national arbitration forum

 

DECISION

 

HCSB v. Country Holding Corp.

Claim Number:  FA0505000472175

 

PARTIES

Complainant is HCSB (“Complainant”), represented by Cathryn Berryman of Jenkens & Gilchrist, 1445 Ross Ave., Suite 3700, Dallas, TX 75202.  Respondent is Country Holding Corp. (“Respondent”), 1617 Sun Valley Ct., Austin, TX 78734.

 

REGISTRAR AND DISPUTED DOMAIN NAME

The domain name at issue is <hillcountrybank.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 May 5, 2005; the National Arbitration Forum received a hard copy of the Complaint on May 9, 2005.

 

On May 6, 2005, Go Daddy Software, Inc. confirmed by e-mail to the National Arbitration Forum that the domain name <hillcountrybank.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 10, 2005, a Notification of Complaint and Commencement of Administrative Proceeding (the "Commencement Notification"), setting a deadline of May 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@hillcountrybank.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 June 9, 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 <hillcountrybank.com> domain name is confusingly similar to Complainant’s HILL COUNTRY mark.

 

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

 

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

 

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

 

FINDINGS

Complainant, HCSB, is a Texas State Banking Association which offers banking services at several branches in Texas as well as online. 

 

Complainant holds a registration with the United States Patent and Trademark Office (“USPTO”) for the HILL COUNTRY mark (Reg. No. 2,880,069 filed October 9, 2002) dated August 31, 2004.  Furthermore, Respondent provides banking services to current and prospective customers via several domain names, including the <hcsb.com> domain name. 

 

Respondent registered the <hillcountrybank.com> domain name on January 27, 2004.  The domain name resolves to a webpage at the <texascountrybank.com> domain name, which states “Texas Country Bank In Org.”  The webpage also indicates that the website is currently being modified and provides an address, telephone numbers and an e-mail link for a branch bank in Austin, TX. 

 

Upon learning that Respondent had submitted a banking application to the Texas Department of Banking under the name “Hill Country Bank,” Complainant contacted Respondent by telephone and mail to inform Respondent of Complainant’s concern that Respondent’s use of that name would confuse Complainant’s consumers as to the origin of banking services offered by Respondent.  Respondent replied and indicated that it would change the name of its bank to “Texas Country Bank.”  In this same response, Respondent indicated that it owned the registration for the <hillcountrybank.com> domain name and mentioned that it would be willing to sell the domain name registration to Complainant.  After Complainant offered to purchase the domain name registration at cost, Respondent asked for $1 million for the domain name registration.

 

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 submitted evidence of its registration of the HILL COUNTRY mark with the USPTO, which establishes presumptive rights in Complainant’s mark.  Without any response from Respondent, there is no evidence to dispute Complainant’s prima facie case of rights.  Thus, the Panel finds that Complainant has rights in the HILL COUNTRY mark for the purposes of Policy ¶ 4(a)(i).  Furthermore, although Respondent’s registration of the disputed domain name predates the date of Complainant’s registration of the mark, once Complainant’s mark has been registered, Complainant’s rights in the registered HILL COUNTRY mark date back to the date the mark was filed with the USPTO.  Complainant’s date of filing predates Respondent’s registration.  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 J. C. Hall Co. v. Hallmark Cards, Inc., 340 F.2d 960, 144 U.S.P.Q. 435 (C.C.P.A. 1965) (registration on the Principal Register is prima facie proof of continual use of the mark, dating back to the filing date of the application for registration). 

 

The <hillcountrybank.com> domain name incorporates Complainant’s HILL COUNTRY mark in its entirety, adding only the generic or descriptive term “bank” and the generic top-level domain (gTLD) “.com.”  Furthermore, the term “bank” is descriptive of Complainant’s business.  Under the Policy, such minor additions as these are insufficient to distinguish a domain name that is confusingly similar to a complainant’s registered mark.  Thus, the Panel finds that the disputed domain name is confusingly similar to Complainant’s mark pursuant to Policy ¶ 4(a)(i).  See Space Imaging LLC v. Brownell, AF-0298 (eResolution Sept. 22, 2000) (finding confusing similarity where the respondent’s domain name combines the complainant’s mark with a generic term that has an obvious relationship to the complainant’s business); see also Arthur Guinness Son & Co. (Dublin) Ltd. v. Healy/BOSTH, D2001-0026 (WIPO Mar. 23, 2001) (finding confusing similarity where the domain name in dispute contains the identical mark of the complainant combined with a generic word or term); see also 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).

 

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

 

Rights or Legitimate Interests

 

Respondent has failed to submit a response, which entitles the Panel to accept all reasonable allegations and inferences in the Complaint as true unless clearly contradicted by the evidence.  See Vertical Solutions Mgmt., Inc. v. webnet-marketing, inc., FA 95095 (Nat. Arb. Forum July 31, 2000) (holding that the respondent’s failure to respond allows all reasonable inferences of fact in the allegations of the complaint to be deemed true); see also 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.”).

 

Complainant contends that Respondent does not have rights or legitimate interests in the <hillcountrybank.com> domain name, which contains Complainant’s HILL COUNTRY mark in its entirety.  Since Complainant has made a prima facie case in support of its allegations, the burden shifts to Respondent to make a showing of rights or legitmate interests in the disputed domain name pursuant to Policy ¶ 4(a)(ii).  However, because Respondent failed to respond to Complainant’s assertions and to provide evidence to contradict these assertions, Respondent has failed to meet its burden.  Therefore, the Panel concludes that Respondent lacks rights and legitimate interests in the disputed domain name.  See 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 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 Pavillion Agency, Inc. v. Greenhouse Agency Ltd., D2000-1221 (WIPO Dec. 4, 2000) (finding that Respondents’ failure to respond can be construed as an admission that they have no legitimate interest in the domain names).

 

Respondent is using the <hillcountrybank.com> domain name to redirect Internet users searching for Complainant’s banking products and services to Respondent’s webpage that advertises Respondent’s competing business.  Such competitive use of a domain name that is confusingly similar to Complainant’s HILL COUNTRY mark for the purpose of diverting Complainant’s potential consumers to Respondent’s own business 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 pursuant to Policy ¶ 4(c)(iii).  See Avery Dennison Corp. v. Steele, FA 133626 (Nat. Arb. Forum Jan 10, 2003) (finding that the respondent had no rights or legitimate interests in the disputed domain name where it used the complainant’s mark, without authorization, to attract Internet users to its business, which competed with the complainant); 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); see also Ameritrade Holdings Corp. v. Polanski, FA 102715 (Nat. Arb. Forum Jan. 11, 2002) (finding that the respondent’s use of the disputed domain name to redirect Internet users to a financial services website, which competed with the complainant, was not a bona fide offering of goods or services).

 

There is nothing in the record which suggests that Respondent is commonly known by the <hillcountrybank.com> domain name.  In fact, there is evidence that Respondent’s business is, in fact, known as “Texas Country Bank.”  Furthermore, Complainant asserts that Respondent is in no way associated with Complainant and that Respondent is not authorized to use Complainant’s HILL COUNTRY mark.  Therefore, the Panel finds that Respondent has not established rights or legitimate interests in the disputed domain name pursuant to Policy ¶ 4(c)(ii).  See Gallup Inc. v. Amish Country Store, FA 96209 (Nat. Arb. Forum Jan. 23, 2001) (finding that Respondent does not have rights in a domain name when the respondent is not known by the mark); 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"). 

 

Furthermore, Complainant has provided evidence that Respondent offered to sell the <hillcountrybank.com> domain name to Complainant.  Respondent’s willingness to dispose of any purported rights in the disputed domain name is further evidence that Respondent lacks rights and legitmate interests in the domain name pursuant to Policy ¶ 4(a)(ii).  See The American Nat’l Red Cross v. Domains a/k/a Best Domains a/k/a John Barry, FA 143684 (Nat. Arb. Forum March 4, 2003) (stating that “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 Mothers Against Drunk Driving v. Hyun-Jun Shin, FA 154098 (Nat. Arb. Forum May 27, 2003) (holding that under the circumstances, 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).

 

Accordingly, the Panel finds that Complainant has satisfied Policy ¶ 4(a)(ii).

 

Registration and Use in Bad Faith

 

Complainant alleges and provides evidence that Respondent offered to sell the <hillcountrybank.com> domain name registration to Complainant for $1 million, an amount in excess of Respondent’s out-of-pocket expenses associated with the disputed domain name.  Under the circumstances of this case in which Respondent offered to sell the disputed domain name to the holder of a mark confusingly similar to the disputed domain name for $1 million and where the two parties had been in contact regarding the confusing similarity of the proposed name of Respondent’s competing business, the Panel finds that there is sufficient evidence that Respondent registered the disputed domain name in bad faith pursuant to Policy ¶ 4(b)(i).  See World Wrestling Fed’n Entmt., Inc. v. Bosman, D99-0001 (WIPO Jan. 14, 2000) (finding that the respondent used the domain name in bad faith because he offered to sell the domain name for valuable consideration in excess of any out-of-pocket costs); see also Dynojet Research, Inc. v. Norman, AF-0316 (eResolution Sept. 26, 2000) (finding that the respondent demonstrated bad faith when he requested monetary compensation beyond out-of-pocket costs in exchange for the registered domain name); see also Hitachi, Ltd. v. Fortune Int’l Dev. Ent,  D2000-0412 (WIPO July 2, 2000) (finding the respondent’s offer to sell the domain name for $100,000 constitutes bad faith).

 

Complainant is in the banking services business and have provided evidence that Respondent is also attempting to form a bank in the same business.  Thus, it appears that by using the <hillcountrybank.com> domain name, Respondent is attempting to attract Complainant’s potential customers to Respondent’s own website by confusing the customers as to Complainant’s affiliation with the resulting website at the disputed domain name.  This type of diversion for Respondent’s commercial gain is evidence of bad faith registration and use under Policy ¶ 4(b)(iv).  See Am. Online, Inc. v. Tencent Comm. Corp., FA 93668 (Nat. Arb. Forum Mar. 21, 2000) (finding bad faith where Respondent registered and used an infringing domain name to attract users to a website sponsored by Respondent); see also Drs. Foster & Smith, Inc. v. Lalli, FA 95284 (Nat. Arb. Forum Aug. 21, 2000) (finding bad faith where Respondent directed Internet users seeking Complainant’s site to its own website for commercial gain); see also Am. Online, Inc. v. Tencent Comm. Corp., FA 93668 (Nat. Arb. Forum Mar. 21, 2000) (finding bad faith where Respondent registered and used an infringing domain name to attract users to a website sponsored by Respondent).

 

The Policy lists four circumstances under Policy ¶ 4(b), which constitute evidence of bad faith registration and use.  However, this list is not intended to be comprehensive, and the Panel has, therefore, chosen to consider additional factors which support its finding of bad faith registration and use.  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 a domain name that incorporates Complainant’s HILL COUNTRY mark in its entirety and adds only a generic or descriptive term obviously associated with Complainant’s business suggests that Respondent had actual knowledge of Complainant’s rights in the mark when it registered the domain name.  Furthermore, Respondent is located in the same geographic area as Complainant and purports to be involved in the same business.  All of these circumstances suggest that Respondent registered the <hillcountrybank.com> domain name with actual or constructive knowledge of Complainant’s rights in the mark, which is evidence of bad faith registration and use pursuant to Policy ¶ 4(a)(iii).  See  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."); 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.”).

 

The Panel finds that Complainant has satisfied Policy ¶ 4(a)(iii).

 

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

 

Honorable Paul A. Dorf (Ret.), Panelist

Dated:  June 24, 2005

 

 

 

 

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