national arbitration forum

 

DECISION

 

Tempus International Corp. v. LaPorte Holdings, Inc.

Claim Number:  FA0503000437100

 

PARTIES

Complainant is Tempus International Corp. (“Complainant”), represented by Heather C. Brunelli, of Thompson and Knight, LLP, 1700 Pacific Ave., Suite 3300, Dallas, TX 75201. Respondent is LaPorte Holdings, Inc. (“Respondent”), c/o Nameking, Inc., 2202 S. Fugueroa St., Suite 721, Los Angeles, CA 90023.

 

REGISTRAR AND DISPUTED DOMAIN NAMES

The domain names at issue are <michelewatch.com> and <michellewatch.com>, registered with Nameking.com, Inc.

 

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.

 

Hon. Ralph Yachnin as Panelist.

 

PROCEDURAL HISTORY

Complainant submitted a Complaint to the National Arbitration Forum electronically on March 9, 2005; the National Arbitration Forum received a hard copy of the Complaint on March 10, 2005.

 

On March 10, 2005, Nameking.com, Inc. confirmed by e-mail to the National Arbitration Forum that the domain names <michelewatch.com> and <michellewatch.com> are registered with Nameking.com, Inc. and that Respondent is the current registrant of the names. Nameking.com, Inc. has verified that Respondent is bound by the Nameking.com, 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@michelewatch.com and postmaster@michellewatch.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 7, 2005, pursuant to Complainant’s request to have the dispute decided by a single-member Panel, the National Arbitration Forum appointed Hon. Ralph Yachnin 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 names be transferred from Respondent to Complainant.

 

PARTIES’ CONTENTIONS

A.  Complainant makes the following assertions:

 

1.      Respondent’s <michelewatch.com> and <michellewatch.com> domain names are confusingly similar to Complainant’s MICHELE mark.

 

2.      Respondent does not have any rights or legitimate interests in the <michelewatch.com> and <michellewatch.com> domain names.

 

3.      Respondent registered and used the <michelewatch.com> and <michellewatch.com> domain names in bad faith.

 

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

 

FINDINGS

Complainant has sold wristwatches under the MICHELE mark since at least as early as February 1, 1982. Complainant has invested substantial time and money to develop goodwill in the MICHELE mark and to cause consumers to recognize its MICHELE mark as distinctly and exclusively designating its products. Complainant holds numerous worldwide trademark registrations for the MICHELE mark, including U.S. Reg. No. 1,812,074 (issued December 21, 1993), which is on the Principal Register of the United States Patent and Trademark Office. Complainant also operates a website at the <michelewatches.com> domain name.

 

Respondent registered the <michelewatch.com> and <michellewatch.com> domain names on December 2, 2002 and January 12, 2004, respectively. The domain names resolve to websites that advertise products that compete with Complainant’s wristwatches, including ROLEX and CARTIER brand watches. Respondent is not licensed to use Complainant’s mark.

 

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 MICHELE mark through registration with the United States Patent and Trademark Office and through continuous use of the mark in commerce since 1982. 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) (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).

 

The <michelewatch.com> and <michellewatch.com> domain names are confusingly similar to Complainant’s MICHELE registered trademark. The domain names incorporate the mark or a common misspelling of the mark while simply adding the generic term “watch,” which is descriptive of Complainant’s products, and the “.com” generic top-level domain (“gTLD”). Misspelling Complainant’s mark, adding a generic and descriptive term, and adding a gTLD do not distinguish the domain names from Complainant’s mark. Thus, the Panel finds that the domain names are confusingly similar to Complainant’s mark under Policy ¶ 4(a)(i). See 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 Space Imaging LLC v. Brownell, AF-0298 (eResolution Sept. 22, 2000) (finding confusing similarity where the respondent’s domain name combined the complainant’s mark with a generic term that had an obvious relationship to the complainant’s business); see also Parfums Christian Dior v. 1 Netpower, Inc., D2000-0022 (WIPO Mar. 3, 2000) (finding that four domain names that added the descriptive words “fashion” or “cosmetics” after the trademark were confusingly similar to the trademark); see also Bama Rags, Inc. v. Zuccarini, FA 94380 (Nat. Arb. Forum May 8, 2000) (finding that the <davemathewsband.com> and <davemattewsband.com> domain names were common misspellings and, therefore, confusingly similar).

 

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 <michelewatch.com> and <michellewatch.com> domain names. Neither Respondent nor the evidence contradicts this allegation. Furthermore, 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 names under Policy ¶ 4(a)(ii). 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 a complaint to be deemed true); see also Desotec N.V. v. Jacobi Carbons AB, D2000-1398 (WIPO Dec. 21, 2000) (finding that failing to respond allows a presumption that a complainant’s allegations are true unless clearly contradicted by the evidence); see also 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).

 

Respondent is not using the <michelewatch.com> and <michellewatch.com> domain names 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 names under Policy ¶ 4(c)(iii) because the domain names are confusingly similar to Complainant’s mark and redirect unsuspecting Internet users to websites that offer products that compete with Complainant’s wristwatches. The Panel infers that Respondent receives pay-per-click fees when Internet users follow the links on its websites. Respondent makes opportunistic use of Complainant’s mark in order to capitalize on the goodwill associated with the MICHELE moniker. Thus, Respondent fails to establish rights or legitimate interests in the domain names under Policy ¶ 4(a)(ii). See Yahoo! Inc. v. Web Master, FA 127717 (Nat. Arb. Forum Nov. 27, 2002) (finding that the respondent’s use of a confusingly similar domain name to operate a pay-per-click search engine, in competition with the complainant, was not a bona fide offering of goods or services); see also Computerized Sec. Sys., Inc. v. Hu, FA 157321 (Nat. Arb. Forum June 23, 2003) (holding that the respondent’s appropriation of the complainant’s mark to market products that compete with the complainant’s goods does not constitute a bona fide offering of goods and services); see also Winmark Corp. v. In The Zone, FA 128652 (Nat. Arb. Forum Dec. 6, 2002) (finding that the respondent had no rights or legitimate interests in a domain name that used the complainant’s mark to redirect Internet users to a competitor’s website).

 

No evidence before the Panel suggests that Respondent is commonly known by the <michelewatch.com> and <michellewatch.com> domain names. The domain names’ WHOIS information indicates that the registrant of the disputed domain names is known as “LaPorte Holdings, Inc.” and is not known by either of the confusingly similar second-level domains that infringe on Complainant’s MICHELE mark. Moreover, Respondent is not licensed to use Complainant’s mark. Thus, Respondent lacks rights and legitimate interests in the domain names under Policy ¶ 4(c)(ii). See Tercent Inc. v. Lee Yi, FA 139720 (Nat. Arb. Forum Feb. 10, 2003) (stating “nothing in the respondent’s WHOIS information implies that the 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 confusingly similar variations of Complainant’s MICHELE mark in its domain names to ensnare unsuspecting Internet users. Respondent then redirects the users to a website that links to various commercial websites. The Panel infers that Respondent receives pay-per-click fees when Internet users follow the links on its websites. Thus, Respondent is profiting from the unauthorized use of Complainant’s registered mark in its domain names. Such infringement is evidence of bad faith registration and use under Policy ¶ 4(b)(iv). See Drs. Foster & Smith, Inc. v. Lalli, FA 95284 (Nat. Arb. Forum Aug. 21, 2000) (finding bad faith where the respondent directed Internet users seeking the complainant’s site to its own website for commercial gain); see also Kmart v. Khan, FA 127708 (Nat. Arb. Forum Nov. 22, 2002) (finding that if a respondent profits from its diversionary use of the 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)).

 

The disputed domain names, which are confusingly similar to Complainant’s registered mark, resolve to a website that provides links to websites that offer products that compete with Complainant. Respondent’s use of the <michelewatch.com> and <michellewatch.com> domain names establishes that Respondent registered and used the domain names for the purpose of disrupting the business of a competitor under Policy ¶ 4(b)(iii). See S. Exposure v. S. Exposure, Inc., FA 94864 (Nat. Arb. Forum July 18, 2000) (finding the respondent acted in bad faith by attracting Internet users to a website that competed with 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 the domain names, 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 names, which are confusingly similar to Complainant’s mark, suggests that Respondent knew of Complainant’s rights in the MICHELE mark. Additionally, Complainant’s trademark registration on the Principal Register of the United States Patent and Trademark Office gave Respondent constructive notice of Complainant’s mark. Moreover, the fact that Respondent’s websites promote products that compete with Complainant’s products evidences Respondent’s knowledge of Complainant’s rights in the mark. Thus, the Panel finds that Respondent chose the <michelewatch.com> and <michellewatch.com> domain names 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 was “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 the respondent reasonably should have been aware of the complainant’s trademarks, actually or constructively.”); 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.”); 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 the 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)(iii) has been satisified.

 

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 <michelewatch.com> and <michellewatch.com> domain names be TRANSFERRED from Respondent to Complainant.

 

 

 

 

Hon. Ralph Yachnin, Panelist

Justice, Supreme Court, NY (Ret.)

 

Dated:  April 21, 2005

 

 

 

 

 

National Arbitration Forum