national arbitration forum

 

DECISION

 

Fiesta Palms, LLC v. The Palms Poker Room c/o Host Master

Claim Number:  FA0506000495283

 

PARTIES

Complainant, Fiesta Palms, LLC (“Complainant”), is represented by Scott M. Hervey of Weintraub Genshlea Chediak Sproul Law Corporation, 400 Capitol Mall, 11th Floor, Sacramento, CA 95814.  Respondent is The Palms Poker Room c/o Host Master (“Respondent”), Friars Road, St. Johns, AG.

 

REGISTRAR AND DISPUTED DOMAIN NAME

The domain name at issue is <palmspoker.com>, registered with Enom, Inc.

 

PANEL

The undersigned certifies that he has acted independently and impartially and, to the best of his knowledge, has no known conflict in serving as Panelist in this proceeding.

 

The Honorable Charles K. McCotter, Jr. (Ret.) as Panelist.

 

PROCEDURAL HISTORY

Complainant submitted a Complaint to the National Arbitration Forum electronically on June 10, 2005; the National Arbitration Forum received a hard copy of the Complaint on June 13, 2005.

 

On June 15, 2005, Enom, Inc. confirmed by e-mail to the National Arbitration Forum that the domain name <palmspoker.com> is registered with Enom, Inc. and that Respondent is the current registrant of the name.  Enom, Inc. has verified that Respondent is bound by the Enom, 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 17, 2005, a Notification of Complaint and Commencement of Administrative Proceeding (the “Commencement Notification”), setting a deadline of July 7, 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@palmspoker.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 July 15, 2005, Complainant filed an untimely Reply Brief.  On July 19, 2005, Respondent filed an untimely Response saying that because of misrouting, the Complaint was not received by Respondent until July 14, 2005.  Complainant, on July 19, 2005, filed an Objection to Late Filed Response contending that the response was untimely and that Respondent had not made a showing of exceptional circumstances.  In the alternative, Complainant requested the opportunity to file a Reply.  On July 20, 2005, Respondent submitted a letter explaining the delay.  The Panel, on July 29, 2005, overruled Complainant’s Objection ruling that the Panel would consider Respondent’s Response and Complainant’s Reply.  The Panel granted Complainant until August 3, 2005, within which to file a Reply to Respondent’s Response.  However, Complainant had already filed a Reply to Respondent’s Response on July 25, 2005.  The Panel shall consider Complainant’s July 25, 2005, Reply, making any further Reply unnecessary.

 

On July 15, 2005, pursuant to Complainant's request to have the dispute decided by a single-member Panel, the National Arbitration Forum appointed the Honorable Charles K. McCotter, Jr. (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.

 

RELIEF SOUGHT

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

 

PARTIES' CONTENTIONS

A.  Complainant, Fiesta Palms, LLC, makes the following assertions:

 

1.      Respondent’s <palmspoker.com> domain name is confusingly similar to Complainant’s PALMS mark.

 

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

 

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

 

B.     Respondent, The Palms Poker Room, c/o Host Master, contends that the <palmspoker.com> domain name is not confusingly similar to Complainant’s marks because Complainant has not built a presence on the Internet, but operates a hotel and resort.  The public has not come to expect that domain names incorporating the PALMS mark are associated with Complainant.  Complainant does not have legitimate rights in the PALMS mark because Complainant does not use the “Palms” term alone in its business names.  Respondent has been acquiring “palms” and “tropical” names for a business plan involving “tropical themes.”  Respondent says that it is in the process of registering PALMSPOKER and other marks as trademarks.  Respondent has spent over three years developing its poker business and raising brand awareness in the online poker industry.  Respondent says that its product has been tested in a controlled environment by thousands of online poker players and is going to be launched for commercial operations, online poker games, in August 2005.  As the public has no expectation of encountering Complainant’s mark on the Internet, there is no likelihood of confusion.  Goodwill in Complainant’s mark does not extend to the Internet and/or the online gaming industry where Complainant has no presence.

 

C.     In its July 15, 2005 Reply, Complainant contends that Respondent is making use of the central element of a number of Complainant’s trademarks without authorization.  Respondent’s operation of an online poker room at the domain name would cause confusion.  Respondent’s passive holding of the domain name shows a lack of rights and legitimate interests.  Use of the domain name, which is confusingly similar to Complainant’s trademarks, to compete with Complainant would not be a bona fide offering of services.  In Complainant’s July 25, 2005 Reply, Complainant contends that the UDRP does not contain, as an element, the requirement that the parties be in the same line of business or that they conduct business in the same manner.  Respondent has not submitted any evidentiary support for its contention that Respondent has a business plan for the domain name.  Respondent has failed to establish a website at the disputed domain name.

 

FINDINGS

Complainant, Fiesta Palms, LLC, is the operator of the Palms hotel and casino in Las Vegas, Nevada.  Complainant’s resort hotel opened on November 15, 2001 after a $265 million investment.  The hotel, operated by Complainant, has gained a worldwide reputation, attracting celebrities from around the world.  The hotel has become even more famous as a result of being featured in the 2002 season of MTV’s “Real World” and the hit Bravo network television show “Celebrity Poker Showdown,” which is filmed at the hotel.  Moreover, Complainant’s hotel has hosted numerous high-profile poker tournaments, including the Vegas Rock Star Poker tournament, the Stuff Casino Weekend Poker Tournament, and Poker Superstars Invitation Tournament. 

 

Additionally, Complainant holds numerous registrations with the United States Patent and Trademark Office (“USPTO”) for incorporating the word “Palms,” including a registration for PALMS (Reg. No. 2,773,484, filed December 13, 2004 issued October 14, 2003).  Complainant also owns the <palms.com> domain name and operates a website at that domain name.  Complainant registered the <palms.com> domain name on March 23, 1995.

 

Respondent registered the <palmspoker.com> domain name on June 23, 2004.  On March 31, 2005, Respondent’s website displayed an announcement to launch an online casino, “The Palms Poker Room.” 

 

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.”

 

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 provided evidence of rights in the PALMS mark through registration with the USPTO.  Although Complainant's USPTO registration for the PALMS mark was issued five months after Respondent's registration of the disputed domain name, Complainant's rights in the mark date back to December 13, 2002, when the trademark application was initially filed.  See Planetary Soc’y v. Rosillo, D2001-1228 (WIPO Feb. 12, 2002) (holding that the effective date of Complainant’s trademark rights date back to the application’s filing date); see also Phoenix Mortgage Corp. v. Toggas, D2001-0101 (WIPO Mar. 30, 2001) (“The effective date of Complainant's federal rights is . . . the filing date of its issued registration.”). Therefore, Complainant has established prima facie evidence of rights in its mark.  The burden then shifts onto Respondent to refute this presumption.  In light of Respondent’s failure to set forth evidence suggesting otherwise, the Panel finds that Complainant has established rights in the PALMS mark pursuant to Policy 4(a)(i).  See Janus Int’l Holding Co. v. Rademacher, D2002-0201 (WIPO Mar. 5, 2002) ("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.  Respondent has the burden of refuting this assumption."); see also 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 [or] have acquired secondary meaning.”).

The <palmspoker.com> domain name is confusingly similar to the PALMS mark.  Respondent’s domain name incorporates the PALMS mark in its entirety and adds the generic term “poker.”  In addition to being generic, the term “poker” has a clear relation to Complainant’s mark because it describes a service provided by Complainant’s Las Vegas hotel.  Thus, the Panel concludes that the disputed domain name is confusingly similar to Complainant’s marks pursuant to Policy ¶ 4(a)(i).  See Marriott Int’l, Inc. v. Café au lait, FA 93670, (Nat. Arb. Forum Mar. 13, 2000) (finding that the respondent’s domain name <marriott-hotel.com> is confusingly similar to the complainant’s MARRIOTT mark); see also 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).

 

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

 

Rights or Legitimate Interests

 

Respondent contends that it registered and uses the <palmspoker.com> domain name to develop a future online casino.  However, Respondent’s unsupported assertions fail to rebut Complainant’s prima facie showing.  Respondent has failed to present concrete evidence of its plan to develop the domain name.  See Do the Hustle, LLC v. Tropic Web, D2000-0624 (WIPO Aug. 21, 2000) (“[O]nce the complainant has made a prima facie showing, the burden of production shifts to the respondent to show by providing concrete evidence that it has rights or legitimate interests in the domain name at issue.”  ).  “The mere assertion of intent to use the name” fails to satisfy Paragraph 4(c)(i) of the Policy requiring demonstrable evidence of the preparations to use the domain name prior to notice of the dispute. Id. 

 

Respondent has made no use of the disputed domain names.  Simply registering a domain name is not sufficient to establish rights or legitimate interests.  When Respondent makes no use of a disputed domain name, it can neither be said as being used for a bona fide use under Policy ¶ 4(c)(i) nor as a legitimate noncommercial or fair use under Policy 4(c)(iii).  See Pharmacia & Upjohn AB v. Romero, D2000-1273 (WIPO Nov. 13, 2000) (finding no rights or legitimate interests where respondent failed to submit a response to the complaint and had made no use of the domain name in question); see also Vestel Elektronik Sanayi ve Ticaret AS v. Kahveci, D2000-1244 (WIPO Nov. 11, 2000) (“[M]erely registering the domain name is not sufficient to establish rights or legitimate interests for purposes of paragraph 4(a)(ii) of the Policy.”); see also BMW AG v. Loophole, D2000-1156 (WIPO Oct. 26, 2000) (finding no rights in the domain name where respondent claimed to be using the domain name for a non-commercial purpose but had made no actual use of the domain name).

 

Furthermore, the registration of an infringing domain name that is confusingly similar to Complainant’s mark in order to operate an online casino suggestive of a connection with Complainant is not a bona fide offering of goods or services, or legitimate noncommercial or fair use of the domain name under Policy ¶¶ 4(c)(i) and (iii).  See Big Dog Holdings, Inc. v. Day, FA 93554 (Nat. Arb. Forum Mar. 9, 2000) (finding no legitimate use when Respondent was diverting consumers to its own website by using Complainant’s trademarks); see also Caterpillar Inc. v. Quin, D2000-0314 (WIPO June 12, 2000) (finding that Respondent does not have a legitimate interest in using the domain names <caterpillarparts.com> and <caterpillarspares.com> to suggest a connection or relationship, which does not exist, with Complainant's mark CATERPILLAR); see also Kosmea Pty Ltd. v. Krpan, D2000-0948 (WIPO Oct. 3, 2000) (finding no rights in the domain name where Respondent has an intention to divert consumers of Complainant’s products to Respondent’s site by using Complainant’s mark).

 

Complainant argues that Respondent does not fit within Policy ¶ 4(c)(ii) because it is not commonly known by the disputed domain name.  Although Respondent’s WHOIS information shows Respondent to be known as “The Palms Poker Room,” Complainant presented evidence indicating that a Google search of the phrase “The Palms Poker Room” only reveals references to Complainant, other than one reference pointing to the disputed domain name.  Respondent has not provided the Panel with any evidence to counter Complainant’s assertions or demonstrate that it was commonly known by the disputed domain name prior to registration.  Without such evidence, the Panel finds that Respondent failed to meet its burden and has not established rights or legitimate interests pursuant to Policy ¶ 4(c)(ii).  See Hartford Fire Ins. Co. v. Webdeal.com, Inc., FA 95162 (Nat. Arb. Forum Aug. 29, 2000) (finding that the respondent has no rights or legitimate interests in domain names because it is not commonly known by the complainant’s marks and the respondent has not used the domain names in connection with a bona fide offering of goods and services or for a legitimate noncommercial or fair use); see also Yahoo! Inc. v. Dough, FA 245971 (Nat. Arb. Forum May 5, 2004) (finding that although “the WHOIS information for the <yasexhoo.com> domain name states that the registrant is YASEXHOO . . . this alone is insufficient to show that Respondent is commonly known by the domain name.”); see also Nike, Inc. v.  de Boer, D2000-1397 (WIPO Dec. 21, 2000) (finding no rights or legitimate interests where one “would be hard pressed to find a person who may show a right or legitimate interest” in a domain name containing Complainant's distinct and famous NIKE trademark).

 

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

 

Registration and Use in Bad Faith

 

Respondent’s passive holding of the disputed domain name shows Respondent’s intent to use the domain name in bad faith. See Caravan Club v. Mrgsale, FA 95314 (Nat. Arb. Forum Aug. 30, 2000) (finding that Respondent made no use of the domain name or website that connects with the domain name, and that passive holding of a domain name permits an inference of registration and use in bad faith); see also Clerical Med. Inv. Group Ltd. v. Clericalmedical.com, D2000-1228 (WIPO Nov. 28, 2000) (finding that merely holding an infringing domain name without active use can constitute use in bad faith).

 

The Panel finds that there is no conceivable way Respondent could use the disputed domain name such that it would not infringe on Complainant’s PALMS mark, and therefore it is illogical to await Respondent’s use of the domain name to find bad faith use.  See Phat Fashions v. Kruger, FA 96193 (Nat. Arb. Forum Dec. 29, 2000) (finding bad faith under Policy ¶ 4(a)(iii) even though respondent has not used the domain name because “[i]t makes no sense whatever to wait until it actually ‘uses’ the name, when inevitably, when there is such use, it will create the confusion described in the Policy”); see also Alitalia –Linee Aeree Italiane S.p.A v. Colour Digital, D2000-1260 (WIPO Nov. 23, 2000) (finding bad faith where respondent made no use of the domain name in question and there are no other indications that respondent could have registered and used the domain name in question for any non-infringing purpose); see also Sony Kabushiki Kaisha v. Inja, Kil, D2000-1409 (WIPO Dec. 9, 2000) (finding bad faith registration and use where it is “inconceivable that the respondent could make any active use of the disputed domain names without creating a false impression of association with the complainant”).

 

Capitalizing on the confusion of consumers through the incorporation of the PALMS mark into the disputed domain name and the redirection of Internet users to a site advertising services that could be accredited to Complainant constitutes bad faith registration and use pursuant to Policy ¶ 4(b)(iv).  See H-D Michigan, Inc. v. Petersons Auto., FA 135608 (Nat. Arb. Forum Jan. 8, 2003) (finding that the disputed domain name was registered and used in bad faith pursuant to Policy ¶ 4(b)(iv) through the respondent’s registration and use of the infringing domain name to intentionally attempt to attract Internet users to its fraudulent website by using the complainant’s famous marks and likeness); see also Hancock Fabrics, Inc. v. Active Advantage, Inc., FA 204111 (Nat. Arb. Forum Dec. 4, 2003) (“Respondent’s use of the <hancockfabric.com> domain name, a domain name confusingly similar to Complainant’s HANCOCK FABRICS mark, to redirect Internet traffic to a website that provides a selection of jokes demonstrates Respondent’ bad faith use of the disputed domain name because Respondent has created a likelihood of confusion as to the source, sponsorship, affiliation or endorsement of Respondent’s website, which evidences bad faith registration and use under Policy ¶ 4(b)(iv).”); see also Am. Online, Inc. v. Tencent Commc’ns Corp., FA 93668 (Nat. Arb. Forum Mar. 21, 2000) (finding bad faith where the respondent registered and used a domain name confusingly similar to the complainant’s mark to attract users to a website sponsored by the respondent).

 

Respondent is using of the disputed domain name to divert users to a website that advertises similar services to those of Complainant.  The text on the website concludes with the advertisement, “Thank you for visiting The Palms,” and is signed, “Management.”  This language, the graphics on the website, and the incorporation of Complainant’s PALMS mark into the disputed domain name are all likely to lead Internet users to believe that Respondent’s site is affiliated with or sponsored by Complainant.  The Panel concludes that Respondent’s ability to capitalize on the confusion of consumers constitutes bad faith registration and use under Policy ¶ 4(a)(iii).  See Red Bull GmbH v. Gutch, D2000-0766 (WIPO Sept. 21, 2000) (finding that the respondent’s expected use of the domain name <redbull.org> would lead people to believe that the domain name was connected with the complainant, and thus is the equivalent to bad faith use); see also Singapore Airlines Ltd v. P & P Servicios de Communicacion S.L., D2000-0643 (WIPO Aug. 29, 2000) (“The domain name ‘<singaporeairlines.com>’ is so obviously connected with a well-known airline that its very registration and use by someone with no connection to the airline suggests opportunistic bad faith.  Indeed, it is hard to imagine a more blatant exercise in ‘cybersquatting.’”).

 

Complainant’s registration of the PALMS mark with the USPTO confers constructive knowledge on Respondent.  See 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.”)  Moreover, the popularity of Complainant’s PALMS mark, when used in combination with services the mark represents, leads this Panel to infer that Respondent knew of Complainant’s rights in the mark at registration.  See Glaxo Group Ltd. v. WWW Zban, FA 203164 (Nat. Arb. Forum Dec. 1, 2003) (“Because of the fanciful nature of the ZYBAN mark, the Panel can infer that Respondent knew of Complainant's rights in the mark at registration.”); see also Pfizer, Inc. v. Suger, D2002-0187 (WIPO Apr. 24, 2002) (finding that because the link between the complainant’s mark and the content advertised on the respondent’s website was obvious, the respondent “must have known about the Complainant’s mark when it registered the subject domain name”).  The Panel holds that actual or constructive knowledge of Complainant’s rights in the mark constitutes bad faith registration and use under 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).

 

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

 

 

The Honorable Charles K. McCotter, Jr. (Ret.), Panelist

Dated:  August 11, 2005

 

 

 

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