NATIONAL ARBITRATION FORUM

 

DECISION

 

Robert F. Lopez, Ana M. Lopez and Christina L. Ruiz v. Shurhold Industries, Inc./Key West Sandal Factory

Claim Number: FA0501000399602

 

PARTIES

Complainants are Robert F. Lopez, Ana M. Lopez and Christina L. Ruiz (collectively, “Complainant”), represented by Erica Hughes, of Spottswood, Spottswood and Spottswood, PO Box 1900, 800 Fleming Street, Key West, FL 33041-1900.  Respondent is Shurhold Industries, Inc./Key West Sandal Factory (“Respondent”), represented by Cynthia B. Stevens, of Wildman, Harrold, Allen & Dixon, LLP, 225 West Wacker Drive, Chicago, IL 60606-1229.

 

REGISTRAR AND DISPUTED DOMAIN NAMES

The domain names at issue are <kinosandal.com> and <kinosandals.com>, registered with Bulkregister, 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.

 

Darryl C. Wilson as Panelist.

 

PROCEDURAL HISTORY

Complainants submitted a complaint to the National Arbitration forum electronically on January 10, 2005; the National Arbitration Forum received a hard copy of the Complainant on January 13, 2005.

 

On January 11, 2005, Bulkregister, Llc. confirmed by e-mail to the National Arbitration Forum that the domain names <kinosandal.com> and <kinosandals.com> are registered with Bulkregister, Llc. and that the Respondent is the current registrant of the name. Bulkregister, Llc. has verified that Respondent is bound by the Bulkregister, Llc. registration agreement and that 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 January 19, 2005, a Notification of Complaint and Commencement of Administrative Proceeding (the “Commencement Notification”), setting a deadline of February 8, 2005 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@kinosandal.com postmaster@kinosandals.com by e-mail.

 

A Response was received and determined to be complete on February 10, 2005. Although the Response was complete as it was received in both hard copy and electronic format, it was deficient as it was untimely and received after the Response deadline.

 

Complainant sent an Additional Submission, however it was received after the deadline and therefore failed to comply with Supplemental Rule 7. Because the Panel has decided to give some weight to Respondent’s late response, Complainant’s Additional Submission has been given comparable treatment.

 

On February 15, 2005, pursuant to Complainant’s request to have the dispute decided by a single-member Panel, the National Arbitration Forum appointed Darryl C. Wilson as Panelist.

 

RELIEF SOUGHT

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

 

PARTIES’ CONTENTIONS

A. Complainant

 

Complainant makes the following assertions:

 

1.      Complainant owns and operates a sandal manufacturing business in Key West, Florida through its wholly-owned corporation Kino Sandals, Inc.

 

2.      Complainant began the sandal making business in Key West in 1966 and has continuously operated that business since that time, during which period it has also used the KINO and KINO SANDALS trademarks.

 

3.      Complainant secured state registrations for the KINO (1992) and KINO SANDAL (2002) marks.  Based on the long-standing usage of the KINO mark in connection with sandals manufactured by Complainant, the KINO and KINO SANDAL marks are widely known throughout Key West, Florida and the United States.

 

4.      Respondent’s <kinosandal.com> and <kinosandals.com> domain names are identical and therefore confusingly similar to Complainant’s KINO and KINO SANDAL registered marks.

 

5.      Respondent is using its website to advertise Complainant’s products and Respondent’s domain names are not being used for legitimate noncommercial or fair use purposes but instead evidence an intent to misleadingly divert consumers or to tarnish Complainant’s trademarks.

 

6.      Respondent’s domain names should be considered as having been registered and used in bad faith.

 

B. Respondent

 

Respondent makes the following assertions:

 

1.      Respondent obtained the <kinosandal.com> and <kinosandals.com> domain names in 2000 for the sole purpose of selling KINO brand sandals and not to divert consumers or tarnish the trademark at issue.

 

2.      Respondent is a reseller of KINO “brand” sandals, therefore Respondent has a legitimate purpose for using the <kinosandal.com> and <kinosandals.com> domain names.

 

3.      Respondent clearly states on its website that “KINO is a registered trademark of Kino Sandals of Key West, Florida and is not affiliated with Key West Sandal Factory.”

 

4.      Respondent has a good faith interest in using the domain names to resell the KINO “brand” sandals.  The site does not falsely suggest that it is Complainant’s official site or misstate the relationship between Respondent and Complainant.

 

5.      Respondent has used the domain names for approximately five years, and has not received any complaints or inquiries from users which indicate such users believe that Respondent is associated with Complainant.

 

 

C. Additional Submissions

 

Complainants make the following additional assertions:

 

1.      Respondent is not an authorized reseller of KINO brand sandals.

 

2.      Complainant has gone to great lengths to limit sales of its sandals in an effort to ensure that Respondent does not, and cannot, obtain KINO brand sandals for resale, including the stoppage of bulk sales and mail order sales.

 

3.      Respondent has now (more than five years after acquiring the domain names) added a disclaimer to its website.

 

FINDINGS

Complainants are related family members who have operated a sandal manufacturing business in Key West, Florida through their wholly owned corporation, Kino Sandals, Inc.  Complainant began the business in 1966 and has operated continuously since that time.  In 1992, Complainant secured a state trademark registration (Fla. Reg. No. T02000000914) for the KINO mark and in 2002, the same year it renewed KINO, Complainant also secured a state registration for the KINO SANDAL mark (Fla. Reg. No. T16190).

 

Complainant has also applied for a federal registration with respect to the KINO mark, which application is pending with the Unites States Patent and Trademark Office as Application No. 781399566.  Complainant is the exclusive owner of the KINO mark and has the exclusive right to use and license the KINO mark.

 

Respondent, Shurhold Industries, Inc./Key West Sandal Factory, is a business entity established at an unknown time, with a mailing address in Palm City, Florida, approximately 180 miles north of Key West, Florida. Respondent obtained the <kinosandal.com> and <kinosandals.com> domain names in 2000 for the purpose of selling or reselling the KINO brand sandals.

 

Respondent purchases the KINO brand sandals from Complainant and then offers the products for sale on its website where it also provides a disclaimer of any affiliations with Complainant and further offers a Q&A page where it indicates it sells its products at a higher price than if bought directly from the manufacturer, due to the costs associated with it being a reseller.

 

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 rights in the KINO and KINO SANDAL marks through use and state registrations of the marks.  The KINO and KINO SANDAL marks were registered with the Florida Department of State (Doc. No. T16190 issued August 13, 1992; Doc. No.T02000000914 issued August 8, 2002, respectively), each registration indicating a date of first use as April 27, 1966.  See Board of Regents of The University of Idaho v. Anti-Globalization Domains, FA 205127 (Nat. Arb. Dec. 8, 2003) (“Registration with the State of Idaho is sufficient to establish Complainant’s rights in a mark.”)

 

Respondent’s <kinosandals.com> and <kinosandal.com> domain names are confusingly similar to Complainant’s KINO and KINO SANDALS marks because the domain names incorporate the marks in their entirety and merely add the terms “sandal” and “sandals,” which describe Complainant’s business.  See Arthur Guinness Son and Co. (Dublin) Ltd. Healy/BOSTH, D2001-0026 (WIPO Mar. 23, 2001) (finding confusing similarity where the domain name in dispute contains the identical mark of Complainant combined with a generic word or term.); see also Space Imaging LLC v. Brownell, AF-0298 (eResolution Sept. 22, 2000) (finding confusing similarity where Respondent’s domain name combines Complainant’s mark with a generic term that has on obvious relationship to Complainant’s business); see also Rollerblade, Inc. v. McCrady, D2000-0429 (WIPO June 25, 2000) (finding that the top level 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).

 

The Respondent’s registration of the domain names did occur before the Complainant’s state registration for the KINO SANDAL mark, however the panel finds that the Complainant’s common law rights gained over a period of more than 30 years predate Respondent’s registrations, and that fact, coupled with Complainant’s earlier registration of the KINO mark for its Key West Sandal business sufficiently evidence Complainant’s established rights in the marks.  The domain names at issue are neither adaptations of Complainant’s purely nominative marks nor are they descriptive of Respondent’s business.

 

The Panel finds that Complainant has proven the requirements of Policy ¶ 4(a)(i).

 

Rights or Legitimate Interests

 

Respondent’s use of the <kinosandal.com> and <kinosandals.com> domain names is not a use in connection with a bona fide offering of goods or services pursuant to Policy ¶ 4(c)(i) or a legitimate noncommercial or fair use pursuant to Policy ¶ 4(c)(iii).  The use of identical or confusingly similar versions of Complainant’s marks by Respondent’s company, named for Complainant’s business location, to engage in the unauthorized reselling of Complainant’s products fails to meet the definition of bona fide.  See Nike, Inc. v. Dias, FA 135016 (Nat. Arb. Forum Jan. 7, 2002) (finding no “bona fide” offering of goods or services where Respondent used Complainant’s mark without authorization to attract Internet users to its website, which offered both Complainant’s products and those of Complainant’s competitors).

 

Respondent does not contest Complainant’s assertions that Complainant’s goods and marks are well known throughout Florida and the United States.  Nor does Respondent offer any evidence that it is, or was, either commonly known by the disputed domain names or was authorized to register domain names incorporating Complainant’s marks.  Thus, Respondent has no rights or legitimate interests in the domain names pursuant to Policy ¶ 4(c)(ii). See Compagnie de Saint Gobain v. Com-Union Corp., D2000-0020 (WIPO Mar. 14, 2000) (finding no rights or legitimate interests where Respondent was not commonly known by the mark and never applied for a license or permission from Complainant to use the trademarked name); see also Hewlett-Packard Co. v. Burgar, FA 93564 (Nat. Arb. Forum Apr. 10, 2000) (finding that Respondent has no rights or legitimate interest in the <hewlettpackard.com> domain name, because Respondent is not a licensed dealer of Hewlett-Packard products and has not demonstrated any right except to declare that he is affiliated with a licensed reseller of Complainant’s products).  In the instant case Respondent has not received any authorization or license, nor has it affiliated with anyone who has.

 

Although Respondent did apply for the domain names before Complainant registered its KINO SANDALS mark, Complainant’s KINO mark had been registered for more than a decade prior to Respondent’s procurement of the domain names in dispute.  Thus, Complainant had already established rights in KINO as a mark identifying its goods which were sandals manufactured by its factory in Key West, Florida.  Respondent’s provision of a disclaimer on its website only recently occurred after Complainant threatened legal action.  Furthermore, the provision of such a disclaimer, once parties arrive at the website is an inadequate barrier to preventing prospective consumers from initially visiting the website on belief that they are going to a website provided or authorized by Complainant. See Alta Vista Co. v. AltaVista, FA 95480 (Nat. Arb. Forum Oct. 31, 2000) (finding that since a disclaimer does not, and could not , accompany the domain name, then the “domain name attracts the consumer’s initial interest and the consumer is misdirected long before he/she has the opportunity to see the disclaimer”); see also Ciccone v. Parisi (Madonna.com), D2000-0847 (WIP Oct. 12, 2000) (“Respondent’s use of a disclaimer on its website is insufficient to avoid a finding of bad faith. First, the disclaimer may be ignored or misunderstood by Internet users. Second, a disclaimer does nothing to dispel initial interest confusion that is inevitable from Respondent’s actions. Such confusion is a basis for finding a violation of Complainant’s rights.”).

 

Although some decisions have found use of a disclaimer to be sufficient, those matters can be distinguished from the matter at hand by the fact that the domain names in those cases were not identical, nor did they incorporate in full the trademarks of the complaining parties in the manner of Respondent’s domain names in this dispute.           

 

The Panel finds that Respondent lacks any rights or legitimate interest in the <kinosandal.com> and <kinosandals.com> domain names.

 

Therefore the Panel finds that Complainant has established its burden set forth under the Policy ¶ 4(a)(ii).

 

Registration and Use in Bad Faith

 

Complainant argues that Respondent’s use of the <kinosandal.com> and <kinosandals.com> domain names has blocked its attempts to secure and operate an Internet site bearing its trademarks.  Respondent’s domain names, which both incorporate and/or are identical to Complainant’s trademarks, were procured primarily to resell Complainant’s products, although they have recently begun selling products of Complainant’s competitors.  These actions by Respondent constitute disruption of Complainant’s business and evidence that Respondent registered and used the domain names in bad faith pursuant to Policy ¶4(b)(iii).  See C.D. Searle & Co. v. Celebrex Cox-2 Vioxx.com, FA 124508 (Nat. Arb. Forum Oct. 16, 2002) (Unauthorized use of Complainant’s CELEBREX mark to sell Complainant’s products represent bad faith use under Policy ¶4(b)(iii)); see also Fossil Inc. v. NAS, FA 92525 (Nat. Arb. Forum February 23, 2000) (finding that Respondent acted in bad faith by registering <fossi1watch.com> domain name and using it to sell various watch brands where Respondent was not authorized to sell Complainant’s goods).  Respondent does not indicate any authorization was ever granted to sell or resell Complainant’s goods but instead argues that the domain names were available for registration and that Complainant had no federal trademark rights at the time of Respondent’s registration.  Neither of these factors are required for a party to have established rights in a mark, nor does the failure of these events act as shield for a finding of bad faith.

 

The Panel finds that Complainant has satisfied the elements of Policy ¶ 4(a)(iii), thus Respondent’s registration and use is 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 <kinosandal.com> and <kinosandals.com> domain names be TRANSFERRED from Respondent to Complainant.

 

 

                                               

 

Darryl. C Wilson, Panelist

                                                                    Dated: March 1, 2005