national arbitration forum

 

DECISION

 

Homer TLC, Inc. v. Montauk Asset Management

Claim Number:  FA0504000467966

 

PARTIES

Complainant is Homer TLC, Inc. (“Complainant”), represented by Carrie L. Johnson, of Fulbright and Jaworski L.L.P., 2100 IDS Center, 80 South Eighth Street, Minneapolis, MN 55402.  Respondent is Montauk Asset Management (“Respondent”), 168 East Main Street, East Islip, NY 11730-2633.

 

REGISTRAR AND DISPUTED DOMAIN NAME

The domain name at issue is <1800homedepot.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.

 

Honorable Paul A. Dorf (Ret.) as Panelist.

 

PROCEDURAL HISTORY

Complainant submitted a Complaint to the National Arbitration Forum electronically on April 26, 2005; the National Arbitration Forum received a hard copy of the Complaint on April 28, 2005.

 

On April 27, 2005, Go Daddy Software, Inc. confirmed by e-mail to the National Arbitration Forum that the domain name <1800homedepot.com> is registered with Go Daddy Software, Inc. and that 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 May 2, 2005, a Notification of Complaint and Commencement of Administrative Proceeding (the "Commencement Notification"), setting a deadline of May 23, 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@1800homedepot.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 May 27, 2005, pursuant to Complainant's request to have the dispute decided by a single-member Panel, the National Arbitration Forum appointed Honorable Paul A. Dorf (Ret.) 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 <1800homedepot.com> domain name is confusingly similar to Complainant’s HOME DEPOT and THE HOME DEPOT marks.

 

2.      Respondent does not have any rights or legitimate interests in the <1800homedepot.com> domain name.

 

3.      Respondent registered and used the <1800homedepot.com> domain name in bad faith.

 

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

 

FINDINGS

Complainant, Homer TLC, Inc., is the world's largest home improvement retailer and second largest retailer in the United States.  Complainant operates over 1,800 retail stores in the United States, Canada and Mexico and employs over 325,000 people.  In addition, Complainant has worldwide sales in the tens of billions of U.S. dollars each year.

 

Complainant, through its predecessor in interest and licensee, commenced use of its HOME DEPOT and THE HOME DEPOT marks in connection with its products and services since at least as early as 1979.  Complainant has registered the HOME DEPOT mark (Reg. No. 2,314,081 issued February 1, 2000) and THE HOME DEPOT mark (Reg. Nos. 1,431,636 issued March 10, 1987; 1,188,191 issued January 26, 1982; 1,152,625 issued April 28, 1981; 2,422,760 issued January 23, 2001; 2,482,264 issued February 13, 2001; 2,492,817 issued September 25, 2001; and 2,852,232 issued March 23, 2004) with the United States Patent and Trademark Office.

 

Complainant’s main website is operated at the <homedepot.com> domain name.

 

Respondent registered the <1800homedepot.com> domain name on August 30, 1999.  During a telephone call between Complainant and Respondent, Respondent admitted that he registered the disputed domain name to use it in connection with a home improvement business.  In addition, Respondent attempted to sell the disputed domain name registration to Complainant for as much as $150,000 U.S. dollars.  Complainant does not explicitly state how the domain name is being utilized.

 

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 HOME DEPOT and THE HOME DEPOT marks with the United States Patent and Trademark Office and through its continued use of the marks in commerce over the last twenty-six 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).

 

Respondent’s <1800homedepot.com> domain name is confusingly similar to Complainant’s HOME DEPOT and THE HOME DEPOT marks because the domain name simply adds the generic or descriptive prefix “1800.”  The adding of numbers is not sufficient to distinguish Respondent’s domain name from Complainant’s marks pursuant to Policy ¶ 4(a)(i).  See Am. Online, Inc. v. Fu, D2000-1374 (WIPO Dec. 11, 2000) (finding that adding the suffixes “502” and “520” to the ICQ trademark does little to reduce the potential for confusion); see also Gorstew Ltd. v. Berkshire Trust, FA 95430 (Nat. Arb. Forum Oct. 20, 2000) (finding that the <1800beaches.com> is confusingly similar to Complainant’s BEACHES mark); see also Omnitel Pronto Italia S.p.A. v. Bella, D2000-1641 (WIPO Mar. 12, 2001) (finding that the contested <omnitel2000.com> domain name is confusingly similar to the OMNITEL trademark).

 

Thus, the Panel finds that Complainant satisfied Policy ¶ 4(a)(i).

 

Rights or Legitimate Interests

 

Respondent failed to contest Complainant’s assertions that Respondent lacks rights and legitimate interests in the disputed domain name.  Because Complainant’s evidence and arguments are unopposed, the Panel is permitted to accept all reasonable inferences made in the Complaint as true.  See Talk City, Inc. v. Robertson, D2000-0009 (WIPO Feb. 29, 2000) (“In the absence of a response, it is appropriate to accept as true all allegations of the Complaint.”); see also Desotec N.V. v. Jacobi Carbons AB, D2000-1398 (WIPO Dec. 21, 2000) (finding that failing to respond allows a presumption that the complainant’s allegations are true unless clearly contradicted by the evidence).

 

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 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); 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”).

 

In the WHOIS contact information, Respondent lists its name and administrative contact as “Montauk Asset Management.”  However, since Respondent failed to respond to the Complaint, there has not been any affirmative evidence provided to the Panel showing that Respondent was ever commonly known by the disputed domain name.  Moreover, Complainant’s first use of the HOME DEPOT and THE HOME DEPOT marks in commerce and is registration of the marks predates Respondent’s registration of the domain name.  Thus, the Panel concludes that Respondent has not been commonly known by the domain name pursuant to Policy ¶ 4(c)(ii).  See Tercent Inc. v. Lee Yi, FA 139720 (Nat. Arb. Forum Feb. 10, 2003) (finding that “nothing in Respondent’s WHOIS information implies that Respondent is ‘commonly known by’ the disputed domain name” is 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 Compagnie de Saint Gobain v. Com-Union Corp., D2000-0020 (WIPO Mar. 14, 2000) (finding no rights or legitimate interests where a respondent was not commonly known by the mark and never applied for a license or permission from the complainant to use the trademarked name).

 

Respondent offered to sell the <1800homedepot.com> domain name registration to Complainant for an amount in excess of its out-of-pocket expenses.  Such use is not 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).  Thus, the Panel finds that Respondent lacks rights and legitimate interests in the domain name under Policy ¶ 4(a)(ii).  See Am. Nat’l Red Cross v. Domains, FA 143684 (Nat. Arb. Forum Mar. 4, 2003) (“The respondent’s lack of rights and legitimate interests in the domain name is further evidenced by the respondent’s attempt to sell its domain name registration to Complainant, the rightful holder of the RED CROSS mark.”); see also Mothers Against Drunk Driving v. 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); 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 finds that Policy ¶ 4(a)(ii) has been satisfied.

 

Registration and Use in Bad Faith

 

Respondent offered to sell the <1800homedepot.com> domain name registration to Complainant for $150,000.  The Panel finds that, because Respondent has purportedly 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 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 the complainant amounts to registration and use of the domain name in bad faith); see also Little Six, Inc v. Domain For Sale, FA 96967 (Nat. Arb. Forum Apr. 30, 2001) (finding a respondent’s offer to sell the domain name at issue to the complainant was evidence of bad faith); see also Matmut v. Tweed, D2000-1183 (WIPO Nov. 27, 2000) (finding bad faith under Policy paragraph 4(b)(i) where the 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”).

 

Furthermore, Respondent registered the <1800homedepot.com> domain name with actual or constructive knowledge of Complainant’s rights in the HOME DEPOT and THE HOME DEPOT marks due to Complainant’s registration of the marks with the United States Patent and Trademark Office.  Moreover, the Panel infers that Respondent registered the disputed domain name with actual knowledge of Complainant’s rights in the marks due to Respondent’s admission that it chose the domain name to use it in connection with a home improvement business, which is Complainant’s business.  Thus, the Panel finds that Respondent registered and used the domain name 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 Ty Inc. v. Parvin, D2000-0688 (WIPO Nov. 9, 2000) (finding that the respondent’s registration and use of an identical and/or confusingly similar domain name was in bad faith where the complainant’s BEANIE BABIES mark was famous and the respondent should have been aware of it).

 

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 <1800homedepot.com> domain name be TRANSFERRED from Respondent to Complainant.

 

 

Honorable Paul A. Dorf (Ret.), Panelist

Dated:  June 10, 2005

 

 

 

 

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