National Arbitration Forum

 

DECISION

 

Choice Hotels International, Inc. v. AnnaValdieri

Claim Number: FA0607000758830

 

PARTIES

Complainant is Choice Hotels International, Inc. (“Complainant”), represented by Halle B. Markus, of Arent Fox PLLC, 1050 Connecticut Avenue, N.W., Washington, DC 20036-5339.  Respondent is AnnaValdieri (“Respondent”), Box 245, Vienna 1130, AT.

 

 

REGISTRAR AND DISPUTED DOMAIN NAME

The domain name at issue is <choicehotels.org>, registered with Bizcn.com, 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.

 

Tyrus R. Atkinson, Jr., as Panelist.

 

PROCEDURAL HISTORY

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

 

On August 3, 2006, Bizcn.com, Inc. confirmed by e-mail to the National Arbitration Forum that the <choicehotels.org> domain name is registered with Bizcn.com, Inc. and that the Respondent is the current registrant of the name.  Bizcn.com, Inc. has verified that Respondent is bound by the Bizcn.com, Inc. registration agreement and has thereby agreed to resolve domain-name disputes brought by third parties in accordance with ICANN’s Uniform Domain Name Dispute Resolution Policy (the “Policy”).

 

On August 4, 2006, a Notification of Complaint and Commencement of Administrative Proceeding (the “Commencement Notification”), setting a deadline of August 24, 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@choicehotels.org by e-mail.

 

A timely Response was received and determined to be complete on August 7, 2006.

 

 

On August 10, 2006, pursuant to Complainant’s request to have the dispute decided by a single-member Panel, the National Arbitration Forum appointed Tyrus R. Atkinson, Jr., as Panelist.

 

RELIEF SOUGHT

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

 

PARTIES’ CONTENTIONS

A. Complainant

 

Complainant is one of the world’s largest lodging franchisors, with over 5,200 hotels in countries and territories throughout the world.  In the United States, Europe, and in other countries and territories throughout the world, Complainant has continuously used the mark CHOICE HOTELS since at least as early as November 1990.  Complainant has invested substantial sums of money in developing and marketing its CHOICE HOTELS mark.  The CHOICE HOTELS mark has been and continues to be widely publicized through advertising throughout the United States, Europe, and other countries and territories.  As a result, consumers have come to associate the CHOICE HOTELS mark with Complainant’s high quality services.

 

Complainant owns and uses the domain names <choicehotels.com> and <choicehotelseurope.com> to advertise its hotel services, to advertise and facilitate its online hotel reservation services, and to promote its hotel franchising services.  Complainant uses the CHOICE HOTEL mark extensively on its web sites, which represent an important marketing channel for the company. 

 

Complainant owns numerous registrations in the United States and around the world for the CHOICE HOTELS word mark.  Registrations are present in the United States, Australia, Japan, the European Community, Mexico and other countries.

Complainant has also established common law rights in its CHOICE HOTELS mark. 

Many years after Complainant adopted and first used its CHOICE HOTELS mark, and long after the mark became famous, Respondent registered the domain name <choicehotels.org>.  Without authorization from Complainant, Respondent registered the disputed domain name on June 14, 2005.

 

Respondent’s domain name is identical to Complainant’s CHOICE HOTELS mark and is confusingly similar to Complainant’s mark.

 

Respondent has no rights or legitimate interests in the subject domain name.  Respondent is not licensed or authorized to use Complainant’s CHOICE HOTELS mark and is not named or commonly known as CHOICE HOTELS.

Respondent commercially benefits from the disputed domain name by redirecting Internet users to a commercial search engine.  This does not constitute a bona fide offering of goods or services.

 

Respondent registered and is using the <choicehotels.org> domain name in bad faith.  Respondent is commercially benefiting from the disputed domain name by creating a likelihood of confusion with Complainant’s mark and redirecting the unsuspecting to a commercial search engine for financial gain.

 

B. Respondent

 

Respondent states that she registered the domain name in good faith over one year ago as well as many other generic domains of various kinds related to the travel industry and temporary parked them on a PPC page while working offline.  Respondent sees no violation of Complainant’s trademark.  She is simply looking for generic and targeted keywords to use for her own projects but under no circumstances will she ever violate other people/companies rights.  Respondent is sure of her good faith.

 

 

FINDINGS

1.      Complainant is one of the largest lodging franchisors in the world.

2.      Complainant owns registrations for the mark, CHOICE HOTELS, in numerous countries, including the United States (Registration No. 2,717,062); European Community (Registration No. 2,272,466); Switzerland (Registration No. 500,481); Canada, Mexico, Australia, and others.

3.      Complainant owns and uses the domain names <choicehotels.com> and <choicehotelseurope.com>.

4.      On June 14, 2005, Respondent registered the domain name <choicehotels.org> without the permission or authorization of Complainant.

5.      Respondent’s domain name resolves itself into a search engine offering reservation services for hotels and other related services.

6.      Respondent’s domain name <choicehotels.org> is identical to Complainant’s mark CHOICE HOTELS.

7.      Respondent has no rights or legitimate interests in the disputed domain name.

8.      Respondent registered and used the disputed domain name 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:

 

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

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

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

 

Identical and/or Confusingly Similar

 

Complainant must first establish rights in the mark, CHOICE HOTELS, before it can proceed.  Complainant does establish its rights in the mark by showing registrations with trademark authorities.   Complainant shows registrations in the United States, the European Community and other countries for the mark, CHOICE HOTELS.  These registrations are sufficient to establish rights in the mark pursuant to Policy¶ 4(a)(i).  See Google, Inc. v. DktBot.org, FA 286993 (Nat. Arb. Forum Aug. 4, 2004) (holding that through its holding of numerous trademark registrations around the world, Google had established rights in the mark); see also Honeywell Int’l Inc. v. r9.net, FA 445594 (Nat. Arb. Forum May 23, 2005).  The Policy does not require that the mark be registered in the country in which the respondent operates.  It is sufficient that the Complainant can demonstrate a mark in some jurisdiction.  See Koninklijke KPN N.V. v. Telepathy Inc., D2001-0217 (WIPO May 7, 2001).  Furthermore, registrations, under United States trademark law, hold a presumption that they are inherently distinctive and have acquired secondary meaning.  See Men’s Warehouse, Inc. v. Wick, FA 117861 (Nat. Arb. Forum Sept. 16, 2002); see also Janus Int’l Holding Co. v. Rademacher, D2002-0201 (WIPO Mar. 5, 2002).

 

Respondent’s domain name <choicehotels.org> is identical to Complainant’s CHOICE HOTELS mark.  See Microsoft Corp. v. Mehrotra, D2000-0053 (WIPO Apr. 10, 2000) (finding that the domain name <microsoft.org> is identical to complainant’s Microsoft mark); see also BMW AG v. Loophole, D2000-1156 (WIPO Nov. 13, 2001) (finding that there was “no doubt” that the domain name <bmw.org> is identical to the complainant’s well-known and registered BMW trademark); see also Rollerblade, Inc. v. McCrady, D2000-0429 (WIPO June 25, 2000) (holding that top-level domains such as “com” are irrelevant additions to domain names for the purposes of comparison with trademarks). 

 

Respondent does not contend that the disputed domain name is not identical to Complainant’s mark.

 

Complainant prevails under Policy ¶ 4(a)(i).

 

Rights or Legitimate Interests

 

Once Complainant makes a prima facie case that Respondent lacks rights and legitimate interests in the disputed domain name under Policy¶4(a)(ii), then the burden shifts to Respondent to show she does have rights or legitimate interests. See Starwood Hotels & Resorts Worldwide, Inc. v. Samjo CellTech. Ltd., FA406512 (Nat. Arb. Forum Mar. 9, 2005) (holding that the threshold for making such a showing is low, since it is difficult to produce evidence to support a negative statement).

 

Complainant shows that it gave no permission or authorization to Respondent to use the CHOICE HOTELS mark and that Respondent is not known by the name, CHOICE HOTELS.  Under the facts and circumstances of this case, the Panel finds that Complainant proves enough to shift the burden to Respondent to go forward with the presentation of evidence.  Respondent counters by the simple assertion that the domain name <choicehotels.org> consists of generic terms and that she “under no circumstances” will “ever violate other people/companies rights.”

 

Complainant did not file a supplemental brief to address the issue of the generic nature of CHOICE HOTELS.  In the Complaint, it was argued that CHOICE HOTELS is a famous mark and that registration carries a presumption that CHOICE HOTELS is distinctive and has acquired secondary meaning.

 

At this point, the Panel must consider the powers and responsibility of a panelist under the Policy.  Rule 15(a) of the Rules for Uniform Domain Dispute Resolution Policy, states that “A Panel shall decide a complaint on the basis of the statements and documents submitted and in accordance with the Policy, these Rules and any rules and principles of law that it deems applicable.”  Rule 10 requires the Panel shall ensure that the Parties are treated with equality.  What should the response of the Panel be if certain circumstances are revealed in the research of domain name decisions which impact the proceeding at hand, when these cases were neither cited nor argued in either the Complaint or Response when such prior domain name decisions tend to prove unfavorable inferences to one of the parties?  The inferences raised by these decisions were not argued and did not constitute any part of the “statements and documents” submitted to this Panel.

 

Rule 10 instructs the Panel to “conduct the administrative proceeding in such manner as it considers appropriate in accordance with the Policy and these Rules.”  The Panel finds that it is permissible to consider prior decisions of UDRP panels in the determination of a dispute even when such decisions are neither recognized nor cited by either party, even when the content of such decisions may cast an unfavorable light upon one of the parties and when the content of such prior decisions assist the Panel in the proper resolution of the proceedings at hand.  The Panel considers prior domain name dispute decisions as “principles of law” under Rule 15 which may be considered by a Panel.

 

Respondent contends that she innocently registered a generic term as a domain name and never had any intent to violate the trademark rights of others.  The Panel’s research suggests that Respondent’s explanation is not quite as innocent as it seems.  Respondent is no stranger to domain name disputes.  In New Chapter, Inc. v. Anna Valdieri, D2006-0109 (WIPO Apr. 5, 2006), the domain name <zyflamend.com> was transferred to complainant because this Respondent was found to have registered a domain name identical to complainant’s mark, had no rights or legitimate interests in the domain name and that it had been registered and used in bad faith.  The Decision in the New Chapter case states as follows:  “The Complainant also cites, as further evidence of the Respondent’s bad faith, numerous other websites which have been registered by the Respondent which incorporate well-known marks of major companies, organizations and individuals, including, for example: ‘www.eddiebauer.org’, ‘www.virginlottery.org’, and ‘www.departmentofjustice.org’.  The Complainant contends that this exemplifies a pattern of bad faith on the part of the Respondent and that the use of its ZYFLAMEND mark by the Respondent is therefore not an isolated incident…The Panel…considers that the numerous other domain names which the Respondent has registered which incorporate famous organizations and individuals and which are clearly unconnected with the Respondent, are further evidence that the Respondent is acting in bad faith in using the ZYFLAMEND mark.”

 

The series of cases that follow are equally instructive.  In each of the cases, this Respondent registered domain names using the “.org” designation, which were identical or confusingly similar to the complainant’s marks.  In each case the disputed domain name resolved to a search engine to other commercial websites for which a referral or click-through fee was presumably collected by this Respondent.  See LTD Commodities LLC v. Anne Vildieri, FA 558338 (Nat. Arb. Forum Nov. 11, 2005) (transferring <ltdcommodities.org> to LTDCommodities LLC and stating “…Respondent is using the disputed domain name to divert Internet traffic to a portal website that provides connections to websites offering a variety of goods and services.  The Respondent’s use of a confusingly similar domain name as the Complainant’s registered marks to divert users it not a use in connection with a bona fide offering of goods or services pursuant to Policy¶4 (c)(i); additionally, Respondent’s use is not a legitimate noncommercial or fair use pursuant to Policy ¶4 (c)(ii).”); see also Disney Enterprises, Inc. v. Miss Anna Valdieri, FA 586947 (Nat. Arb. Forum Dec. 7, 2005) (transferring <disneystore.org> to Disney Enterprises, Inc. and stating “The Panel finds that, absent any other evidence relating to use, appropriating Complainant’s mark in a domain name to link to related and unrelated sites does not demonstrate rights or legitimate interests because it is not a bona fide offering pursuant to Policy ¶4 (c)(i) and is not a legitimate noncommercial or fair use pursuant to Policy ¶4 (c)(iii)…”); see also Hewlett Packard Company and Hewlett Packard Development Company v. Anna Valdieri, FA 705158 (Nat. Arb. Forum June 20, 2006) (transferring <snapfish.org> which was complainant’s registered trademark to complainant and stating “Complainant contends that Respondent is using the identical <snapfish.org> domain name to operate a website that features links to various unrelated commercial websites from which Respondent presumably receives referral fees.  The Panel finds that such use for Respondent’s own commercial gain 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).”).

 

The last three cases are practically identical to this case.  In each case Respondent appropriated another’s trademark, added “.org” to the trademark, and used the domain name to resolve to a search engine, which offered click-through ability to websites either competing directly with the trademark holder, or to other commercial websites.  Respondent seems to be an originator of search engines that earn click-through fees by directing Internet users to websites offering goods and services identical to those offered by the trademark holder or to other commercial websites offering other kinds of goods and services.

 

In this case the website at <choicehotels.org> presents the Internet user with click- through categories such as “Hotel Reservations,” “Hotels,” “Airline tickets,” “Car rental” and a number of other categories, which appear to compete with Complainant’s business.

 

Respondent’s use of the disputed domain name for commercial gain in the form of a commercial search engine is not a bona fide offering of goods or services pursuant to Policy ¶ 4(c)(i) or a legitimate noncommercial or fair use 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¶ (c)(iii).”); see also Disney Enters., Inc. v. Dot Stop, FA145227 (Nat. Arb. Forum Mar. 17, 2003) (finding that the respondent’s diversionary use of the complainant’s mark to attract internet users to its own website, which contained a series of hyperlinks to unrelated websites, was neither a bona fide offering of goods or services nor a legitimate noncommercial or fair use of the disputed domain names).

 

Respondent’s contention that she innocently registered a generic domain name with no intention to violate Complainant’s trademark rights is not proved either by evidence or suggested by the facts and circumstances of this case.  Respondent’s prior experience with search engines using the trademark of others to attract Internet users to the sites raises the inference that Respondent was aware of Complainant’s mark and intentionally used it for commercial gain.

Complainant prevails under Policy¶ 4(a)(ii).

 

Registration and Use in Bad Faith

 

Complainant contends that Respondent’s <choicehotels.org> domain name resolves to a commercial search engine displaying various links to third-party websites.  The Panel infers that Respondent is receiving “click-through” fees for diverting Internet users through these links and is taking advantage of the confusing similarity between the disputed domain name and Complainant’s CHOICE HOTELS mark in order to profit from the goodwill associated with the mark.  Such registration and use represents bad faith pursuant to Policy¶ 4(b)(iv).  See Bank of American Fork v. Shen, FA 699645 (Nat. Arb. Forum Jun. 11, 2006) (holding that the respondent’s previous use of the <bankofamericanfork.com> domain name to maintain a web directory was evidence of bad faith because the respondent presumably commercially benefited by receiving click-through fees for diverting Internet users to third-party websites); see also G.D. Searle & Co v. Celebrex Drugstore, FA 123933 (Nat. Arb. Forum Nov. 21, 2002) (finding that the respondent registered and used the domain name in bad faith pursuant to Policy¶ 4(b)(iv) because the respondent was using the confusingly similar domain name to attract Internet users to its commercial website); see also LTD Commodities, LLC v. Anna Valdieri, supra; Disney Enterprises, Inv. v. Miss Anna Valdieri, supra; Hewlett-Packard Company and Hewlett-Packard Development Company v. Anna Valdieri, supra.

 

Complainant prevails under Policy¶ 4(a)(iii).

 

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 <choicehotels.org> domain name be TRANSFERRED from Respondent to Complainant.

 

 

 

Tyrus R. Atkinson, Jr., Panelist
Dated: August 23, 2006

 

 

 

 

Click Here to return to the main Domain Decisions Page.

 

Click Here to return to our Home Page

 

National Arbitration Forum