National Arbitration Forum

 

DECISION

 

Expedia, Inc. v Compaid

Claim Number: FA0507000520654

 

PARTIES

Complainant is Expedia, Inc. (“Complainant”), represented by Sanjiv D. Sarwate and Kristen S. Knecht, Esq., of Pattishall, McAuliffe, Newbury, Hilliard & Geraldson, LLP, 311 South Wacker Drive, Suite 5000, Chicago, IL 60606.  Respondent is Compaid (“Respondent”), Warrington, Cheshire WA4 4ENWA4, GB, and Michael W. Mansfield, Urb Les Fonts 85, Benitachell, 03726,(Alicante), Spain, the domain name owner .

 

REGISTRAR AND DISPUTED DOMAIN NAMES 

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

 

Richard DiSalle is the Panelist.

 

PROCEDURAL HISTORY

Complainant submitted a Complaint to the National Arbitration Forum electronically on July 21, 2005; the National Arbitration Forum received a hard copy of the Complaint on July 22, 2005.

 

On July 22, 2005, Network Solutions, Inc. confirmed by e-mail to the National Arbitration Forum that the domain name <expediate.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 July 26, 2005, a Notification of Complaint and Commencement of Administrative Proceeding (the “Commencement Notification”), setting a deadline of August 15, 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@expediate.com by e-mail.

 

A timely Response was received and determined to be complete on August 5, 2005.

 

A timely Additional Submission was received from Respondent and determined to be complete on August 9, 2005.

 

A timely Additional Submission was received from Complainant and determined to be complete on August 10, 2005.  On August 16, 2005, pursuant to Complainant’s request to have the dispute decided by a single-member Panel, the National Arbitration Forum appointed  Richard DiSalle as Panelist.

 

RELIEF SOUGHT

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

 

PARTIES’ CONTENTIONS

A. Complainant

 

Long prior to the Respondent’s registration of the Infringing Domain Name, Expedia adopted, and has continuously used since that adoption, the inherently distinctive EXPEDIA mark for the EXPEDIA goods and services described above, in the United States and around the world.  Expedia does business primarily over the Internet and is the most successful travel service on the Internet.  Expedia has invested many millions of dollars in advertising and promoting the EXPEDIA mark and has sold or licensed many hundreds of millions of dollars in its EXPEDIA goods and services under the EXPEDIA mark, including entertainment and travel-related goods and services.  In addition to its inherent distinctiveness, and as a result of Expedia’s extensive marketing efforts, substantial sales and the resulting success of its EXPEDIA goods and services, the EXPEDIA mark has become famous and represents extraordinarily valuable goodwill owned by Expedia.  Furthermore, Expedia offers numerous travel-related services in connection with Europe, including Great Britain, where Respondent is located, and Spain, where Respondent’s administrative contact is located.

 

The Infringing Domain Name is confusingly similar to the EXPEDIA mark because the Infringing Domain Name incorporates the entirety of Expedia’s EXPEDIA mark.

 

Respondent is not known by the EXPEDIA mark and has not acquired any trademark or service mark rights in the EXPEDIA mark. 

 

Expedia has not licensed or otherwise permitted Respondent to use the EXPEDIA mark or to apply for or use any domain name incorporating the mark.  Any rights Respondent might have had to use the EXPEDIA mark did not exist at the time Respondent registered the Infringing Domain Name and were later terminated when Respondent’s affiliate status was ended because of Respondent’s infringing use of the EXPEDIA mark on its web pages.

 

B. Respondent

Expedia registered their domain name on November 25, 1995 (Expedia, Inc v. Venta, D2001-1222 (WIPO Dec. 19, 2001)).  Expedia Travel did not commence until November 2000.  The EXPEDIA.COM service mark was registered in November 2000 (Expedia, Inc. v. Pennella, D2001-1416 (WIPO Mar. 14, 2002)).  Expedia, Inc. v. Venta establishes that they did not possess a web travel reservation business until November 21, 2000.  Prior to this date they were exclusively involved in software, user guides and clothing.

 

The <expediate.com> domain name was first registered on December 30, 1998.  From the outset, the business has dealt with information technology and publishing.  The information technology and publishing business has exclusively and continuously used this website domain name, <expediate.com>.

 

Expedia was created and publicly hosted with msn.com, until November 21, 2000, see Appendix B.  This means that it was not generally known or commonly accessible as a high level domain name in its own right as Expedia.com until this date.  Moreover it was initially entitled “Expedia Travel” (2 words) and did not become titled “Expedia.com” as an independent high level domain name until November 21, 2000.

 

Expediate.com hosts on behalf of its clients nineteen separate and active commercial websites and management of an additional nine web sites hosted separately but supported as part of the IT services proved by Expediate.com (trading as Nueva Vista Mediterraneo SL, formally Compaid Ltd in UK).  The owner of the domain name, <expediate.com> is the sole employee/director of the business and has used this web site as its only web contact. 

 

Expediate.com also offers remote backup services of website content for offsite backup and recovery for websites not hosted by Expediate.com as an additional client service.

 

That Expediate.com has acted throughout in good faith is demonstrated by the existence of continuous core business usage and an affiliation contract signed between the two enterprises on or about October 28, 2002.  The signing of this contract proves that Expedia.com accepted the existence of Expediate.com and indeed benefited, financially and perhaps otherwise, from the links which it knowingly and willingly established, providing supporting graphics and trademarks. That Expedia.com latter terminated unilaterally this arrangement can in no way be admitted as proof that Compaid acted in bad faith. 

 

C. Complainants Additional Submission

Respondent’s suggestion that his use of <expediate.com> occurred prior to the use of EXPEDIA by Expedia and its predecessor is contradicted by the materials that Respondent attached as Appendices B and E to his Response.  Accepting these materials as true and accurate, both demonstrate use of the EXPEDIA mark in connection with travel-related services by Microsoft Corporation, Expedia’s predecessor, at least as early as 1996, i.e. before the January 30, 1998 date on which Respondent claims to have registered <expediate.com>.  Respondent’s claim that the business conducted under the EXPEDIA mark was limited to “software, user guides, and clothing” is contradicted by the very materials upon which it relies.

 

Expedia’s direct predecessor applied to register the EXPEDIA mark in the United States on April 9, 1996, and in the European Community on September 24, 1996.  The EXPEDIA mark was actually used in commerce at least as early as October 22, 1996.  (Complaint, Ex. E).  All of these dates are well prior to the January 30, 1998 date on which Respondent claims to have registered the Infringing Domain Name.

 

“Expediate” includes the EXPEDIA mark in its entirety.  The addition of “te” to the famous EXPEDIA mark does not sufficiently distinguish the Infringing Domain Name from Expedia’s mark, and the Infringing Domain Name is and remains confusingly similar to the famous EXPEDIA mark. 

 

Respondent’s arguments that he has rights or legitimate interests in the <expediate.com> domain name rely heavily, and inappropriately, on his participation in the Expedia Affiliate Program (“EAP”).  However, Respondent’s enrollment in the EAP does not constitute endorsement or approval by Expedia. 

 

Respondent accepted an agreement that Expedia could modify at its sole discretion by posting notice of any changes on the Expedia website.  (Response at Appendix C, ¶11.)  Continued participation in the EAP constituted acceptance of any such changes, including the prohibition on promoting competing travel agencies.  Thus, Respondent’s protest that he “never signed” the agreement attached to the Complaint is meaningless because Respondent continued participating in the EAP.

 

D. Respondents Additional Submission

The whole case for the priority of Expedia’s name over Expediate’s comes down to their filing for registration on February 10, 1998, in a completely different line of activity, i.e. balls, coasters, cards, vests, wrist bands, pencils, greeting cards, books, etc. to that of Expediate.  It is questionable whether the weight of their argument is really augmented by the addition of this load of balls and vests.

 

The affiliation contract signed by Respondent and Expedia permitted Respondent to place the logos of Expedia’s competitors on its website, a fact which can be proved by the simple expedient of reading the original contract (submitted by respondent) and comparing it with the document which Expedia has submitted to the arbitrators.

 

 

FINDINGS

The Domain name registered by Respondent is confusingly similar to a trademark or service mark in which Complainant has rights.

 

Respondent has no rights or legitimate interests in respect of the domain name.

 

The Domain name has been registered and is being used 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

Complainant has established rights in the EXPEDIA.COM mark through registration of the mark with the United States Patent and Trademark Office (“USPTO”) (Reg. No. 2,405,746 issued November 21, 2000).  See Men’s Warehouse, 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 Am. Online, Inc. v. Thomas P. Culver Enters., D2001-0564 (WIPO June 18, 2001) (finding that successful trademark registration with the USPTO creates a presumption of rights in a mark).

           

Complainant has established common law rights in the EXPEDIA.COM mark dating back to October 1996 in connection with travel agency services provided through EXPEDIA.COM’s websites.  Under Policy ¶ 4(a)(i), a complainant need not hold a registered trademark to establish rights in a mark.  Complainant has established common law rights in the mark because the mark has acquired secondary meaning as a source indicator for Complainant’s travel agency service business.  Thus, Complainant has demonstrated secondary meaning associated with the mark, and therefore, Complainant’s common law rights are sufficient for satisfying Policy ¶ 4(a)(i).  See SeekAmerica Networks Inc. v. Masood, D2000-0131 (WIPO Apr. 13, 2000) (finding that the Rules do not require that the complainant’s trademark or service mark be registered by a government authority or agency for such rights to exits); see also British Broad. Corp. v. Renteria, D2000-0050 (WIPO Mar. 23, 2000) (noting that the Policy “does not distinguish between registered and unregistered trademarks and service marks in the context of abusive registration of domain names” and applying the Policy to “unregistered trademarks and service marks); see also Keppel TatLee Bank v. Taylor, D2001-0168 (WIPO Mar. 28, 2001) (“[O]n account of long and substantial use of the said name [<keppelbank.com>] in connection with its banking business, it has acquired rights under the common law).

 

Respondent’s <expediate.com> domain name is confusingly similar to Complainant’s EXPEDIA.COM mark, as the domain name incorporates the mark entirely and merely adds the letters “te” to the mark.  Such a minor alteration to Complainant’s registered mark is insufficient to negate the confusingly similar aspects of Respondent’s domain name pursuant to Policy ¶ 4(a)(i).  See Reuters Ltd. V. Global Net 2000, Inc., D2000-0441 (WIPO July 13, 2000) (finding that a domain name which differs by only one letter from a trademark has a greater tendency to be confusingly similar to the trademark where the trademark is highly distinctive).

 

Rights or Legitimate Interests

Once Complainant makes a prima facie case for Policy ¶4(a)(ii), the burden shifts to Respondent to establish rights or 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 does not have 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 does not have rights or legitimate interests with respect to the domain, the burden shifts to the respondent to provide credible evidence that substantiates its claims of rights and legitimate interests in the domain name).

 

Respondent is using the <expediate.com> domain name to redirect Internet users to a website featuring links to travel services such as Travelocity and Lastminute.com that directly compete with Complainant’s business.  Respondent’s use of a domain name confusingly similar to Complainant’s EXPEDIA.COM mark to redirect Internet users to websites offering products and services in competition with Complainant’s business is not a use in connection with a bona fide offering of goods or services pursuant to Policy ¶4(c)(i), nor a legitimate noncommercial or fair use pursuant to Policy ¶4(c)(iii).  See Computerized Sec. Sys., Inc. v. Hu, FA 157321 (Nat. Arb. Forum June 23, 2003)(holding that the respondent’s appropriation of the complainant’s mark to market products that compete with the complainant’s goods does not constitute a bona fide offering of goods and services); 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).

 

Respondent is neither commonly known by the <expediate.com> domain name, nor authorized to register a domain name featuring any version of Complainant’s EXPEDIA.COM mark.  Thus, Respondent has not established rights or legitimate interests in the <expediate.com> domain name pursuant to Policy ¶4(c)(ii).  See Compagnie de Saint Gobain v. ComUnion Corp., D2000-0020 (WIPO Mar. 14, 2000) (finding no rights or legitimate interests where the respondent was not commonly known by the mark and never applied for a license or permission from the complainant to use the trademarked name).

 

Registration and Use in Bad Faith

Respondent is using the <expediate.com> domain name, which is confusingly similar to Complainant’s EXPEDIA.COM mark, to redirect Internet users to a website featuring links to travel services such as Travelocity and Lastminute.com that directly complete with Complainant’s business.  Such use constitutes disruption and is evidence of bad faith registration and use pursuant to Policy ¶4(b)(iii).  See 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); see also Puckett v. Miller, D2000-0297 (WIPO June 12, 2000) (finding that the respondent diverted business from the complainant to a competitor’s website in violation of Policy ¶4(b)(iii)).

Respondent commercially benefits when Internet users searching under Complainant’s mark are diverted to Respondent’s website.  Respondent is capitalizing on the confusing similarity of its domain name to benefit from the valuable goodwill that Complainant has established in its mark.  Thus, Respondent registered and used the domain name in bad faith under Policy ¶4(b)(iv).  See G.D. Searle & Co. v. Celebrex Drugstore, FA 123933 (Nat. Arb. Forum Nov. 21, 2002) (finding that the respondent registered and used the domain name in bad faith pursuant to Policy ¶4(b)(iv) because the respondent was using the confusingly similar domain name to attract Internet users to its commercial website); see also Am. Online, Inc. v. Tencent Comm. Corp., FA 93668 (Nat. Arb. Forum Mar. 21, 2000) (finding bad faith where the respondent registered and used an infringing domain name to attract users to a website sponsored by the respondent).

 

 

DECISION

The Complainant having established all three elements required under the ICANN Policy, the Panel concludes that relief shall be GRANTED.

 

Accordingly, it is Ordered that the <expediate.com> domain name be TRANSFERRED from Respondent to Complainant.

 

 

 

 

Richard DiSalle, Panelist
Dated: August 30, 2005

 

 

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