national arbitration forum

 

DECISION

 

Cendant Corporation v. Cendant- Wholesale.com

Claim Number:  FA0501000411694

 

PARTIES

Complainant is Cendant Corporation (“Complainant”), represented by Kathryn S. Geib, 1 Sylvan Way, Parsippany, NJ, 07054.  Respondent is Cendant- Wholesale.com  (“Respondent”), 48554 Vista Del Logo, New York, NY, 11741.

 

REGISTRAR AND DISPUTED DOMAIN NAME

The domain name at issue is <cendant-wholesale.com>, registered with Go Daddy Software, Inc.

 

PANEL

The undersigned certifies that she acted independently and impartially and that to the best of her knowledge she has no known conflict in serving as Panelist in this proceeding. Hon. Carolyn Marks Johnson sits as Panelist.

 

PROCEDURAL HISTORY

Complainant submitted a Complaint to the National Arbitration Forum electronically January 28, 2005; the National Arbitration Forum received a hard copy of the Complaint January 31, 2005.

 

On January 28, 2005, Go Daddy Software, Inc. confirmed by e-mail to the National Arbitration Forum that the domain name <cendant-wholesale.com> is registered with Go Daddy Software, Inc. and that Respondent is the current registrant of the name.  Go Daddy Software, Inc. verified that Respondent is bound by the Go Daddy Software, Inc. registration agreement and thereby has 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 31, 2005, a Notification of Complaint and Commencement of Administrative Proceeding (the "Commencement Notification"), setting a deadline of February 21, 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@cendant-wholesale.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 March 3, 2005, pursuant to Complainant's request to have the dispute decided by a single-member Panel, the National Arbitration Forum appointed Hon. Carolyn Marks Johnson as Panelist.

 

Having reviewed the communications records, the Administrative Panel (the "Panel") finds that the National Arbitration Forum 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.      The domain name that Respondent registered, <cendant-wholesale.com>, is confusingly similar to Complainant’s CENDANT mark.

 

2.      Respondent has no rights to or legitimate interests in the <cendant-wholesale.com> domain name.

 

3.      Respondent registered and used the <cendant-wholesale.com> domain name in bad faith.

 

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

 

FINDINGS

Complainant, Cendant Corporation, is the parent company of some of the foremost providers of real estate-related and travel services in the world.  Cendant’s subsidiaries operate in five business segments, including real estate services, financial services, hospitality services, travel distribution services and vehicle services.  Complainant and its subsidiaries have approximately 90,000 employees worldwide and provide services to businesses and consumers in over one hundred countries. 

 

In addition, Complainant has an indirect, wholly-owned subsidiary, Cendant Mortgage Corporation, that originates, sells and services residential mortgage loans in the United States, which are marketed directly to consumers and through relationships with corporations, affinity groups, financial institutions, real estate brokerage firms and banks.  In 2004, Complainant’s mortgage business was the sixth largest retail mortgage originator in the United States, with mortgage financing in excess of $83 million.

 

Complainant holds numerous trademark registrations for the CENDANT mark with the United States Patent and Trademark Office (Reg. No. 2,390,176 issued September 26, 2000; Reg. No. 2,392,546 issued October 10, 2000; Reg. No. 2,455,652 issued May 29, 2001; Reg. No. 2,702,610 issued April 1, 2003; and Reg. No. 2,736,922 issued July 15, 2003) and has made continuous use of the mark in commerce since December 1997.

 

Complainant’s websites are located at <cendant.com> and <netmovein.com>. 

 

Respondent registered the <cendant-wholesale.com> domain name May 27, 2004.  Respondent is using the domain name to redirect Internet users to a website that offers mortgage services under what is purported to be Complainant’s “wholesale division.”  Complainant avers that Respondent has no rights or licenses to act under Complainant’s name and no other authority to act as a representative of Complainant in this manner or any other.

 

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 will draw such inferences as the Panel considers appropriate pursuant to paragraph 14(b) of the Rules.

 

Paragraph 4(a) of the Policy requires Complainant to 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 to and/or Confusingly Similar

 

Complainant established by extrinsic proof in this proceeding that it has rights in the CENDANT mark through numerous trademark registrations with the United States Patent and Trademark Office and by continued use of the mark in commerce for at least the last seven years.  See Janus Int’l Holding Co. v. Rademacher, D2002-0201 (WIPO Mar. 5, 2002) (finding 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.); see also Smart Design LLC v. Hughes, D2000-0993 (WIPO Oct. 18, 2000) (holding that ICANN Policy ¶ 4(a)(i) does not require complainant to demonstrate ‘exclusive rights,’ but only that complainant has a bona fide basis for making the Complaint in the first place); see also Wal-Mart Stores, Inc. v. MacLeod, D2000-0662 (WIPO Sept. 19, 2000) (finding that the failure of complainant to register all possible domain names that surround its substantive mark does not hinder complainant’s rights in the mark. “Trademark owners are not required to create ‘libraries’ of domain names in order to protect themselves”).

 

Respondent’s <cendant-wholesale.com> domain name is confusingly similar to Complainant’s CENDANT mark because the domain name incorporates Complainant’s mark in its entirety and simply adds the generic or descriptive term “wholesale.”  The mere addition of a generic or descriptive word to a registered mark does not negate the confusing similarity of Respondent’s domain name pursuant to Policy ¶ 4(a)(i).  See Vivid Video, Inc. v. Tennaro, FA 126646 (Nat. Arb. Forum Nov. 14, 2002) (finding that any distinctiveness resulting from respondent’s addition of a generic word to complainant’s mark in a domain name is less significant because respondent and complainant operate in the same industry); see also 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 complainant combined with a generic word or term); see also Sony Kabushiki Kaisha v. Inja, D2000-1409 (WIPO Dec. 9, 2000) (finding that “[n]either the addition of an ordinary descriptive word . . . nor the suffix ‘.com’ detract from the overall impression of the dominant part of the name in each case, namely the trademark SONY” and thus Policy ¶ 4(a)(i) is satisfied).

 

The Panel finds that Complainant fulfilled Policy ¶ 4(a)(i).

 

Rights or Legitimate Interests

 

Complainant has alleged that Respondent has no rights or legitimate interests in the domain name that contains in its entirety Complainant’s mark.  The burden shifts to Respondent to show that it does have rights or legitimate interests once Complainant establishes a prima facie case pursuant to Policy ¶ 4(a)(ii).  Due to Respondent’s failure to respond to the Complaint, the Panel assumes that Respondent lacks rights and legitimate interests in the disputed domain name.  See Do the Hustle, LLC v. Tropic Web, D2000-0624 (WIPO Aug. 21, 2000) (“Failure of a respondent to come forward to [contest complainant’s allegations] is tantamount to admitting the truth of complainant’s assertion in this regard”); see also Vertical Solutions Mgmt., Inc. v. webnet-marketing, inc., FA 95095 (Nat. Arb. Forum July 31, 2000) (holding that respondent’s failure to respond allows all reasonable inferences of fact in the allegations of complainant to be deemed true); see also Strum v. Nordic Net Exchange AB, FA 102843 (Nat. Arb. Forum Feb. 21, 2002) (finding that in accordance with Paragraph 14(b) of the Policy, the Panel may draw such inferences as it considers appropriate, if respondent fails to comply with the Panel's requests for information).

 

Respondent is wholly appropriating Complainant’s mark in the disputed domain name to host a website that offers mortgage services that purport to be from Complainant.  The Panel determines that Respondent’s use of a domain name confusingly similar to Complainant’s CENDANT mark to divert Internet users to a website that offers services under Complainant’s mark without authorization is not in connection with a bona fide offering of goods or services pursuant to Policy ¶ 4(c)(i) and is not a legitimate noncommercial or fair use pursuant to Policy ¶ 4(c)(iii).  See Toronto-Dominion Bank v. Karpachev, 188 F.Supp.2d 110, 114 (D. Mass. 2002) (finding that because respondent's sole purpose in selecting the domain names was to cause confusion with complainant's website and marks, its use of the names was not in connection with the offering of goods or services or any other fair use); see also MSNBC Cable, LLC v. Tysys.com, D2000-1204 (WIPO Dec. 8, 2000) (finding no rights or legitimate interests in the famous MSNBC mark where respondent attempted to profit using complainant’s mark by redirecting Internet traffic to its own website); see also State Farm Mut. Auto. Ins. Co. v. LaFaive, FA 95407 (Nat. Arb. Forum Sept. 27, 2000) (“[U]nauthorized providing of information and services under a mark owned by a third party cannot be said to be the bona fide offering of goods or services.”).

 

Complainant avers that Respondent is not commonly known by the <cendant-wholesale.com> domain name and therefore lacks rights and legitimate interests in the domain name.  In addition, Complainant argues that since Respondent is not authorized or licensed to register or use Complainant’s mark, Respondent lacks rights and legitimate interests in the domain name.  The Panel concludes that since Respondent is not authorized or licensed to register or use Complainant’s mark and is not commonly known by the domain name, Respondent lacks rights and legitimate interests pursuant to Policy ¶ 4(c)(ii).  See Gallup Inc. v. Amish Country Store, FA 96209 (Nat. Arb. Forum Jan. 23, 2001) (finding that respondent does not have rights in a domain name when respondent is not known by the mark); see also Compagnie de Saint Gobain v. Com-Union Corp., D2000-0020 (WIPO Mar. 14, 2000) (finding no rights or legitimate interest 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 Charles Jourdan Holding AG v. AAIM, D2000-0403 (WIPO June 27, 2000) (finding no rights or legitimate interests where (1) respondent is not a licensee of complainant; (2) complainant’s rights in the mark precede respondent’s registration; (3) respondent is not commonly known by the domain name in question).

 

The Panel finds that Complainant fulfilled Policy ¶ 4(a)(ii).

 

Registration and Use in Bad Faith

 

The <cendant-wholesale.com> domain name is being used to intentionally attempt to attract Internet users to a website that purports to offer mortgages under Complainant’s name.  Furthermore, the operator of the website derives commercial benefit by charging a fee for the loan services which the Internet users will never receive.  Thus, the Panel determines that Respondent’s attempts to divert Internet users for commercial gain by attracting them to its website through a likelihood of confusion with Complainant’s mark is evidence of bad faith registration and use pursuant to Policy ¶ 4(b)(iv).  See G.D. Searle & Co. v. Celebrex Drugstore, FA 123933 (Nat. Arb. Forum Nov. 21, 2002) (finding that respondent registered and used the domain name in bad faith pursuant to Policy ¶ 4(b)(iv) because 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 respondent profits from its diversionary use of complainant's mark when the domain name resolves to commercial websites and respondent fails to contest the Complaint, it may be concluded that respondent is using the domain name in bad faith pursuant to Policy ¶ 4(b)(iv)).

 

Furthermore, Respondent’s disputed domain name is being used to offer fraudulent mortgages under Complainant’s name for the purpose of obtaining financial information from Internet users for mortgage services the users will never receive.  The Panel finds that this scheme, known as “phishing,” is evidence of bad faith registration and use pursuant to Policy ¶ 4(a)(iii).  See Juno Online Servs., Inc. v. Nelson, FA 241972 (Nat. Arb. Forum Mar. 29, 2004) (finding bad faith where the website was being used for a “phishing” scheme although respondent asserted “that an unknown perpetrator stole his identity and registered the disputed domain name for purposes of the fraudulent scheme alleged by Complainant”); see also Monsanto Co. v. Decepticons, FA 101536 (Nat. Arb. Forum Dec. 18, 2001) (finding that respondent's use of <monsantos.com> to misrepresent itself as complainant and to provide misleading information to the public supported a finding of bad faith); see also Halifax plc v. Sunducl, D2004-0237 (WIPO June 3, 2004) (“[T]he apparent potential for “phishing” and obtaining information by deception, is not just evidence of bad faith but possibly suggestive of criminal activity.  It is accepted that on this basis there is no other possibility than the site being registered in bad faith.”).

 

Additionally, Respondent’s registration of the disputed domain name, a domain name that wholly incorporates Complainant’s well-known mark and simply adds a generic term, suggests that Respondent knew of Complainant’s rights in the CENDANT mark.  Thus, the Panel finds that Respondent likely chose the <cendant-wholesale.com> domain name based on the distinctive and well-known qualities of Complainant’s mark, which evidences bad faith registration and use pursuant to Policy ¶ 4(a)(iii).  See 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 Exxon Mobil Corp. v. Fisher, D2000-1412 (WIPO Dec. 18. 2000) (finding that respondent had actual and constructive knowledge of complainant’s EXXON mark given the worldwide prominence of the mark and thus respondent registered the domain name in bad faith); 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 Complainant fulfilled Policy ¶ 4(a)(iii).

 

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 <cendant-wholesale.com> domain name be TRANSFERRED from Respondent to Complainant.

 

 

 

Hon. Carolyn Marks Johnson, Panelist

Dated: March 17, 2005.

 

 

 

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