national arbitration forum

 

DECISION

 

The Neiman Marcus Group, Inc., and NM Nevada Trust v. Tyson Rukash

Claim Number:  FA0503000444456

 

PARTIES

Complainant is The Neiman Marcus Group, Inc. and NM Nevada Trust (“Complainant”), represented by David J. Steele of Christie, Parker & Hale LLP, 3501 Jamboree Road, Suite 6000, Newport Beach, CA 92660.  Respondent is Tyson Rukash (“Respondent”), 2/66 Sturt st Kingsford, Sydney, New South Wales 2032, Australia.

 

REGISTRAR AND DISPUTED DOMAIN NAMES

The domain names at issue are <neimanmarcuz.com>, <neimanmarceus.com>, <neimanmarchs.com>, <neimanmarcjs.com>, <neimanmarcoos.com>, <neimanmarcsu.com>, <neimanmarcuus.com>, <neimanmarcyus.com>, <neimanmarxus.com>, <neimanmmarcus.com>, <nneimanmarcus.com>, <neimanmarcua.com>, <neimanmarcuc.com>, <neimanmarcud.com>, <neimanmarcue.com>, <neimanmarcuw.com>, and <neimanmarcux.com>, registered with Go Daddy Software, 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 21, 2005; the National Arbitration Forum received a hard copy of the Complaint on March 22, 2005.

 

On March 21, 2005, Go Daddy Software, Inc. confirmed by e-mail to the National Arbitration Forum that the domain names <neimanmarcuz.com>, <neimanmarceus.com>, <neimanmarchs.com>, <neimanmarcjs.com>, <neimanmarcoos.com>, <neimanmarcsu.com>, <neimanmarcuus.com>, <neimanmarcyus.com>, <neimanmarxus.com>, <neimanmmarcus.com>, <nneimanmarcus.com>, <neimanmarcua.com>, <neimanmarcuc.com>, <neimanmarcud.com>, <neimanmarcue.com>, <neimanmarcuw.com>, and <neimanmarcux.com> are registered with Go Daddy Software, Inc. and that Respondent is the current registrant of the names. Go Daddy Software, Inc. has verified that Respondent is bound by the Go Daddy Software, 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 23, 2005, a Notification of Complaint and Commencement of Administrative Proceeding (the "Commencement Notification"), setting a deadline of April 12, 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@neimanmarcuz.com, postmaster@neimanmarceus.com, postmaster@neimanmarchs.com, postmaster@neimanmarcjs.com, postmaster@neimanmarcoos.com, postmaster@neimanmarcsu.com, postmaster@neimanmarcuus.com, postmaster@neimanmarcyus.com, postmaster@neimanmarxus.com, postmaster@neimanmmarcus.com, postmaster@nneimanmarcus.com, postmaster@neimanmarcua.com,  postmaster@neimanmarcuc.com, postmaster@neimanmarcud.com, postmaster@neimanmarcue.com, postmaster@neimanmarcuw.com, and postmaster@neimanmarcux.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 20, 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 names be transferred from Respondent to Complainant.

 

PARTIES' CONTENTIONS

A.  Complainant makes the following assertions:

 

1.      Respondent’s <neimanmarcuz.com>, <neimanmarceus.com>, <neimanmarchs.com>, <neimanmarcjs.com>, <neimanmarcoos.com>, <neimanmarcsu.com>, <neimanmarcuus.com>, <neimanmarcyus.com>, <neimanmarxus.com>, <neimanmmarcus.com>, <nneimanmarcus.com>, <neimanmarcua.com>, <neimanmarcuc.com>, <neimanmarcud.com>, <neimanmarcue.com>, <neimanmarcuw.com>, and <neimanmarcux.com> domain names are confusingly similar to Complainant’s NEIMAN-MARCUS and NEIMAN MARCUS marks.

 

2.      Respondent does not have any rights or legitimate interests in the <neimanmarcuz.com>, <neimanmarceus.com>, <neimanmarchs.com>, <neimanmarcjs.com>, <neimanmarcoos.com>, <neimanmarcsu.com>, <neimanmarcuus.com>, <neimanmarcyus.com>, <neimanmarxus.com>, <neimanmmarcus.com>, <nneimanmarcus.com>, <neimanmarcua.com>, <neimanmarcuc.com>, <neimanmarcud.com>, <neimanmarcue.com>, <neimanmarcuw.com>, and <neimanmarcux.com> domain names.

 

3.      Respondent registered and used the <neimanmarcuz.com>, <neimanmarceus.com>, <neimanmarchs.com>, <neimanmarcjs.com>, <neimanmarcoos.com>, <neimanmarcsu.com>, <neimanmarcuus.com>, <neimanmarcyus.com>, <neimanmarxus.com>, <neimanmmarcus.com>, <nneimanmarcus.com>, <neimanmarcua.com>, <neimanmarcuc.com>, <neimanmarcud.com>, <neimanmarcue.com>, <neimanmarcuw.com>, and <neimanmarcux.com> domain names in bad faith.

 

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

 

FINDINGS

NM Nevada Trust owns and licenses to The Neiman Marcus Group, Inc., the Neiman Marcus trade name and the NEIMAN-MARCUS and NEIMAN MARCUS trademarks (collectively, the NEIMAN MARCUS marks); both will be referred to collectively as “Complainant.”  Complainant’s retail business was established in 1907 as a specialty store in Dallas, Texas.  Over the decades, Complainant has grown into a nationwide chain of retail stores and a worldwide mail order catalog retail business, internationally recognized as an innovator in high-end fashion and merchandising.  Complainant has developed a reputation for high quality goods and services through use of its NEIMAN MARCUS marks.

 

Complainant now operates thirty-five stores bearing the NEIMAN MARCUS mark located in premier retailing locations in major markets worldwide.  Hundreds of thousands of consumers hold Complainant’s charge accounts, and sales revenues for Complainant’s stores and mail order catalogs are in excess of $1 billion annually.

 

Complainant operates its main website at the <neimanmarcus.com> domain name, which launched in the Fall of 1999.

 

Complainant holds numerous registrations with the United States Patent and Trademark Office for the NEIMAN-MARCUS mark (Reg. No. 601,864 issued February 8, 1955; Reg. No. 601,375 issued January 25, 1955; and Reg. No. 601,723 issued February 1, 1955) and the NEIMAN MARCUS mark (Reg. No. 1,733,202 issued November 17, 1992). 

 

Respondent registered the disputed domain names on January 30, 2005.  Respondent is using the domain names to redirect Internet users to a website that features Complainant’s and its competitor’s products, a search engine, “Popular Categories,” pop-up advertisements, and banner ads.

 

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 rights in the NEIMAN MARCUS marks through registration with the United States Patent and Trademark Office (“USPTO”) and its use in commerce over the last ninety-eight years.  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); 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).

Respondent’s <neimanmarcuz.com>, <neimanmarceus.com>, <neimanmarchs.com>, <neimanmarcjs.com>, <neimanmarcoos.com>, <neimanmarcsu.com>, <neimanmarcuus.com>, <neimanmarcyus.com>, <neimanmarxus.com>, <neimanmmarcus.com>, <nneimanmarcus.com>, <neimanmarcua.com>, <neimanmarcuc.com>, <neimanmarcud.com>, <neimanmarcue.com>, <neimanmarcuw.com>, and <neimanmarcux.com> domain names are confusingly similar to Complainant’s NEIMAN MARCUS marks because the domain names are misspelled versions of Complainant’s marks.  The domain names simply contain a replacement of one letter of Complainant’s marks with another adjacent letter on the keyboard, a transposition of two letters in Complainant’s marks, or the addition of a single letter.  Respondent’s misspelling of Complainant’s marks in its domain names does not distinguish the domain names pursuant to Policy ¶ 4(a)(i).  Thus, the Panel concludes that Respondent’s minor alterations to Complainant’s marks are not sufficient to differentiate Respondent’s domain names from Complainant’s marks.  See VeriSign, Inc. v. VeneSign C.A., D2000-0303 (WIPO June 28, 2000) (finding that the pronunciation and spelling between the domain name <venesign.com> and Complainant’s mark, VERISIGN, are so close that confusion can arise in the mind of the consumer); see also Reuters Ltd. v. Global Net 2000, Inc., D2000-0441 (WIPO July 13, 2000) (finding that a domain name which differs by only one letter from a trademark has a greater tendency to be confusingly similar to the trademark where the trademark is highly distinctive); see also Victoria’s Secret v. Zuccarini, FA 95762 (Nat. Arb. Forum Nov. 18, 2000) (finding that, by misspelling words and adding letters to words, a respondent does not create a distinct mark but nevertheless renders the domain name confusingly similar to the complainant’s marks).    

 

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

 

Rights or Legitimate Interests

 

Respondent failed to contest Complainant’s assertion that Respondent lacks rights and legitimate interests in the disputed domain names.  Because Complainant’s evidence and arguments are unopposed, the Panel is permitted to accept all reasonable inferences made in the Complaint as true.  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 Bayerische Motoren Werke AG v. Bavarian AG, FA 110830 (Nat. Arb. Forum June 17, 2002) (finding that, in the absence of a Response the Panel is free to make inferences from the very failure to respond and assign greater weight to certain circumstances than it might otherwise do); see also Ziegenfelder Co. v. VMH Enter., Inc., D2000-0039 (WIPO Mar. 14, 2000) (drawing two inferences based on the respondent’s failure to respond: (1) the respondent does not deny the facts asserted by the complainant, and (2) the respondent does not deny conclusions which the complainant asserts can be drawn from the facts).

 

Additionally, Complainant has submitted a prima facie case to the Panel, thereby shifting the burden to Respondent.  Respondent’s failure to fulfill its burden means that Respondent has failed to invoke any circumstances that could demonstrate rights or legitimate interests in the domain names.  See Do The Hustle, LLC v. Tropic Web, D2000-0624 (WIPO Aug. 21, 2000) (finding that, once the complainant asserts that the respondent has no rights or legitimate interests with respect to the domain, the burden shifts to the respondent to provide credible evidence that substantiates its claim of rights and legitimate interests in the domain name); see also G.D. Searle v. Martin Mktg., FA 118277 (Nat. Arb. Forum Oct. 1, 2002) (holding that where the complainant has asserted that the respondent has no rights or legitimate interests with respect to the domain name it is incumbent on the respondent to come forward with concrete evidence rebutting this assertion because this information is “uniquely within the knowledge and control of the respondent”); 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 using the disputed domain names to redirect Internet users to websites that feature pop-up and banner advertisements for an array of services and hosts a search engine to link viewers to a variety of websites, including sites that offer the same type of goods and services that Complainant offers online and in its stores.  Respondent’s use of domain names, which are confusingly similar to Complainant’s NEIMAN MARCUS marks, to redirect Internet users interested in Complainant’s products to commercial websites that link to retail-related websites and pop-up advertisements 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 of the domain names pursuant to Policy ¶ 4(c)(iii).  See Wells Fargo & Co. v. Party Night Inc., FA 144647 (Nat. Arb. Forum Mar. 18, 2003) (holding that a respondent’s use of confusingly similar derivatives of Complainant’s WELLS FARGO mark to divert Internet users to websites featuring pop-up advertisements was not a bona fide offering of goods or services); see also Toronto-Dominion Bank v. Karpachev, 188 F.Supp.2d 110, 114 (D. Mass. 2002) (finding that, because a 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 Geoffrey, Inc. v. Toyrus.com, FA 150406 (Nat. Arb. Forum Apr. 5, 2003) (holding that a respondent’s use of the disputed domain name, a simple misspelling of the complainant’s mark, to divert Internet users to a website that featured pop-up advertisements and an Internet directory, was neither a bona fide offering of goods or services nor a legitimate noncommercial or fair use of the domain name).

 

In addition, Complainant has asserted that Respondent is not commonly known by the disputed domain names.  Furthermore, nothing in Respondent’s WHOIS contact registration information indicates that it is known by the disputed domain names, and there is nothing further in the record to refute Complainant’s assertions.  Therefore, the Panel determines that Respondent has not established rights and legitimate interests in the disputed domain names pursuant to Policy ¶ 4(c)(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"); see also Charles Jourdan Holding AG v. AAIM, D2000-0403 (WIPO June 27, 2000) (finding no rights or legitimate interests where (1) the respondent is not a licensee of the complainant; (2) the complainant’s rights in the mark precede respondent’s registration; (3) the respondent is not commonly known by the domain name in question).

 

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

 

Registration and Use in Bad Faith

 

Respondent registered the disputed domain names, which consist of misspellings of Complainant’s well-known marks, for Respondent’s commercial gain.  Respondent’s domain names divert Internet users seeking Complainant’s goods or services to Respondent’s commercial websites through the use of domain names that are confusingly similar to Complainant’s marks.  Furthermore, Respondent is unfairly and opportunistically benefiting from the goodwill associated with Complainant’s NEIMAN MARCUS marks.  Respondent’s practice of diversion, motivated by commercial gain, constitutes bad faith registration and use pursuant to Policy ¶ 4(b)(iv).  See 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)); see also Reuters Ltd. v. Global Net 2000, Inc., D2000-0441 (WIPO July 13, 2000) (finding bad faith where a respondent attracted users to a website sponsored by the respondent and created confusion with the complainant’s mark as to the source, sponsorship, or affiliation of that website); see also eBay, Inc v. Progressive Life Awareness Network, D2000-0068 (WIPO Mar. 16, 2001) (finding bad faith where a respondent is taking advantage of the recognition that eBay has created for its mark and therefore profiting by diverting users seeking the eBay website to the respondent’s site).

 

Respondent is using the disputed domain names to advertise a search engine and links to shopping-related websites.  Complainant’s business provides retail goods to consumers throughout the world.  The Panel finds that, by creating confusion around Complainant’s NEIMAN MARCUS marks, Respondent is attempting to disrupt the business of a competitor.  Respondent’s use of domain names confusingly similar to Complainant’s marks to sell Complainant’s goods and those of its competitors is evidence of bad faith registration and use pursuant to Policy ¶ 4(b)(iii).  See S. Exposure v. S. Exposure, Inc., FA 94864 (Nat. Arb. Forum July 18, 2000) (finding a respondent acted in bad faith by attracting Internet users to a website that competes with the complainant’s business); see also EBAY, Inc. v. MEOdesigns, D2000-1368 (Dec. 15, 2000) (finding that a respondent registered and used the domain name <eebay.com> in bad faith where the respondent has used the domain name to promote competing auction sites); see also Hewlett Packard Co. v. Full Sys., FA 94637 (Nat. Arb. Forum May 22, 2000) (finding that a respondent registered and used the domain name primarily for the purpose of disrupting the business of Complainant by offering personal e-mail accounts under the domain name <openmail.com> which is identical to Complainant’s services under the OPENMAIL mark).

 

Moreover, Respondent’s registration of domain names that include misspelled versions of Complainant’s registered marks suggests that Respondent knew of Complainant’s rights in its marks.  Furthermore, Complainant’s registration of the marks with the United States Patent and Trademark Office imputes constructive knowledge to anyone attempting to use the mark.  Therefore, the Panel finds that Respondent chose the disputed domain names based on the distinctive qualities of Complainant’s marks, and thus registered and used the domain names in bad faith 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 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. Internet Gambiano Prods., D2002-0325 (WIPO June 20, 2002) (finding a respondent “was aware of and had knowledge of” the complainant’s mark when registering the domain name because the complainant’s mark was a coined arbitrary term with no meaning apart from the complainant’s products).

 

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 <neimanmarcuz.com>, <neimanmarceus.com>, <neimanmarchs.com>, <neimanmarcjs.com>, <neimanmarcoos.com>, <neimanmarcsu.com>, <neimanmarcuus.com>, <neimanmarcyus.com>, <neimanmarxus.com>, <neimanmmarcus.com>, <nneimanmarcus.com>, <neimanmarcua.com>, <neimanmarcuc.com>, <neimanmarcud.com>, <neimanmarcue.com>, <neimanmarcuw.com>, and <neimanmarcux.com> domain names be TRANSFERRED from Respondent to Complainant.

 

 

 

 

Tyrus R. Atkinson, Jr., Panelist

Dated:  April 25, 2005

 

 

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