DECISION

 

Gruner + Jahr Printing & Publishing Co. v. 2 Ergo Ltd.

Claim Number: FA0311000214463

 

PARTIES

Complainant is Gruner + Jahr Printing & Publishing Co., New York, NY (“Complainant”) represented by Lisa Rosenburgh, Esq., of Salans, 620 Fifth Avenue, New York, New York 10017.  Respondent is 2 Ergo Ltd., (formerly Lammtara Multiserve Limited) Rawtenstall, UK (“Respondent”) represented by Kirsten Wood, of Messrs. Wacks Caller Solicitors, Steam Packet House, 76 Cross Street, Manchester M2 4JU, UK 0161 957889.

 

REGISTRAR AND DISPUTED DOMAIN NAMES 

The domain names at issue are <ymchat.com> and <ymgossip.com>, registered with Melbourne IT, Ltd. d/b/a Internet Names Worldwide.

 

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.

 

Alan L. Limbury as Panelist.

 

PROCEDURAL HISTORY

Complainant submitted a Complaint to the National Arbitration Forum (the “Forum”) electronically on November 25, 2003; the Forum received a hard copy of the Complaint on November 26, 2003.

 

On November 26, 2003, Melbourne IT, Ltd. d/b/a Internet Names Worldwide confirmed by e-mail to the Forum that the domain names <ymchat.com> and <ymgossip.com> are registered with Melbourne IT, Ltd. d/b/a Internet Names Worldwide and that the Respondent is the current registrant of the names.  Melbourne IT, Ltd. d/b/a Internet Names Worldwide has verified that Respondent is bound by the Melbourne IT, Ltd. d/b/a Internet Names Worldwide 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 2, 2003 the Forum drew certain formal deficiencies to the attention of the Complainant and an Amended Complaint was filed by e-mail that day and in hard copy on December 5, 2003.

 

On December 3, 2003, a Notification of Complaint and Commencement of Administrative Proceeding (the “Commencement Notification”), setting a deadline of December 23, 2003 by which Respondent could file a Response to the Amended 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@ymchat.com and postmaster@ymgossip.com by e-mail.

 

On December 22, 2003, Respondent requested additional time to respond to the Amended Complaint and submitted information in support of this request. Complainant consented to Respondent’s request.  The Forum granted Respondent an extension until January 7, 2004 to submit the Response.

 

A timely Response was received and determined to be complete on January 7, 2004.

 

On January 13, 2004, pursuant to Complainant’s request to have the dispute decided by a single-member Panel, the Forum appointed Alan L. Limbury as Panelist.

 

RELIEF SOUGHT

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

 

PARTIES’ CONTENTIONS

A. Complainant

Complainant publishes in the United States of America a magazine directed to teenage girls, entitled “YM Magazine”.  It is the registered proprietor of the following U.S. trademarks in relation to magazines of various kinds: YM YOUNG MISS MAGAZINE (No. 1373764, registered December 3, 1985), YM YOUNG & MODERN (No. 1876591, registered January 31, 1995), YM (No. 2343150, registered April 18, 2000) and YM.COM (No. 2416469, registered December 26, 2000).

 

Since November 14, 1997, Complainant’s parent company, Gruner + Jahr AG & Co., has been the registered proprietor of United Kingdom registered trademark G+Y YM (No. 2132628) for periodicals including magazines.

 

Complainant has used its domain name <ym.com> to point to its website, which features live chat rooms.  Both the web site and the YM magazine feature teen and celebrity gossip.

 

Since at least September 15, 2002 Complainant has used the YM mark in relation to mobile telephone goods and services. On April 22, 2003 it applied in the United States of America to register the marks YMOBILE and YMMOBILE for “mobile telephone services, namely, providing ring tones and graphic icons in downloadable digital format for mobile telephones.”

 

Complainant has additional United States registrations for the YM mark in relation to a variety of other goods. It licenses others to use those marks.

 

YM magazine is among the most famous teen magazines in the U.S. Through use, the YM mark has become distinctive of the Complainant and its goods and services.

 

Respondent, without Complainant’s consent, registered the disputed domain names on September 6, 2003. Neither name points to an active web site. By letter, dated September 23, 2003, Complainant’s attorneys demanded their transfer to Complainant. Respondent replied on September 29, 2003 denying any intention to use the domain names in bad faith, trading off [sic], or violating any of Complainant’s rights, stating:

 

“The websites in question have been registered to provide web sites for mobile phone services.  They are being branded ‘YourMobileChat’ and ‘YourMobileGossip’.  For the purposes of the domain address they have been shortened to ‘YMChat’ and ‘YMGossip’”.

 

Complainant’s attorneys replied on October 1, 2003 saying Complainant did not object to the names ‘YourMobileChat’ and ‘YourMobileGossip’; drawing attention to Complainant’s competitive activities in the mobile telephone field; stating that Respondent’s use of the disputed domain names would be likely to divert customers from Complainant’s website, mobile telephone services and/or online magazines; reiterating the demand for transfer and offering to pay Respondent’s out of pocket registration expenses. Respondent did not respond.

 

The disputed domain names are confusingly similar to Complainant’s YM marks, which were famous and distinctive at the time the domain names were registered. Respondent was familiar with this famous mark. Moreover, Federal registration of the U.S. marks and registration in the U.K. by Complainant’s parent conferred constructive notice thereof.

 

Respondent has no rights or legitimate interest in the disputed domain names. Complainant has not licensed or otherwise authorized Respondent’s use of its trademarks.  Respondent is not known by the disputed domain names; has not made any legitimate noncommercial or fair use of them; has not offered the bona fide sale of any goods or services under them nor made demonstrable preparations to use them in connection with a bona fide offering of goods or services.  Passive holding has been held to demonstrate absence of rights or legitimate interests as well as bad faith.

 

The disputed domain names were registered and are being used in bad faith. Respondent seeks to take advantage of the owner of a famous trademark and intentionally attempts to attract, for commercial gain, Internet users to its website or other on-line location, by creating a likelihood of confusion with Complainant’s marks as to the source, sponsorship, affiliation or endorsement of its goods or services.

 

Respondent’s admission of its intention to provide mobile telephone services in connection with the disputed domain names indicates a bad faith motive in registering them for the purpose of disrupting the business of a competitor. Respondent’s passive holding also constitutes bad faith use and registration.

 

B. Respondent

Respondent is a small, well-established UK company specializing in mobile communications.  It builds and provides mobile chat/gossip services. The world’s first mobile chat service was built by Respondent in May 2002 and provided to Virgin and the fan base for the pop group Atomic Kitten.

 

On September 2, 2003 and October 17, 2003 Respondent received approvals from the telecom governing body in the UK, ICSTIS, to operate chat services. In anticipation of launching in spring 2004 the two mobile phone portal services Your Mobile Chat and Your Mobile Gossip, using technology that Respondent has been building for its clients for over three years, Respondent registered the disputed domain names in September 2003.

 

Those names were selected as they represent the most natural and logical way of abbreviating Your Mobile Chat and Your Mobile Gossip. Respondent had never heard of Complainant and knew nothing of its trademarks in the USA or the UK prior to receiving Complainant’s letter of September 23, 2003. Therefore Respondent did not intend to gain or divert customers from Complainant to Respondent.

 

The disputed domain names are not identical or confusingly similar to a mark in which Complainant has rights. Complainant’s parent’s UK mark G+J YM is so dissimilar as to be irrelevant. Respondent should be considered as having rights or legitimate interests in the disputed domain names, which it did not register and is not using in bad faith.

 

 

FINDINGS

Complainant has not established all the elements necessary to entitle it to relief.

 

DISCUSSION

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

 

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

 

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

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

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

 

Identical and/or Confusingly Similar

 

Complainant has established that it has rights in the registered trademark YM and in other marks incorporating that mark. The addition of the generic words ‘chat’ and ‘gossip’ to Complainant’s YM mark do not detract from its distinctiveness.  See Advance Magazine Publishers Inc. v. Whaley, D2001-0248 (WIPO May 7, 2001).

The disputed domain names are confusingly similar to Complainant’s YM mark.

 

Complainant has established this element of its case.

 

 

Rights or Legitimate Interests

 

Complainant has provided no evidence that its YM mark is generally known outside the U.S., nor that it was known to Respondent prior to the registration of the disputed domain names.

As to constructive knowledge, the Panel respectfully agrees with the learned panelist in Way Int’l, Inc. v. Diamond Peters, D2003-0264 (WIPO May 29, 2003), who stated that there is no place for such a concept under the Policy:

“The essence of the complaint is an allegation of bad faith, bad faith targeted at the complainant. For that bad faith to be present, the cybersquatter must have actual knowledge of the existence of the complainant, the trade mark owner. If the registrant is unaware of the existence of the trade mark owner, how can he sensibly be regarded as having any bad faith intentions directed at the complainant? If the existence of a trade mark registration was sufficient to give the Respondent knowledge, thousands of innocent domain name registrants would, in the view of the Panel, be brought into the frame quite wrongly”.

 

Even if the concept were applicable to cases under the Policy, Complainant cannot rely, in relation to activities of non-U.S. persons outside the U.S., on constructive notice under U.S. trademark law arising out of registration of its U.S. marks.

 

Further, even if registration of a mark in the U.K. were to give rise to constructive notice in that country (which the Panel believes not to be the case), Complainant has not established that it has any rights in its parent’s U.K. mark (see Danfoss A/S v. Coldwell Banker Burnet, DBIZ2001-00020 (WIPO Mar. 27, 2002)), to which, in any event, the disputed domain names are neither identical nor confusingly similar.

 

In the absence of evidence of reputation in Complainant’s YM mark in the U.K. and in the face of Respondent’s assertion that it was unaware of Complainant and its marks prior to Respondent’s registration of the disputed domain names, the Panel is not disposed to accept Complainant’s bare assertion that Respondent was so aware.

 

Respondent has established that it is a legitimate business which gained business awards in 2002 and 2003; that it provided a mobile chat service to a telecommunications client in May 2002 and that, only days before it registered the disputed domain names, it was itself authorized to operate mobile chat services.

 

Respondent’s explanation for the selection of the disputed domain names as logical contractions of the names of its proposed services is plausible. Its failure to use the disputed domain names in the short time between registration and the commencement of this administrative proceeding is explicable by the timing of Respondent’s intended introduction of its services. Respondent has not produced evidence to support these explanations.   However, in all the circumstances, Complainant has failed to discharge its burden of showing prima facie absence of rights or legitimate interests on the part of Respondent, such as to shift to Respondent the onus of proving by concrete evidence that it has rights or legitimate interests.  See Do The Hustle, LLC v. Tropic Web, D2000-0624 (WIPO Aug. 21, 2000) and the cases there cited.

 

Complainant has failed to establish this element of its case.

 

Registration and Use in Bad Faith

 

Of the three bases on which Complainant contends there should be a finding of bad faith registration and use, two depend on Respondent being aware of Complainant’s mark before registering the disputed domain names.  As already stated, the Panel is not satisfied Respondent was so aware and accordingly makes no finding of bad faith registration.

 

The third ground is alleged passive use between the date of registration, September 6, 2003, and the filing of the Complaint, November 25, 2003.  Complainant contends that passive holding of a domain name has been held to constitute both bad faith registration and use, citing Pharmacia & Upjohn AB v. Romero, D2000-1273 (WIPO Nov. 16, 2000) and Telstra Corporation Limited v. Nuclear Marshmallows, D2000-0003 (WIPO Feb. 20, 2000).  Neither of these cases supports that contention. In both cases there was found prior knowledge of the mark on the part of the domain name registrant and a finding of bad faith registration was made before the question was considered whether passive use amounted, in the particular circumstances of that case, to bad faith use.

 

In Telstra, the leading and most often cited case on this topic, the learned panelist found that passive holding can, in certain circumstances, constitute use in bad faith but that such circumstances cannot be identified in the abstract:

 

 "in considering whether a passive holding of a domain name, following a bad faith registration of it, satisfies the requirements of paragraph 4(a)(iii), the Panel must give close attention to all the circumstances of the Respondent’s behavior" [emphasis added].

 

In Pharmacia the learned panelist stated:

 

“A simple passive holding of the domain name by the Respondent should not, in absence of any particular circumstances of the case, such as those listed under 4b(i-iii) of the Policy, amount to a finding of use in bad faith”. 

 

In the absence of evidence of prior knowledge of Complainant’s marks on the part of Respondent, and in the absence of any finding of bad faith registration or other circumstances which could raise suspicions as to Respondent’s failure to use the disputed domain names in the short time between their registration and the commencement of this administrative proceeding, and by the timing of Respondent’s intended introduction of its services, does not constitute bad faith use.

 

Complainant has failed to establish this element of its case.

 

DECISION

Complainant having failed to establish all three elements required under the ICANN Policy, the Panel concludes that relief shall be DENIED.

 

 

 

 

Alan L. Limbury, Panelist
Dated: January 27, 2004

 

 

 

 

 

 

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