National Arbitration Forum

 

DECISION

 

CanadaDrugs.com Partnership carrying on business as CanadaDrugs.com v ASM Bioventure

Claim Number: FA0509000568743

 

PARTIES

Complainant is CanadaDrugs.com Partnership carrying on business as CanadaDrugs.com (“Complainant”), 24 Terracon Place, Winnipeg, MB, R2J 4G7, Canada.  Respondent is ASM Bioventure (“Respondent”), represented by Karen F. MacDonald, of Smart & Biggar, 2200-650 West Georgia Street, Box 11560, Vancouver, BC, V6B 4N8, Canada.

 

REGISTRAR AND DISPUTED DOMAIN NAME 

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

 

PANEL

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

 

Steven L. Schwartz, Chair

Anne M. Wallace

Mark V. B. Partridge

 

PROCEDURAL HISTORY

Complainant submitted a Complaint to the National Arbitration Forum electronically on September 28, 2005; the National Arbitration Forum received a hard copy of the Complaint on September 30, 2005.

 

On September 30, 2005, Network Solutions, Inc. confirmed by e-mail to the National Arbitration Forum that the <canadadrugsonline.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 October 4, 2005, a Notification of Complaint and Commencement of Administrative Proceeding (the “Commencement Notification”), setting a deadline of October 24, 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@canadadrugsonline.com by e-mail.

 

A timely Response was received and determined to be complete on October 24, 2005.  Additional Submissions were provided by Complainant on November 2, 2005 and by Respondent on November 5, 2005.  The Panel exercises its discretion and admits them for consideration.

 

On November 2, 2005, pursuant to Complainant’s request to have the dispute decided by a three-member Panel, the National Arbitration Forum appointed Steven L. Schwartz, Chair, Anne M. Wallace and Mark V. B. Partridge as Panelists.

 

RELIEF SOUGHT

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

 

PARTIES’ CONTENTIONS

A. Complainant makes the following contentions:

 

Background of the Claim

 

1.         The Complainant operates as an international prescription service pharmacy from a website <canadadrugs.com>.  The Complainant has offered its pharmacy services over the Internet since April of 2001.  The Complainant operates under the registered business name “CanadaDrugs.com”; such business name having been registered by the Complainant’s managing partner, Canada Drugs Ltd. on February 27, 2003. 

 

2.         The Complainant asserts established rights to the Canada Drugs Marks as evidenced by the registration of such marks with the CIPO and by continuous use of the marks in commerce since 2001.  Kristjan Thorkelson, C.E.O. and owner of the Complainant’s managing partner, applied for trademark registration of the Canada Drugs Marks on March 23, 2001 and received registration of the marks with the CIPO as of May 20, 2003.  Immediately thereafter on May 21, 2003 Mr. Thorkelson licensed the use of the Canada Drugs Marks to the Complainant.

 

3.         The Complainant develops its customers through active marketing and advertising of the website located at <canadadrugs.com>.   Since 2001, the Complainant has spent over $5,000,000 marketing its services through various means, including advertisements in various newspapers and magazines, journals, television commercials, radio, mailings as well as building internet traffic to its website.    Given the nature of the Complainant’s business, its website is integral to the advancement of its business in the industry.

 

4.                  The Complainant states that it is an industry leader, currently operating from within a state of the art 24,000 square foot pharmacy with over 250 employees including 15 pharmacists. 

5.                  The Complainant has an established clientele of over 150,000 patients, offers over 2,700 brand name prescription products, generic prescription products and over the counter products, and fills approximately 2,500 prescriptions a day.

 

6.         The Complainant maintains the highest standards in the conduct of its business.   The Complainant has been a fully licensed pharmacy under the Manitoba Pharmaceutical Association since April 2001, is a member of the Better Business Bureau On-line and has received certification and approval by both the Manitoba International Pharmacists Association (MIPA) and the Canadian International Pharmacy Association (CIPA).  In addition, the Complainant was the first pharmacy accredited to meet the rigorous standards of the Vermont based Internet and Mail-order Pharmacy Accreditation Commission (IMPAC).  IMPAC accreditation includes ninety-one elements that center on quality assurance, pharmacy management, confidentiality, consumer satisfaction, health information technology, website content, shipping and handling and customer call centre functions. 

 

7.         The Respondent is claimed to be a competitor of the Complainant and has operated a directly competing international prescription service pharmacy business from a website located at <candrug.com>.  To the best of the Complainant’s knowledge, the Respondent has operated its <candrug.com> business since approximately November of 2002.  The Complainant has no dispute with the Respondent for operating a competing business from the website <candrug.com> as the “candrug” name is sufficiently distinct from the Complainant’s trademarks and business name so as to not cause confusion in the mind of the public.  However, the Complainant states that it has recently discovered that the Respondent has set up a directly competing international prescription service pharmacy business from a website located at <canadadrugsonline.com>.  To the best of the Complainant’s knowledge, the Respondent began to operate this <canadadrugsonline.com> website on September 25, 2004.

 

Identical and/or Confusingly Similar

 

8.         The Complainant submits that the <canadadrugsonline.com> domain name is identical and confusingly similar to the Complainant’s CANADA DRUGS and CANADADRUGS.COM trademarks (the “Canada Drugs Marks”) pursuant to paragraph 4(a)(i) of the Policy.

 

9.         The Respondent’s <canadadrugsonline.com> domain name is claimed to be confusingly similar to the Complainant’s Canada Drugs Marks because the Respondent’s domain name incorporates the Complainant’s marks in their entirety and only deviates with the addition of the generic or descriptive word “online.”  The mere addition of a generic or descriptive term does not negate the confusing similarity of the Respondent’s domain name pursuant to Policy ¶ 4(a)(i). The Complainant, therefore, submits that ICANN Policy ¶ 4(a)(i) has been satisfied and that the domain name registered by the Respondent is identical or confusingly similar to the Complainant’s Canada Drugs Marks and business name.

Rights or Legitimate Interest

 

10.       The Complainant submits that the Respondent has no rights or legitimate interest in the <canadadrugsonline.com> domain name pursuant to paragraph 4(a)(ii) of the Policy.     Paragraph 4(c) of the Policy allows the respondent three methods to demonstrate a right or legitimate interest in a disputed domain name:

 

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

(ii)                you (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 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.

 

Complainant contends that there is no evidence that the Respondent’s use of the <canadadrugsonline.com> domain name meets the elements of any of the methods provided for in paragraph 4(c) of the Policy.

 

11.       Through its use of the <canadadrugsonline.com> domain name, the Respondent is attempting to attract and divert on-line consumers to a competing website.   The Respondent’s use of the <canadadrugsonline.com> domain name to sell directly competing services is illegitimate and is not a bona fide offer of services pursuant to paragraph 4(c)(i) of the Policy.

 

12.       The Complainant has not authorized the Respondent to use its Canada Drugs Marks or its business name for any purpose.  Prior to September 2004, the Respondent had never been known by or operated a business under the Canada Drugs Marks or the <canadadrugsonline.com> domain name. 

 

13.       The Complainant submits that the Respondent’s use of the Complainant’s Canada Drugs Marks in connection with identical or similar services to that of the Complainant directly violates the trademark rights now residing with the Complainant – rights which began accruing to the Complainant years prior to the September 25, 2004 date when the Respondent began to operate an international prescription services business from the <canadadrugsonline.com> domain name.  As such, the Complainant submits that the Respondent is not commonly known by the disputed domain name pursuant to paragraph 4(c)(ii) of the Policy.

 

14.      As the Respondent is using the domain name for commercial purposes, it is claimed that it is clear that the Respondent is not making a legitimate non-commercial or fair use of the domain name <canadadrugsonline.com> pursuant to paragraph 4(c)(iii) of the Policy.

 

 

Registration and Use in Bad Faith

15.      The Complainant submits that the Respondent registered and is using the <canadadrugsonline.com> domain name in bad faith in violation of paragraph 4(a)(iii) of the Policy.

16.      Paragraph 4(b) of the Policy sets forth four non-exclusive criteria for the Complainant to show bad faith in registration and use of domain names:

(i)                  circumstances indicating that the Respondent registered or has acquired the domain name primarily for the purpose of selling, renting or otherwise transferring the domain name registration to the Complainant who is the owner of the trademark or to a competitor of that complainant, for valuable consideration in excess of documented out-of-pocket costs directly related to the domain name;

(ii)                the Respondent has registered the domain name in order to prevent the Complainant from reflecting the mark in a corresponding domain name, provided that the Respondent has engaged in a pattern of such conduct;

(iii)               the Respondent has registered the domain name primarily for the purpose of disrupting the business of the Complainant; and

(iv)              by using the domain name, the Respondent has intentionally attempted to attract for commercial gain, internet users to its website by creating a likelihood of confusions with the Complainant’s mark as to the source, sponsorship, affiliation or endorsements of the Respondent’s website.

 

17.       The Complainant submits that the Respondent registered the domain name <canadadrugsonline.com> primarily for the purpose of disrupting the business of the Complainant, a competitor of the Respondent.   The Respondent established the <canadadrugsonline.com> website on or about September 25, 2004, years after the Complainant had been using the Canada Drugs Marks in the marketplace and years after the Respondent set up its own business from the website <www.candrug.com>.  Since the Respondent is in the international prescription service industry and a direct competitor of the Complainant, the Respondent knew or should have known of the Complainant’s business under its established and registered trademarks.  There is no reason for the Respondent to have registered and to have set up its business from the domain name <canadadrugsonline.com> in September of 2004, but to disrupt the business of the Complainant and to misleading divert internet traffic from the Complainant to the Respondent’s website.  The Complainant submits that the Respondent has merely registered and used the <canadadrugsonline.com> domain name in bad faith for the purpose of capitalizing on the Complainant’s famous Canada Drugs Marks and to divert customers away from the Complainant’s website.  This is evidence of bad faith registration as pursuant to paragraph 4(b)(iii) of the Policy.

18.       The Complainant further submits that the Respondent is using the <canadadrugsonline.com> domain name to attract internet users to its website by creating confusion with the Complainant’s mark as to source, sponsorship, affiliation or endorsement of the Respondent’s website. 

19.       The website <canadadrugsonline.com> has been registered and is being used by the Respondent and is identical to the Complainant’s Canada Drugs Marks except for the addition of the words “online.”  Internet users are attracted to the Respondent’s website because they mistakenly believe that the website located at <canadadrugsonline.com> is sponsored by, related or affiliated with the Complainant.  The Respondent registered and used the domain name in question to profit from the Complainant’s mark by attracting users to its competing website.  This is evidence of bad faith pursuant to paragraph 4(b)(iv) of the Policy. 

20..      Complainant states that it has been confronted with evidence of actual confusion in the market place due to the operation of the Respondent’s <canadadrugsonline.com> domain name.  On September 15, 2005, a customer service representative at the Complainant’s business received a telephone call from a customer wherein the customer advised that they had mistakenly placed an online order with <canadadrugsonline.com>, believing that the Respondent was affiliated with CanadaDrugs.com.  This is not the first call that the Complainant has received regarding such confusion.

The Complainant submits, therefore, that paragraph 4(a)(iii) of the Policy has been satisfied and that the Respondent has registered and used the domain name <canadadrugsonline.com> in bad faith.

 

B. Respondent makes the following contentions:

 

Background of the Response

 

1.         This is a case about conflicting trademark rights: Complainant’s Canadian registration rights which specifically disclaimed the geographically descriptive and generic, respectively, elements “Canada” and “Drugs” (the “Unenforceable Elements”) vs. Respondent’s Canadian and U.S. common law rights in the following design mark which has been extensively used in U.S. and Canadian commerce by Respondent for over one year (“Respondent’s Common Law Design Mark”):

           

 

2.         Respondent states that Complainant takes the inconsistent position of disclaiming rights in the Unenforceable Elements “Canada” and “Drugs”, and invoking this Panel as a tool of enforcement to rights it does not have and could never have; Respondent does not claim exclusive rights to the Unenforceable Elements “Canada” and “Drugs” separate and apart from the Respondent’s Common Law Design Mark.  However, Respondent does take the position that it has legitimate rights which are more than sufficient to retain its valuable domain name, <canadadrugsonline.com> (the “Corresponding Domain”), which merely corresponds to the textual elements of the Respondent’s Common Law Design Mark.

 

 

3.         This is also a case about misapplication, either purposefully or negligently, of the Policy in an attempt to retroactively presume notice of a third party’s “rights” by way of a Canadian registration which issued 1 year after the registration of the Corresponding Domain.  Complainant attempts to rewrite the Policy by making the operative date to determine whether or not a domain name registration was registered in bad faith the date that a respondent launches its website rather than the date the domain name was registered.

 

4.         The Respondent, Candrug Health Solutions Inc. (“Candrug”) was incorporated on May 17, 2002.  It conducts an international retail pharmacy business.  Candrug currently occupies over 15,000 sq. ft. of operational space, and employs over 80 people.  Since the start of its business, Candrug has established a clientele of over 40,000 patients, many of whom are U.S. citizens.  Candrug offers in excess of 2500 medical products to its clients and processes close to 1,000 prescriptions per day.  Candrug maintains the highest quality standards in the conduct of its pharmacy operation.  Candrug is licensed by the Canadian International Pharmacy Association, is certified by Pharmacy Checker, and is a member of the International Pharmacy Association of British Columbia.

 

5.         Candrug’s retail pharmacy was set up in February 2002, with operational premises 15 minutes from the Canada/USA border, in order to facilitate the international scope of Candrug’s business through its mail order business, which was launched in May 2002.  In anticipation of the scope of Candrug’s international retail pharmacy, the following three domain names were registered for Candrug in May 2002:

 

(a)    <candrug.com> (registered: May 16, 2002);

(b)   <medisave.ca>  (registered: May 05, 2002); and

(c)    <canadadrugsonline.com> (registered: May 16, 2002).

 

6.         At the outset of Candrug’s retail pharmacy operation, it was believed that Candrug’s target audience would not be Internet savvy.  At the time, it was felt that the best source of generating business from seniors would be by targeting their physicians for referrals.  Candrug therefore deferred launch of these web sites due to cost.

 

7.         Candrug started its business by targeting medical clinics adjacent to the U.S. border for proximity of patients.  Presentations were made at several Washington based medical clinics to earn the trust of physicians to refer to Candrug’s reliable trustworthy retail pharmacy business under the Candrug name.  Patients would have the option of either driving to the pharmacy for personal pick up or faxing their orders for mail order.

 

8.                  At or about the end of 2002, Candrug formed a joint venture with East West Consulting (“EWC), whereby EWC would be responsible for all business development activities associated with the trade-name and trade-mark CanDrug.  As part of the joint venture with EWC, Candrug and EWC launched the <candrug.com> web site, using the trade-name and trade-mark CANDRUG.COM (the “CanDrug Business”).  EWC was paid a commission on all business associated with the Candrug Business. 

9.         EWC handled all inbound call center functions in Washington.  Candrug was responsible for the pharmacy aspect and fulfillment of orders, and did not itself have a functioning call center at that time.

 

10.       At the time of launch, the purpose of the candrug.com web site was intended as more of an informational resource for clients who were referred by their respective doctors from WMGA clinics.  It was not intended for online advertising. 

 

11.       The CanDrug Business experienced steady growth until a tremendous increase in business during the summer of 2003.  Since that time, the CanDrug Business has been steady. 

 

12.       While the CanDrug Business is a significant part of Candrug’s profits, Candrug’s ability

to develop new strategies with respect to the CanDrug Business is significantly hampered by the exclusive arrangement with EWC, whereby Candrug does not have the flexibility, pricing, or profitability (due to commission payout) to roll out competitive strategies.  Further, the sustainability of the CanDrugs Business has been limited due in part to the actions of the Complainant who has, since in or about April 27, 2003, used the domain name <candrugs.com> as a link to the <canadadrugs.com> domain name, thereby diverting legitimate Candrug customers to the Complainant’s web site.

 

13.       Therefore, in early 2003, Candrug entered into an agreement with Sydel Agency (“SA”) for a business using the trade-name and trade-mark MEDISAVE, and the previously registered domain name <medisave.ca> (the “MediSave Business”).  By the end of summer, 2003, Candrug dissolved the exclusive arrangement and took control of the MediSave Business and worked on developing aggressive online marketing strategies. Concurrently, Candrug had to work on developing an in-house call center. 

 

14.       Candrug worked on many online strategies with respect to the MediSave Business, including Search Engine optimization, which is expected to produce results within 6 to 12 months. However, Candrug was not successful in generating strong results from this brand, as the MediSave Business was significantly hampered by the “.ca” aspect which limited U.S. customer receptivity along with optimization strategies which did not work well with the “.ca” extension.

 

15.       By the summer of 2004, Candrug determined that it needed to come up with a new strategy to grow its business, as the CanDrug Business was hampered by the exclusive arrangement, and the MediSave Business was severely compromised by the “.ca” extension.  As the domain name medisave.com was in use by an insurance company who wanted substantial compensation to sell the domain name, Candrug decided that it would be more effective to use its existing domain name <canadadrugsonline.com>, previously registered in May 2002.

 

 

 

16.       Further, since 2002, the marketplace had changed significantly: competitors were far more savvy, pricing was becoming very competitive and Candrug realized that the Internet was a very powerful medium to generate business.  It was essential to have a well-optimized web site (with “.com” to target U.S. clientele), low pricing, aggressive marketing, and good customer service, with a well-trained call center.  As a result, Candrug chose its already registered domain name, the Corresponding Domain, to launch a new web site, wherein the Respondent’s Common Law Design Mark and the trade-name Canada Drugs Online would be used (the “Canada Drugs Online Business”).

 

17.       In preparing to launch the Canada Drugs Online Business, Candrug set up a call centre, and consulted with search engine optimization experts as part of the strategy. Candrug launched the Canada Drugs Online Business, through the <canadadrugsonline.com> web site, in September of 2004 with competitive pricing, a well optimized web site, and an aggressive marketing plan.

 

18.       The Corresponding Domain was transferred to ASM, as one of four shareholders of Candrug, on April 20, 2005, as a part of an internal shareholder’s agreement and corporate restructuring.  ASM holds the Corresponding Domain for the benefit of Candrug, and it has been Candrug at all times who has operated the <canadadrugsonline.com> web site.

 

19.       Since the launch of the Canada Drugs Online Business, Candrug has spent over CDN$120,000 on GoogleTM advertisement services and over US$120,000 for other online “pay-per-click” advertising. Candrug has also spent over CDN$80,000 on other marketing aspects, including search engine optimization strategies.

 

20.       In products sold through the Canada Drugs Online Business, Candrug is highly competitive in its pricing among other competitors in the marketplace.  Comparative pricing for the top eleven prescription drugs sold in the USA in 2004, shows that drugs sold through <canadadrugsonline.com> are the most competitively priced in 21 out of the 26 doses/quantities listed (81%).  On the other hand, the Complainant at a rate of 50%, has the highest prices listed 13 out of the 26 listings. As consumers are extremely price sensitive and are constantly price shopping, they are led to purchase from companies that offer them the best rates and service. 

 

21.       Many customers are drawn to the Canada Drugs Online Business as a result of the highly competitive pricing, leading edge customer service and fast delivery times relative to others in the marketplace.  Customers of the Canada Drugs Online Business have indicated high satisfaction with the services offered in association with the Canada Drugs Online Business.

 

22.       The competitive pricing offered by Candrug through its Canada Drugs Online Business, in combination with leading edge service and fast shipping, are the reasons why Candrug is growing so rapidly and many competitors are losing customers to Candrug.

 

23.       At the time of registering the Corresponding Domain, the Respondent was not aware of any trademark registrations in the U.S. or Canada owned by Complainant, notably because there were none.  At the time of the launch of the Canada Drugs Online Business, Candrug was not aware that any party, including the Complainant had any, or claimed any, trade-name or trade-mark rights to the Unenforceable Elements CANADA DRUGS and/or CANADADRUGS.COM, or that Kristjan Thorkelson had registered these generic words and terms in Canada.   Candrug was at the time aware of the Complainant as a competitor in the market place, but Candrug was also aware of hundreds of other competitor web sites in the marketplace using all sorts of variations of the generic and descriptive terms “Canada”, “Canadian”, “drugs”, “pharmacy”, etc. in trade-names, trade-marks and domain names.  The possibility of trade-mark conflict was not even considered to be paramount, as Candrug knew that the whole online pharmacy marketplace was crowded with these descriptive (non-unique) trade-names and domain names.  Further, Respondent was not and still is not aware of any trademark registration rights in the United States in the name of Complainant.  There is one mark in the name of Kris Thorkelson which may be published soon (U.S. Serial No. 78406520), but all the elements except the “Stylized CD in an oval” design element have been disclaimed.

 

24.       The words “Canada” and “Drugs”, including CANADA DRUGS are descriptive of drugs, and the sale of drugs, originating from Canada, and are commonly used in the online pharmacy marketplace.  There are a large number of other retail pharmacy entities who operate through domain names, and in association with trade-marks and trade-names, which incorporate the words “Canada” and “Drugs”, including CANADA DRUGS, or derivatives thereof.

 

25.       The Complainant has applied for the trademarks CANADA DRUGS and CANADADRUGS.COM with the United States Patent and Trademark Office (“USPTO”), for use in association with “retail drugstore and pharmacy services; on-line retail drugstore and pharmacy services.  The USPTO has issued a final refusal against both applications on the basis that the marks are primarily geographically descriptive of the origin of the Complainant’s services.  Respondent agrees with the USPTO examiner.  Complainant’s geographically descriptive terms lack trademark significance.

 

26.       The Complainant has applied for a design trademark incorporating the term CANADADRUGS.COM with the USPTO, and has disclaimed CANADADRUGS.COM apart from the trademark as a whole.  With respect to Canadian Trade-mark Registration No. TMA581,915 for CANADA DRUGS, the Complainant has disclaimed both “Canada” and “Drugs” apart from the trade-mark as a whole.

           

27.              Candrug first became aware of the Complainant’s purported trademark rights in the generic words and terms CANADA DRUGS and/or CANADADRUGS.COM upon receipt of a letter dated June 2, 2005, from legal counsel for the Complainant.  By letter dated June 10, 2005, legal counsel for Candrug denied that the Complainant owned any rights in and to the generic words and terms CANADA DRUGS and/or CANADADRUGS.COM, or that use of the domain name <canadadrugsonline.com>, or the trade-mark and trade name Canada Drugs Online, would cause any confusion in the marketplace.

Response to Claim of Identical and/or Confusingly Similar

 

28.       Paragraph 4(a) of the Policy requires the Complainant to prove cumulatively each of the following three elements so as to obtain an order for a domain name to be cancelled or transferred:

 

(a)                the domain name registered by Respondent is identical or confusingly similar to a trademark or service mark in which the Complainant has rights;

(b)               Respondent has no rights or legitimate interest in respect of the domain name; and

(c)                the domain name has been registered and is being used in bad faith.

 

29.       In order to establish that the domain name registered by the Respondent is identical or confusingly similar to the Complainant’s trademark or service mark, the Complainant must first establish that it has rights to a trademark or service mark.  Where serious questions arise as to whether the Complainant has any proprietary rights in the alleged marks, the Panel must reject the Complainant’s claim, as the ultimate decision as to whether the Complainant does or does not have proprietary rights is better left to a court or trademark office tribunal.  Respondent contends that the Complainant has no rights in and to the generic words and terms CANADA DRUGS and CANADADRUGS.COM (the “Purported Canada Drugs Trademarks”).  A term is generic when its principal significance to the public is to indicate that product or the service itself, rather than its source.  A generic term is not entitled to exclusive protection. 

 

30.       Where a Respondent can show that the alleged trademarks are used by a number of other entities in the market place, such evidence is persuasive of the generic and descriptive nature of the marks.  Further, in determining whether marks are generic or descriptive, the Panel can consider conclusions made by Trademark Examiners in respect of those issues.  The words and terms “Canada Drugs” are geographically descriptive of the services offered by the Complainant, describing to the public that the Complainant offers the sale of pharmaceutical drugs from Canada.  Further, the addition of the term “.com” does not render such terms distinctive, but rather is generic and descriptive of such services being offered online.  Further, such words, alone and in combination, and derivatives thereof, are commonly used by others in the online pharmacy marketplace, reflecting the generic use of such terms to describe the services offered by the Complainant.

31.       The USPTO has issued a final office action refusing to register the Purported Canada Drugs Trademarks in the United States, on the basis that such marks are geographically descriptive of the Complainant’s services.  The Respondent submits that this is a persuasive indication that the Purported Canada Drugs Trademarks are generic and descriptive, as is the fact that the Complainant has disclaimed “Canada” and “Drugs” in respect of Canadian Trade-mark Registration No. TMA581,915, and has disclaimed CANADADRUGS.COM from its U.S. design application.  The Respondent submits that this is conclusive evidence that Complainant lacks rights in the United States to the terms CANADA DRUGS and CANADADRUGS.COM.

 

To be refused registration on the Principal Register under §2(e)(1) of the Trademark Act, 15 U.S.C. §1052(e)(1), a mark must be merely descriptive or deceptively misdescriptive of the goods or services to which it relates. A mark is considered merely descriptive if it describes an ingredient, quality, characteristic, function, feature, purpose or use of the specified goods or services. The only remaining element of any known mark in the U.S. claimed to be owned by Complainant upon which Complainant could stake a claim, namely the “Stylized CD in an oval” design, does not resemble in the slightest the Corresponding Domain. 

 

32.       All three of the trademark applications filed in the United States remain applications, and all were filed after the registration of the Corresponding Domain.  It is well established that mere applications do not give rise to trademark rights.

 

33.       It has been well established that to allege any rights to a trademark or service mark, a complainant must have had the rights at the time when the disputed domain name was registered by a respondent. Respondent refers to a number of precedents describing the proper inquiry as “whether the Complainant had trademark rights at the time of the registration of the domain name.”  In this case, the Complainant has claimed a first use date of February 17, 2003 of its design mark in the United States.  Even assuming that it had not disclaimed away all textual elements to that design mark, its date of first use in the United States was nearly 1 year after the registration of the Corresponding Domain in the Commonwealth of Virginia, United States.  Further, the declarations of use for the Canadian registrations were filed in May 2003, also nearly a year after registration of the Corresponding Domain. 

           

34.       Where words or terms are descriptive, they are inherently non-distinctive, and cannot be protected unless the purported trademark owner establishes that the terms have taken on secondary meaning, such that the public would identify those terms with the source of the product or service rather than the product or service itself.  In disputes under the Policy, the Complainant has the burden of establishing secondary meaning where descriptive terms are used, wherein the panel should consider such factors as advertising expenditures, consumer surveys linking the mark to a source, unsolicited media coverage, sales success and length and exclusivity of the mark’s use.  Evidence that a Complainant has published its trademark or trade name does not, standing alone, prove a connection between the source and the mark.  The burden of establishing secondary meaning is high, because of the disinclination of the courts to take words of ordinary meaning out of common usage.

35.       As the words and terms CANADA DRUGS and CANADADRUGS.COM are descriptive and the elements “Canada” and “Drugs” are individually generic, the Complainant must therefore show that the words and term CANADA DRUGS and CANADADRUGS.COM have acquired secondary meaning as referring to the services offered by the Complainant.

36.       The Complainant has not shown extensive use of the Purported Canada Drugs Trademarks, such that the words and term CANADA DRUGS could be said to have acquired secondary meaning in Canada. 

The Complainant has made statements, without supporting documentary evidence, that it has offered its pharmacy services over the Internet since April 2001 and has conducted extensive advertising.  The Complainant has shown no evidence that the public links the words and terms CANADA DRUGS to the Complainant, and certainly not prior to the Respondent’s registration of the Corresponding Domain.  Further, the Complainant has only alleged use for a relatively short period of time, and has not shown that such use was exclusive; to the contrary, the Respondent’s evidence shows that such use was not exclusive.

37.       While the Complainant does own two Canadian Trade-mark Registrations, and such registrations are presumed valid, there is no presumption under Canadian trade-mark law that such marks have acquired secondary meaning by virtue of their registration in Canada.  As in the U.S., such registrations can be declared invalid, and are of no force and effect, in the event that it is shown that such marks are descriptive and generic, and therefore not distinctive of the Complainant.

38.       Respondent submits that the Complainant’s Canadian Trade-mark Registrations are likely invalid for lack of distinctiveness, on the basis of improper licensing.  In Canada, a mark that is owned by one party and used by another without proper licensing provisions, is not use attributed to the owner, thereby resulting in a loss of distinctiveness which renders such registrations subject to expungement.  The Complainant has used the Purported Canada Drugs Trademarks in association with its business from April 2001 to May 2003, without license from Mr. Thorkelson, the alleged owner of the marks, thereby effectively destroying any possible trade-mark rights.  Further, the license from May 2003 is not between the owner of the registered marks and the Complainant, but between a numbered company and the Complainant.

39.       The Respondent submits that it has presented sufficient evidence to raise serious doubts about the validity of the Complainant’s alleged marks.  Therefore, the Panel is required to reject the Complainant’s claim.  The ultimate decision as to whether the Complainant does or does not have proprietary rights is better left to a court or trademark office tribunal.

40.       The domain name <canadadrugsonline.com> is not identical to either of the Purported Canada Drugs Trademarks.  The issue is therefore whether the domain name is confusingly similar with the Complainant’s alleged marks.

 

41.       Under Canadian trade-mark law, a weak, non-inherently distinctive trade-mark, such as a descriptive or generic mark, will not be granted a broad scope of protection and comparatively small differences between marks will be sufficient to avert confusion. Where two marks contain a common element that is also contained in a number of other marks in use in the same market, such a common occurrence in the market tends to cause purchasers to pay more attention to other features of the respective marks, and to distinguish them by those other features.

 

42.              As the Purported Canada Drugs Trademarks are inherently weak, such marks, including the Canadian Trade-mark registrations, should be granted a narrow scope of protection, if valid (which is denied), with small differences between marks being sufficient to avoid any possibility of confusion. 

Here, the Respondent submits that the addition of “online” to the generic terms CANADA DRUGS is sufficient, such that the domain name <canadadrugsonline.com> is not confusingly similar with the Purported Canada Drugs Trademarks.

 

Response to Claim of Lack of Legitimate Rights or Interests

 

43.       Under paragraph 4(c) of the Policy, the Respondent can show its rights to and legitimate interest in the domain name, where one of the following circumstances is present:

 

(1)               whether, before any notice to the Respondent of the dispute, Respondent’s use of,    or demonstrable preparations to use, the domain name or a name corresponding to the domain name is in connection with a bona fide offering of goods or services;

(2)               whether Respondent (as an individual, business, or other organization) has been commonly known by the domain name, even if Respondent has not acquired trademark or service mark rights; or

(3)               whether Respondent is 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.

 

44.       The Respondent submits that it meets the first two of these criteria, and that not only has the Complainant failed to meet the burden of establishing no legitimate interests, but the evidence filed by the Respondent has proven its legitimate interests.

 

45.       The Respondent operates a bona fide business, offering online pharmacy services, using the Corresponding Domain and the Respondent’s Common Law Design Mark, and has done so, well in advance of any notice of the Complainant’s purported trademark rights.  The Respondent has been commonly known under the domain name <canadadrugsonline.com> and the trade-name Canada Drugs Online.  The Respondent has not tried to trade-off on any alleged reputation or goodwill associated with the Complainant’s generic and disclaimed names CANADA DRUGS and CANADADRUGS.COM, or to confuse customers of the Complainant in an attempt to divert such customers to the Respondent.

 

46.       Where the domain name in dispute incorporates a term or terms used generically by others, such use is legitimate.  A Respondent has the right to use the common English words which are generic for or merely describe its goods and services in order to refer to its goods and services.  The first to register a domain name containing a generic or descriptive mark should prevail, absent bad faith and a lack of legitimate interests.

 

47.       Given that the words and terms CANADA DRUGS are used generically by others, and are descriptive of the Canadian pharmacy services offered by the Complainant, the Respondent and others, the Respondent’s use is legitimate.  The Respondent has the right to use both “Canada” and “Drugs” in association with its services, and, as the first to register the domain name in question, the Respondent should prevail.  Respondent has rights to the Respondent’s Common Law Design Mark which contains the textual elements CANADA DRUGS ONLINE. 

Response to Claim of Bad Faith Registration and Use

 

48.       Paragraph 4(b) of the Policy outlines situations where bad faith will be found.  The Respondent submits that there is no evidence of bad faith, and that the Complainant has not shown any evidence in support of any of the circumstances outlined in paragraph 4(b) of the Policy.

 

49.       The Complainant’s claim of bad faith registration and use rests on the claim that the Respondent has intentionally attempted to attract, for commercial gain, Internet users to its site by creating a likelihood of confusion with the Complainant’s mark.  However, the mere presence of a likelihood of confusion or dilution is not sufficient to find bad faith under the Policy.

 

50.       There can be no bad faith in the use of a descriptive and utterly non-distinctive term relating to the services offered by the Respondent.  Where it is shown that words and terms are generic in respect of the services offered, such evidence supports a finding that the Respondent uses the domain name in an attempt to attract Internet users by using common words and terms for their services, not for creating confusion with the Complainant’s mark.

 

51.       There has been no evidence of bad faith in the Respondent selecting the domain name containing the generic words and terms CANADA DRUGS.  Instead, the Respondent legitimately registered the domain name <canadadrugsonline.com> in May 2002, and, as an extension of its existing business, the Respondent commenced use of that domain name in 2004.  The use of the words and terms CANADA DRUGS in such domain name, was intended as a good faith attempt to attract consumers seeking drugs from Canada, not in an attempt to create confusion with the Purported Canada Drugs Trademarks.

 

C. Additional Submissions

By Complainant

 

Rights in the Mark

1.         The Canada Drugs Marks are registered Canadian trademarks with the Canadian Intellectual Property Office (“CIPO”). Therefore the issue as to whether or not the Respondent claims that they are generic is irrelevant.  Similarly, this Complaint has been brought by a Canadian Complainant against a Canadian Respondent operating a business in Canada from the disputed domain name <canadadrugsonline.com>.  Registration of the Canada Drugs Marks with USPTO is not required in order for the Complainant to show a bona fide basis to bring the Complaint under the ICANN Policy.

2.         There can be no dispute that the Canadian trademark registrations of the Canada Drugs Marks are valid and existent.  Accordingly, pursuant to the provisions of the Trade-marks Act (R.S. 1985, c. T-13) the Complainant has the exclusive right to the use throughout Canada to the use of the Canada Drugs Marks in respect of its wares and services.

 

3.         The Complainant does not need to show registration of the Canada Drugs Marks with the USPTO in order to have an enforceable trademark rights or to bring the Complaint under the ICANN Policy.  It is well established that the test under paragraph 4(a)(i) of the Policy, which makes no mention of “exclusive rights,” is a relatively easy test for a Complainant to satisfy, its purpose simply being to ensure that the Complainant has a bona fide basis for making the Complaint in the first place.  Complainant has rights to Canada Drugs Marks by virtue of its registration with the CIPO, the trademark registration authority the Respondent’s nation of domicile.  The Complainant does not need to show registration of the Canada Drugs Marks with the USPTO in order to have an enforceable trademark right.  Since both the Complainant and the Respondent are Canadian businesses, the existence of the Canada Drugs Marks registrations with the CIPO are sufficient to meet the low threshold test of paragraph 4(a)(i) of the Policy. 

Confusingly Similar Competitor Websites

4.         The Affidavit of Armarjit Mann dated October 24, 2005, attached to and forming part of the Response, sets out an extensive list of other retail pharmacies that operate through domain names that purportedly incorporate the words “Canada” and “Drugs” or derivatives thereof.  The Respondent then argues that because the words “Canada” and “Drugs” are used generically by others, it should have the right to use the Canada Drugs Marks in association with its services.  This argument should be rejected by the panel.

5.         The cases provided by the Respondent herein are distinguishable from the facts before the panel herein, and function to highlight the inherent conflict between the Canada Drugs Marks and the <canadadrugsonline.com> domain name. 

Other Points of Clarification

6.         The Complainant filed a “proposed use” application in 2001.  It is a generally accepted principle of trademark law that in the case of such application the benefits of trademark rights that accrue in a particular mark will commence on either the filing date or the date of first use as set out in the application.  Once the certificate of registration issues, an applicant has rights dating back to the filing date in the case of a “proposed use” application.  The Complainant began to accrue trademark rights when it commenced business as CanadaDrugs.com early in 2001 and filed a “proposed use” trademark application with the CIPO, and it is only the administrative delays associated with the CIPO which caused the issuance to be delayed until May 2003.

7.         The Complainant submits that the Respondent’s tacit acknowledgement that it was aware of the Complainant’s rights at the time of registration of the <canadadrugsonline.com> domain name is additional evidence of bad faith registration. 

8.         The Complainant acknowledges a typographical error in the Complaint and states that an examination of Schedule “F” to the Complaint makes clear that the license is in fact between Kristjan Eric Thorkelson and the Complainant.

9.         Given that the Complainant and the Respondent are direct competitors, the Complainant submits that the panel should not be satisfied by the Respondent’s assertion that it registered and used the <canadadrugsonline.com> domain name and that it was only coincidentally identical to the Complainant’s established Canada Drugs Marks.

10.       The Complainant herein provides the Affidavit of Kristjan Eric Thorkelson sworn October 31, 2005, attesting to the facts as set out in the Complaint, a copy of which is attached hereto and marked as Schedule “F” to the Additional Submission.

C. Additional Submissions

By Respondent

 

Further Response to Claim of Lack of Legitimate Rights or Interests

 

1.         Pursuant to section 12(1)(b) of the Trade-marks Act, a trade-mark is not registrable in Canada if it is either clearly descriptive or deceptively misdescriptive in the English or French language of the character or quality of the wares or services in association with which it is used or proposed to be used, or of their place of origin.  Respondent submits that it has shown that the registrations upon which the Complainant relies are invalid, being either clearly descriptive or deceptively misdescriptive and being non-distinctive of the Complainant or the registered owner.  Therefore, the purported exclusive rights granted under section 19 of the Trade-marks Act do not apply.

 

2.         Respondent has commenced expungement proceedings in the Federal Court of Canada against Canadian Trade-mark Registration Nos. TMA581,915 and TMA581,899, on the basis that such marks are clearly descriptive or deceptively misdescriptive, and are not distinctive of Mr. Thorkelson.  If the Respondent is successful, the registrations will be struck from the Canadian Trade-mark Registry.

3.         By its very nature, a trade-mark “right” is an exclusive right.  The Trade-marks Act defines a trade-mark as “a mark that is used by a person for the purpose of distinguishing or so as to distinguish wares or services manufactured, sold, leased, hired or performed by him from those manufactured, sold leased, hired or performed by others”

4.         Having a trade-mark registration is not conclusive of having rights under the Policy.  Where sufficient evidence (based on the nature of the marks including descriptiveness and genericness, and use by other entities) is submitted to rebut any presumption of validity, the Complainant failed to meet its burden of proving rights in a trademark or service mark that corresponds to the disputed domain names.

5.         U.S. law can be applied by the tribunal, and decisions of the USPTO should be considered by the Panel in determining the Complainant’s alleged rights. 

6.         The Respondent has shown that not only are the words “Canada” and “Drugs” descriptive and generic, but that the phrase “Canada Drugs” is descriptive and generic, and commonly used by third parties.  The Respondent specifically points to the following domain names, each of which incorporate the whole of the phrase “Canada Drugs” or “Canada Drug”, most of which are involved in competing online pharmacies:

1)                  <canadadrugco.com>

2)                  <canadadrugstop.com>

3)                  <canadadrugprices.com>

4)                  <canadadrugpharmacy.com>

5)                  <canadadrugs.rxcarecanada.com>

6)                  <buy-canada-drugs.com>

7)                  <canadadrugmart.com>

8)                  <discountcanadadrug.com>

9)                  <canada-drugs-rx.com>

10)              <canadadrugsonline.net>

11)              <canadadrugsuperstore.com>

12)              <canadadrugsdirect.com>

13)              <canadadrugzone.com>

14)              <canadadrug.ca>

15)              <thecanadadrugstore.com>

16)              <order-canada-drugs.com>

 

7.                  The other numerous web sites presented by the Respondent show use of derivatives of the CANADA DRUGS phrase, evidencing its generic use. 

It is not just the words “Canada” and “Drugs” that are descriptive and generic: the combination of such words, namely CANADA DRUGS is also descriptive and generic.  CANADA DRUGS is not a coined phrase used by the Complainant, but is a generic phrase used by many others to indicate drugs coming from Canada.

8.         Where the Respondent raised (1) serious questions as to whether the Complainant has any proprietary rights in the alleged marks and/or (2) evidence showing that it has competing rights in another jurisdiction, the Panel must reject the Complainant’s claim, as the ultimate decision as to whether the Complainant does or does not have proprietary rights is better left to a court or trademark office tribunal. 

9.         While the Respondent was aware of the Complainant at the time of the proceedings in question, the Respondent was not aware at the time it launched its business under the canadadrugsonline.com domain name (or, manifestly, at the date it registered the domain name, which was prior to the date of launch) that the Complainant had any, or claimed any, trade-name or trade-mark rights to the phrases CANADA DRUGS and/or CANADA.

10.       With respect to the Complainant’s submissions that the Respondent ought to have chosen a different domain name if in fact it had a bona fide intent to attract consumers seeking drugs from Canada, the alternative names provided by the Complainant are in fact registered and used by other entities.  Further, the <canadadrugsonline.com> domain name has been registered since February of 2001 and would have been unavailable to the Respondent at the time the subject domain name was registered.

 

FINDINGS and 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.

Paragraph 4(b) of the Policy lists a number of circumstances which, without limitation, are deemed to be evidence of the registration and use of a domain name in bad faith. Those circumstances are:

(i) circumstances indicating that [the respondent has] registered or acquired the domain name primarily for the purpose of selling, renting, or otherwise transferring the domain name registration to the complainant who is the owner of the trademark or service mark or to a competitor of that complainant, for valuable consideration in excess of [the respondent’s] documented out-of-pocket costs directly related to the domain name; or

(ii) [the respondent has] registered the domain name in order to prevent the owner of the trademark or service mark from reflecting the mark in a corresponding domain name, provided that [the respondent has] engaged in a pattern of such conduct; or

(iii) [the respondent has] registered the domain name primarily for the purpose of disrupting the business of a competitor; or

(iv) by using the domain name, [the respondent has] intentionally attempted to attract, for commercial gain, Internet users to [the respondent’s] web 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] web website or location or of a product or service on [the respondent’s] web website or location.

Paragraph 4(c) of the Policy sets out a number of circumstances, again without limitation, which may be effective for a respondent to demonstrate that it has rights to, or legitimate interests in, the disputed domain name, for the purposes of paragraph 4(a)(ii) of the Policy. Those circumstances are:

(i) Before any notice to [the respondent] of the dispute, use by [the respondent] 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) Where [the respondent] (as an individual, business, or other organization) [has] been commonly known by the domain name, even if [the respondent has] acquired no trademark or service mark rights; or

(iii) Where [the respondent is] 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.

 

 

Paragraph 15(a) of the Rules requires the 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".

 

Identical and/or Confusingly Similar

 

The Panel finds that the domain name is confusingly similar and, therefore, Complainant has met the requirements of Policy 4(a)(i). 

 

Complainant asserts that it currently has rights in the CANADA DRUGS mark through registration of the mark with the Canadian Intellectual Property Office (“CIPO”) (Reg. No. TMA 581,915 issued May 20, 2003) and through continuous use of the mark in commerce allegedly since 2001.  Complainant contends that its trademark rights should relate back to the registration application filing date, March 23, 2001.  Respondent contends that the mark is invalid since it is, inter alia, merely descriptive and generic and has instituted expungement proceedings in the Canadian Federal Court to strike the registration from the Canadian Trademark Registry.

The Panel need not resolve this issue, however, since we conclude that Policy 4(a)(i) does not require a complainant to demonstrate “exclusive rights” but only that the complainant has a bona fide basis for making the Complaint in the first place.  Smart Design LLC v. Hughes, D2000-0993 (WIPO Oct. 18, 2000)   The Panel finds that the Canadian trademark registration for the mark establishes such rights. 

Furthermore, since Respondent does not contest the fact that the mark has been registered in Canada (but contends that it is invalid), we conclude that registration of a mark is prima facie evidence of validity, which creates a rebuttable presumption that the mark is inherently distinctive.  See Janus Int’l Holding Co. v. Rademacher, D2002-0201 (WIPO Mar. 5, 2002) ("Panel decisions have held that."); see also Nat’l Abortion Fed’n v. Dom 4 Sale, Inc., FA 170643 (Nat. Arb. Forum Sept. 9, 2003)

Complainant contends that the <canadadrugsonline.com> domain name is confusingly similar to Complainant’s CANADA DRUGS mark because the domain name incorporates Complainant’s mark in its entirety and adds the common term “online” and the generic top-level domain “.com.”  The Panel finds that such minor alterations to Complainant’s mark are insufficient to negate the confusingly similar aspects of Respondent’s domain name pursuant to Policy 4(a)(i).  See Arthur Guinness Son & Co. (Dublin) Ltd. v. Healy/BOSTH, D2001-0026 (WIPO Mar. 23, 2001) (finding confusing similarity where the domain name in dispute contains the identical mark of the complainant combined with a generic word or term); see also Sony Kabushiki Kaisha v. Inja, Kil, D2000-1409 (WIPO Dec. 9, 2000) (finding that “[n]either the addition of an ordinary descriptive word . . . nor the suffix ‘.com’ detract from the overall impression of the dominant part of the name in each case, namely the trademark SONY” and thus Policy Paragraph 4(a)(i) is satisfied); see also Nev. State Bank v. Modern Ltd. – Cayman Web Dev., FA 204063 (Nat. Arb. Forum Dec. 6, 2003) (“It has been established that the addition of a generic top-level domain is irrelevant when considering whether a domain name is identical or confusingly similar under the Policy.”).

 

Rights or Legitimate Interests

 

The Panel finds that Respondent does have rights and legitimate interests in <canadadrugsonline.com> because it is using and was using the domain name, prior to notice of this dispute, to make a bona fide offering of goods or services pursuant to Policy ¶ 4(c)(i).  See Eastbay Corp. v. VerandaGlobal.com, Inc., FA 105983 (Nat. Arb. Forum May 20, 2002) (finding that using a domain name consisting of a common descriptive and generic expression as a portal to a website featuring various advertisements and links is a bona fide offering of goods or services); see also Verkaik v. Crownonlinemedia.com, D2001-1502 (WIPO Mar. 19, 2002) (finding that the respondent’s use of the <skyart.com> domain name to sell “digital and photo images of Southwest scenes, especially the sky” bestowed rights and legitimate interests in the domain name).

 

The Panel further finds that the the disputed domain name is comprised of common terms and geographic identifiers, “Canada,” and “drug(s)” which are descriptive of the geographical area from which the business activities of both Complainant and Respondent are domiciled; and descriptive of a type of business engaging in the online sale and provision of pharmaceutical products and services of which there are a large number of competing businesses in Canada all using variations of these terms.  See Energy Source Inc. v. Your Energy Source, FA 96364 (Nat. Arb. Forum Feb. 19, 2001) (finding that a respondent has rights and legitimate interests in the domain name where “Respondent has persuasively shown that the domain name is comprised of generic and/or descriptive terms, and, in any event, is not exclusively associated with Complainant’s business”); see also Coming Attractions, Ltd. v. Comingattractions.com, FA 94341 (Nat. Arb. Forum May 11, 2000) (finding a respondent had the right to register the subject domain name, <comingattractions.com>, based upon the generic use of the term "coming attractions"); see also Successful Money Mgmt. Seminars, Inc. v. Direct Mail Express, FA 96457 (Nat. Arb. Forum Mar. 7, 2001) (finding that “seminar” and “success” are generic terms to which the complainant cannot maintain exclusive rights).

 

This dispute also involves the competing rights and legitimate interests of two parties in the domain name that contains generic and descriptive terms to which both make claims for trademark rights.  Presently, the parties are in litigation concerning their competing rights and legitimate interests. Given the nature of this dispute it is properly solved by resolution in the Canadian Federal Court where the parties are in litigation.   See Telaxis Commc’ns. Corp. v. Willima E. Minkle, D2000-0005 (WIPO March 5, 2000)

 

Registration and Use in Bad Faith

 

The final issue is that of bad faith registration and use by the Respondent. For Policy ¶ 4(a)(iii) to apply, the Complainant must demonstrate the conjunctive requirements that the Respondent registered the domain name in bad faith and continues to use it in bad faith.

 

The Panel finds that Respondent has rights or legitimate interests in the domain name having been conducting an online pharmacy business for some period before, during and after complainant’s actual registration of the mark. 

Therefore, Respondent did not register or use the disputed domain name in bad faith.  See Schering AG v. Metagen GmbH, D2000-0728 (WIPO Sept. 11, 2000) (finding that a respondent did not register or use the domain name <metagen.com> in bad faith where the respondent registered the domain name in connection with a fair business interest); see also DJF Assocs., Inc. v. AIB Commc’ns., FA 95612 (Nat. Arb. Forum Nov. 1, 2000) (finding a respondent has shown that it has a legitimate interest in the domain name because the respondent selected the name in good faith for its website, and was offering services under the domain name prior to the initiation of the dispute).

 

It is of interest to note that Complainant “…has no dispute with the Respondent for operating a competing business from the website <candrug.com>...” since approximately November 2002, which is highly similar to the name of its own website. (Complaint, page 5 of 10).  Rather, Complainant disputes, Respondent’s use of <canadadrugsonline.com> on the basis of its registration of its marks CANADA DRUGS and CANADADRUGS.COM applied for on March 23, 2001 and registered on May 20, 2003.  From the evidence presented, however, it appears that the online pharmacy business is highly competitive with numerous websites and businesses conducting business using highly similar variations of the same generic and descriptive terms namely “Canada,” “drug,” “drugs,” etc. Moreover, there is little if any evidence to establish that Respondent could have known of the Complainant’s trademark claims at the time of domain name registration and, therefore, to have registered the domain name in bad faith. The Panel, therefore, finds that Respondent did not register the <canadadrugsonline.com> domain name in bad faith because Complainant’s mark is comprised of common terms.  See Canned Foods Inc. v. Ult. Search Inc., FA 96320 (Nat. Arb. Forum Feb. 13, 2001) (holding that where the domain name is a generic term, it is difficult to conclude that there was a deliberate attempt to confuse on behalf of the respondent, and stating that “[i]t is precisely because generic words are incapable of distinguishing one provider from another that trademark protection is denied them”); see also Lowestfare.com LLC v. US Tours & Travel, Inc., AF-0284 (eResolution Sept. 9, 2000) (finding no bad faith where the respondent was using the descriptive domain name <thelowestfare.com> to lead consumers to a source of lowest fares in good faith).

 

DECISION

Having not established all three elements required under the ICANN Policy, the Panel concludes that relief shall be DENIED.

 

 

Steven L. Schwartz, Chair

Anne M. Wallace & Mark V. B. Partridge

 


Dated: November 29, 2005

 

 

 

 

 

 

 

 

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