national arbitration forum

 

DECISION

 

Prescott Paper Products (USA), Inc. v. Champion Paper %27 Polybags Limited

Claim Number:  FA0503000434088

 

PARTIES

Complainant is Prescott Paper Products (USA), Inc. (“Complainant”), represented by Christopher T. Dejardin, of Cassan Maclean, 80 Aberdeen Street, Suite 401, Ottawa, Ontario K1S 5R5, Canada.  Respondent is Champion Paper  %27 Polybags Limited  (“Respondent”), 1030 Walker Road, Windsor, Ontario N8Y2N5, Canada.

 

REGISTRAR AND DISPUTED DOMAIN NAME

The domain name at issue is <bagtoearth.com>, registered with Enom, Inc.

 

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.

 

Tyrus R. Atkinson, Jr., as Panelist.

 

PROCEDURAL HISTORY

Complainant submitted a Complaint to the National Arbitration Forum electronically on March 2, 2005; the National Arbitration Forum received a hard copy of the Complaint on March 11, 2005.

 

On March 2, 2005, Enom, Inc. confirmed by e-mail to the National Arbitration Forum that the domain name <bagtoearth.com> is registered with Enom, Inc. and that Respondent is the current registrant of the name. Enom, Inc. has verified that Respondent is bound by the Enom, Inc. 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 March 11, 2005, a Notification of Complaint and Commencement of Administrative Proceeding (the "Commencement Notification"), setting a deadline of March 31, 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@bagtoearth.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 April 6, 2005, pursuant to Complainant's request to have the dispute decided by a single-member Panel, the National Arbitration Forum appointed  Tyrus R. Atkinson, Jr., 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 <bagtoearth.com> domain name is identical to Complainant’s BAG TO EARTH mark.

 

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

 

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

 

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

 

FINDINGS

Complainant specializes in the manufacture and sale of biodegradable paper bags for the collection of waste.  Complainant has continuously used the BAG TO EARTH mark in connection with its products in Canada since at least as early as August 1993.  Complainant holds Canadian trademark Reg. No. TMA 573,450 for the BAG TO EARTH mark (issued January 13, 2003).

Respondent registered the <bagtoearth.com> domain name on January 17, 2000.  The domain name is not linked to any active website.  Respondent is in the business of selling compostable paper bags for lawn and garden waste that directly compete with Complainant’s products.  On May 25, 2000, Respondent’s president telephoned Complainant’s counsel and advised her that Respondent had not used the BAG TO EARTH mark for any purpose, that it had no intention to use the mark, and that the <bagtoearth.com> domain name registration was for sale to the Complainant for $10,000.00.

 

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 BAG TO EARTH mark through registration with the Canadian Intellectual Property Office and through continuous use of the mark in commerce since 1993.  Registration of a mark with the Canadian Intellectual Property Office is prima facie evidence that Complainant has rights in a valid trademark.  Respondent can rebut this presumption only by producing evidence that the mark is not inherently distinctive and has not acquired secondary meaning.  Cf. 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) (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 and that a respondent has the burden of refuting this assumption); see also Tuxedos By Rose v. Nunez, FA 95248 (Nat. Arb. Forum Aug. 17, 2000) (finding common law rights in a mark where its use was continuous and ongoing, and secondary meaning was established).

 

The <bagtoearth.com> domain name is identical to Complainant’s BAG TO EARTH registered trademark because the disputed domain name merely removes spaces from the mark and adds the “.com” generic top-level domain to the mark.  The removal of spaces and the addition of a generic top-level domain do not distinguish the domain name from the mark.  Thus, the Panel finds that the Domain name is confusingly similar to Complainant’s mark under Policy ¶ 4(a)(i).  See Pomellato S.p.A v. Tonetti, D2000-0493 (WIPO July 7, 2000) (finding <pomellato.com> identical to the complainant’s mark because the generic top-level domain (gTLD) “.com” after the name POMELLATO is not relevant); see also Hannover Ruckversicherungs-AG v. Ryu, FA 102724 (Nat. Arb. Forum Jan. 7, 2001) (finding <hannoverre.com> to be identical to HANNOVER RE, “as spaces are impermissible in domain names and a generic top-level domain such as ‘.com’ or ‘.net’ is required in domain names”).

 

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 <bagtoearth.com> domain name.  Complainant’s submission has gone unopposed and its arguments unrefuted.  Further, 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 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 the complaint to be deemed true); see also Parfums Christian Dior v. QTR Corp., D2000-0023 (WIPO Mar. 9, 2000) (finding that by not submitting a response, the respondent has failed to invoke any circumstance which could demonstrate any rights or legitimate interests in the domain name).

 

Respondent is not using the disputed domain name in connection with a bona fide offering of goods or services under Policy ¶ 4(c)(i) or making a legitimate noncommercial or fair use of the domain name pursuant to Policy ¶ 4(c)(iii) because the domain name does not resolve to any active website.  Moreover, Respondent has made no use of the disputed domain name since it was registered more than five years ago.  The Panel finds that, under these circumstances, Policy ¶¶ 4(c)(i) and 4(c)(iii) are inapplicable to Respondent.  Thus, Respondent fails to establish rights or legitimate interests in the domain name under Policy ¶ 4(a)(ii).  See Pharmacia & Upjohn AB v. Romero, D2000-1273 (WIPO Nov. 13, 2000) (finding no rights or legitimate interests where the respondent failed to submit a response to the complaint and had made no use of the domain name in question); see also Ritz-Carlton Hotel v. Club Car Executive, D2000-0611 (WIPO Sept. 18, 2000) (finding that prior to any notice of the dispute, the respondent had not used the domain names in connection with any type of bona fide offering of goods and services); see also Am. Home Prod. Corp. v. Malgioglio, D2000-1602 (WIPO Feb. 19, 2001) (finding no rights or legitimate interests in the domain name <solgarvitamins.com> where the respondent merely passively held the domain name).

 

No evidence before the Panel suggests Respondent is commonly known by the <bagtoearth.com> domain name under Policy ¶ 4(c)(ii).  The domain name’s WHOIS information indicates that the registrant of the disputed domain name is known as “Champion Paper %27 Polybags Limited” and is not known by the second-level domain that infringes on Complainant’s BAG TO EARTH mark.  Moreover, Respondent is not authorized or licensed to use Complainant’s mark for any purpose.  Thus, Respondent lacks rights and legitimate interests in the domain name under Policy ¶ 4(c)(ii).  See Tercent Inc. v. Lee 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").

 

Respondent offered to sell the <bagtoearth.com> domain name registration to Complainant for $10,000.00 after admitting that Respondent had no intention of using the domain name.  The Panel finds that Respondent’s willingness to sell the domain name registration and its expressed intention not to use the domain name for any purpose evidences that Respondent lacks rights and legitimate interests in the domain name under Policy ¶ 4(a)(ii).  See The Am. Nat’l Red Cross v. Domains, FA 143684 (Nat. Arb. Forum March 4, 2003) (“Respondent’s lack of rights and legitimate interests in the domain name is further evidenced by Respondent’s attempt to sell its domain name registration to Complainant, the rightful holder of the RED CROSS mark”); see also J. Paul Getty Trust v. Domain 4 Sale & Co., FA 95262 (Nat. Arb. Forum Sept. 7, 2000) (finding rights or legitimate interests do not exist when one has made no use of the websites that are located at the domain names at issue, other than to sell the domain names for profit); see also Mothers Against Drunk Driving v. Hyun-Jun Shin, FA 154098 (Nat. Arb. Forum May 27, 2003) (holding that under the circumstances, a 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).

 

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

 

Registration and Use in Bad Faith

 

Respondent offered to sell the <bagtoearth.com> domain name registration to Complainant for $10,000.00.  The Panel finds that, because Respondent has not used the domain name for any purpose, Respondent registered the domain name primarily for the purpose of selling the domain name registration to Complainant for more than its out-of-pocket costs directly related to the domain name.  Thus, Respondent registered and used the domain name in bad faith under Policy ¶ 4(b)(i).  See Grundfos A/S v. Lokale, D2000-1347 (WIPO Nov. 27, 2000) (finding that a failure to use the domain name in any context other than to offer it for sale to a complainant amounts to a use of the domain name in bad faith); see also Matmut v. Tweed, D2000-1183 (WIPO Nov. 27, 2000) (finding bad faith under Policy paragraph 4(b)(i) where a respondent stated in communication with the complainant, “if you are interested in buying this domain name, we would be ready to sell it for $10,000”).

 

Respondent registered a domain name that is identical to Complainant’s mark.  Moreover, Respondent directly competes with Complainant in the same geographical area where Complainant does business.  Respondent’s registration of the <bagtoearth.com> domain name prevents its competitor from reflecting the BAG TO EARTH mark in a corresponding domain name.  The Panel finds that Respondent’s registration of the domain name establishes that Respondent registered and used the domain name for the purpose of disrupting the business of a competitor, which evidences bad faith use and registration of the domain name under Policy ¶ 4(b)(iii).  See Surface Prot. Indus., Inc. v. Webposters, D2000-1613 (WIPO Feb. 5, 2001) (finding that, given the competitive relationship between the complainant and the respondent, the respondent likely registered the contested domain name with the intent to disrupt the complainant's business and create user confusion); see also Lubbock Radio Paging v. Venture Tele-Messaging, FA 96102 (Nat. Arb. Forum Dec. 23, 2000) (concluding that domain names were registered and used in bad faith where the respondent and the complainant were in the same line of business in the same market area); see also Toyota Jidosha Kabushiki Kaisha v. S&S Enter. Ltd., D2000-0802 (WIPO Sept. 9, 2000) (finding that “Registration of a domain name [by a respondent that incorporates another’s trademark] goes further than merely correctly using in an advertisement the trade mark of another in connection with that other’s goods or services: it prevents the trade mark owner from reflecting that mark in a corresponding domain name”).

 

Furthermore, while each of the four circumstances listed under Policy ¶ 4(b), if proven, evidences bad faith use and registration of the 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, a 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 has not used the <bagtoearth.com> domain name for any purpose since it registered the domain name more than five years ago.  Moreover, Respondent offered to sell the domain name registration to Complainant.  The Panel finds that Respondent has engaged in passive holding, which evidences that Respondent registered and used the domain name in bad faith under Policy ¶ 4(a)(iii).  See Mondich & Am. Vintage Wine Biscuits, Inc. v. Brown, D2000-0004 (WIPO Feb. 16, 2000) (holding that a respondent’s failure to develop its website in a two year period raises the inference of registration in bad faith); see also Cruzeiro Licenciamentos Ltda v. Sallen, D2000-0715 (WIPO Sept. 6, 2000) (finding that mere passive holding of a domain name can qualify as bad faith if the domain name owner’s conduct creates the impression that the name is for sale).

 

Respondent’s registration of the disputed domain name, which is identical to Complainant’s mark, suggests that Respondent knew of Complainant’s rights in the BAG TO EARTH mark.  Moreover, the fact that Respondent is Complainant’s competitor evidences Respondent’s knowledge of Complainant’s rights in the mark.  Thus, the Panel finds that Respondent chose the <bagtoearth.com> domain name based on the distinctive qualities of Complainant’s mark, which evidences bad faith registration and use under Policy ¶ 4(a)(iii).  See 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 Digi Int’l v. DDI Sys., FA 124506 (Nat. Arb. Forum Oct. 24, 2002) (“[T]here is a legal presumption of bad faith, when Respondent reasonably should have been aware of Complainant’s trademarks, actually or constructively”); see also 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").  

 

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

 

 

 

 

Tyrus R. Atkinson, Jr., Panelist

Dated:  April 20, 2005

 

 

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