National Arbitration Forum

 

DECISION

 

Dell Inc. v. fadaei

Claim Number: FA0601000636421

 

PARTIES

Complainant is Dell Inc. (“Complainant”), represented by Daniel D. Frohling, of Loeb & Loeb LLP, 10100 Santa Monica Blvd., Suite #2200, Los Angeles, CA 90067.  Respondent is fadaei (“Respondent”), pardisepars, mirdamad street, Tehran, tehran 1111111, AU.

 

REGISTRAR AND DISPUTED DOMAIN NAME 

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

 

PANEL

The undersigned certifies that he or she has acted independently and impartially and to the best of his or her knowledge has no known conflict in serving as Panelist in this proceeding.

 

Honorable Paul A. Dorf (Ret.), Flip Jan Claude Petillion and Richard W. Page, Esquire as Panelists.

 

PROCEDURAL HISTORY

Complainant submitted a Complaint to the National Arbitration Forum electronically on January 26, 2006; the National Arbitration Forum received a hard copy of the Complaint on January 27, 2006.

 

On February 4, 2006, Onlinenic, Inc. confirmed by e-mail to the National Arbitration Forum that the <delliran.com> domain name is registered with Onlinenic, Inc. and that the Respondent is the current registrant of the name.  Onlinenic, Inc. has verified that Respondent is bound by the Onlinenic, Inc. registration agreement and has thereby agreed to resolve domain-name disputes brought by third parties in accordance with ICANN’s Uniform Domain Name Dispute Resolution Policy (the “Policy”).

 

On February 8, 2006, a Notification of Complaint and Commencement of Administrative Proceeding (the “Commencement Notification”), setting a deadline of February 28, 2006 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@delliran.com by e-mail.

 

Having received no Response from Respondent, the National Arbitration Forum transmitted to the parties a Notification of Respondent Default.

 

On March 10, 2006, pursuant to Complainant’s request to have the dispute decided by a Three-member Panel, the National Arbitration Forum appointed Honorable Paul A. Dorf (Ret.), Flip Jan Claude Petillion and Richard W. Page, Esquire as Panelists.

 

Having reviewed the communications records, the Administrative Panel (the "Panel") finds that the National Arbitration Forum has discharged its responsibility under Paragraph 2(a) of the Rules for Uniform Domain Name Dispute Resolution Policy (the "Rules") "to employ reasonably available means calculated to achieve actual notice to Respondent."  Therefore, the Panel may issue its decision based on the documents submitted and in accordance with the ICANN Policy, ICANN Rules, the National Arbitration Forum's Supplemental Rules and any rules and principles of law that the Panel deems applicable, without the benefit of any Response from Respondent.

 

RELIEF SOUGHT

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

 

PARTIES’ CONTENTIONS

A. Complainant

Complainant contends that the domain name at issue is confusingly similar to Complainant’s marks and names; that Respondent has no rights or legitimate interests in the domain name at issue; that Respondent has not used the domain name at issue in connection with a bona fide offering of goods or services; that Respondent no longer has a legitimate affiliation with Dell; that Respondent has not made any legitimate noncommercial or fair use of the domain name at issue; and, Respondent registered and used the domain name at issue in bad faith.

 

B. Respondent

Respondent failed to submit a response in this proceeding.

 

FINDINGS

Complainant is engaged in the business of marketing and selling computer systems and related products and services.  Complainant began using DELL as its trade name, trademark and service mark in 1987.  Its products are sold directly to consumers, by promoting the products and services through television, radio, magazines, newspapers and the Internet.

           

            As Complainant generates almost half of its revenue from Internet sales, it owns, uses and has registered hundreds of domain names that contain its famous mark, including domain names that combine the mark with a country code. 

 

            Complainant has registered the trademark DELL and other variations of the mark in more than 180 countries worldwide, including Iran.  Complainant also owns more than 30 trademark registrations in the United States, dating back to 1988.

 

            Complainant marketed and sold its products and services in Iran until 1997, when the United States imposed an embargo on trade with Iran.  Complainant continues to maintain its trademark registrations in Iran should the embargo be lifted.

 

            In 1991, prior to these sanctions, Respondent entered into an International Distributor Agreement that gave Respondent limited rights to use the famous mark for one year.  This Agreement terminated in 1992.  In December of that same year, Complainant learned that Respondent had filed an Iranian trademark application for the term “DELLIRAN” and Complainant opposed the application and requested, through its counsel, that the Respondent stop using the DELL name.  Respondent then opposed Complainant’s trademark applications and filed a second application for the trademark “DELLIRAN” which Complainant opposed.  In 1995, the parties resolved the dispute and Respondent was allowed to register “DELLIRAN” in Iran only; however, the agreement did not provide for Respondent to register or use the domain name at issue. 

 

            The registration for Respondent’s  “DELLIRAN” mark expired in 2002.  Iranian Intellectual Property Law, Chapter One, Article 2 states:  “The right to exclusively use a trademark is only recognized for an individual [or an entity] who has registered it” and Article 9 “In the following cases, the clerk mentioned in Article 6 will deny the registration application: 1. If the symbol is not in accordance with the law” and “2. If the symbol is already registered to a third party or the similarity degree of the symbol to a registered symbol is great enough to mislead regular consumers, meaning the consumers who do not have special information.”  As the Respondent’s registration has expired and as Complainant has current trademark registrations of its famous mark in Iran, Respondent is prohibited from securing a new registration.

 

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 shall decide this administrative proceeding on the basis of Complainant's undisputed representations pursuant to paragraphs 5(e), 14(a) and 15(a) of the Rules and draw such inferences it considers appropriate pursuant to paragraph 14(b) of the Rules.  The Panel is entitled to accept all reasonable allegations and inferences set forth in the Complaint as true unless the evidence is clearly contradictory.  See Vertical Solutions Mgmt., Inc. v. webnet-marketing, inc., FA 95095 (Nat. Arb. Forum July 31, 2000) (holding that the respondent’s failure to respond allows all reasonable inferences of fact in the allegations of the complaint to be deemed true); see also Talk City, Inc. v. Robertson, D2000-0009 (WIPO Feb. 29, 2000) (“In the absence of a response, it is appropriate to accept as true all allegations of the Complaint.”).

 

Paragraph 4(a) of the Policy requires that 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

 

The Panel finds that Complainant has established rights in the DELL mark through registration with the United States Patent and Trademark Office (“USPTO”) (Reg. No. 1,616,571 issued Oct. 9, 1990).  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 Vivendi Universal Games v. XBNetVentures Inc., FA 198803 (Nat. Arb. Forum Nov. 11, 2003) (“Complainant's federal trademark registrations establish Complainant's rights in the BLIZZARD mark.”).  Complainant has also registered the DELL, DELL (stylized E) and DELL PRECISION marks in Iran. 

 

The Panel also finds that the domain name at issue is confusingly similar to Complainant’s mark, as it contains Complainant’s entire DELL mark and adds the geographic term “Iran.”  The addition of geographic terms to a well-known and established mark, fails to properly distinguish a domain name pursuant to Policy ¶ 4(a)(i).  See VeriSign, Inc. v. Tandon, D2000-1216 (WIPO Nov. 16, 2000) (finding confusing similarity between the complainant’s VERISIGN mark and the <verisignindia.com> and <verisignindia.net> domain names where the respondent added the word “India” to the complainant’s mark); see also Wal-Mart Stores, Inc. v. Walmarket Canada, D2000-0150 (WIPO May 2, 2000) (finding that the domain name, <walmartcanada.com> is confusingly similar to the complainant’s famous mark).

 

Rights or Legitimate Interests

 

It appears from the evidence presented that Respondent is using the domain name at issue to operate a website to market computer systems and related products and services using Complainant’s famous mark, falsely suggesting that Respondent is an agent of Complainant, and posing as the only authorized dealer of Complainant’s products and selling those products to consumers in a market in which Complainant is not allowed to compete.  The Panel finds that that such use of the domain name at issue is neither a bona fide offering of goods or services pursuant to Policy ¶ 4(c)(i) nor a legitimate non-commercial or fair use pursuant to Policy ¶ 4(c)(iii).  See Caterpillar Inc. v. Huth, FA 169056 (Nat. Arb. Forum Sept. 2, 2003) (“Respondent lacks rights in the disputed domain names because Respondent competes with Complainant by selling Complainant's used parts without a license from Complainant to do so.”); see also Am. Int’l Group, Inc. v. Busby, FA 156251 (Nat. Arb. Forum May 30, 2003) (finding that the respondent attempts to pass itself off as the complainant online, which is blatant unauthorized use of the complainant’s mark and is evidence that the respondent has no rights or legitimate interests in the disputed domain name); see also Crow v. LOVEARTH.net, FA 203208 (Nat. Arb. Forum Nov. 28, 2003) (“It is neither a bona fide offerings [sic] of goods or services, nor an example of a legitimate noncommercial or fair use under Policy ¶¶ 4(c)(i) & (iii) when the holder of a domain name, confusingly similar to a registered mark, attempts to profit by passing itself off as Complainant . . . .”).

 

In 1991, Complainant and Respondent entered into a licensing agreement whereby Respondent was granted limited use of Complainant’s DELL mark and the right to be the sole distributor of Complainant’s products in Iran.  That agreement, however, was terminated in 1992 and since that time, Complainant and Respondent have not entered into another agreement.  Further, Respondent is no longer licensed to register domain names featuring Complainant’s mark.  The Panel finds that Respondent is neither commonly known by the disputed domain name nor licensed to register marks featuring Complainant’s mark pursuant to Policy ¶ 4(c)(ii).  See Ian Schrager Hotels, L.L.C. v. Taylor, FA 173369 (Nat. Arb. Forum Sept. 25, 2003) (finding that without demonstrable evidence to support the assertion that a respondent is commonly known by a domain name, the assertion must be rejected); see also Charles Jourdan Holding AG v. AAIM, D2000-0403 (WIPO June 27, 2000) (finding no rights or legitimate interests where (1) the respondent is not a licensee of the complainant; (2) the complainant’s prior rights in the domain name precede the respondent’s registration; (3) the respondent is not commonly known by the domain name in question).

 

Registration and Use in Bad Faith

 

Respondent is using the domain name at issue to sell Complainant’s goods under Complainant’s mark without an authorized license or agreement.  The Panel finds that such use constitutes disruption of Complainant’s business and is evidence of bad faith registration and use under Policy ¶ 4(b)(iii).  See Fossil, Inc. v. NAS, FA 92525 (Nat. Arb. Forum Feb. 23, 2000) (transferring the <fossilwatch.com> domain name from the respondent, a watch dealer not otherwise authorized to sell the complainant’s goods, to the complainant); see also G.D. Searle & Co. v. Celebrex Cox-2 Vioxx.com, FA 124508 (Nat. Arb. Forum Oct. 16, 2002) (“Unauthorized use of Complainant’s CELEBREX mark to sell Complainant’s products represents bad faith use under Policy ¶ 4(b)(iii).”).

 

Furthermore, Respondent’s manner of use of the domain name at issue will likely lead to confusion among Internet users as to Complainant’s sponsorship of or affiliation with the resulting website.  The Panel finds that such use is further evidence of bad faith registration and use pursuant to Policy ¶ 4(b)(iv).  See Am. Univ. v. Cook, FA 208629 (Nat. Arb. Forum Dec. 22, 2003) (“Registration and use of a domain name that incorporates another's mark with the intent to deceive Internet users in regard to the source or affiliation of the domain name is evidence of bad faith.”); see also Perot Sys. Corp. v. Perot.net, FA 95312 (Nat. Arb. Forum Aug. 29, 2000) (finding bad faith where the domain name in question is obviously connected with the complainant’s well-known marks, thus creating a likelihood of confusion strictly for commercial gain).

 

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

 

 

 

 

 

Honorable Paul A. Dorf (Ret.), Panel Chair

 


Dated: March 23, 2006

 

 

 

 

 

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