national arbitration forum

 

DECISION

 

Sears Brands, LLC v. Alex Pachan

Claim Number:  FA0502000420527

 

PARTIES

Complainant is Sears Brands, LLC (“Complainant”), represented by Donald A. Degnan of Holland & Hart LLP, 1800 Broadway, Suite 300, Boulder, CO, 80302.  Respondent is Alex Pachan (“Respondent”), 6160 Northwood Circle, White Lake, MI, 48383.

 

REGISTRAR AND DISPUTED DOMAIN NAME

The domain name at issue is <searsholdings.com>, registered with Register.com.

 

PANEL

The undersigned certifies that she has 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 February 11, 2005; the National Arbitration Forum received a hard copy of the Complaint February 14, 2005.

 

On February 14, 2005, Register.com confirmed by e-mail to the National Arbitration Forum that the domain name <searsholdings.com> is registered with Register.com and that Respondent is the current registrant of the name. Register.com verified that Respondent is bound by the Register.com 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 February 22, 2005, a Notification of Complaint and Commencement of Administrative Proceeding (the "Commencement Notification"), setting a deadline of March 14, 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@searsholdings.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 18, 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, <searsholdings.com>, is confusingly similar to Complainant’s SEARS mark.

 

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

 

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

 

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

 

FINDINGS

Complainant, Sears Brands, LLC, has used its SEARS mark since 1886 to identify numerous goods and services.  Complainant holds several registrations with the United States Patent and Trademark Office for the SEARS mark (including Reg. No. 642,438 issued March 5, 1957; Reg. No. 1,563,683 issued October 31, 1989; and Reg. No. 1,726,260 issued October 20, 1992).

 

Complainant has invested billions of dollars in advertising, promoting and developing goodwill in the SEARS mark.  Complainant has used its SEARS mark for retail stores and catalog services, repair services for automobiles, installation services in the field of home improvements and a wide variety of other products and services.

 

Respondent registered the <searsholdings.com> domain name November 17, 2004.  As of the filing of the Complaint, the disputed domain name resolved to a website that displayed an article from CNN/Money discussing a possible business deal involving Complainant and another company in which the resulting company would be named “Sears Holding Corporation.”  This website also displays Complainant’s SEARS mark and logo as well as the logo of another company in the retail industry and includes links to Complainant’s website and the website of one of Complainant’s competitors. 

 

The top of the website features a message stating: “Site is currently listed for sale on Afternic.com;” a link invites Internet visitors to: “Click here to make an offer on this domain name.”  Clicking on this link directs users to a website where they can make an offer for the domain name and where it is indicated that the asking price for the domain name is $180,000.  This website also states that the disputed domain name will undoubtedly be the website for “Sears Holding Corporation.”

 

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 to 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 using extrinsic proof in this proceeding that it has presumptive rights in the SEARS mark through registration with the United States Patent and Trademark Office and by continuous use of its mark in commerce for the last one hundred and nineteen 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 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.”).

 

The <searsholdings.com> domain name registered by Respondent is confusingly similar to Complainant’s SEARS mark because the domain name incorporates Complainant’s mark in its entirety and merely adds the generic or descriptive term “holdings” and the generic top-level domain (gTLD) “.com.”  It has been consistently held under the Policy that the addition of a generic or descriptive term and a gTLD will not be adequate to distinguish the domain name from Complainant’s registered mark.  See 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, Kil, 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).

 

Accordingly, the Panel finds that Policy ¶ 4(a)(i)  has been satisfied.   

 

Rights to or Legitimate Interests

 

Complainant established that it has rights to and legitimate interests in the mark contained in its entirety within the disputed domain name.  Complainant alleged that Respondent has no such rights or legitimate interests in the mark and domain name.  Respondent did not file a response to the allegations set forth by Complainant in the Complaint.  In this circumstance, the Panel is entitled to accept all reasonable allegations and inferences in the Complaint as true.  See Desotec N.V. v. Jacobi Carbons AB, D2000-1398 (WIPO Dec. 21, 2000) (finding that failing to respond allows a presumption that Complainant’s allegations are true unless clearly contradicted by the evidence); see also Ziegenfelder Co. v. VMH Enter., Inc., D2000-0039 (WIPO Mar. 14, 2000) (drawing two inferences based on Respondent’s failure to respond: (1) Respondent does not deny the facts asserted by Complainant, and (2) Respondent does not deny conclusions which Complainant asserts can be drawn from the facts).

 

Complainant has made a prima facie case in support of the assertion that Respondent has no rights to or legitimate interests in the <searsholdings.com> domain name that contains Complainant’s SEARS mark in its entirety.  Once Complainant makes a prima facie case in support of its allegations, the burden is shifted to Respondent to show that it does have rights or legitimate interests pursuant to Policy ¶ 4(a)(ii).  However, Respondent has not responded to Complainant’s allegations and has, thus, presented no proof of Respondent’s rights or legitimate interests.  Therefore, due to Respondent’s failure to respond to the Complaint, the Panel will assume 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) (finding that once Complainant asserts that Respondent has no rights or legitimate interests with respect to the domain, the burden shifts to Respondent to provide credible evidence that substantiates its claim of rights and legitimate interests in the domain name); see also Parfums Christian Dior v. QTR Corp., D2000-0023 (WIPO Mar. 9, 2000) (finding that by not submitting a Response, Respondent has failed to invoke any circumstance which could demonstrate any rights or legitimate interests in the domain name).

 

Respondent is using the <searsholdings.com> domain name to divert Internet users to Respondent’s website that displays information about a possible business deal involving Complainant.  The website also displays links to Complainant and one of Complainant’s competitors in the retail industry and invites visitors to purchase the domain name registration.  The Panel finds that Respondent’s use of the disputed domain name to lure Internet users in search of Complainant’s famous SEARS mark to Respondent’s website designed to offer the domain name registration for sale 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).  See 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.”); see also Am. Online, Inc. v. Tencent Comm. Corp., FA 93668 (Nat. Arb. Forum Mar. 21, 2000) (finding that use of the complainant’s mark “as a portal to suck surfers into a site sponsored by Respondent hardly seems legitimate”); see also Pfizer, Inc. v. Internet Gambiano Prods., D2002-0325 (WIPO June 20, 2002) (finding that because the VIAGRA mark was clearly well-known at the time of Respondent’s registration of the domain name it can be inferred that Respondent is attempting to capitalize on the confusion created by the domain name’s similarity to the mark).

 

The disputed domain name, <searsholdings.com>, resolves to a website that offers the domain name registration for sale and requests offers to purchase the domain name, claiming that the domain name will certainly be for the official website of “Sears Holdings Corporation.”  These circumstances indicate that Respondent was willing to relinquish any rights in the disputed domain name by selling the domain name registration, and the Panel finds that this suggests that Respondent lacks rights and legitimate interests in the disputed domain name pursuant to 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, 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); see also Wal-Mart Stores, Inc. v. Stork, D2000-0628 (WIPO Aug. 11, 2000) (finding Respondent’s conduct purporting to sell the domain name suggests it has no legitimate use); see also Cruzeiro Licenciamentos Ltda v. Sallen, D2000-0715 (WIPO Sept. 6, 2000) (finding that rights or legitimate interests do not exist when one holds a domain name primarily for the purpose of marketing it to the owner of a corresponding trademark).

 

The Panel found nothing in the record that suggests that Respondent is commonly known by the <searsholdings.com> domain name.  In fact, Respondent’s WHOIS information for the domain name indicates that Respondent is identified as “Alex Pachan” and not by the disputed domain name.  Furthermore, Complainant asserts that Respondent is in no way associated with Complainant and that Respondent is not authorized or licensed by Complainant to use any variation of Complainant’s SEARS mark.  Thus, the Panel finds that Respondent has not established rights or legitimate interests in the disputed domain name pursuant to Policy ¶ 4(c)(ii).  See 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"); 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).   

 

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

 

Registration and Use in Bad Faith

 

The <searsholdings.com> domain name registered by Respondent appears to have been registered primarily for the purpose of selling the domain name registration to Complainant or a third-party competitor.  The domain name resolves to a website that displays an article from CNN/Money discussing a potential business deal between Complainant and another company that would create a new company known as “Sears Holdings Corporation.”  The website also displays hyperlinks to Complainant’s website and the website of the other company mentioned in the article.  Additionally, the website indicates that the domain name registration is for sale at an asking price of $180,000. and invites Internet users to make an offer for the domain name registration via a hyperlink.  These circumstances indicate that Respondent is aware of Complainant’s rights in the SEARS mark and the potential value of the domain name to Complainant and that Respondent, therefore, registered the domain name in an attempt to market it to Complainant.  Thus, the Panel concludes that Respondent registered the domain name primarily for the purpose of selling the domain name registration to Complainant for consideration in excess of Respondent’s out-of-pocket expenses and that this is evidence of bad faith registration and use pursuant to Policy ¶ 4(b)(i).  See World Wrestling Fed’n Entmt., Inc. v. Bosman, D99-0001 (WIPO Jan. 14, 2000) (finding that 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 Gen. Elec. Co. v. Forddirect.com, Inc., D2000-0394 (WIPO June 22, 2000) (finding that Respondent registered and used the domain name in bad faith by using the domain name to direct users to a general site offering the domain name for sale); see also Wembley Nat’l Stadium Ltd. v. Thomson, D2000-1233 (WIPO Nov. 16, 2000) (finding bad faith based on the apparent willingness of Respondent to sell the domain name in issue from the outset, albeit not at a price reflecting only the costs of registering and maintaining the name).

 

Although evidence of bad faith registration and use may be shown by proving the existence of any of the four circumstances listed under Policy ¶ 4(b), the Panel is entitled to consider other factors in support of its finding of bad faith registration and use.  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 <searsholdings.com> domain name, which contains Complainant’s well-known SEARS mark in its entirety, suggests that Respondent knew of Complainant’s rights in the SEARS mark.  Furthermore, Respondent mentions Complainant on the website linked to the disputed domain name and displays Complainant’s mark and logo on the website.  Thus, the Panel concludes that Respondent chose the disputed domain name based on the distinctive and famous qualities of Complainant’s mark and that registering a domain name incorporating Complainant’s mark with knowledge of Complainant’s rights in the mark is evidence of bad faith registration and use pursuant to Policy ¶ 4(a)(iii).  See Entrepreneur Media, Inc. v. Smith, 279 F.3d 1135, 1148 (9th Cir. 2002) ("Where an alleged infringer chooses a mark he knows to be similar to another, one can infer an intent to confuse."); see also Victoria's Secret v. Hardin, FA 96694 (Nat Arb. Forum Mar. 31, 2001) (finding that, in light of the notoriety of Complainants' famous marks, Respondent had actual or constructive knowledge of the BODY BY VICTORIA marks at the time she registered the disputed domain name and such knowledge constituted bad faith); see also Pfizer, Inc. v. Suger, D2002-0187 (WIPO Apr. 24, 2002) (finding that because the link between the complainant’s mark and the content advertised on Respondent’s website was obvious, the respondent “must have known about the Complainant’s mark when it registered the subject domain name”).

 

The Panel finds that Policy ¶ 4(a)(ii) 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 <searsholdings.com> domain name be TRANSFERRED from Respondent to Complainant.

 

 

Hon. Carolyn Marks Johnson, Panelist

Dated: April 1, 2005.

 

 

 

 

Click Here to return to the main Domain Decisions Page.

 

Click Here to return to our Home Page

 

National Arbitration Forum