National Arbitration Forum

 

DECISION

 

AAA Employment, Inc. v. Ahearn and Associates

Claim Number: FA0507000520670

 

PARTIES

Complainant, AAA Employment, Inc. (“Complainant”), is represented by David R. Ellis, 3233 East Bay Drive, Suite 101, Largo, FL 33771.  Respondent, Ahearn and Associates (“Respondent”), is represented by David J. Sockol of Sockol & Associates P.A., 111 Second Avenue Northeast, Suite 1401, St. Petersburg, FL 33701.

 

REGISTRAR AND DISPUTED DOMAIN NAME

The domain name at issue is <aaaemployment.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.

 

The Honorable Neil Anthony Brown QC as Panelist.

 

PROCEDURAL HISTORY

Complainant submitted a Complaint to the National Arbitration Forum electronically on July 20, 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 <aaaemployment.com> is registered with Network Solutions, Inc. and that 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@aaaemployment.com by e-mail.

 

A timely Response was received and determined to be complete on August 15, 2005.

 

A timely Additional Submission was received from Complainant on August 17, 2005 and has been accepted.

 

On August 19, 2005, pursuant to Complainant’s request to have the dispute decided by a single-member Panel, the National Arbitration Forum appointed the Honorable Neil Anthony Brown QC as Panelist.

 

RELIEF SOUGHT

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

 

PARTIES’ CONTENTIONS

A.     Complainant

 

Complainant contends that the contentious domain name should be transferred to it because it can make out each of the three criteria prescribed under paragraphs 4(a)(i) and 4(a)(iii) of the Policy. It maintains, first, that the domain name <aaaemployment.com> is identical or confusingly similar to Complainant’s two service marks registered with the United States Patent and Trademark Office (“USPTO”), namely AAA EMPLOYMENT and AAA EMPLOYMENT and Design. It contends that this is so because the domain name consists of the entirety of its mark and that the confusion comes about because Respondent is using the domain name to promote identical services to those of Complainant and is trading off Complainant’s goodwill.

 

Complainant then contends that Respondent has no rights or legitimate interests in the domain name, as it never had the right to register the domain name. It was only permitted to use Complainant’s marks as a franchisee and the franchise agreement has now come to an end.

 

Thirdly, Complainant contends that the domain name was registered and is being used in bad faith, for Respondent has been using it to attract customers by causing confusion with Complainant as to its affiliation with Respondent’s site and the services offered on it.

  

In support of its application, Complainant has tendered extracts of the USPTO registration of the two service marks, copies of the franchise agreement and supporting documents, a letter purporting to terminate the franchise agreement, and a cease and desist letter.

 

B.     Respondent

 

Respondent concedes that the domain name is very similar to Complainant’s service mark, but maintains that it has rights and legitimate interests in the domain name, as before notice of the dispute it registered the domain name in connection with its business.

 

Respondent also says that it is commonly known by the domain name and is making a legitimate fair use of the name, because it is not trading off Complainant’s goodwill, misleading anyone, or attempting to divert Complainant’s customers its way. In any event, it argues, the terms “aaa” and “aaa employment” in the domain name are generic terms, common terms, and widely-used expressions that can legitimately be registered as domain names on a “first-come first-serve” basis. Moreover, these are expressions that are not exclusively associated with Complainant’s business.

 

Respondent also denies that it has registered or used the domain name in bad faith because the facts do not bring it within any of the criteria for determining bad faith under the Policy. Finally, it contends it has operated as a business and used the domain name well prior to the dispute, that it has not converted a famous mark, and that Complainant’s claims are barred by waiver, estoppel and/or laches.

 

C.     Additional Submissions

 

Complainant filed an Additional Submission in which it asserts again that Respondent did not have right to register the domain name and has had no right to use the name “AAA Employment” at all since the termination of the franchise agreement. It also makes a new submission to the effect that it is not asserting an exclusive right to use any generic or common terms; its claim is limited to names that incorporate the name “AAA Employment,” which is its registered service mark, the use of those names in connection with the services for which they were registered, and the domain name incorporating Complainant’s marks.

 

FINDINGS

Complainant, “AAA Employment Inc.,” provides employment agency services and has done so under that name since 1957. It operates, at least in part, by offering franchises. The company is owned by John V. DeHaven, who does business under the name “AAA Employment.”

 

Mr. DeHaven is the owner of two Service Marks registered with the USPTO, which are:

 

1.      AAA EMPLOYMENT, Reg. No.1,563,711 issued on October 31,1989; and

2.      AAA EMPLOYMENT and Design, Reg. No. 1,564,986 issued on November 7,1989. The design incorporates three overlapping capital letters “A,” together with the word “employment.”

 

The first mark has been used since 1957 and the second mark has been used since 1971.

 

On February 10, 1991, Complainant, under its former name “AAA Employment Franchise Inc.,” entered into a Franchise Agreement with Michele Ahearn and/or Chele Corporation under which it franchised its distinctive form of employment agency to them. The agreement was for a term of ten years unless terminated or renewed. It was in fact renewed and was then terminated by notice on April 9, 2003.

 

The agreement allowed the franchisees to operate an AAA Employment business and to use certain trade and service marks including “AAA Employment.” However, the agreement also provided in Clause 6.1 that the franchisees’ use of the marks and any goodwill established by their use inured exclusively to Complainant and that the agreement did not confer on the franchisees any goodwill or other interests in the marks.

 

The franchisees also agreed in Clause 6.2 not to use the marks in any manner that Complainant had not authorised in writing.

 

The franchisees also agreed in Clause 16.2 that if the agreement were terminated they would not use the marks at all and would not use any mark or symbol suggesting an association with Complainant.

 

On July 25, 1997 Respondent registered the domain name <aaaemployment.com> in the name “Ahearn And Associates.” The Administrative contact under that registration is Ahearn And Associates and the Billing Contact is Michele Ahern (sic). Having regard to the totality of the evidence and submissions, the Panel finds that Respondent is an associate of the franchisees, Michele Ahearn and Chele Corporation, and assumes their rights and obligations under the franchise agreement.

 

The franchise agreement came to an end pursuant to a notice in writing dated April 9, 2001, addressed to Michele Ahearn, AAA Employment, headed “RE: AAA Employment Inc. Termination of Franchise Agreement” and served by Complainant on Respondent.

 

On May 6, 2005 Complainant’s attorney sent a letter to Respondent’s attorney calling on Respondent to cease and desist its registration and operation of the website under the contentious domain name and to transfer the name to Complainant. Respondent has failed to comply with those demands and has maintained its rights to the name.

 

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 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;

(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

 

The Panel finds that the <aaaemployment.com> domain name is identical to the first of the service marks referred to above, namely AAA Employment, which is covered by Registration Number 1,563,711. This is so, for the domain name incorporates the entirety of the service mark. It has been decided on many occasions that for the purpose of making a determination of identicality or confusing similarity, suffixes such as “.com” are to be disregarded. See Foundation Le Corbusier v. Mercado M., D2004‑0723 (WIPO Nov. 11, 2004); see also Gerd Petrik v. Carpela, D2004‑1043 (WIPO Mar. 4, 2005).

 

The Panel also finds that the <aaaemployment.com> domain name is virtually identical and is certainly confusingly similar to the second of the service marks, namely AAA EMPLOYMENT and Design, which is covered by Registration Number 1,564,986. This is so because the domain name incorporates the entirety of the service mark and the design is of overlapping capital letters “A” with the word “employment” under them. The test in such cases is whether the substance of the domain name is similar to the substance of the trade or service mark and in this case it clearly is.

 

The Panel also accepts that the two service marks are marks in which Complainant, in the words of the Policy, “has rights.” The evidence shows that the service marks were registered by John V. Dehaven and that he, rather than Complainant, is the owner of the marks. The Policy, however, does not require Complainant to be the owner of the trade or service mark in question, but merely requires Complainant to have rights in the mark. Such a right, sufficient to found a claim under the Policy, may be the right of a licensee or indeed any other right recognized by the law. Such rights are well recognized by trademarks law and constitute “rights” within the meaning of paragraph 4(a)(i) of the Policy. Nor need the right be exclusive, for it often happens that trademarks are owned by a company that gives permission to subsidiaries or affiliates to use them or, as in the present case, by an individual who allows associated companies and individuals to use them. This is well established by DigiPoll Ltd v. Kumar, D2004-0939 (WIPO Feb. 3, 2005) and by American Civil Liberties Union of New Mexico v. Vilma Morales/e:bOOm, S.A., D2004-0473 (WIPO Aug. 23, 2004). The Panel notes that according to the registration, which is in evidence, Mr. Dehaven does business as AAA Employment and also that Complainant and its affiliates have been using the mark since 1957. In all the circumstances, it is reasonable to conclude that Complainant has acquired a license to use the service marks as an associate or affiliate of the owner of the marks and that it has rights in them sufficient to bring the Complaint and satisfy the first requirement.

 

Rights or Legitimate Interests

 

Although the onus of proof is on Complainant to prove its case on the balance of probabilities, it is now well established that if Complainant makes out a prima facie case under paragraph 4(a)(ii) of the Policy, the burden of proof shifts to Respondent to show 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).

 

The Panel finds that Complainant has made out a prima facie case on this issue. It has done this by:

 

(a)     submitting the franchise agreement which provides in Clause 6.1 that the franchisees use of the marks and any goodwill established by their use inures exclusively to Complainant and that the agreement does not confer any goodwill or other interests in the marks on the franchisees; in Clause 6.2, that the franchisees agree not to use the marks in any manner that Complainant had not authorised in writing; and in Clause 16.2 that if the agreement were terminated the franchisees would not use the mark or any symbol suggesting an association with Complainant ; and

 

(b)    stating on four occasions in its submissions that it, Complainant, had never given Respondent the right and Respondent never had the right to register or use the domain name.

 

That evidence establishes a prima facie case that (i) the franchisees and hence Respondent never had the right to register the service mark as a domain name; (ii) Complainant always retained the exclusive benefit of the service mark; (iii) the franchisees and Respondent could not use the mark unless authorized in writing; (iv) it was not to use the mark to suggest an association with Complainant when the agreement came to and that consequently; and (v) Respondent could not have any rights or legitimate interests in the domain name and that it never had such rights.

 

It is then necessary to see if Respondent has rebutted this prima facie case and shown that it does have rights or legitimate interests in the domain name.

 

By virtue of paragraph 4(c) of the Policy, it is open to a respondent to establish its rights or legitimate interests in the domain name by showing, inter alia, any of the following elements:

 

(i)       before any notice to you [Respondent] of the dispute, your use of, or demonstrable preparations to use, the domain name or a name corresponding to the domain name in connection with a bona fide offering of goods or services; or

 

(ii)      you [Respondent] (as an individual, business, or other organization) have been commonly known by the domain name, even if you have acquired no trademark or service mark rights; or

 

(iii)you [Respondent] are making a legitimate noncommercial or fair use of the domain name, without intent for commercial gain to misleadingly divert consumers or to tarnish the trademark or service mark at issue.

 

Respondent relies on all three of these paragraphs.

 

A Bona Fide Offering of Services?

 

The first allegation of Respondent to mount its rebuttal is that it registered and used the domain name “in connection with its business.” Although Respondent is alleging that it was using the domain name for a bona fide offering of services within the meaning of paragraph 4(c)(i), the Panel finds that Respondent has not brought itself within that provision. It certainly used the domain name in connection with its business, but its use was not bona fide. Complainant said four times in its materials (three times in the Complaint and once in the Additional Submission), that Respondent was “never” given the right to register or use the domain name and “never” had the right to register or use it, but Respondent did not reply to any of those allegations and did not adduce any evidence to show that it had permission to register the domain name. The onus was clearly on Respondent to reply to Complainant’s assertions and to prove that it had some right that justified registering the domain name and it did not attempt to do so or even allege that it had such permission from Complainant.

 

Clearly, UDRP proceedings are inappropriate proceedings for resolving disputes where there are disputed questions of fact and interpretation which will determine contractual liabilities and fiduciary responsibilities. See Latent Tech. Group, Inc. v. Fritchie, FA 95285 (Nat. Arb. Forum Sept. 1, 2000); see also Discover N. Eng. v. Avanti Group, Inc., FA 123886 (Nat. Arb. Forum Nov. 6, 2002).

 

But in the present case there is no dispute about the terms of the franchise agreement and no challenge has been made to the effect of the notice of termination. More importantly, Respondent has not responded to any of the four statements by Complainant to the effect that it had never given permission to Respondent to register the domain name. Respondent was obliged by Rule 5(b) of the Rules to “respond specifically to the statements and allegations contained in the complaint,” but on this issue it did not do so.  It simply ignored them. The Panel is therefore entitled by Rule 14(b) to draw whatever inferences it considers appropriate from that silence. The Panel draws the inference that there is in reality no evidence that Respondent was given permission to register the domain name in its own name for, if there were any such evidence, it would have been very easy to say what that evidence was. Accordingly, Respondent had no rights or interests in the domain name to justify its registration.

 

This view is consistent with UDRP decisions which have held that where a respondent is an authorized dealer in a complainant’s goods, that status gives it no right to misappropriate a trademark into a domain name in the absence of an express agreement permitting it to do so and that in the absence of such an agreement the dealer has no right to impugn the trademark in this way and hence has no “legitimate interest” in the domain name. See Allen-Edmonds Shoe Corp. v. Takin’Care of Bus., D2002-0799 (WIPO Oct. 10, 2002); see also Ullfrotte AB v. Bollnas Imps, D2000-1176 (WIPO Oct. 23, 2000). That situation is directly analogous to Respondent’s position in the present case and has been endorsed very recently in Produits Berger v. Romana Go, DPH 2005-0001 (WIPO July 7, 2005) and in Omyacolor S.A. v. Recep Tanisman-Emko Emaye A.S., D2005-0520 (WIPO Aug. 15, 2005).

 

There is no evidence in the present case of any such express agreement. Nor is there any evidence that the right to register and use the domain name came from any other source.

 

Moreover, the franchise agreement itself shows that Respondent only had the right to use Complainant’s service mark in accordance with the terms of the agreement. Whilst the franchise agreement was on foot, Respondent only had the right to use the mark when authorized in writing and, in any event, whatever use it made of the mark and the benefit of that use were exclusively for the benefit of Complainant. There is no evidence that Respondent agreed in writing to the service mark being used in a domain name and if there were any such writing it could easily have been produced.

 

Even if there was such evidence, that use was exclusively for the benefit of Complainant and could confer no rights in the domain name on Respondent. Clause 6.1 expressly provides that the agreement does not confer any interest in the marks on the franchisee. Consequently, it cannot confer any interests in the domain name that simply repeats the mark.

 

Furthermore, Clause 16.2 is quite specific and provides that when the franchise agreement came to an end, Respondent’s right to use the service mark also came to an end.

 

Accordingly, neither the registration of the domain name or its use since registration has created rights that Respondent may rely on. It follows that neither at the time of registration nor at any time since then has Respondent had any right to register or use a domain name incorporating Complainant’s service mark and hence no bona fide right to use Complainant’s service mark as a domain name.

 

It is also clear from the evidence that since the termination of the agreement, Respondent has in fact been using the mark as a domain name to attract customers and to promote its own business. The practical effect of this process is to divert Internet users away from Complainant’s business to the competing business conducted by Respondent and it can only be assumed that this has been done intentionally. Such conduct cannot be described as bona fide. Nor has it been accepted as bona fide by UDRP Panels. See Bank of Am. Corp. v. Nw. Free Cmty. Access, FA 180704 (Nat. Arb. Forum Sept. 30, 2003) (“Respondent's demonstrated intent to divert Internet users seeking Complainant's website to a website of Respondent and for Respondent's benefit is not a bona fide offering of goods or services under Policy ¶ 4(c)(i) and it is not a legitimate noncommercial or fair use under Policy ¶ 4(c)(iii).”); 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 Complainant, was not a bona fide offering of goods or services).

 

Accordingly, Respondent has not been able to bring itself within the provisions of paragraph 4(c)(i) of the Policy to rebut the prima facie case against it.

 

Known by the Domain Name?

 

Respondent then relies on Policy ¶ 4(c)(ii) and says that it has been commonly known by the domain name. Respondent’s case on this issue, however, is also seriously deficient. It asserts that it has been commonly known by the domain name but gives no direct evidence to this effect. Such evidence must be readily available from documents, letters, invoices and other records. It was for that reason that it was said by the Panel in Banco Espírito Santo S.A. v. Bancovic, D2004-0890 (WIPO Dec. 16, 2004),It is not sufficient for Respondent to merely assert that he or she has been commonly known by the domain name in order to show a legitimate interest. Respondent must produce evidence in order to show that he or she has been ‘commonly known’ by the domain name.” See also Red Bull GmbH v. Gutch, D2000-0766 (WIPO Sept. 21, 2000); DIMC, Inc. & The Sherwin-Williams Company v. Quang Phan, D2000-1519 (WIPO Feb. 20, 2001).

 

Nor is it sufficient for Respondent merely to rely on the registration of the domain name “in connection with its business,” as it has done. It has been expressly held that “[T]he registration and use of the disputed domain name, in connection with Respondent’s website, does not by itself support a conclusion that Respondent was commonly known by the domain name.” Yakka Pty Ltd v. Steinberg, D2004-0502 (WIPO Sept. 3, 2004).

 

No doubt, at various times and even prior to the registration of the domain name, Respondent would have been known to some people to be operating an AAA Employment franchise. However, that is entirely different from being known by that name and even further from being commonly known by that name. It must be shown by evidence that Respondent was commonly known by the domain name at the time of registration of the domain name. See RMO, Inc. v Burbidge, FA 96949 (Nat. Arb. Forum May 16, 2001). There is no evidence in this case to that effect.

 

Moreover, it is inherently unlikely that Respondent was ever commonly known as “aaaemployment.com” or “AAA Employment” when the evidence shows that the names of the franchisees were Michele Ahearn and Chele Corporation and that their interests have long been represented by Ahearn and Associates and are represented as such today. The evidence tends to show that Respondent is commonly known as “Ahearn And Associates.”

 

Accordingly, Respondent has not established that it has been commonly known by the domain name within the meaning of Policy ¶ 4(c)(ii).

 

Legitimate Fair Use?

 

Respondent then alleges that it is making a legitimate fair use of the domain name without intending to misleadingly divert consumers or to tarnish the service mark. Respondent concedes that it is using the domain name for commercial gain. Accordingly, to bring itself within Policy ¶ 4(c)(iii), it must show that, in the course of making what it claims is a legitimate or fair use of the domain name, it is not intending to misleadingly divert consumers. On the evidence, the Panel draws the conclusion that Respondent’s intention has been, first, to attract consumers who are using the Internet to find AAA Employment and, secondly, to divert them to Ahearn And Associates Partners. That process is clearly the process of diverting consumers from the company they wish to locate to another company, namely Respondent. This process is also a misleading one.  In essence, the implication is that by typing the domain name <aaaemployment.com> into their computers, consumers will find their way to AAA Employment, which they will not. This implication is reinforced by two facts. The first is that there is no disclaimer on Respondent’s website that it has no connection with AAA Employment. The second is that the structure of the website, with a heavy emphasis on a series of three capital letters “A,” which are the only items displayed when the site is first located and which are used as a theme throughout the site, is a very clear representation to consumers that they have actually arrived at the website of AAA Employment.

 

Other Matters.

 

In addition to relying on the specific circumstances set out in paragraph 4(c) of the Policy, Respondent has relied on other matters, as it is entitled to do, to satisfy the requirement that it has rights or legitimate interests in the domain name.

 

The first is the allegation that “aaa employment” is a generic phrase that has been diluted, as it is no longer associated with Complainant. It is clear that in an appropriate case, the use of a generic term may show that the interest that a respondent has in using a domain name is legitimate. See Rollerblade, Inc. v. CBNO, D2000-00427 (WIPO Aug. 24, 2000); see also Pet Warehouse v. Pets.Com, Inc., D2000-0105 (WIPO Apr. 13, 2000); Successful Money Mgmnt. Seminars, Inc. v Direct Mail Express, FA 96457 (Nat. Arb. Forum Mar. 7, 2001). In an appropriate case and subject to all the circumstances, a generic word may be registered as a domain name even when the same word has been the subject of a trademark registration. See Zero Int’l Holding v. Beyonet Servs., D2000-0161 (WIPO May 12, 2000); see also Energy Source Inc. v. Your Energy Source, FA 96364 (Nat. Arb. Forum Feb.19, 2001). So Respondent is right about the general principle involved.

 

That general principle, however, cannot be applied in the present case as the phrase “aaa employment” is not a generic phrase and is clearly identifiable as a business name and in particular as Complainant’s business name.

 

Likewise, Respondent’s claim that the term “aaa” is also generic must fail, for the term is not generic and in any event Complainant is not asserting rights in the term “aaa,” but in the name “AAA Employment” and the domain name embodying that name.

 

Complainant makes a similar argument with respect to the notion that the two words “aaa” and “employment” are common words and hence able to be registered as domain names on a “first- come first -serve basis.” This is true of some common words, but the words in combination, which is the only use in which Complainant asserts its rights, do not create a common word, but Complainant’s business name and a name for which it has two service mark registrations.

 

Respondent’s conclusion from these propositions is that “[T]he phrase ‘aaaemployment’ is not exclusively associated with Complainant’s business.” That submission also overlooks the fact that the phrase is the subject of two service mark registrations, which do in fact give Complainant the exclusive right to use the mark, although only with respect to “employment agency services,” that being the ambit of the registration. The Panel must confine itself to the evidence submitted and there is no evidence showing that that the phrase “aaa employment” is not exclusively associated with Complainant’s business.

 

Registration and Use in Bad Faith

 

Complainant must prove on the balance of probabilities both that the domain name was registered in bad faith and that it is being used in bad faith. See Telstra Corp. v. Nuclear Marshmallows, D2000‑0003 (WIPO Feb. 18, 2000).

 

Further guidance on how to implement this requirement is to be found in paragraph 4(b) of the Policy, which sets out four circumstances, any one of which shall be evidence of the registration and use of a domain name in bad faith, although other circumstances may also be relied on. One of those circumstances is set out in paragraph 4(b)(iv):

 

(iv)       by using the domain name, respondent has intentionally attempted to attract, for commercial gain, Internet users to respondent’s website or other on‑line location, by creating a likelihood of confusion with the complainant’s mark as to the source, sponsorship, affiliation, or endorsement of the respondent’s website or location or of a product or service on the site or location.”

 

The Panel finds that Respondent’s actions constitute bad faith in both respects within the meaning of Policy ¶ 4(b)(iv). That being so, one element of paragraph 4(b) is made out, which is sufficient to meet the requirement of bad faith. The reasons why that element has been made out are as follows.

 

First, Respondent is undoubtedly attempting to attract Internet users to its website and for commercial gain. Secondly, by using Complainant’s service marks in the domain name it is creating a likelihood of confusion with those marks. That is so because Respondent is attracting consumers drawn to the “AAA Employment” name by using that name when Respondent’s business name is an entirely different one. Thirdly, the confusion that is likely to be created is confusion about the affiliation of the employment agency services on Respondent’s website, and as to whether they are Complainant’s services or in some way associated with it. Clearly, consumers who are using the domain name are there because they are seeking the employment agency services of Complainant; when they see employment agency services being promoted on Respondent’s website they will assume those services are Complainant’s services when in fact they are not. That assumption must be enhanced when the consumer finds the website’s theme is a triple A illustration, that being the essence of Complainant’s service mark, the design of its logo and its long and well- established business name. Indeed, when the consumer sees nothing but “AAA” on the screen and then that words such as “contAct” and “trAck record” are printed in that way, they must feel convinced that the site is the site of AAA Employment. Clearly this is a deliberate attempt to promote that notion in the mind of the consumer and hence to trade off its goodwill.

 

The Panel finds that these circumstances create confusion with Complainant’s service marks as to the sponsorship, affiliation and endorsement of Respondent’s site and the services on it and that Respondent must be taken to have intended this confusion and to have been doing it for commercial gain. The facts therefore come within paragraph 4(b)(iv) of the Policy and constitute bad faith registration and use.  Such a conclusion has often been reached by UDRP Panels on analogous facts and even when a respondent was formerly a licensee of a complainant. See Identigene, Inc. v. Genetest Laboritories, D2000-1100 (WIPO Nov. 30, 2000); see also MathForum.co v. Weiguang Huang, D2000-0743 (WIPO Aug. 17, 2000); IndyMac Bank v. F.S.B., FA 190366 (Nat. Arb. Forum Oct. 6, 2003).

 

The Panel therefore rejects the averments in paragraph 3(c)(iv) of the Response.

 

The averment in paragraph 3(c)(v) of the Response is to the same effect. It is true that Respondent “operated as a business and used the domain name well prior to the dispute.” However, it operated the business in which it used the name “AAA Employment” subject to the franchise agreement. The Panel has already ruled that the franchise agreement did not give Respondent the right to register or use the domain name. 

 

In paragraph 3(c)(vi) Respondent avers that it has not converted a famous mark. The Panel has already ruled that although evidence on that subject may well have been available, none of it was produced. The evidence is that Complainant’s service mark is registered and been in use since 1957.

 

In paragraph 3(c)(vii) of the Response, Respondent alleges that Complainant’s claims are barred by doctrines of waiver, estoppel and/or laches. No evidence has been adduced to support any of those claims even if such defences were available under the Policy. The question in UDRP proceedings is whether the facts come within the terms of the Policy so as to justify transfer or cancellation of a domain name and the conclusion of the Panel in the present case is that they do.

 

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

 

 

 

 

The Honorable Neil Anthony Brown QC, Panelist
Dated: September 6, 2005

 

 

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