National Arbitration Forum

 

DECISION

 

The Neiman Marcus Group, Inc. and NM Nevada Trust v. Faith McGary

Claim Number: FA0607000757475

 

PARTIES

Complainant is The Neiman Marcus Group, Inc. and NM Nevada Trust (“Complainant”), represented by David J. Steele, of Christie, Parker & Hale LLP, 3501 Jamboree Road, Suite 6000, Newport Beach, CA 92660.  Respondent is Faith McGary (“Respondent”), 1324 Madison Ave, Bethlehem, PA 18018.

 

 

REGISTRAR AND DISPUTED DOMAIN NAMES 

The domain names at issue are <neimanmarcusmobile.info> and <neimanmarcusonline.info>, registered with Schlund+Partner AG.

 

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.

 

Alan L. Limbury as Panelist.

 

PROCEDURAL HISTORY

Complainant submitted a Complaint to the National Arbitration Forum electronically on July 21, 2006; the National Arbitration Forum received a hard copy of the Complaint on July 24, 2006.

 

On July 25, 2006, Schlund+Partner AG confirmed by e-mail to the National Arbitration Forum that the <neimanmarcusmobile.info> and <neimanmarcusonline.info> domain names are registered with Schlund+Partner AG and that the Respondent is the current registrant of the names.  Schlund+Partner AG has verified that Respondent is bound by the Schlund+Partner AG registration agreement and has thereby agreed to resolve domain-name disputes brought by third parties in accordance with ICANN’s Uniform Domain Name Dispute Resolution Policy (the “Policy”).

 

On August 1, 2006, a Notification of Complaint and Commencement of Administrative Proceeding (the “Commencement Notification”), setting a deadline of August 21, 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@neimanmarcusmobile.info and postmaster@neimanmarcusonline.info by e-mail.

 

A Response was received in electronic but not hard copy on August 2, 2006 and thus the National Arbitration Forum has deemed the Response deficient according to Supplemental Rule #5(a).  The Panelist has nevertheless taken the Response into account in the interests of procedural fairness.

 

On August 9, 2006, pursuant to Complainant’s request to have the dispute decided by a single-member Panel, the National Arbitration Forum appointed Alan L. Limbury as Panelist.

 

RELIEF SOUGHT

Complainant requests that the domain names be transferred from Respondent to The Neiman Marcus Group, Inc.

 

PARTIES’ CONTENTIONS

A. Complainant

 

Complainant conducts under the name Neiman Marcus a retail business established in 1907 as a specialty store in Dallas, Texas and which has since grown into a nationwide chain of retail stores and a worldwide mail order catalog retail business, internationally recognized as an innovator in high end fashion and merchandising.   It has been conducting business online since 1999 through the website reached through the domain name <neimanmarcus.com>.

 

NM Nevada Trust owns and licenses to The Neiman Marcus Group, Inc. the famous trademark NIEMAN MARCUS, which is the subject of numerous United States trademark registrations, including No. 934,177 registered in International Class 42 on May 16, 1972 in respect of retail specialty department store services, citing first use in commerce in 1907.

 

The disputed domain names are confusingly similar to Complainant’s NEIMAN MARCUS marks; Respondent has no rights or legitimate interests in relation to the domain names, which were registered and are being used in bad faith, in particular under paragraph 4(b)(i) of the Policy.  Having ignored Complainant’s Counsel’s offer to reimburse to Respondent her documented out of pocket expenses paid to the Registrar when registering the domain names, Respondent is now directing users to Complainant’s website at <neimanmarcus.com>.

 

B. Respondent

 

Respondent denies cybersquatting and denies that the domain names were ever for sale to anyone.  The domain names point to Complainant’s website.  She has tried to transfer the domain names to Complainant but has been unable to do so because of the Registrar Lock placed upon them upon the filing of the Complaint.

 

FINDINGS

Complainant has established all the elements entitling it to the relief sought.

 

DISCUSSION

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

 

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

 

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

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

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

 

Identical and/or Confusingly Similar

 

Many cases have established that the test of confusing similarity under the Policy is confined to a comparison of the disputed domain name and the trademark alone, independent of the other marketing and use factors, such as the "Sleekcraft factors" – AMF Inc. v. Sleekcraft Boats, 599 F.2d 341, 346 (9th Cir. 1979), usually considered in trademark infringement or unfair competition cases.  See BWT Brands, Inc. and British American Tobacco (Brands), Inc v. NABR, D2001-1480 (WIPO Mar. 26, 2002); Britannia Building Society v. Britannia Fraud Prevention, D2001‑0505 (WIPO Jul. 12, 2001); Wal-Mart Stores, Inc. v. MacLeod, D2000-0662 (WIPO Sept. 21, 2000); Koninklijke Philips Electronics N.V. v. In Seo Kim, D2001‑1195 (WIPO Nov. 12, 2001); Energy Source Inc. v. Your Energy Source, FA 96364 (Nat. Arb. Forum Feb. 19, 2001); Vivendi Universal v. Mr. Jay David Sallen and GO247.COM, Inc., D2001-1121 (WIPO Nov. 7, 2001).  See also Northern Light Tech., Inc. v. N. Lights Club 2000 U.S. Dist. LEXIS 4732 (D. Mass. March 31, 2000) (adopting a similar approach in U.S. Federal court).

 

In Microsoft Corp. v. Microsof.com a/k/a Tarek Ahmed, D2000-0548 (WIPO Jul. 24, 2000), contributing factors to the likelihood of confusion were held to be the visual similarity between the domain name and the complainant’s mark and the mark being strong and immediately recognizable.  Respondent has not denied Complainant’s assertion that the NEIMAN MARCUS mark is famous.  The addition to Complainant’s mark of the words MOBILE in one case and ONLINE in the other, together with the inconsequential “.info,” do nothing to detract from the distinctiveness of that mark.  The domain names are clearly confusingly similar to Complainant’s famous NEIMAN MARCUS mark.

 

Complainant has established this element of its case.

 

Rights or Legitimate Interests

Once a complainant establishes a prima facie case against a respondent, the burden is on the respondent to provide evidence of its right or legitimate interests under paragraph 4(c) of the Policy.  See, e.g., Cassava Enterprises Limited, Cassava Enterprises (Gibraltar) Limited v. Victor Chandler International Limited, WIPO Case No. D2004-0753 (WIPO Nov. 11, 2004).

 

Both domain names were registered on April 20, 2006.  In an email response to a communication from Complainant’s Counsel before the Complaint was filed, Respondent said on June 28, 2006:

 

These are parked and not being used. I purchased them but do not intend to use them.

 

Respondent has not denied Complainant’s assertions that she is not known individually or as a business or in any other manner by any of the domain names; that she has no affiliation or relationship with Complainant and has no reason for using Complainant’s trademark as a domain name.  Accordingly, no finding can be made of rights or legitimacy under paragraph 4(c)(ii) of the Policy.  Respondent’s expressed intent not to use the domain names precludes any finding of rights or legitimacy under paragraphs 4(c)(i) and (iii) of the Policy.  See State Farm Mutual Automobile Ins. Co. v. Faw, FA 94971 (Nat. Arb. Forum Jul. 12, 2000) (finding no legitimate interest where Respondent had not used nor developed the domain name for a legitimate non-commercial or fair purpose and was not using the domain name in connection with a bona fide offering of goods or services); see also Leland Stanford Junior University v. Zedlar Transcription & Translation, FA 94970 (Nat. Arb. Forum Jul. 11, 2000).

 

Despite her denials of intent to use, Respondent has in fact used the domain names to point to Complainant’s website.  This affords no foundation for a finding of rights or legitimacy, however.

 

Complainant has established this element of its case.

 

Registration and Use in Bad Faith

 

It should be noted that the circumstances which, under paragraph 4(b) of the Policy,  constitute evidence of both bad faith registration and bad faith use are not exhaustive and that each of these may be proved separately.

 

Respondent’s email of June 28, 2006 continued:

 

You[r] clients could have purchased these domains.  .info has been out now for several years.  Yet your clients did choose with thought not to use these, leaving the door open for someone else to purchase them.  Your clients appear to not care about their brand or name or these would have been purchased several years back when .info was offered in both the silent and land rush opportunities. So…they invited others to pick up something that they disregarded. Some[one] is not “Cyber Squatting” if the domain is parked and not in use.  If your clients want these domains, then.. then [sic] need to make a fair offer.  You can not require someone to turn over something they paid money for.  I am trying to be fair about this.  But, I did pay for these, and your clients elected not to care enough to get them, so I do not understand why they care now.  The can purchase from me just like they would from a domain company.  The domain company would not have given it to them for free either”.

 

In light of this, the Panel concludes that Respondent was aware of Complainant’s famous mark when registering the domain names and that this was an opportunistic act of bad faith registration.  See Deutsche Bank AG v. Diego-Artyuro Bruckner, D2000-0277 (WIPO May 30, 2000).

 

As to Respondent’s assertion that there cannot be cybersquatting unless there is use of the domain names, the ‘use’ requirement has been found not to require positive action, inaction being within the concept.  See Telstra Corporation Limited v. Nuclear Marshmallows, D2000-0003 (WIPO Feb. 18, 2000); Barney’s, Inc. v. BNY Bulletin Board, D2000-0059 (WIPO Apr. 5, 2000); CBS Broadcasting, Inc. v. Dennis Toeppen, D2000-0400 (WIPO Jul. 11, 2000); Video Networks Limited v. Larry Joe King, D2000-0487 (WIPO Jul. 25, 2000); Recordati S.P.A. v. Domain Name Clearing Company, D2000-0194 (WIPO Jul. 24, 2000); Revlon Consumer Products Corporation v. Yoram Yosef, D2000-0468 (WIPO Aug. 2, 2000).

 

Here, however, there has been active use in “parking” the domain names at Complainant’s website.  This must give the false impression to Internauts seeking Complainant’s site of an authorized association between Complainant and Respondent which Respondent knew did not exist.  The Panel finds this to constitute use in bad faith. See Sydney Opera House Trust v. Trilynx Pty. Limited, D2000-1224 (WIPO Nov. 8, 2000).

 

Further, the combination of the absence of any rights or legitimate interest in the domain names, the terms of Respondent’s email and the subsequent “parking” of the domain names at Complainant’s website enable the inference to be drawn that Respondent registered the domain names primarily for the purpose of selling them to Complainant for valuable consideration in excess of her documented out-of-pocket costs directly related to the domain names.  Under paragraph 4(b)(i) of the Policy, this is evidence of both bad faith registration and bad faith use.

 

Complainant has established this element of its case.

 

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 <neimanmarcusmobile.info> and <neimanmarcusonline.info> domain names be TRANSFERRED from Respondent to Complainant The Neiman Marcus Group, Inc.

 

 

 

 

Alan L. Limbury, Panelist
Dated: August 22, 2006.

 

 

 

 

 

 

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