National Arbitration Forum

 

DECISION

 

Mark Paigen v. Research and Design

Claim Number: FA0609000791739

 

PARTIES

Complainant is Mark Paigen (“Complainant”), represented by Gary J. Nelson, of Christie, Parker & Hale LLP, PO Box 7068, Pasadena, CA 91109-7068, USA.  Respondent is Research and Design (“Respondent”), represented by Daniel R. Greening, of Research and Design, 416 Bee St. Apt. B, Sauslito, CA 94965-2315.

 

 

REGISTRAR AND DISPUTED DOMAIN NAME 

The domain name at issue is <chaco.com> (hereinafter the “Domain Name”), registered with Go Daddy Software, Inc.

 

PANEL

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

 

PROCEDURAL HISTORY

The Complainant submitted a Complaint to the National Arbitration Forum (“NAF”) electronically on September 7, 2006; the National Arbitration Forum received a hard copy of the Complaint on September 8, 2006.

 

On September 8, 2006, Go Daddy Software, Inc. confirmed by e-mail to the National Arbitration Forum that the <chaco.com> domain name is registered with Go Daddy Software, Inc. and that the Respondent is the current registrant of the name.  Go Daddy Software, Inc. has verified that Respondent is bound by the Go Daddy Software, 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 September 11, 2006, a Notification of Complaint and Commencement of Administrative Proceeding (the “Commencement Notification”), setting a deadline of October 2, 2006 by which the 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@chaco.com by e-mail.

 

A timely Response was received and determined to be complete on October 2, 2006.

 

The NAF received an Additional Submission from Complainant on October 4, 2006 and determined it to be timely and complete pursuant to Supplemental Rule 7.  The NAF also received an Additional Submission from Respondent on October 9, 2006 and determined it to be timely and complete in accordance with Supplemental Rule 7.

 

On October 10, 2006, pursuant to Complainant’s request to have the dispute decided by a single-member Panel, the National Arbitration Forum appointed Christopher Gibson as Panelist.

 

RELIEF SOUGHT

The Complainant requests that the Domain Name be transferred from the Respondent to Complainant.

 

PARTIES’ CONTENTIONS

 

A.     Complainant

 

Complainant contends that: (i) Complainant has trademark rights in the word CHACO; (ii) the Domain Name is confusingly similar to the CHACO mark; (iii) Respondent has no right or legitimate interest in the Domain Name; and (iv) Respondent has registered and is using the Domain Name in bad faith.  Complainant’s arguments are reviewed below.

 

Rights in CHACO: Complainant is a company specializing in the manufacture and distribution of sandals, and is the owner of a United States trademark registration for CHACO.  The Complainant has been using the CHACO trademark in association with sandals since as early as September 1994.  The Complainant operates a website at <chacousa.com>.

 

Confusingly similar:  Complainant contends that the Domain Name is confusingly similar to the CHACO mark, which merely lacks the “.com” top-level domain suffix.

 

No right or legitimate interest:  Complainant contends that Respondent’s use of the Domain Name cannot be considered bona fide, noncommercial, or fair use because Respondent has adopted the CHACO mark for a passive website.  Complainant claims that the website associated with the Domain Name has been passive for nearly nine years, with extremely few changes during this period.  The failure to develop an active website is evidence that Respondent has no rights or legitimate interest in the Domain Name.  Further, Respondent is not commonly known by the term Chaco (or any variation), and has not acquired any trademark rights in this word.  The WHOIS record shows that  Respondent is instead known as Research and Design.  Finally, Complainant confirms that Respondent is not a licensee of Complainant.

 

Registered and using the Domain Name in bad faith:  Complainant contends that Respondent's registration of the contested Domain Name prevents Complainant from reflecting its CHACO mark in a corresponding domain name in direct violation of the UDRP, para. 4(b)(ii).  Complainant also asserts that Respondent has indicated the Domain Name is for sale for an amount in excess of $50,000.  The attempt to sell a passively held domain name for an excessively high price is evidence that Respondent registered and is using the Domain Name in bad faith.

 

Complainant further contends that registering a domain name which incorporates a well-known trademark and passively holding that domain name with no active website are both actions that constitute evidence of bad faith.  Thus, Respondent’s passive holding of the Domain Name and refusal to use it in conjunction with an operating business supports a finding of bad faith.  The CHACO mark is so obviously connected with Complainant that use of an identical domain name by someone with no connection with Complainant also suggests bad faith.

 

B.     Respondent

 

Respondent has filed a detailed Response to the Complaint, in which it contends that it obtained and has legitimately used the Domain Name in good faith for the purpose of offering bona fide, non-competitive products and services, in particular: (i) the Chaco Pueblo open-source application and information about Chaco Communications, the company which originally developed this software, and (ii) photos and information about Chaco Canyon in New Mexico.  Respondent’s contentions are reviewed below.

 

Respondent states that the Domain Name has been in its possession since August 1994, even before Complainant had formed its company and registered its trademark.  Respondent asserts there is strong evidence showing that the purpose of obtaining the Domain Name was to offer Respondent’s creations and experiences in relation to Chaco Canyon (the area in New Mexico) and Chaco Communications, not to resell the Domain Name.  At the time of the Complaint, Respondent indicates that the website associated with the Domain Name offered links to the following products or services: downloads of the Chaco Pueblo open-source application; a list of virtual-worlds supported by this application; a description of the whereabouts of former Chaco Communications employees (Daniel Greening was the CEO and Ron Lussier an engineer); a link to Daniel Greening's personal website; and a link to Ron Lussier's website, where he sells photographs including photographs of Chaco Canyon taken as early as 1993.

 

With respect to Chaco Communications, Respondent explains that the Domain Name was originally registered in relation to this company.  Respondent indicates that Daniel Greening and Ron Lussier registered “Chaco Communications” as a California business in October 1994.  The logo for Chaco Communications, which still appears on the website, was designed by Daniel Greening's mother.  The company built software packages for sale, including the Chaco Pueblo application (which is stated to add certain multimedia to text-based multi-user adventure games).  While Chaco Communications eventually merged into another company, the Chaco Pueblo application was made available on an open-source basis in March 1999 and is still in use today.  Over the years, the website associated with the Domain Name has served as a reference point for people to find the Chaco Pueblo application, and it was actively offering downloads of this application at the time of the Complaint in this case.

 

As to the place name Chaco Canyon, this refers to a region in and around the Chaco Culture National Historical Park in New Mexico.  Daniel Greening and Ron Lussier visited this region several times starting in 1991.  They visited and interviewed archaeologists studying the area, and became intrigued by Chaco Canyon's natural beauty and history.  Ron Lussier has taken many photographs of the Chaco area, which have been offered from the Domain Name website through a link to Ron Lussier's personal website.  Respondent also states that Daniel Greening wrote about his experiences and research on Chaco Canyon in 1995-1996 and published these writings on the website associated with the Domain Name.  Respondent contends that there is a sentimental attachment to Chaco Canyon because Respondent’s general partners, Daniel Greening and Ron Lussier, both shared an interest in this area.  Ron Lussier proposed marriage to Daniel Greening in Chaco Canyon in April 1993.

 

Respondent has also provided information through Google Analytics to show that a significant number of the referring sources for the Domain Name’s website are search engines and websites that reference the site for information about the Chaco Canyon area and the Chaco Pueblo open-source application.  Exhibit A to the Response shows that the official site of the New Mexico Tourism Office refers to the Domain Name’s web pages for the Chaco Canyon National Park.

 

Respondent specifically denies that the website associated with the Domain Name is a passive site.  The web pages were not “parked”, but actively offered goods and services related to Respondent.  Respondent asserts that simply because the content on this website remained unchanged for months, this did not reduce its usefulness as a bona fide website offering goods and services.  Respondent argues that there is no requirement under the ICANN rules that the content of a website must change with a certain frequency.  Further, Respondent contends that the Domain Name originally backed a multi-year engineering effort to develop a software product known as Chaco Pueblo and was not registered for the purpose of depriving Complainant of the Domain Name.

 

Respondent claims that the Domain Name’s website has never contained statements offering the Domain Name for sale.  Respondent emphasizes that the website has offered goods and services in a non-conflicting, non-competitive field.  In response to Complainant’s contention that the Domain Name was offered for sale by Respondent for a price “well above $50k,” Respondent indicates that it has received numerous offers to purchase the Domain Name every year.  Its response of "Nope" and “well over $50k” to the inquiry received from Complainant’s agent was an indicator of its disinterest in selling the name.  Respondent further argues that even if it was willing to sell the Domain Name at a high price, this is not an indication of bad faith but instead a reflection of the investment Respondent has made in the goods and services offered through the Domain Name’s website.

 

Respondent also contends that it has done nothing to disrupt Complainant's business.  Respondent has not used the Domain Name to exploit confusion with Complainant's CHACO mark.  The Domain Name's website has not offered any products related to sandals or clothing.  Respondent contends that the registered trademark CHACO covers sandals, shoes, shirts and hats.  Respondent indicates that during the three years when Chaco Communications was active, Complainant never asserted its CHACO trademark rights.  Respondent argues that trademark protection is limited to its field of use – Chaco Communications and Chaco Sandals operated in very different fields.  Respondent also indicates that Chaco is a commonly used place name referring to Chaco Canyon in New Mexico, as noted above.  This too, according to Respondent, supports Respondent's use of the Chaco name to promote the Chaco Canyon area.  Respondent thus argues that it has never intentionally redirected Internet users seeking Complainant’s sandal products to its own website for commercial gain, and has at all times used the Domain Name for its own unrelated purposes.

 

Finally, Respondent states that Complainant has never asked Respondent to place a link on the Domain Name’s website to the Chaco Sandals site.  Respondent indicates that it would have done so at no charge, and would still be willing to do so now.

 

C.     Additional Submissions

 

Both parties have filed an Additional Submission.  Aside from some additional points addressing the merits, which are intended to reinforce the contentions summarized above, the main issue addressed in the parties’ additional submissions is that Respondent’s Response should not be considered because it was filed by a third-party and not by Respondent.  This issue is addressed below.

 

FINDINGS

The parties in this case have both done a good job of briefing the issues in dispute and providing evidence in support of their positions.  The complainant has submitted evidence in support of its trademark registration and website, WHOIS record, and information concerning the Respondent’s website.  Respondent has also submitted information and analysis (using Google Analytics) concerning the website associated with the Domain Name.

 

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.”

 

A.  Whether to Consider the Response

 

A threshold issue to be addressed – which was raised by Complainant in its Additional Submission – is that Respondent has defaulted by failing to file a timely response.  Complainant contends that Respondent is listed as Research and Design, but that the Response in this case was filed instead by two individuals, Daniel Greening and Ron Lussier, who are not Respondent.  Complainant explains that the Response repeatedly refers to “Respondent Dan Greening” and “Respondent Ron Lussier,” but gives no explanation of any relationship between these two individuals and Respondent, Research and Design.  Complainant contends that Daniel Greening and Ron Lussier are third parties to this proceeding, and that the Panelist is under no obligation to consider a document filed by a third-party.  Complainant cites several prior NAF decisions in support of its contention that under these circumstances, the Panelist should conclude that Respondent has failed to file timely a Response in this case.

 

According to Complainant, a consequence of this failure to file a Response is that all allegations in the Complaint remain uncontradicted and the Panelist should take as true all reasonable inferences of fact in the Complaint.

 

Respondent has filed an Additional Submission, in which it contends that Respondent – Research and Design – has timely filed a Response in this case.  Respondent explains that Research and Design is a general partnership between Ron Lussier and Dan Greening, which has been operating since 1991.  Respondent states that Research and Design was identified as the responding party on the Response, in particular, in the section titled “Respondents Information,” where Respondent is identified both by its entity name, “Research and Design,” and by the names of the partners making up the entity, “Daniel R. Greening and Ron Lussier.”  Respondent asserts that this was done to make clear that the two are equivalent: that is, under California partnership law, either partner is authorized to bind the partnership and the individuals are essentially interchangeable with their partnership.  Respondent therefore contends that Daniel Greening and Ron Lussier are not third-parties to this case, but direct parties who operate a general partnership under the name of Respondent, Research and Design.

 

Respondent also states that Daniel Greening is listed as the administrative and technical contact in the WHOIS record for Respondent, with his complete contact information included (Respondent explains that the address information on the WHOIS record is out-of-date because of a recent move in August 2006).  The WHOIS record confirms this point.  Respondent also claims that Complainant contacted Daniel Greening by phone in 2001, indicating that Complainant was aware of the relationship between Respondent and Daniel Greening.

 

Finally, aside from attempting to distinguish several of the NAF cases relied upon by Complainant, Respondent notes several specific places in the Response in which the reference is to Respondent as an entity, and not to Daniel Greening or Ron Lussier.  Respondent also notes that the Response’s Certification clearly refers to Respondent as an entity. 

 

Respondent concludes that the connections between the Domain Name, Research and Designed, Daniel Greening and Ron Lussier are extremely strong and close, and have been maintained in a transparent and open manner, not concealed, and should have been obvious to anyone.

 

The Panelist has considered the submissions of the parties on this threshold issue of whether a timely Response has been filed in this case.  The Panelist considers that the explanations provided in the Additional Submission of Respondent have clarified any confusion that might have existed on this point.  The Panelist observes the following items in support of his decision that the Response was timely filed and can be considered in this case:

 

§         Research and Design was identified as the responding party in the Response itself, in the section titled “Respondents Information;”

 

§         Daniel R. Greening was identified as the authorized representative of the Respondent in the Response, in a section titled “Respondents’ Authorized Representative;”

 

§         The WHOIS record identifies Daniel Greening as the administrative and technical contact for the registrant of the Domain Name (i.e., the Respondent).  It should be noted that under the Rules for Uniform Domain Name Dispute Resolution Policy (Rule 2(a)), the administrative and technical contacts for a domain name (as listed in the WHOIS database) are identified as the important contact points for, among other things, discharging Complainant’s responsibility of achieving notice to a respondent;

 

§         Daniel Greening signed the Response filed in this case and explained that no lawyers were involved in the preparation of the Response; instead, the Response was prepared by himself, with assistance from Ron Lussier; and

 

§         Respondent has claimed (with no contradicting evidence) that Research and Design is a general partnership in which Daniel Greening and Ron Lussier are the general partners, and that Daniel Greening and Ron Lussier were married in Massachusetts and are registered domestic partners in California.

 

Under these circumstances, the Panelist concludes that Respondent filed a timely response because Daniel Greening had authority to sign and submit the Response on behalf of Respondent.  The failure to provide initially a clear explanation concerning Research and Design and its relationship to Daniel Greening and Ron Lussier – and any language in the Response which refers to Respondent in the plural form (or as “Respondent Greening” or “Respondent Lussier”) – does not upset this conclusion.

 

B.  Merits of Dispute

 

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 in which Complainant has rights;

 

(2)   Respondent up 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

 

There is no dispute between the parties that the Domain Name registered by Respondent is identical or confusingly similar to the CHACO mark in which Complainant has rights.  Complainant prevails on this first element.

 

Rights or Legitimate Interests

 

As indicated in the review of contentions above, the parties dispute whether the Respondent has any right or legitimate interest in the Domain Name.  The Panelist is persuaded by the information, explanations and evidence contained in Respondent’s certified Response (and attachments thereto), as well as certain evidence presented by Complainant itself, that Respondent has had a long-standing and legitimate interest in the Domain Name.

 

In particular, the Panelist notes that Respondent’s general partners have demonstrated both a personal and professional interest in the Chaco Canyon area of New Mexico.  The Panelist is persuaded by the explanation of the choice of the name “Chaco” for the Domain Name and its initial use for the California company, Chaco Communications, established by Respondent’s general partners.  The Panelist is also persuaded by Respondent’s use of the Domain Name during the period after Chaco Communications ceased to operate, even if the content on the Domain Name’s web site has been quite “static.”  Unlike the typical circumstance involving “passive holding” (as previous UDRP panels have defined it), in which a domain name resolves to a blank web page, error page or some other type of holding page with no content on it, Complainant’s own evidence shows that Respondent has been maintaining a website during the past nine years which contains links to various content, all of which is related to Respondent’s own legitimate activities and unrelated to Complainant.  The fact that the content of the web site has changed extremely infrequently does not undermine the valid purposes of the web site.

 

Respondent’s use of the Domain Name, first to operate a technology business unrelated to Complainant, and thereafter for various other purposes (e.g., distribution of open-source Chaco Pueblo software application and links to websites offering information and photographs of Chaco Canyon) constitutes a bona fide offering of goods or services under Policy ¶ 4(c)(i).  See, e.g., Jeannette Martello v. Cockerell and Associates, FA 346319 (Nat. Arb. Forum Dec. 13, 2004) (finding that the respondent’s use of the <skindeep.com> domain name to provide information on its demapathology services was a bona fide offering of goods or services under Policy ¶ 4(c)(i) despite the complainant’s registration of the SKIN DEEP mark with the USPTO and use of the mark in connection with similar services) and the cases cited therein.

 

Complainant has failed to establish that Respondent has no rights or legitimate interests in the Domain Name.

 

Registration and Use in Bad Faith

 

Technically, it is not necessary for the Panelist to reach the question of whether or not there has been bad faith on the part of Respondent under Policy ¶ 4(a)(iii), because Respondent has sufficiently established its rights or legitimate interests in the Domain Name.  See Brasserie Alamaza S.A.L. v. Orbyt, D2004-0799 (WIPO Jan. 13, 2005); see also Lockheed Martin Corp. v. The Skunkworx Custom Cycle, D2004-0824 (WIPO Jan. 18, 2005) (finding that the issue of bad faith registration and use was moot once the panel found the respondent had rights or legitimate interests in the disputed domain name).  However, the Panelist nonetheless finds that Respondent’s submissions have effectively rebutted Complainant’s contention that Respondent has been merely hoarding the Domain Name, or that the website associated with the Domain Name has been passive, in violation of Policy ¶ 4(b)(i).

 

Respondent has shown that it has used the Domain Name to provide information on non-competing products and services, previous employees of Chaco Communications, and to display information and photographs of Chaco Canyon.  Complainant has provided no evidence to suggest that Respondent has attempted to disrupt Complainant’s business or divert Internet users for commercial gain.  It is clear that the Domain Name contains a geographic term which Internet users do not exclusively identify with Complainant’s sandals and other products.  Finally, there is no evidence that Respondent registered the Domain Name with the primary purpose for selling it to the complainant or a competitor of Complainant.  Because Complainant initiated the offer to sell and Respondent was unwilling to transfer the disputed domain name until Complainant inquired, the Panel finds that Respondent did not register and use the Domain Name in bad faith under Policy ¶ 4(b)(i) by naming a speculative price (i.e., in excess of $50,000).  See Puky GmbH v. Agnello, D2001-1345 (WIPO Jan. 3, 2002) (finding insufficient evidence to hold that the domain name was registered and used in bad faith pursuant to Policy ¶ 4(b)(i) where the complainant initiated contact with the respondent and the respondent responded with an offer to sell its domain name registration for $50,000).

 

The Complainant has failed to establish that the Domain Name has been registered and is being used in bad faith.  The Complaint must fail.

 

DECISION

 

Having failed to establish two of the three elements required under the ICANN Policy, the Panel concludes that relief shall be DENIED.

 

 

 

 

Christopher Gibson, Panelist
Dated: October 25, 2006

 

 

 

 

 

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