National Arbitration Forum

 

DECISION

 

Tejon Ranchcorp and Tejon Ranch Co. v. J & L Enterprises

Claim Number: FA0507000524749

 

PARTIES

Complainants are Tejon Ranchcorp and Tejon Ranch Co. (collectively, “Complainant”) represented by Michael S. Adler, of Gibson, Dunn & Crutcher LLP, 333 South Grand Avenue, Suite 4700, Los Angeles, CA 90071.  Respondent is J & L Enterprises (“Respondent”), P.O. Box 1510, Frazier Park, CA 93225.

 

REGISTRAR AND DISPUTED DOMAIN NAME

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

 

PANEL

The undersigned certify that they have acted independently and impartially and to the best of their knowledge they have no known conflict in serving as Panelist in this proceeding.

 

Barry Schreiber, Esq. Chair, Hon. Paul A. Dorf, (Ret), and Hon. Richard B. Wickersham, (Ret), Panelists.

 

PROCEDURAL HISTORY

Complainant submitted a Complaint to the National Arbitration Forum electronically on July 26, 2005; the National Arbitration Forum received a hard copy of the Complaint on July 29, 2005.

 

On July 29, 2005, Network Solutions, Inc. confirmed by e-mail to the National Arbitration Forum that the <tejonmountainvillage.com> domain name 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 August 3, 2005, a Notification of Complaint and Commencement of Administrative Proceeding (the “Commencement Notification”), setting a deadline of August 23, 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@tejonmountainvillage.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 September 6, 2005, pursuant to Complainant’s request to have the dispute decided by a three-member Panel, the National Arbitration Forum appointed Barry Schreiber, Esq. Chair, Hon. Paul A. Dorf, (Ret), and Hon. Richard B. Wickersham, (Ret), as the three-member Panel.

 

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 has issued 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

This Complaint is based on the following factual and legal grounds:  [Per ICANN Rule 3(b) (ix).] 

 

[a.]       Complainants have used the TEJON RANCH name and various related TEJON marks since at least 1920.  [Declaration of E. Andrew Daymude ("Daymude Decl.") ¶ 5.]  Complainants have operated a wide range of businesses under the TEJON marks, with a concentration on business related to real estate.  [Id. at ¶ 6.]  Complainants' operations are based out of the Tejon Ranch property, which covers approximately 270,000 acres in the San Joaquin Valley, Tehachapi Mountains, and Antelope Valley areas of California.  [Id.]  Complainants’ revenues over the past five years have exceeded $15 million dollars per year.  [Id.]

 

            In early 2000, Complainants began development and marketing of the Tejon Mountain Village project under the TEJON MOUNTAIN VILLAGE mark.  [Daymude Decl. ¶ 7.]  The Tejon Mountain Village project includes a 23,000 acre nature reserve and 5,000 acres of development, and the project is planned to include approximately 3,450 homes, up to 160,000 square feet of commercial and retail development, and 750 hotel/resort rooms.  [Id.]  Complainants also plans a number of educational and recreational facilities, including a nature center, day camps, equestrian facilities, youth centers, parks, play lawns, trails, swimming, boating fishing, and up to four 18-hole golf courses.  [Id.] 

 

            Complainants announced the development of the project and the TEJON MOUNTAIN VILLAGE mark no later than April 10, 2001.  [Id. ¶ 8.]  The nature of the project and the TEJON MOUNTAIN VILLAGE name were discussed at some length in Complainants' annual report for 2000 and 2001.  [Daymude Decl. ¶ 8 and Exs. A and B.]  The matter has been a source of public discussion in the region at least since April 10, 2001, and it has been covered in various press articles including an extensive article on the front page of the Los Angeles Times published on September 9, 2002.  [Id. ¶¶ 9-10 and Ex. C.]  Complainants have used the TEJON MOUNTAIN VILLAGE mark throughout the development process, including the issuance of press releases, the contracting documents for numerous environmental, geological, biological, archeological, fiscal, traffic, landscaping, irrigation, road construction, and other engineering studies and various public applications and environmental impact reports.  [Id. ¶ 11.] 

 

            Between the inception of the project and September 2002, Complainants had entered into contracts for required studies and reports on the Tejon Mountain Village project which in total amount to contractual commitments in excess of ten million dollars ($10,000,000.00), and Complainants have currently entered into such contracts after September 9, 2002 in a total amount in excess of thirteen million dollars ($13,000,000.00).  [Id. ¶ 12.]

 

            With the exception of the generic “.com” TLD, Respondent's <tejonmountainvillage.com> domain name is identical to Complainants’ established TEJON MOUNTAIN VILLAGE mark.  [See Daymude Decl. ¶ 13.]

 

            Moreover, Respondent’s domain also infringes Complainants’ venerable TEJON / TEJON RANCH / TEJON INDUSTRIAL COMPLEX family of marks.  TEJON is the dominant feature of these marks inasmuch as Complainants have disclaimed exclusive rights to the terms “ranch” or “industrial complex” apart from the marks as a whole.  Complainants also hold common law rights in, and/or have pending federal trademark applications for other TEJON marks, including the marks TEJON FILM, THE TEJON CLUB, and CAMP TEJON.  Respondent’s domain name consists of the dominant feature of Complainants’ TEJON family of marks, along with generic descriptions of a real estate-related nature.

 

[Per ICANN Rule 3(b)(ix)(1); ICANN Policy ¶ 4(a)(i).]

 

[b.]       Complainants believe and allege that Respondent has engaged in no business under the TEJON MOUNTAIN VILLAGE mark or any other mark within the TEJON family of marks.  Despite apparently having registered the domain name at issue in 2002, Respondent has not made any use of the domain name at issue.  Respondent is not commonly known under the TEJON MOUNTAIN VILLAGE name or mark.

 

            Complainants further note that Respondent appears to have registered the domain name at issue the day immediately after Los Angeles Times published a front-page article publicizing Complainants' development efforts on the project and the TEJON MOUNTAIN VILLAGE mark.  [See Ex. C to Daymude Decl.]

 

[Per ICANN Rule 3(b) (ix) (2); ICANN Policy ¶ 4(a) (ii).]

 

[c.]        Respondent’s mailing address is less than ten miles from Complainants’ established Tejon Ranch and Tejon Industrial Complex operations, and Complainants’ name could not be unknown to Respondent.  [Daymude Decl. ¶ 14.]  It is clear that Respondent must have known of Complainants’ established marks and their advanced development of the Tejon Mountain Village under the TEJON MOUNTAIN VILLAGE mark at the time that it registered the domain name at issue, and such knowledge evidences bad faith.  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 fact that Respondent registered the domain name the day after the publication of the Los Angeles Times article publicizing Respondent's development efforts for the project under the TEJON MOUNTAIN VILLAGE mark further suggests the Respondent's knowledge of Complainants' mark and an intent to capitalize on that mark and/or interfere with Complainants' business.

 

            In addition, there is no way that Respondent could use the domain name without creating an impression that Respondent's operations were connected with Complainants.  Although Respondent has not specifically articulated its intention, the panel must assume on these facts that Respondent knowingly registered the name with the intent to attract business to Respondent’s site, disrupt the business of Complainants and/or profit from the eventual sale of the domain name.  See Arab Bank for Inv. & Foreign Trade v. Akkou, D2000-1399 (WIPO Dec. 19, 2000); see also Telstra Corp. Ltd. v. Yellowlees, D2002-0638 (WIPO Sept. 9, 2002); 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”).  Indeed, by registering the domain name that reflects the exact trademark, TEJON MOUNTAIN VILLAGE, Respondent has effectively prevented Complainants from using the domain name by which the public would naturally expect to find Complainants.  Sport Chalet, Inc. v. Ski Chalet, Inc., D2000-1834 (WIPO Apr. 2, 2001) (finding bad faith where registration of <sportchalet.net> prevented Complainant from registering own name).

 

            Moreover, Respondent has not made any apparent use of the domain name in more than two years.  As various panels have noted, "the act of registering a domain name without developing an active website has been found to constitute bad faith."  Telstra Corp. Ltd. v. Yellowlees, D2002-0638 (WIPO Sept. 9, 2002) (citing World Wrestling Fed’n Entm’t Inc. (WWFE) v. de Rooij, D2000-0290 (WIPO June 20, 2000); Telstra Corp. Ltd. v. Nuclear Marshmallows, D2000-0003 (WIPO Feb. 18, 2000); eBay Inc. v. Sunho Hong, D2000-1633 (WIPO Jan. 18, 2001)).

 

B. Respondent

Respondent failed to file any Response. The National Arbitration Forum transmitted to the parties a Notification of Respondent Default.

 

FINDINGS

The Panelist finds that Complainant has proved each of the required three elements of Paragraph 4(a) of the Policy, subsections (1), (2) and (3), to wit: (1) Respondent’s domain name, <tejonmountainvillage.com>, is identical or confusingly similar to Complainant’s trademark; (2) Respondent has no legitimate interests with respect to the domain name; and (3) Respondent registered the domain name in bad faith and hence the relief sought by Complainant should be granted.

 

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.”

 

In view of Respondent's failure to submit a Response, the Panel has decided 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 drew 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 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 asserts that it has established rights in the TEJON RANCH mark through registration of the mark with the Untied States Patent and Trademark Office (“USPTO”) (Reg. Nos. 1,827,718 issued March 22, 1994; and 1,826,721 issued March 15, 1994).  See 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.”); see also U.S. Office of Pers. Mgmt. v. MS Tech. Inc., FA 198898 (Nat. Arb. Forum Dec. 9, 2003) (“[O]nce the USPTO has made a determination that a mark is registrable, by so issuing a registration, as indeed was the case here, an ICANN panel is not empowered to nor should it disturb that determination.”).

 

The Panel finds that Respondent’s <tejonmountainvillage.com> domain name is confusingly similar to Complainant’s TEJON RANCH mark, as the domain name incorporates the dominant and distinctive feature of Complainant’s mark, the term “tejon,” and adds the term “mountain village,” which has a clear relationship to Complainant’s housing development.  The Panel has concluded that Respondent’s changes to Complainant’s mark are insufficient to negate a finding of confusing similarity pursuant to Policy ¶ 4(a) (i).  See Microsoft Corp. v. Montrose Corp., D2000-1568 (WIPO Jan. 25, 2001) (finding the domain name <ms-office-2000.com> to be confusingly similar even though the mark MICROSOFT is abbreviated); see also Asprey & Garrard Ltd v. Canlan Computing, D2000-1262 (WIPO Nov. 14, 2000) (finding that the domain name <asprey.com> is confusingly similar to the complainant’s ASPREY & GARRARD and MISS ASPREY marks).

 

Alternatively, Complainant asserts that it has established rights in the TEJON MOUNTAIN VILLAGE mark through continuous use of the mark in commerce in connection with its housing development.  The Panel finds that Complainant’s TEJON MOUNTAIN VILLAGE mark has gained secondary meaning as a source identifier, and hence concludes that Complainant has established common law rights in the mark pursuant to 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 exist); see also Tuxedos By Rose v. Nunez, FA 95248 (Nat. Arb. Forum Aug. 17, 2000) (finding common law rights in a mark where its use was continuous and ongoing, and secondary meaning was established); see also Nat’l Ass’n of Prof’l Baseball Leagues v. Zuccarini, D2002-1011 (WIPO Jan. 21, 2003) (finding that the complainant had provided evidence that it had valuable goodwill in the <minorleaguebaseball.com> domain name, establishing common law rights in the MINOR LEAGUE BASEBALL mark).     

 

The Panel, having found that Complainant has rights in the TEJON MOUNTAIN VILLAGE mark, determines that Respondent’s <tejonmountainvillage.com> domain name is identical to Complainant’s TEJON MOUNTAIN VILLAGE mark, as the addition of the generic top-level domain “.com” and omission of the spaces between the terms of the mark are insufficient to distinguish Respondent’s domain name from Complainant’s common law mark.  See Gardline Surveys Ltd. v. Domain Fin. Ltd., FA 153545 (Nat. Arb. Forum May 27, 2003) (“The addition of a top-level domain is irrelevant when establishing whether or not a mark is identical or confusingly similar, because top-level domains are a required element of every domain name.”); see also Hannover Ruckversicherungs-AG v. Ryu, FA 102724 (Nat. Arb. Forum Jan. 7, 2001) (finding <hannoverre.com> to be identical to HANNOVER RE, “as spaces are impermissible in domain names and a generic top-level domain such as ‘.com’ or ‘.net’ is required in domain names”).

 

The Panel finds for Complainant.

 

Rights or Legitimate Interests

 

The Panel is aware that once Complainant makes a prima facie case in support of its allegations, the burden shifts to Respondent to show that it does have rights or legitimate interests pursuant to Policy ¶ 4(a) (ii).  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 G.D. Searle v. Martin Mktg., FA 118277 (Nat. Arb. Forum Oct. 1, 2002) (“Because Complainant’s Submission constitutes a prima facie case under the Policy, the burden effectively shifts to Respondent.”).

 

The Panel has interpreted Respondent’s failure to respond to the Complaint as evidence that Respondent lacks rights and legitimate interests in the <tejonmountainvillage.com> domain name pursuant to Policy ¶ 4(a) (ii).  See Parfums Christian Dior v. QTR Corp., D2000-0023 (WIPO Mar. 9, 2000) (finding that by not submitting a response, the respondent has failed to invoke any circumstance which could demonstrate any rights or legitimate interests in the domain name); see also Pavillion Agency, Inc. v. Greenhouse Agency Ltd., D2000-1221 (WIPO Dec. 4, 2000) (finding that the respondents’ failure to respond can be construed as an admission that they have no legitimate interest in the domain names).     

 

Complainant contends that Respondent is neither commonly known by the disputed domain name nor authorized to register domain names featuring Complainant’s TEJON RANCH or TEJON MOUNTAIN VILLAGE marks.  Thus, the Panel finds that Respondent has not established rights or legitimate interests in the <tejonmountainvillage.com> domain name pursuant to Policy ¶ 4(a) (ii).  See Gallup, Inc. v. Amish Country Store, FA 96209 (Nat. Arb. Forum Jan. 23, 2001) (finding that the respondent does not have rights in a domain name when the respondent is not known by the mark); 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). 

 

Complainant asserts that Respondent has not made any active use of the disputed domain name since registering it nearly three years ago.  The Panel thus finds that Respondent’s nonuse of the domain name constitutes passive holding and, as such, is neither 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 Pharmacia & Upjohn AB v. Romero, D2000-1273 (WIPO Nov. 13, 2000) (finding no rights or legitimate interests where the respondent failed to submit a response to the complaint and had made no use of the domain name in question); see also Chanel, Inc. v. Heyward, D2000-1802 (WIPO Feb. 23, 2001) (finding no rights or legitimate interests where “Respondent registered the domain name and did nothing with it”).   

 

The Panel finds for Complainant.

 

Registration and Use in Bad Faith

 

The Panel clearly finds that Respondent’s long-term non-use of the <tejonmountainvillage.com> domain name is evidence of bad faith registration and use pursuant to Policy ¶ 4(a) (iii).  See 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 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).

 

Furthermore, the Panel finds that Respondent registered the disputed domain name with actual or constructive knowledge of Complainant’s rights in the TEJON RANCH mark due to Complainant’s registration of the mark with the USPTO.  In addition, the Panel inferred that Respondent had actual knowledge of Complainant’s TEJON MOUNTAIN VILLAGE mark, as Respondent’s home address, as reflected in the WHOIS information, is located ten miles from Complainant’s development and Respondent registered the disputed domain name one day after the Los Angeles Times published a prominent article about Complainant’s development.  The Panel concludes that registration of a domain name that is identical or confusingly similar to another’s mark, despite actual or constructive knowledge of the mark holder’s rights, is evidence of bad faith registration and use pursuant to Policy ¶ 4(a) (iii).  See Entrepreneur Media, Inc. v. Smith, 279 F.3d 1135, 1148 (9th Cir. 2002) ("Where an alleged infringer chooses a mark he knows to be similar to another, one can infer an intent to confuse."); see also 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.”).   

 

The Panel finds for Complainant.

 

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

 

 

 

 

Barry Schreiber, Esq. Chair, Hon. Paul A. Dorf, (Ret), and Hon. Richard B. Wickersham, (Ret) Panelist
Dated: September 20, 2005

 

 

 

 

 

 

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