national arbitration forum

 

DECISION

 

Telebrands Corporation v. Khurram Shahzad c/o Paranox Technologies

Claim Number:  FA0507000508528

 

PARTIES

Complainant, Telebrands Corporation (“Complainant”), is represented by Peter D. Murray of Cooper & Dunham LLP, 1185 Avenue of the Americas, New York, NY 10036.  Respondent is Khurram Shahzad c/o Paranox Technologies (“Respondent”), Suit#1, Rehmat Plaza, F-8/3, Islamabad Punjab PK 46000.

 

REGISTRAR AND DISPUTED DOMAIN NAME

The domain name at issue is <telebrandsmiddleeast.com>, registered with Onlinenic, 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.

 

Hon. Ralph Yachnin as Panelist.

 

PROCEDURAL HISTORY

Complainant submitted a Complaint to the National Arbitration Forum electronically on July 1, 2005; the National Arbitration Forum received a hard copy of the Complaint on July 6, 2005.

 

On July 5, 2005, Onlinenic, Inc. confirmed by e-mail to the National Arbitration Forum that the domain name <telebrandsmiddleeast.com> is registered with Onlinenic, Inc. and that Respondent is the current registrant of the name.  Onlinenic, Inc. has verified that Respondent is bound by the Onlinenic, 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 July 7, 2005, a Notification of Complaint and Commencement of Administrative Proceeding (the "Commencement Notification"), setting a deadline of July 27, 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@telebrandsmiddleeast.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 August 2, 2005, pursuant to Complainant's request to have the dispute decided by a single-member Panel, the National Arbitration Forum appointed Hon. Ralph Yachnin 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 <telebrandsmiddleeast.com> domain name is confusingly similar to Complainant’s TELEBRANDS mark.

 

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

 

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

 

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

 

FINDINGS

Complainant, Telebrands Corporation, markets and sells a wide variety of consumer products, including exercise equipment, personal grooming products, and household products.  Complainant’s products have included the famous Safety Can Opener, Static Duster, and Moving Men Furniture Sliders.  Complainant sells its products through direct response advertising and through national retail stores such as Target, Wal-Mart, Bed, Bath and Beyond, and Walgreen’s.  Complainant’s products are sold in the “As Seen on TV” product category.

 

Complainant spends a large amount of money marketing its products on television for direct response orders and to create product awareness among consumers, who later purchase the products in retail stores.  Complainant markets its products throughout the world and licenses its television infomercials to distributors worldwide.

 

Complainant began operating under the mark TELEBRANDS in 1991 and holds a registration for the mark with the United States Patent and Trademark Office (“USPTO”) (Reg. No. 1,811,677 issued December 14, 1993).  Moreover, Complainant’s mark is registered in twenty-three countries.  Complainant also sells its products via the Internet at <www.telebrands.com>.

 

Respondent registered the <telebrandsmiddleeast.com> domain name on October 8, 2004.  Respondent is using the website as a homepage for telemarketing in Duabi and other countries.  The homepage offers for sale unauthorized versions of Complainant’s products.

 

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

 

Complainant’s registration for its TELEBRANDS mark with the USPTO is sufficient to establish 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.”).  Because Respondent failed to submit a response, Complainant’s presumption of rights is undisputed.  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 finds that Complainant has established rights for purposes of Policy ¶ 4(a)(i). 

 

Complainant argues that Respondent’s <telebrandsmiddleeast.com> domain name is confusingly similar to its TELEBRANDS mark.  The disputed domain name incorporates Complainant’s mark in its entirety and adds the geographic phrase “Middle East.”  The Panel holds that the addition of a geographic phrase to Complainant’s mark is not sufficient to distinguish the domain name from the mark.  See VeriSign, Inc. v. Tandon, D2000-1216 (WIPO Nov. 16, 2000) (finding confusing similarity between the complainant’s VERISIGN mark and the <verisignindia.com> and <verisignindia.net> domain names where the respondent added the word “India” to the complainant’s mark); see also InfoSpace, Inc. v. domains Asia Ventures, FA 198909 (Nat. Arb. Forum Nov. 10, 2003) (“Internet users may believe that the website located at the <dogpileuk.com> domain name is run by a United Kingdom branch or affiliate of Complainant. . . . Consequently, the Panel finds that the geographic identifier “uk” does not significantly distinguish Respondent’s domain name from Complainant’s mark under Policy ¶ 4(a)(ii).”).  Thus, the Panel concludes that the <telebrandsmiddleeast.com> domain name is confusingly similar to Complainant’s mark. 

 

Rights or Legitimate Interests

 

Complainant asserts that Respondent does not have rights or legitimate interests in the <telebrandsmiddleeast.com> domain name.  Such an assertion establishes a prima facie case and shifts the burden to Respondent to demonstrate that it does have rights or legitimate interests in the domain name.  See Compagnie Generale des Matieres Nucleaires v. Greenpeace Int’l, D2001-0376 (WIPO May 14, 2001):

 

Proving that the Respondent has no rights or legitimate interests in respect of the Domain Name requires the Complainant to prove a negative. For the purposes of this sub paragraph, however, it is sufficient for the Complainant to show a prima facie case and the burden of proof is then shifted on to the shoulders of Respondent.  In those circumstances, the common approach is for respondents to seek to bring themselves within one of the examples of paragraph 4(c) or put forward some other reason why they can fairly be said to have a relevant right or legitimate interests in respect of the domain name in question.

 

Id.; see also 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”).  The Panel will analyze whether Respondent could meet its burden of establishing rights or legitimate interests for purposes of Policy ¶ 4(a)(ii).

 

Complainant argues that Respondent is using the disputed domain name to divert users to an Internet site that features counterfeit products that directly compete with Complainant’s products and services.  Because Respondent did not submit a response, the Panel must accept Complainant’s description of Respondent’s website as accurate.  See Talk City, Inc. v. Robertson, D2000-0009 (WIPO Feb. 29, 2000) (“Given Respondent’s failure to submit a substantive answer in a timely fashion, the Panel accepts as true all of the allegations of the complaint.”).  The Panel holds that selling such products is neither a bona fide offering of goods or services nor a legitimate noncommercial or fair use under Policy ¶¶ 4(c)(i) and (iii).  See Ultimate Elecs., Inc. v. Nichols, FA 195683 (Nat. Arb. Forum Oct. 27, 2003) (finding that the respondent's “use of the domain name (and Complainant’s mark) to sell products in competition with Complainant demonstrates neither a bona fide offering of goods or services nor a legitimate noncommercial or fair use of the name”); see also Gardens Alive, Inc. v. D&S Linx, FA 203126 (Nat. Arb. Forum Nov. 20, 2003) (finding that the respondent used a domain name for commercial benefit by diverting Internet users to a website that sold goods and services similar to those offered by the complainant and thus, was not using the name in connection with a bona fide offering of goods or services nor a legitimate noncommercial or fair use).  Therefore, the Panel concludes that Respondent does not have rights or legitimate interests in the disputed domain name pursuant to Policy ¶ 4(c)(i) or (iii). 

 

Complainant further argues that Respondent is not commonly known by the disputed domain name.  In fact, Respondent’s WHOIS information indicates that Respondent is known as “Khurram Shahzad.”  Respondent’s failure to submit a response leads this Panel to accept as true Complainant’s allegations and evidence that Respondent is not commonly known by the disputed domain name.  See Vanguard Group, Inc. v. Collazo, FA 349074 (Nat. Arb. Forsm 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”).  Thus, the Panel concludes that Respondent is not commonly known by the disputed domain name and, therefore, has not established rights or legitimate interests for purposes of Policy ¶ 4(c)(ii).  See Am. W. Airlines, Inc. v. Paik, FA 206396 (Nat. Arb. Forum Dec. 22, 2003) (“Respondent has registered the domain name under the name ‘Ilyoup Paik a/k/a David Sanders.’  Given the WHOIS domain name registration information, Respondent is not commonly known by the [<awvacations.com>] domain name.”); see also Tercent Inc. v. Lee Yi, FA 139720 (Nat. Arb. Forum Feb. 10, 2003) (stating “nothing in Respondent’s WHOIS information implies that Respondent is ‘commonly known by’ the disputed domain name” as one factor in determining that Policy ¶ 4(c)(ii) does not apply).

 

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

 

Registration and Use in Bad Faith

 

Complainant demonstrates that Respondent registered and is using the <telebrandsmiddleeast.com> domain name in bad faith because Respondent’s website offers infringing goods that compete with Complainant’s.  The Panel holds that capitalizing on Complainant’s mark to offer competing goods in an effort to harm Complainant’s business constitutes bad faith registration and use pursuant to Policy ¶ 4(b)(iii).  See Lambros v. Brown, FA 198963 (Nat. Arb. Forum Nov. 19, 2003) (finding that the respondent registered a domain name primarily to disrupt its competitor when it sold similar goods as those offered by the complainant); see also S. Exposure v. S. Exposure, Inc., FA 94864 (Nat. Arb. Forum July 18, 2000) (finding the respondent acted in bad faith by attracting Internet users to a website that competes with the complainant’s business). 

 

Respondent is using the confusingly similar <telebrandsmiddleeast.com> domain name to divert Internet users to Respondent’s commercial website in competition with Complainant.  Furthermore, Respondent is unfairly and opportunistically benefiting from the goodwill associated with Complainant’s TELEBRANDS mark to profit from imitation products not manufactured by Complainant.  Thus, the Panel finds that Respondent’s practice of diversion to create a likelihood of confusion for commercial gain is evidence of bad faith use and registration pursuant to Policy ¶ 4(b)(iv).  See Fossil, Inc. v. NAS, FA 92525 (Nat. Arb. Forum Feb. 23, 2000) (transferring the <fossilwatch.com> domain name from the respondent, a watch dealer not otherwise authorized to sell the complainant’s goods, to the complainant); see Perot Sys. Corp. v. Perot.net, FA 95312 (Nat. Arb. Forum Aug. 29, 2000) (finding bad faith where the domain name in question is obviously connected with the complainant’s well-known marks, thus creating a likelihood of confusion strictly for commercial gain); see also Luck's Music Library v. Stellar Artist Mgmt., FA 95650 (Nat. Arb. Forum Oct. 30, 2000) (finding that the respondent engaged in bad faith use and registration by using domain names that were identical or confusingly similar to the complainant’s mark to redirect users to a website that offered services similar to those offered by the complainant).

 

The Panel finds that Complainant 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 <telebrandsmiddleeast.com> domain name be TRANSFERRED from Respondent to Complainant.

 

 

 

 

Hon. Ralph Yachnin, Panelist

Justice, Supreme Court, NY (Ret.)

 

Dated:  August 12, 2005

 

National Arbitration Forum