National Arbitration Forum

 

DECISION

 

Dakota Beef, LLC v. Donald Hagerott

Claim Number: FA0506000490093

 

PARTIES

Complainant is Dakota Beef, LLC (“Complainant”), represented by Douglas R. Johnson, 311 S. Wacker Drive, Suite 210, Chicago, IL 60606.  Respondent is Donald Hagerott (“Respondent”), represented by Curtis V. Harr, 1402 25th Street South, Suite B, Fargo, ND 58103.

 

REGISTRAR AND DISPUTED DOMAIN NAME 

The domain name at issue is <dakotabeef.com>, registered with Network Solutions, 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.

 

Terry F. Peppard as Panelist.

 

PROCEDURAL HISTORY

Complainant submitted a Complaint to the National Arbitration Forum electronically on June 2, 2005; the National Arbitration Forum received a hard copy of the Complaint on June 6, 2005.

 

On June 3, 2005, Network Solutions, Inc. confirmed by e-mail to the National Arbitration Forum that the domain name <dakotabeef.com> is registered with Network Solutions, Inc. and that the Respondent is the current registrant of the name.  Network Solutions, Inc. has verified that Respondent is bound by the Network Solutions, 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 June 7, 2005, a Notification of Complaint and Commencement of Administrative Proceeding (the “Commencement Notification”), setting a deadline of June 27, 2004 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@dakotabeef.com by e-mail.

 

A timely Response was received and determined to be complete on June 24, 2005.

 

The National Arbitration Forum received a timely additional submission from the Complainant on June 29, 2005.

 

On June 30, 2005, pursuant to Complainant’s request to have the dispute decided by a single-member Panel, the National Arbitration Forum appointed Terry F. Peppard as Panelist.

 

RELIEF SOUGHT

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

 

PARTIES’ CONTENTIONS

A. Complainant

Complainant contends, among other things, that:

 

Complainant, Dakota Beef, LLC, is an Illinois corporation which has been doing business in South Dakota since December of 2001.

 

Complainant buys and processes cattle and sells beef worldwide, and has become the largest producer of organic beef in the United States.

 

Dakota Beef, LLC, filed with the United States Patent and Trademark Office for registration of its DAKOTA BEEF service mark in December of 2001, and received its registration of that mark on October 21, 2003.

 

Although he has held the disputed domain name, <dakotabeef.com>,  for six years, Respondent does not actually use that name, nor is there any evidence that he intends to use it in connection with a bona fide offering of goods or services.

 

Respondent is not commonly known by the subject domain name.

 

Through nationwide shipping of its beef products, Complainant has acquired secondary meaning for its mark.

 

Respondent’s years-long holding of the disputed domain name without use is evidence that its only purpose in acquiring the name is to prevent its use by Complainant.  

 

B. Respondent

Respondent contends, among other things, that:

 

Respondent is a farmer working a family operation in central North Dakota that dates from the late 1800’s.

 

Respondent’s family’s farming business has involved producing and selling beef for more than 100 years.

 

Respondent and his family operate a web site from which they market naturally-raised farm products.

 

Respondent registered the disputed domain name on April 13, 1999, more than two years and eight months before Complainant came into existence in December of 2001.

 

The registration of the subject domain name was part of a long-term plan to exploit Internet sales of Respondent’s agricultural products.

 

Complainant’s mark, “Dakota Beef,” is merely descriptive and generic, and so is not capable of legal protection apart from the beef cow profile design included as an integral part of its service mark registration application.

 

Accordingly, Complainant’s service mark registration application contains the specific disclaimer:  “No claim is made to the exclusive right to use ‘Dakota Beef’ apart from the mark as shown.” 

 

C. Additional Submissions

Under date of June 29, 2005, Complainant timely filed an Additional Submission which alleges, among other things, that:

 

By failing to use the disputed domain name for six years, Respondent has forfeited any legitimate interest he may once have had in it.

 

FINDINGS

1.      Although the disputed domain name is substantively identical to Complainant’s registered service mark, Complainant has failed to show that any rights it may have in its mark supersede the rights of Respondent in the domain name.

 

2.      Respondent has rights and legitimate interests in the subject domain name.

 

3.      Complainant has failed to demonstrate that Respondent has both registered and used the disputed domain name in bad faith.

 

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

 

There is no meaningful distinction to be made between the textual portion of Complainant’s registered DAKOTA BEEF service mark and the disputed domain name <dakotabeef.com>.  Hannover Ruckversicherungs AG v. Ryu, FA 102724 (Nat. Arb. Forum Jan. 7, 2001).  However, Complainant has, in its service mark registration application, specifically disclaimed entitlement to the exclusive use of the term “Dakota Beef” apart from the accompanying beef cow design.  Thus, even though Respondent’s domain name is either substantively identical or confusingly similar to Complainant’s mark, Complainant cannot look to its registered mark to undergird its claim to superior rights to use the DAKOTA BEEF mark under ¶4(a)(i) of the Policy.

 

Still, Complainant might establish common law rights in its mark superior to those of Respondent in the subject domain name, provided that Complainant’s acquisition of those rights predate the registration of the domain name.  See, for example, Phoenix Mortgage Corp. v. Toggas, D2001-0101 (WIPO Mar. 30, 2001), noting that Policy ¶4(a)(i) “necessarily implies that Complainant’s rights predate Respondent’s registration.”

 

But, because Respondent registered the subject domain name on April 13, 1999, whereas Complainant did not come into existence or use its competing service mark until sometime in December of 2001, more than two (2) years later, Complainant fails the test of priority in time.  Accordingly, Complainant’s position cannot survive scrutiny under Policy ¶4(a)(i). 

  

It may be noted that Respondent also alleges in its defense that Complainant’s mark consists of two merely descriptive terms (“Dakota” and “Beef”), so that the mark is too generic to merit legal protection.  See, e.g., Rollerblade, Inc. v. CBNO, D2000-0427 (WIPO Aug. 24, 2000):  “(g)enericness, if established, will defeat a claim of trademark rights,….”  On the record presented in this proceeding, and whether the component terms of Complainant’s mark are considered singly or together, the Panel is inclined to agree with Respondent’s contention as to genericness.  Complainant responds that, even assuming that the textual portion of its mark is generic, the mark has acquired secondary meaning in the marketplace and thus deserves trademark protection as against Respondent’s competing domain name.  However, although Complainant makes the assertion of acquired secondary meaning, and thus of protectable distinctiveness, it offers no proof in support of this claim.  Therefore, Complainant has failed to overcome Respondent’s genericness defense.

 

Rights or Legitimate Interests

 

Under this heading, it is incumbent upon Complainant to show that Respondent has “no rights or legitimate interests in respect of the [disputed] domain name.”  Policy ¶4(a)(ii).

 

The ICANN Policy, in ¶4(c), offers three methods by which a Respondent may attempt to overcome Complainant’s proof of Respondent’s lack of rights or legitimate interests.  Suffice to say that the proofs submitted do not satisfy any of these three measures. However, it is also true that the provisions of Policy ¶4(c) are expressly declared by ICANN not to be the only means by which sufficient rights or legitimate interests may be shown to reside in Respondent.

 

In the instant case, the Panel finds persuasive that Respondent and his family have for generations operated a beef growing and marketing operation in North Dakota, a fact which Complainant does not deny.  This is enough to establish Respondent’s non-exclusive common law rights and interests in the mark DAKOTA BEEF.  Likewise, Respondent’s apparently valid registration of the subject domain name grants him rights in that name. That both sources of rights came to Respondent first in time vis-à-vis Complainant’s competing trademark claim satisfies the Panel that Respondent has rights and legitimate interests in that name sufficient for the purposes of Policy ¶4(a)(ii).  As to the critical importance of the time of acquisition of such rights vis-à-vis those of Complainant, see, for example: Parachute, Inc. v. Jones, FA 94947 (Nat. Arb. Forum July 12, 2000), and Warm Things, Inc. v. Weiss, D2002-0085 (WIPO April 18, 2002).

 

It may be mentioned in this connection that the Policy does not require that Respondent have clear rights or substantial rights in order to prevail under Policy ¶4(a)(ii).  Rather it is necessary for Complainant to satisfy the Panel that Respondent has “no rights or legitimate interests in respect of the domain name.”  That is to say, it is required that Complainant demonstrate to the satisfaction of the Panel that Respondent has no rights or legitimate interests whatsoever in respect of the subject name.  In view of the facts of record, Complainant cannot meet this burden. 

 

It is, of course, a source of some concern that Respondent has not yet actually employed its domain name despite six years of continuous registration.  However, there is no evidence that Respondent is engaged in the practice of warehousing domain names.  Moreover, Respondent has offered a plausible explanation for its planned use of the subject domain name in the further development of its business.  On the facts presented, this is adequate to overcome doubt as to the legitimacy of Respondent’s position.  IG Index PLC v. Index Trade, D2000-1124 (WIPO Oct. 16, 2000). 

 

We also observe that the ICANN Policy does not provide that the notion of abandonment or a like doctrine may justify depriving a domain name holder of its otherwise valid registration.  And, finally, it is nowhere written that the pace of cattle ranching must match the pace of the Internet. 

 

For these reasons, we conclude that Complainant has failed to show that Respondent has no rights or legitimate interests in its domain name. 

 

Registration and Use in Bad Faith

 

Policy ¶4(a)(iii) requires that, to prevail in this proceeding, Complainant must prove that Respondent has both registered and is now using the disputed domain name in bad faith. 

 

Complainant argues, in effect, that Respondent’s holding of its domain name registration for six years without associating it with an operating web site is evidence of bad faith.  For the reasons just explained, the Panel is disinclined to agree with this assertion.  Rather, Respondent’s legitimate, if not exclusive, claim to the DAKOTA BEEF mark by virtue of its physical location and longstanding business history, coupled with its apparently valid domain name registration, belie Complainant’s suggestion of bad faith on the part of Respondent.  On the particular facts here presented, it is enough for purposes of the Policy that it is fairly conceivable that Respondent will soon act on its asserted intention to exploit its domain name.  See, e.g.: Collegetown Relocation, LLC v. Concept Software & Tech. Inc., FA 96555 (Nat. Arb. Forum Mar. 14, 2001).

 

Moreover, because Respondent registered its domain name more than two years before Complainant came into existence and first used its claimed trademark in 2001, it is not possible for Complainant to demonstrate that Respondent registered its domain name in bad faith in 1999.  Accordingly, and without more, Complainant must be found to have failed to satisfy the conjunctive requirements of Policy ¶4(a)(iii).  Ode v. Intership Ltd., D2001-0074 (WIPO May 1, 2001);  Interep Nat'l Radio Sales, Inc. v. Internet Domain Names, Inc., D2000-0174 (WIPO May 26, 2000);  Open Sys. Computing AS v. degli Alessandri, D2000-1393 (WIPO Dec. 11, 2000).

 

DECISION

Complainant having failed to establish any of the three elements required under the ICANN Policy, the Panel concludes that relief requested must be, and it is, hereby,              

                                                                                                                                    DENIED.

 

 

 

Terry F. Peppard, Panelist
Dated: July 11, 2005

 

 

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