National Arbitration Forum

 

DECISION

 

Diners Club International Ltd. v. Jeffrey Demerly

Claim Number: FA0503000445224

 

PARTIES

Complainant is Diners Club International Ltd. (“Complainant”), represented by Paul D. McGrady, of Greenberg Traurig, LLP, 77 West Wacker Drive, Suite 2500, Chicago, IL 60601. Respondent is Jeffrey Demerly (“Respondent”), 2101 Peachtree Blvd., Saint Cloud, FL 34769.

 

REGISTRAR AND DISPUTED DOMAIN NAMES

The domain names at issue are <applyfordiners.com>, <dinersapplication.com>, and <dinerapplications.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.

 

Joel M. Grossman as Panelist.

 

PROCEDURAL HISTORY

Complainant submitted a Complaint to the National Arbitration Forum electronically on March 22, 2005; the National Arbitration Forum received a hard copy of the Complaint on March 24, 2005.

 

On March 22, 2005, Go Daddy Software, Inc. confirmed by e-mail to the National Arbitration Forum that the domain names <applyfordiners.com>, <dinersapplication.com>, and <dinerapplications.com> are registered with Go Daddy Software, Inc. and that the Respondent is the current registrant of the name. 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 25, 2005, a Notification of Complaint and Commencement of Administrative Proceeding (the “Commencement Notification”), setting a deadline of April 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@applyfordiners.com, postmaster@dinersapplication.com, and postmaster@dinerapplications.com by e-mail.

 

A timely Response was received and determined to be complete on April 11, 2005.

 

On April 14, 2005 a timely Additional Submission was received from Complainant. On April 17, 2005 a timely Additional Submission was received from Respondent.

 

On April 21, 2005, pursuant to Complainant’s request to have the dispute decided by a single-member Panel, the National Arbitration Forum appointed Joel M. Grossman as Panelist.

 

RELIEF SOUGHT

Complainant requests that the domain names be transferred from Respondent to Complainant.

 

PARTIES’ CONTENTIONS

 

A. Complainant

 

Complainant Diners Club owns a family of marks, most of which cover credit card services. It contends that the Diners Club trademark, including the word “Diners” standing alone, is a famous mark, and has been recognized as early as 1965.

Complainant contends that the three domain names in dispute are nearly identical to its family of marks, and are confusingly similar. Complainant contends that merely adding descriptive words such as “apply for” or “application” do not in any way diminish the confusion between the disputed domain names and Complainant’s family of marks.

Complainant further contends that Respondent has no rights or legitimate interests in the disputed domain names. Neither Respondent’s original intention for the use of the domain names, nor Respondent’s subsequent stated use are legitimate. Complainant asserts that Respondent has never operated any bona fide business using these names and that any claim by Respondent of a planned use of the names is pretextual.

Finally, Complainant contends that Respondent registered and is using the disputed names in bad faith. Complainant asserts that Respondent has actual or constructive knowledge of Complainant’s family of marks. Further, Complainant contends that Respondent is a ‘serial cybersquatter,’ having registered domains which use trademarks of other well-known credit card companies such as Discover and Visa, and these other registrations evidence Respondent’s bad faith. Finally, Respondent’s bad faith is evidenced by the fact that the purported intended use is not credible.

 

B. Respondent

 

Respondent contends that he was unaware of the Complainant’s mark in the word “Diners” standing alone without “Club.” Respondent contends that the disputed names are not identical or confusingly similar with Complainant’s family of marks, pointing out that the word “diner,” when appearing without “club” can refer to an informal, inexpensive restaurant, such as Mel’s Diner. Respondent points out that there is a website named “Diners.com” that refers to these kind of restaurants, and has no connection to Complainant’s business.

Respondent contends that there is a legitimate use of the disputed names, which is for job seekers in the restaurant business, and employers seeking workers to connect with each other. Respondent denies that it acted or continues to act in bad faith, stating that it intends to use the disputed names for a legitimate purpose, helping small restaurants find workers, and helping workers find jobs.

 

C. Additional Submissions

 

Complainant notes that in his Response, Respondent virtually admits bad faith. The Response states that Respondent initially registered the disputed names with the intention of getting permission from Visa to use these disputed names to promote their credit cards. Since it is evidence of bad faith to register names with the intention of disrupting a competitor’s business, these names were registered in bad faith. Alternatively, even if Respondent had intended to use the names to promote applications for Diners Club cards, such use would be in bad faith, since it would appear that the names had been registered for the purpose of selling or renting them to Complainant.

Respondent’s Additional Submission refutes claims made by Complainant that Respondent is a pornographer. The Panel believes that whether or not Respondent operates pornographic or “adult-oriented” websites is irrelevant to the issues in this case, and this case will be decided on its merits without any consideration of this point. Additionally, Respondent again states that it registered the names in good faith, in the belief that the terms “diners” standing alone without “club” was not trademarked by Complainant, and that the planned use of the sites, matching job seekers and employers in the restaurant business, is legitimate.

 

FINDINGS

The domain names APPLYFORDINERS.COM, DINERSAPPLICATION.COM AND DINERAPPLICATIONS.COM are confusingly similar to the Diners Club mark. Further, Respondent has not shown any rights or legitimate interests in these names. Finally, Respondent has acted in bad faith in registering and using these names.

 

DISCUSSION

Paragraph 15(a) of the Rules for Uniform Domain Name Dispute Resolution Policy (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.”

 

Paragraph 4(a) of the Policy requires that the 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 the Respondent is identical or confusingly similar to a trademark or service mark in which the Complainant has rights;

(2)    the 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

 

The Panel finds that the three disputed domain names are either identical to, or confusingly similar to, the Diners Club marks. Because the disputed names include the word “diner” or “diners” but not the word “club,” Respondent contends that they are not identical or confusingly similar. However, while the word “diner” standing alone might refer to an informal restaurant, the Panel finds that when coupled with the words “apply for” or “application” it is meant to suggest applying for a Diners Club credit card. A consumer seeking a way to apply for a Diners Club card would be confused by these domain names. An almost identical case, involving American Express cards, was decided in American Express Co. v. Pierce, FA 166008 (Nat. Arb. Forum Aug. 14, 2003). There the respondent had registered a number of domain names similar to the names Respondent has registered in the present case, including “applyforamericanexpress.com” and “americanexpressapplication.com.” The Panel in the American Express case held that names “americanexpressapplication.com” and “applyforamericanexpress.com” were identical or confusingly similar to the AMERICAN EXPRESS mark. This Panel concludes, as did the Panel in American Express, that the addition of descriptive words like “apply” and “application” do not reduce the confusion with Complainant’s famous mark. Similarly, the dropping of the “s” in one of Respondent’s registrations—dinerapplications.com—is insignificant. See, Universal City Studios, Inc. v. HarperStephens, D2000-0716 (WIPO Sept. 5, 2000) (finding that deleting the “s” from Universal Studios (“Univeral Studios”) did not change the overall impression of the mark, and the name was still confusingly similar with the Complainant’s mark). So too in this case, “dinerapplications” also suggests applying for a Diners Club card.

 

Rights or Legitimate Interests

 

Respondent has not met its burden to come forward with concrete evidence that it has a legitimate interest in the disputed names. See G.D. Searle v. Martin Mktg, FA 118277 (Nat. Arb. Forum Oct. 1, 2002). In Respondent’s Response he states that he initially registered these domain names to promote Visa credit card services. (Response, page 6.) Respondent then changed his mind, stating that he determined that he was incorrect in his assumption that he would be able to do that, and instead came up with a new use for these domain names: setting up a job hotline for the food and beverage industry. While Respondent now claims to be establishing a business matching job seekers and employers in the food and beverage business, this explanation appears to the Panel to be unlikely and pretextual. As a matter of common sense, the term “apply for diners” does not suggest employment at all. Had Respondent registered names such as “applyfordinerjobs.com,” or “dinerjobapplications.com,” the claim would be more believable. Further, it is undisputed that Respondent is not commonly known by the disputed names; instead, WHOIS information identifies Respondent as “Jeffrey Demerly.” See Compagnie de Saint Gobain v. Com-Union Corp, D2000-0020 (WIPO Mar. 14, 2000).

 

Registration and Use in Bad Faith

 

Because Respondent has not presented a legitimate reason for registering domain names that utilize the famous DINERS CLUB mark, the Panel finds that these names were registered and used in bad faith. As noted above, in his Response, Respondent states that his original intention in registering these names was to promote Visa credit card applications. Complainant correctly notes in its Additional Submission that this statement virtually is an admission that the names were registered in bad faith under Section 4(b)(iii) of the Policy which states that it will be considered bad faith for a registrant to register a domain name “primarily for the purpose of disrupting the business of competitor.” Respondent’s statement of its initial purpose in registering these names—getting new applicants for Visa, one of Complainant’s competitors—falls directly within this language. In finding that Respondent’s registration and use of these names is in bad faith, the Panel also takes note of the fact that Respondent has registered numerous other domain names such as “applyforvisa.com,” “applyformastercard.com” and “applyforamex.com” in which it attempts to trade on a famous mark of a credit card company. See Armstrong Holdings, Inc. v. JAZ Association, FA 95234 (Nat. Arb. Forum Aug. 17, 2000), in which the Panel determined that Respondent’s registering of domain names using other famous marks was evidence of bad faith. Respondent’s explanation of how it now intends to use these names is unpersuasive. There seems little doubt that Respondent’s goal was not to link job seekers and employers in the food and beverage business, but to trade off these famous marks, or to direct traffic to its websites by confusing the public into thinking this is the place to apply for a credit card.

 

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 <applyfordiners.com>, <dinersapplication.com>, and <dinerapplications.com> domain names be TRANSFERRED from Respondent to Complainant.

 

 

 

 

Joel M. Grossman, Panelist
Dated: May 3, 2005

 

 

 

 

 

 

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