National Arbitration Forum

 

DECISION

 

Hit Factory Entertainment, Inc. v. Manhasset Bay Associates, Inc.

Claim Number: FA0602000649476

 

PARTIES

Complainant is Hit Factory Entertainment, Inc. (“Complainant”), represented by Fritz L. Schweitzer, of Schweitzer Cornman Gross & Bondell LLP, 292 Madison Avenue - 19th Fl., New York, NY 10017.  Respondent is Manhasset Bay Associates, Inc. (“Respondent”), PO Box 494, Port Washington, NY 11050.

 

 

REGISTRAR AND DISPUTED DOMAIN NAME

The domain name at issue is <hitfactorystudio.com>, registered with Melbourne It, Ltd. d/b/a Internet Names Worldwide.

 

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.

 

Terry F. Peppard as Panelist.

 

PROCEDURAL HISTORY

Complainant submitted a Complaint to the National Arbitration Forum electronically on February 21, 2006; the National Arbitration Forum received a hard copy of the Complaint on February 23, 2006.

 

On February 21, 2006, Melbourne It, Ltd. d/b/a Internet Names Worldwide confirmed by e-mail to the National Arbitration Forum that the <hitfactorystudio.com> domain name is registered with Melbourne It, Ltd. d/b/a Internet Names Worldwide and that the Respondent is the current registrant of the name.  Melbourne It, Ltd. d/b/a Internet Names Worldwide has verified that Respondent is bound by the Melbourne It, Ltd. d/b/a Internet Names Worldwide 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 27, 2006, a Notification of Complaint and Commencement of Administrative Proceeding (the “Commencement Notification”), setting a deadline of March 20, 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@hitfactorystudio.com by e-mail.

 

A timely Response was received and determined to be complete on March 20, 2006.

 

On March 31, 2006, Complainant filed with the National Arbitration Forum an Additional Submission.  Although that Additional Submission was not filed fully in compliance with Supplemental Rule 7, the Panel has determined, in the interests of justice, to consider the allegations made therein in reaching this decision.

 

On March 31, 2006, pursuant to Complainant’s request to have the dispute decided by a single-member Panel, the National Arbitration Forum appointed Terry F. Peppard as sole Panelist in this proceeding.

 

RELIEF SOUGHT

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

 

PARTIES’ CONTENTIONS

A. Complainant

 

Complainant contends, among other things, that:

 

Complainant has, since 1987, held a U.S. trademark registration for the THE HIT FACTORY mark for use in connection with recording studio services.

 

Complainant has similar registrations in Canada, Great Britain, Japan, Australia, Cuba, Italy and Mexico.

 

Complainant has been using its mark in commerce for over 34 years.

 

Due to its long-standing use in commerce, Complainant also owns common law rights to the same mark.

 

Complainant also holds registrations for numerous domain names containing its famous mark, including these:  <thehitfactory.com>, <hitfactory.com>, <hitfactorystudios.com> and <thehitfactorystudios.com>.

 

Respondent registered the disputed domain name in February of 2005.

 

The use of Complainant’s mark in Respondent’s domain name is without authorization.

 

Respondent is not commonly known by the disputed domain name.

 

Respondent has failed to develop a web site for the disputed domain name.

 

The domain name resolves to a web site unaffiliated with either Respondent or Complainant.

 

Prior to April 4, 2005, the same domain name instead resolved to a separate website owned by Respondent at <sosproductions.com>, at which Respondent promoted its own commercial recording studio services.

 

On that date, Complainant, having learned of the existence of Respondent’s web site and its connection to the disputed domain name, corresponded with Respondent requesting that the domain name be transferred to Complainant.

 

Respondent reacted to this communication by redirecting the domain name to another web site described below in Respondent’s contentions.

 

B. Respondent

 

Respondent contends, among other things, that:

 

Respondent has never offered to sell the disputed domain name to anyone.

 

The disputed domain name forwards to a web site associated with the Make-A-Wish Foundation, a non-profit organization devoted to granting the wishes of children with life-threatening medical conditions.

 

Respondent has never realized any commercial benefit from the connection between its domain name and the Make-A-Wish Foundation web site.

 

Owing to recent business reverses, Complainant may no longer be using its mark in commerce.

 

Moreover, no web site has ever been developed by Complainant for any of the domain names associated with its mark.

 

The term “hit factory” is a generic expression not eligible for protection under the ICANN Policy.

 

C. Additional Submissions

 

Complainant’s Additional Submission alleges, inter alia, that:

 

Complainant has not abandoned its mark, and continues to use it in commerce.

 

Respondent does not dispute that it once used the subject domain name to resolve to its web site for SOS Productions, a competitor of Complainant in the provision of recording studio services.

 

Respondent does not offer any explanation for its decision to register a domain name containing Complainant’s mark. 

 

 

 

FINDINGS

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

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

(3)   the same domain name was registered and is being used by Respondent in bad faith.

 

DISCUSSION

Paragraph 15(a) of the Rules for Uniform Domain Name Dispute Resolution Policy (the “Rules”) instructs this Panel to “decide a complaint on the basis of the statements and documents submitted in accordance with the Policy, these Rules and any rules and principles of law that it deems applicable.”

 

Paragraph 4(a) of the Policy requires that the Complainant must prove each of the following three elements to obtain an order that a domain name should be cancelled or transferred:

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

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

iii.      the domain name has been registered and is being used in bad faith.

 

Identical and/or Confusingly Similar

 

Complainant contends that it has rights in the THE HIT FACTORY mark by virtue of its registration with the United States Patent and Trademark Office dating from 1987.  The Panel agrees. See 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.” See also Innomed Techs., Inc. v. DRP Servs., FA 221171 (Nat. Arb. Forum Feb. 18, 2004): “Registration of the NASAL-AIRE mark with the USPTO establishes Complainant's rights in the mark.”

 

Respondent nonetheless contends that Complainant may have surrendered its rights in the mark by failing to continue its use in commerce.  Respondent’s argument misapprehends the function of this proceeding.  Complainant’s rights in its mark, once established by the relevant national authorities, will not be disturbed by this Panel.  See Julie & Jason, Inc. d/b/a The Mah Jongg Maven v. Faye Scher d/b/a Where the Winds Blow, D2005-0073 (WIPO Mar. 6, 2005) (“Except in the most extraordinary circumstances, the Panel lacks jurisdiction or authority (not to mention the competence) to set aside a trademark registration issued by governmental authority.”).  Respondent’s contention with regard to possible abandonment of Complainant’s trademark rights must therefore be directed elsewhere.

Likewise, it is of no consequence that Complainant may have failed to this point to employ any of its many domain names containing the mark in a functioning web site or otherwise used it in Internet commerce.  It is enough that, as here, Complainant has rights in the mark sufficient to satisfy Policy ¶ 4(a)(i).

 

Respondent also attempts to contest Complainant’s rights in its mark by asserting that the phrase “Hit Factory” is generic in character, and, therefore, not entitled to trademark protection.  Once again, Respondent’s contention is misplaced.  ICANN-UDRP proceedings are not vested with jurisdiction to determine a Complainant’s entitlement to trademark protection.  That is the province of the competent national authorities.  Once the pertinent authorities have spoken, the issue is determined for purposes of these proceedings.  In The Ritz Hotel, Limited v. Damir Kruzicevic, D2005-1137 (WIPO, Jan. 16, 2006), a case challenging a complainant’s rights in a mark on grounds of genericness, the panel stated:

Complainant has proved that it is the registered proprietor of the mark RITZ, for various goods and services, in numerous countries. It is not for the Panel in an administrative proceeding such as this to question the validity of those registrations. 

In this instance there is evidence that Complainant’s rights in its mark have been recognized by the national authorities of perhaps eight countries, including the United States, of which both Complainant and Respondent are evidently residents.  There is no indication in the record of this proceeding to suggest that any of those authorities has ever withdrawn the registration of Complainant’s mark.  The Panel is therefore obliged to recognize Complainant’s rights in its mark.

 

We turn, then, to the question, whether, given that Complainant has rights in its mark, Respondent’s domain name is either identical or confusingly similar to that mark. On this question, it cannot fairly be said that the mark and domain name are identical.  The two are, however, confusingly similar, differing in only non-substantive ways, by the addition of the general article “the”, the generic term “studio” and the generic top level domain name “.com.”  See 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 ¶ 4(a)(i) is satisfied); see also Isleworth Land Co. v. Lost in Space, SA, FA 117330 (Nat. Arb. Forum Sept. 27, 2002) (“[I]t is a well-established principle that generic top-level domains are irrelevant when conducting a Policy ¶ 4(a)(i) analysis.”).

 

For these reasons, the Panel determines that Policy ¶ 4(a)(i) has been satisfied.

 

Rights or Legitimate Interests

 

Under this heading, Complainant must make out a prima facie case that Respondent lacks rights and legitimate interests in the disputed domain name under Policy ¶ 4(a)(ii), at which point the burden shifts to Respondent to show that it has such rights or interests.  See Compagnie Generale des Matieres Nucleaires v. Greenpeace Int’l, D2001-0376 (WIPO May 14, 2001) (“Proving that the Respondent has no rights or legitimate interests in respect of the Domain Name requires the Complainant to prove a negative. For the purposes of this sub paragraph [4(a)(ii)], however, it is sufficient for the Complainant to show a prima facie case and the burden of proof is then shifted on to the shoulders of Respondent.  In those circumstances, the common approach is for respondents to seek to bring themselves within one of the examples of paragraph 4(c) or put forward some other reason why they can fairly be said to have a relevant right or legitimate interests in respect of the domain name in question.”).  In this instance, Complainant has made out a prima facie showing that Respondent has no rights or interests in the disputed domain name.  Respondent responds only to the effect that the disputed domain name forwards to a web site associated with the Make-A-Wish Foundation, a non-profit organization devoted to granting the wishes of children with life-threatening medical conditions, and that Respondent has never realized any commercial benefit from the connection between its domain name and the Make-A-Wish Foundation web site.

 

Taking its assertions as true, Respondent has failed to show that it has legitimate rights to or interests in the disputed domain name.  However laudable it might seem to be at first blush, diverting Internet users seeking Complainant’s services to a third-party website unrelated to Complainant does not constitute a bona fide offering of goods or services pursuant to Policy ¶ 4(c)(i) or a legitimate noncommercial or fair use of the disputed domain name pursuant to Policy ¶ 4(c)(iii).  See Seiko Kabushiki Kaisha v. CS into Tech, FA 198795 (Nat. Arb. Forum Dec. 6, 2003) (“Diverting customers, who are looking for products relating to the famous SEIKO mark, to a website unrelated to the mark is not a bona fide offering of goods or services under Policy ¶ 4(c)(i), nor does it represent a noncommercial or fair use under Policy ¶ 4(c)(iii).”); see also Golden Bear Int’l, Inc. v. Kangdeock-ho, FA 190644 (Nat. Arb. Forum Oct. 17, 2003) (“Respondent's use of a domain name confusingly similar to Complainant’s mark to divert Internet users to websites unrelated to Complainant's business does not represent a bona fide offering of goods or services under Policy ¶ 4(c)(i) or a legitimate noncommercial or fair use under Policy ¶ 4(c)(iii).”). 

 

Likewise, Respondent can find no shelter under Policy ¶ 4(c)(ii), because Respondent makes no effort to suggest that it has ever been commonly known by the subject domain name.

 

Inasmuch as Respondent has offered no other basis upon which its claim of rights or interests might be grounded, the Panel finds that Complainant has met the proof requirements of Policy ¶ 4(a)(ii).

 

Registration and Use in Bad Faith

 

In examining the character of Respondent’s conduct under Policy ¶ 4(a)(iii), it is customary to resort to the provisions of Policy ¶ 4(b), which recites four separate considerations bearing on this topic.  In the circumstances here obtaining, it appears that none of the provisions of Policy ¶ 4(b) precisely applies.  However, that does not end our inquiry, because that proviso of the Policy expressly recites that its terms are non-exclusive.  We are therefore free to explore other factors that might bear on the problem before us.

 

We first observe that Respondent registered the contested domain name with either actual or constructive knowledge of Complainant’s rights in the THE HIT FACTORY mark by virtue of Complainant’s prior registration of that mark with the United States Patent and Trademark Office.  Registration of a confusingly similar domain name despite such actual or constructive knowledge, without more, evidences bad faith registration and use of the domain name pursuant to Policy ¶ 4(a)(iii).  See Digi Int’l v. DDI Sys., FA 124506 (Nat. Arb. Forum Oct. 24, 2002) (“[T]here is a legal presumption of bad faith, when Respondent reasonably should have been aware of Complainant’s trademarks, actually or constructively.”); 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.”).

 

Moreover, a careful examination of the facts alleged in this proceeding very strongly suggests that Respondent is guilty of what might be called “cyber-scavenging.”  This is to say that Respondent, evidently having learned that Complainant may have fallen on hard economic times, and so might soon not be in a position effectively to defend the rights to its mark, evidently decided to strike early by registering the disputed domain name, and, when called on it, attempting to divert attention by redirecting the domain name to the web site of a charitable institution that enjoys public esteem. This gambit is unavailing.   Respondent’s behavior is evidence of bad faith registration and use whether it occurs during Complainant’s salad days or when it is in recovery.  It is, in short, enough that Respondent has registered and uses the offending domain name without the consent of the rightful mark holder. See State Farm Mut. Auto. Ins. Co. v. Northway, FA 95464 (Nat. Arb. Forum Oct. 11, 2000) (finding that a respondent registered the domain name <statefarmnews.com> in bad faith because the respondent intended to use a complainant’s marks to attract the public to the web site without permission from the complainant).

 

The Panel thus finds that Complainant has satisfied the requirements of Policy ¶ 4(a)(iii).  

 

DECISION

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

 

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

 

 

Terry F. Peppard, Panelist
Dated: April 14, 2006

 

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