national arbitration forum

 

DECISION

 

Ameritrade Holding Corporation v. Anthony Lee D''Amato

Claim Number:  FA0506000503053

 

PARTIES

Complainant, Ameritrade Holding Corporation (“Complainant”), is represented by Julia Anne Matheson of Finnegan Henderson Farabow Garrett & Dunner LLP, 901 New York Avenue NW, Washington, DC 20001.  Respondent is Anthony Lee D''Amato (“Respondent”), 10234 Hamelin, Montreal, Qc H2B2E6, CA.

 

REGISTRAR AND DISPUTED DOMAIN NAME

The domain name at issue is <tdameritrade.com>, registered with Register.com.

 

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.

 

John J. Upchurch as Panelist.

 

PROCEDURAL HISTORY

Complainant submitted a Complaint to the National Arbitration Forum electronically on June 23, 2005; the National Arbitration Forum received a hard copy of the Complaint on June 24, 2005.

 

On June 24, 2005, Register.com confirmed by e-mail to the National Arbitration Forum that the domain name <tdameritrade.com> is registered with Register.com and that Respondent is the current registrant of the name.  Register.com has verified that Respondent is bound by the Register.com 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 24, 2005, a Notification of Complaint and Commencement of Administrative Proceeding (the “Commencement Notification”), setting a deadline of July 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@tdameritrade.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 18, 2005, pursuant to Complainant's request to have the dispute decided by a single-member Panel, the National Arbitration Forum appointed John J. Upchurch 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 <tdameritrade.com> domain name is confusingly similar to Complainant’s AMERITRADE mark.

 

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

 

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

 

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

 

FINDINGS

Complainant, Ameritrade Holding Corporation, has provided securities brokerage services and technology-based financial services since 1975.  Complainant is a public company, traded on the NASDAQ Stock Market and is the largest online brokerage firm.  In 2004, Complainant averaged approximately 168,000 trades per day and had over 2.6 million client accounts.  Complainant offers its services and provides extensive information on investments on its <ameritrade.com> website.  As a result of its efforts, Complainant has received numerous industry awards for its technology and services, including the Forbes’ “Best of the Web” award and the “Reader’s Choice Award.”

 

Complainant owns several trademark registrations for the AMERITRADE mark with the United States Patent and Trademark Office (“USPTO”) (E.g., Reg. No. 2,032,385 issued May 28, 1996; Reg. No. 2,411,005 issued December 5, 2000; Reg. No. 2,701,664 issued April 1, 2003; Reg. No. 2,634, 398 issued October 15, 2002). 

 

On June 22, 2005, Complainant announced its plans to acquire TD Waterhouse and name the new merged company “TD Ameritrade.”  Business Week Online predicted that the new entity would become the largest online broker with 239,000 average daily client trades and approximately 5.9 million total accounts.

 

On October 10, 2003, Respondent registered the <tdameritrade.com> domain name.  Until at least June 20, 2005, Respondent did not use the domain name to develop a website.  However, on June 23, 2005, one day after Complainant’s announcement, Respondent developed the website by posting an offer to sell the disputed domain name.

 

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.  The Panel is entitled to accept all reasonable allegations and inferences set forth in the Complaint as true unless the evidence is clearly contradictory.  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.”).

 

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

 

By owning numerous registrations with the USPTO for its AMERITRADE mark, Complainant has presented a prima facie case of rights in the mark.  See Innomed Techs., Inc. v. DRP Servs., FA 221171 (Nat. Arb. Forum Feb. 18, 2004) (“Registration of the NASAL-AIRE mark with the USPTO establishes Complainant's rights in the mark.”); see also Vivendi Universal Games v. XBNetVentures Inc., FA 198803 (Nat. Arb. Forum Nov. 11, 2003) (“Complainant's federal trademark registrations establish Complainant's rights in the BLIZZARD mark.”).  Since Respondent failed to submit a response, Complainant’s rights have not been disputed.  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.”).  Thus, the Panel holds that Complainant has established rights in the AMERITRADE mark for purposes of Policy ¶ 4(a)(i).

 

Complainant argues that the <tdameritrade.com> domain name is confusingly similar to its AMERITRADE mark.  The disputed domain name incorporates Complainant’s mark and merely adds the two letters “t” and “d” and the generic top-level domain (“gTLD”) “.com.”  The incorporation of Complainant’s entire AMERITRADE mark in the disputed domain name is itself sufficient to establish confusing similarity for purposes of Policy ¶ 4(a)(i).  See Oki Data Ams., Inc. v. ASD, Inc., D2001-0903 (WIPO Nov. 6, 2001) (“[T]he fact that a domain name wholly incorporates a Complainant’s registered mark is sufficient to establish identity or confusing similarity for purposes of the Policy despite the addition of other words to such marks.”).  Moreover, it is well established that the addition of letters and the “.com” gTLD is insufficient to distinguish Respondent’s domain name from Complainant’s mark.  See Sony Kabushiki Kaisha v. 4198Domain 4198 Administrator, FA 451912 (Nat. Arb. Forum May 18, 2005) (finding that the addition of the letters “kw” to the SONY STYLE mark is not sufficient to overcome a finding of confusing similarity under Policy ¶ 4(a)(i)); 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).  Accordingly, the Panel holds that the disputed domain name is confusingly similar to Complainant’s AMERITRADE mark.

 

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

 

Rights or Legitimate Interests

 

Complainant’s allegation that Respondent does not have rights or legitimate interests in the <tdameritrade.com> domain name establishes a prima facie case.  Consequently, the burden shifts to Respondent to produce concrete evidence to dispute Complainant’s assertions.  See Do The Hustle, LLC v. Tropic Web, D2000-0624 (WIPO Aug. 21, 2000) (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 Woolworths plc. v. Anderson, D2000-1113 (WIPO Oct. 10, 2000) (finding that absent evidence of preparation to use the domain name for a legitimate purpose, the burden of proof lies with the respondent to demonstrate that it has rights or legitimate interests).  The Panel will analyze whether Respondent could meet its burden of establishing rights or legitimate interests for purposes of Policy ¶ 4(a)(ii).

 

Complainant alleges that Respondent is not commonly known by the disputed domain name.  In fact, Respondent’s WHOIS information indicates that Respondent is known as “Anthony Lee D”Amato.”  Moreover, Respondent has not provided any evidence to counter Complainant’s allegations.  Respondent’s failure to submit a response and provide evidence to demonstrate that it is commonly known by the disputed domain name leads this Panel to accept as true Complainant’s argument.  In G.D. Searle & Co. v. Cimock, FA 126829 (Nat. Arb. Forum Nov. 13, 2003), the panel held,

 

Due to the fame of Complainant’s mark there must be strong evidence that Respondent is commonly known by the disputed domain name in order to find that Respondent has rights or legitimate interests in the disputed domain name pursuant to Policy ¶ 4(c)(ii).  However, there is no evidence on record, and Respondent has not come forward with any proof to establish that it is commonly known as CELEBREXRX or <celebrexrx.com>.

 

Id.; 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); see also Wells Fargo & Co. v. Onlyne Corp. Services11, Inc., FA 198969 (Nat. Arb. Forum Nov. 17, 2003) (“Given the WHOIS contact information for the disputed domain [name], one can infer that Respondent, Onlyne Corporate Services11, is not commonly known by the name ‘welsfargo’ in any derivation.”).  Thus, the Panel holds that Respondent is not commonly known by the disputed domain name pursuant to Policy ¶ 4(c)(ii).

 

Additionally, Complainant argues that because Respondent failed to use the <tdameritrade.com> domain name for almost two years, Respondent lacks rights and legitimate interests in the disputed domain name.  Without a response from Respondent, the Panel accepts as true Complainant’s argument that Respondent was passively holding domain name in dispute.  See Broadcom Corp. v. Ibecom PLC, FA 361190 (Nat. Arb. Forum Dec. 22, 2004) (“Respondent’s failure to respond to the Complaint functions as an implicit admission that [Respondent] lacks rights and legitimate interests in the disputed domain name.  It also allows the Panel to accept all reasonable allegations set forth…as true.”).  The Panel holds that Respondent’s passive holding of the <tdameritrade.com> domain name was not a bona fide offering of goods or services or a legitimate noncommercial or fair use under Policy ¶ 4(c)(i) or (iii).  See TMP Int’l, Inc. v. Baker Enters., FA 204112 (Nat. Arb. Forum Dec. 6, 2003) (“[T]he Panel concludes that Respondent's passive holding of the domain name does not establish rights or legitimate interests pursuant to Policy ¶ 4(a)(ii).”); see also Am. Online, Inc. v. Kloszewski, FA 204148 (Nat. Arb. Forum Dec. 4, 2003) (“Respondent's passive holding of the <aolfact.com> domain name for over six months is evidence that Respondent lacks rights and legitimate interests in the domain name.”). 

 

Moreover, Complainant argues that Respondent lacks rights and legitimate interests in the disputed domain name because immediately following Complainant’s announcement to merge with TD Waterhouse, Respondent developed the website to indicate that Respondent desired to sell the disputed domain name registration.  Because Respondent has not refuted Complainant’s argument, the Panel accepts Complainant’s allegation that Respondent registered the domain name in anticipation of the merger and with the purpose of profiting from the sale of the disputed domain name registration immediately following Complainant’s announcement.  Thus, the Panel holds that Respondent’s acquisition and passive holding of the disputed domain name with the purpose of selling it does not constitute a bona fide offering of goods or services or a legitimate noncommercial or fair use under Policy ¶¶ 4(c)(i) and (iii).  See Vanguard Group, Inc. v. Collazo, FA 349074 (Nat. Arb. Forum Dec. 1, 2004) (finding that because Respondent failed to submit a Response, “Complainant’s submission has gone unopposed and its arguments undisputed.  In the absence of a Response, the Panel accepts as true all reasonable allegations . . . unless clearly contradicted by the evidence.”); see also Hewlett-Packard Co. v. High Performance Networks, Inc., FA 95083 (Nat. Arb. Forum July 31, 2000) (finding no rights or legitimate interests where the respondent registered the domain name with the intention of selling its rights); see also Wal-Mart Stores, Inc. v. Stork, D2000-0628 (WIPO Aug. 11, 2000) (finding the respondent’s conduct purporting to sell the domain name suggests it has no legitimate use).

 

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

 

Registration and Use in Bad Faith

 

Complainant argues that Respondent registered the <tdameritrade.com> domain name in bad faith because Respondent is offering the domain name registration for sale.  In fact, Respondent passively held the disputed domain name until Complainant made the announcement of the merger with TD Waterhouse.  Anticipating that Complainant or its competitors would want the disputed domain name, Respondent developed its website to offer the domain name registration for sale.  The Panel holds that Respondent’s attempt to profit from the confusing similarity of Complainant’s mark to the disputed domain name by selling it is evidence of bad faith use and registration pursuant to Policy ¶ 4(b)(i).  See Bank of Am. Corp. v. Nw. Free Cmty. Access, FA 180704 (Nat. Arb. Forum Sept. 30, 2003) (“Respondent's general offer of the disputed domain name registration for sale establishes that the domain name was registered in bad faith under Policy ¶ 4(b)(i).”); see also Educ. Testing Serv. v. TOEFL, D2000-0044 (WIPO Mar. 16, 2000) (finding that a general offer of sale combined with no legitimate use of the domain name constitutes registration and use in bad faith).

 

Moreover, Complainant argues that Respondent’s passive holding of the domain name for almost two years provides further evidence of Respondent’s bad faith in registering the domain name.  Because Respondent has not provided this Panel with any evidence that would suggest that Respondent is holding on to the disputed domain name for any non-infringing purposes, the Panel finds that Respondent’s prior passive holding of the <tdameritrade.com> domain name constitutes bad faith registration and use under Policy ¶ 4(a)(iii).  See Mondich v. Brown, D2000-0004 (WIPO Feb. 16, 2000) (holding that the respondent’s failure to develop its website in a two year period raises the inference of registration in bad faith); see also DCI S.A. v. Link Commercial Corp., D2000-1232 (WIPO Dec. 7, 2000) (concluding that the respondent’s passive holding of the domain name satisfies the requirement of ¶ 4(a)(iii) of the Policy); see also Alitalia –Linee Aeree Italiane S.p.A v. Colour Digital, D2000-1260 (WIPO Nov. 23, 2000) (finding bad faith where the respondent made no use of the domain name in question and there are no other indications that the respondent could have registered and used the domain name in question for any non-infringing purpose).

 

Therefore, 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 <tdameritrade.com> domain name be TRANSFERRED from Respondent to Complainant.

 

 

 

 

 

John J. Upchurch, Panelist

Dated: August 1, 2005

 

 

 

 

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