national arbitration forum

 

DECISION

 

SPTC, Inc. v. Bonanzas.com Inc.

Claim Number:  FA0501000409895

 

PARTIES

Complainant is SPTC, Inc. (“Complainant”), represented by William M. Borchard, of Cowan, Liebowitz and Latman, P.C., 1133 Avenue of the Americas, New York, NY 10036-6799. Respondent is Bonanzas.com Inc. (“Respondent”), 4751 Lindle Road, Suite 112, Harrisburg, PA 17109.

 

REGISTRAR AND DISPUTED DOMAIN NAME

The domain name at issue is <sothebysauctions.com>, registered with Bulkregister, LLC.

 

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.

 

Sandra Franklin as Panelist.

 

PROCEDURAL HISTORY

Complainant submitted a Complaint to the National Arbitration Forum electronically on January 26, 2005; the National Arbitration Forum received a hard copy of the Complaint on January 27, 2005.

 

On February 2, 2005, Bulkregister, LLC confirmed by e-mail to the National Arbitration Forum that the domain name <sothebysauctions.com> is registered with Bulkregister, LLC and that Respondent is the current registrant of the name. Bulkregister, LLC has verified that Respondent is bound by the Bulkregister, LLC 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 February 2, 2005, a Notification of Complaint and Commencement of Administrative Proceeding (the "Commencement Notification"), setting a deadline of February 22, 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@sothebysauctions.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 National Arbitration Forum transmitted to the parties a Notification of Respondent Default.

 

On February 28, 2005, pursuant to Complainant's request to have the dispute decided by a single-member Panel, the National Arbitration Forum appointed Sandra Franklin 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."  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 name be transferred from Respondent to Complainant.

 

PARTIES' CONTENTIONS

A. Complainant makes the following assertions:

 

1.      Respondent’s <sothebysauctions.com> domain name is confusingly similar to Complainant’s SOTHEBY’S mark.

 

2.      Respondent does not have any rights or legitimate interests in the <sothebysauctions.com> domain name.

 

3.      Respondent registered and used the <sothebysauctions.com> domain name in bad faith.

 

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

 

FINDINGS

Complainant and its predecessors, through their affiliated companies and licensees, have been engaged in the auction business since 1744 and have developed a reputation as a premier auction house for the sale of fine art and other collectibles. Complainant and its predecessors have used the SOTHEBY’S mark in connection with its auction services for over 200 years. Complainant has extensively advertised and promoted its auction, real estate, and other goods and services under the SOTHEBY’S mark, which has caused the mark to develop substantial public recognition and goodwill. Complainant holds several worldwide trademark registrations for the SOTHEBY’S mark, including U.S. Reg. No. 1,638,329 (issued March 19, 1991), which is on file at the United States Patent and Trademark Office. Complainant has also provided goods and services related to its various businesses on its website located at the <sothebys.com> domain name since 1994.

 

Respondent registered the <sothebysauctions.com> domain name on November 29, 2001. The disputed domain name resolves to a portal page that contains several banner advertisements and links to various commercial websites. Some of the links direct Internet users to websites that provide services that directly compete with Complainant’s auction services. Respondent is not a licensee of Complainant nor is Respondent authorized to use Complainant’s mark for any purpose.

 

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 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.

 

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 has established that it has rights in the SOTHEBY’S mark through registration with the United States Patent and Trademark Office and through continuous use of the mark in commerce. See Men’s Wearhouse, Inc. v. Wick, FA 117861 (Nat. Arb. Forum Sept. 16, 2002) (“Under U.S. trademark law, registered marks hold a presumption that they are inherently distinctive and have acquired secondary meaning.”); see also Janus Int’l Holding Co. v. Rademacher, D2002-0201 (WIPO Mar. 5, 2002) noting that Panel decisions have held that registration of a mark is prima facie evidence of validity, which creates a rebuttable presumption that the mark is inherently distinctive. Respondent has the burden of refuting this assumption.

 

The <sothebysauctions.com> domain name is confusingly similar to Complainant’s SOTHEBY’S registered trademark because the domain name merely adds the generic word “auctions,” which is also descriptive of Complainant’s business, and the “.com” generic top-level domain and removes an apostrophe from the mark. The omission of an apostrophe and the addition of a generic word and a generic top-level domain do not distinguish the domain name from the mark. See Chi-Chi’s, Inc. v. Rest. Commentary, D2000-0321 (WIPO June 29, 2000) finding the domain name <chichis.com> to be identical to the complainant’s CHI-CHI’S mark, despite the omission of the apostrophe and hyphen from the mark; see also 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 Brown & Bigelow, Inc. v. Rodela, FA 96466 (Nat. Arb. Forum Mar. 5, 2001) finding that the <hoylecasino.net> domain name was confusingly similar to the complainant’s HOYLE mark, and that the addition of “casino,” a generic word describing the type of business in which the complainant was engaged, did not take the disputed domain name out of the realm of confusing similarity; see also Christie’s Inc. v. Tiffany’s Jewelry Auction, Inc., D2001-0075 (WIPO Mar. 6, 2001) finding that the domain name <christiesauction.com> was confusingly similar to the complainant’s mark since it merely added the word “auction” used in its generic sense.

 

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

 

Rights or Legitimate Interests

 

Respondent has failed to submit a response in this proceeding. In the absence of a response, the Panel accepts as true all reasonable allegations contained in the Complaint unless clearly contradicted by the evidence. Complainant has alleged that Respondent lacks rights and legitimate interests in the <sothebysauctions.com> domain name. Complainant’s submission has gone unopposed and its arguments unrefuted. Because Respondent has failed to submit a response, Respondent has failed to propose any set of circumstances that could substantiate its rights or legitimate interests in the disputed domain name. See Parfums Christian Dior v. QTR Corp., D2000-0023 (WIPO Mar. 9, 2000) finding that by not submitting a response, the respondent failed to invoke any circumstance which could demonstrate any rights or legitimate interests in the domain name; see also Vertical Solutions Mgmt., Inc. v. webnet-marketing, inc., FA 95095 (Nat. Arb. Forum July 31, 2000) holding that a respondent’s failure to respond allows all reasonable inferences of fact in the allegations of a complainant to be deemed true.

 

Respondent is not using the disputed domain name in connection with a bona fide offering of goods or services under Policy ¶ 4(c)(i), nor is Respondent making a legitimate noncommercial or fair use of the domain name pursuant to Policy ¶ 4(c)(iii). Respondent’s domain name, which is confusingly similar to Complainant’s mark, redirects unsuspecting Internet users to a portal website that subjects visitors to banner advertisements and provides links to other commercial websites, including websites that offer goods and services that are in competition with Complainant. The Panel infers that Respondent receives pay-per-click fees when Internet users follow the links on its website. Respondent makes opportunistic use of Complainant’s mark in order to capitalize on the goodwill and fame associated with the SOTHEBY’S moniker. Thus, Respondent fails to establish rights or legitimate interests in the domain name. See Ticketmaster Corp. v. DiscoverNet, Inc., D2001-0252 (WIPO Apr. 9, 2001) finding no rights or legitimate interests where the respondent generated commercial gain by intentionally and misleadingly diverting users away from the complainant’s site to a competing website; see also Am. Online, Inc. v. Fu, D2000-1374 (WIPO Dec. 11, 2000) (“[I]t would be unconscionable to find a bona fide offering of services in a respondent’s operation of web-site using a domain name which is confusingly similar to the Complainant’s mark and for the same business.”); see also Tercent Inc. v. Yi, FA 139720 (Nat. Arb. Forum Feb. 10, 2003) holding that the respondent’s use of the disputed domain name to host a series of hyperlinks and a banner advertisement was neither a bona fide offering of goods or services nor a legitimate noncommercial or fair use of the domain name.

 

No evidence before the Panel suggests Respondent is commonly known by the domain name under Policy ¶ 4(c)(ii). Respondent’s WHOIS information indicates that the registrant of the disputed domain name is known as “Bonanza.com Inc.” and is not known by the confusingly similar second-level domain that infringes on Complainant’s SOTHEBY’S mark. Moreover, Respondent is not authorized or licensed to use Complainant’s mark for any purpose. Thus, the Panel finds that Respondent lacks rights and legitimate interests in the domain name under Policy ¶ 4(a)(ii). See Tercent Inc. v. Yi, FA 139720 (Nat. Arb. Forum Feb. 10, 2003) stating “nothing in Respondent’s WHOIS information implies that Respondent is ‘commonly known by’ the disputed domain name” as one factor in determining that Policy ¶ 4(c)(ii) does not apply; see also RMO, Inc. v. Burbridge, FA 96949 (Nat. Arb. Forum May 16, 2001) interpreting Policy ¶ 4(c)(ii) “to require a showing that one has been commonly known by the domain name prior to registration of the domain name to prevail”.

 

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

 

Registration and Use in Bad Faith

 

Respondent uses a confusingly similar variation of Complainant’s well-known SOTHEBY’S mark to ensnare unsuspecting Internet users. Respondent then redirects the users to a website that provides links to various commercial websites. The Panel infers that Respondent receives pay-per-click fees when Internet users follow the links on its website. Therefore, Respondent is profiting from the unauthorized use of Complainant’s registered mark in its domain name. Such infringement is what the Policy was intended to remedy and is bad faith registration and use under Policy ¶ 4(b)(iv). See G.D. Searle & Co. v. Celebrex Drugstore, FA 123933 (Nat. Arb. Forum Nov. 21, 2002) finding that the respondent registered and used the domain name in bad faith pursuant to Policy ¶ 4(b)(iv) because the respondent was using the confusingly similar domain name to attract Internet users to its commercial website; see also Kmart v. Khan, FA 127708 (Nat. Arb. Forum Nov. 22, 2002) finding that if a respondent profits from its diversionary use of a complainant’s mark when the domain name resolves to commercial websites and the respondent fails to contest the Complaint, it may be concluded that the respondent is using the domain name in bad faith pursuant to Policy ¶ 4(b)(iv).

 

Respondent registered and used a domain name that is confusingly similar to Complainant’s mark for the purpose of directing Internet users to businesses that offer goods and services that compete with Complainant’s goods and services. Respondent’s use of the <sothebysauctions.com> domain name establishes that Respondent registered and used the domain name for the purpose of disrupting the business of a competitor pursuant to Policy ¶ 4(b)(iii). See S. Exposure v. S. Exposure, Inc., FA 94864 (Nat. Arb. Forum July 18, 2000) finding that the respondent acted in bad faith by attracting Internet users to a website that competed with the complainant’s business; see also EthnicGrocer.com, Inc. v. Unlimited Latin Flavors, Inc., FA 94385 (Nat. Arb. Forum July 7, 2000) finding that the minor degree of variation from the complainant’s marks suggested that the respondent, a competitor of the complainant, registered the domain names primarily for the purpose of disrupting the complainant’s business; see also Puckett v. Miller, D2000-0297 (WIPO June 12, 2000) finding that the respondent diverted business from the complainant to a competitor’s website in violation of Policy ¶ 4(b)(iii).

 

Furthermore, while each of the four circumstances listed under Policy ¶ 4(b), if proven, evidences bad faith use and registration of a domain name, additional factors can also be used to support findings of bad faith. See Twentieth Century Fox Film Corp. v. Risser, FA 93761 (Nat. Arb. Forum May 18, 2000) finding that in determining if a domain name has been registered in bad faith, the Panel must look at the “totality of circumstances”; see also Do the Hustle, LLC v. Tropic Web, D2000-0624 (WIPO Aug. 21, 2000) (“[T]he examples [of bad faith] in Paragraph 4(b) are intended to be illustrative, rather than exclusive.”).

 

Respondent’s registration of the disputed domain name, a domain name that is confusingly similar to Complainant’s well-known registered mark, suggests that Respondent knew of Complainant’s rights in the SOTHEBY’S mark. Additionally, Complainant’s trademark registration on file at the United States Patent and Trademark Office gave Respondent constructive notice of Complainant’s mark. Moreover, the fact that Respondent’s website provides links to Complainant’s competitors evidences Respondent’s knowledge of Complainant’s rights in the mark. Thus, the Panel finds that Respondent chose the <sothebysauctions.com> domain name based on the distinctive and well-known qualities of Complainant’s mark, which evidences bad faith registration and use under Policy ¶ 4(a)(iii). See Pavillion Agency, Inc. v. Greenhouse Agency Ltd., D2000-1221 (WIPO Dec. 4, 2000) finding that the “domain names are so obviously connected with the Complainants that the use or registration by anyone other than Complainants suggests ‘opportunistic bad faith’”; see also Sony Kabushiki Kaisha v. Inja, Kil, D2000-1409 (WIPO Dec. 9, 2000) finding bad faith registration and use where it is “inconceivable that the respondent could make any active use of the disputed domain names without creating a false impression of association with the Complainant”; see also Reuters Ltd. v. Teletrust IPR Ltd., D2000-0471 (WIPO Sept. 8, 2000) finding that the respondent demonstrated bad faith where it was aware of the complainant’s famous mark when registering the domain name and was aware of the deception and confusion that would inevitably follow if it used the domain names; 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; see also Orange Glo Int’l v. Blume, FA 118313 (Nat. Arb. Forum Oct. 4, 2002) (“Complainant’s OXICLEAN mark is listed on the Principal Register of the USPTO, a status that confers constructive notice on those seeking to register or use the mark or any confusingly similar variation thereof.”).

 

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

 

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 <sothebysauctions.com> domain name be TRANSFERRED from Respondent to Complainant.

 

 

 

 

Sandra Franklin, Panelist

Dated:  March 14, 2005

 

 

 

 

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