evidence supporting any rights or legitimate interest he may have in respect of either disputed domain name.  He demands that Complainant be put to its proof, apparently relying upon his registration of the names to support his rights.

 

The mere registration of a domain name does not, in and of itself, confer upon the registrant any rights in the name for the purposes of Policy 4(a)(ii).  Respondent has the burden to show his right or legitimate interest in the domain names. (See authority cited above.)  This necessarily implies that Respondent’s rights or legitimate interests must come from a source beyond just the registration of a domain name, since, if a Respondent could demonstrate rights in a domain name by simply registering it, the UDRP would be superfluous.  Self-serving assertions of rights or legitimate interests in the domain name fails to satisfy Policy ¶ 4(a)(ii).  See Franzus Co. v. Cotner, FA 125365 (Nat. Arb. Forum Nov. 7, 2002) (after the inactive use of the disputed domain name for five years, Respondent’s “unsupported, self-serving allegations alone are insufficient to establish that Respondent has rights or legitimate interests in respect of the domain name at issue.”).  Ways in which a Respondent can show rights or legitimate interests include but are not limited to: use or preparations to use the domain name in connection with a bona fide offering of goods or services prior to notice of any dispute (Policy ¶ 4(c)(i)); the Respondent has been commonly known by the disputed domain name (Policy ¶ 4(c)(ii)); and Respondent is making a legitimate noncommercial or fair use of the domain name (Policy ¶ 4(c)(iii)).  Respondent must submit evidence of something other than a domain name registration in order to establish rights or legitimate interests in that domain name.  He has submitted nothing.

 

Respondent’s <comfortinnandsuites.com> and <sleepinnandsuites.com> domain names resolve to a website indicating that the disputed domain names are for sale: $300,000 for one, or $500,000 for both.  See Complaint, Annex D.  This offer of the disputed domain names for sale does not constitute either 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), and further indicates Respondent’s lack of rights and legitimate interests under Policy ¶ 4(a)(ii).  See Mothers Against Drunk Driving v. Hyun-Jun Shin, FA 154098 (Nat. Arb. Forum May 27, 2003) (holding that under the circumstances, the respondent’s apparent willingness to dispose of its rights in the disputed domain name suggested that it lacked rights or legitimate interests in the domain name).

 

Accordingly, the Panel finds and determines that the Respondent has no rights or legitimate interests in respect of either domain name.

 

Registration and Use in Bad Faith

 

At the time Respondent registered both disputed domain names, Complainant’s COMFORT INN & SUITES mark was already both registered with the USPTO and generally known as representing Complainant’s hotels and hotel services, and Complainant’s SLEEP INN & SUITES mark was, at least, the subject of a pending trademark application that was ultimately approved.  Additionally, Respondent was a franchisee of Complainant at the time he made the registrations, and would have been intimately aware of Complainant’s interest in those marks.  The Panel finds that he had both actual and constructive knowledge of Complainant’s rights in the COMFORT INN & SUITES and SLEEP INN & SUITES marks.  His registration of <comfortinnandsuites.com> and <sleepinnandsuites.com> in the face of such knowledge is clear evidence of bad faith within the meaning of Policy ¶4(a)(iii).  See Digi Int’l v. DDI Sys., FA 124506 (Nat. Arb. Forum Oct. 24, 2002) (“[T]here is a legal presumption of bad faith, when Respondent reasonably should have been aware of Complainant’s trademarks, actually or constructively.”); see also Samsonite Corp. v. Colony Holding, FA 94313 (Nat. Arb. Forum Apr. 17, 2000) (finding that evidence of bad faith includes actual or constructive knowledge of a commonly known mark at the time of registration).

 

Respondent’s <comfortinnandsuites.com> and <sleepinnandsuites.com> domain names resolve to a website offering to sell the disputed domain names for amounts ($300,000 for one, or $500,000 for both) clearly in excess of the out-of-pocket costs directly related to them.  See Complaint, Annex D.  Such offering constitutes use in bad faith within the meaning of Policy ¶4(a)(iii).  See Bank of America Corp. v. Northwest. Free Cmty. Access, FA 180704 (Nat. Arb. Forum Sept. 30, 2003) (“Respondent's general offer of the disputed domain name registration for sale establishes that the domain name was registered in bad faith under Policy ¶ 4(b)(i).”); see also World Wrestling Fed’n Entm’t, Inc. v. Bosman, D99-0001 (WIPO Jan. 14, 2000) (finding that the respondent used the domain name in bad faith because he offered to sell the domain name for valuable consideration in excess of any out-of-pocket costs); see also Morgan Stanley v. Guerilla Freedom Fighter c/o Bethesda Prop. LLC, FA1061232 (Nat. Arb. Forum Oct. 2, 2007) (finding respondent's offer to sell the domain name to complainant indicated respondent's bad faith registration and use of the disputed domain name). 

 

Respondent’s registration of two domain names incorporating trademarks that he knew belonged to Complainant, and his subsequent offering of them for sale at the prices quoted are precisely the circumstances evidencing bad faith registration and use expressed in Policy 4(b)(i), i.e., “you have acquired the domain name primarily for the purpose of selling . . . the domain name registration to the complainant who is the owner of the trademark . . . for valuable consideration in excess of your documented out-of-pocket costs directly related to the domain name.”  Accordingly, the Panel finds and determines that Respondent registered and is using the disputed domain names in bad faith.

 

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 <comfortinnandsuites.com> and <sleepinnandsuites.com> domain names be TRANSFERRED from Respondent to Complainant.

 

 

 

 

Honorable Charles A. Kuechenmeister (Ret.)

Dated:  January 29, 2008