National Arbitration Forum

 

DECISION

 

Provide Commerce, Inc. v. Flower Dealers International LLC c/o Miguel Saavedra

Claim Number: FA0610000828994

 

PARTIES

Complainant is Provide Commerce, Inc. (“Complainant”), represented by Lisa M. Martens, of Fish & Richardson P.C., 12390 El Camino Real, San Diego, CA 92130.  Respondent is Flower Dealers International LLC c/o Miguel Saavedra (“Respondent”), represented by Bradley J. Gross, of Becker & Poliakoff, P.A., 3111 Stirling Road, Fort Lauderdale, FL  33312.

 

REGISTRAR AND DISPUTED DOMAIN NAME 

The domain name at issue is <flowerfarmstogo.com>, registered with Register.com, Inc.

 

PANEL

The undersigned 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.

 

James Bridgeman as Panelist.

 

PROCEDURAL HISTORY

Complainant submitted a Complaint to the National Arbitration Forum electronically on October 27, 2006; the National Arbitration Forum received a hard copy of the Complaint on October 30, 2006.

 

On October 30, 2006, Register.com, Inc. confirmed by e-mail to the National Arbitration Forum that the <flowerfarmstogo.com> domain name is registered with Register.com, Inc. and that the Respondent is the current registrant of the name.  Register.com, Inc. has verified that Respondent is bound by the Register.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 November 7, 2006, a Notification of Complaint and Commencement of Administrative Proceeding (the “Commencement Notification”), setting a deadline of November 27, 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@flowerfarmstogo.com by e-mail.

 

A timely Response was received and determined to be complete on November 27, 2006.

 

An Additional Written Statement was timely filed by Complainant on December 1, 2006.

 

On December 2, 2006, pursuant to Complainant’s request to have the dispute decided by a single-member Panel, the National Arbitration Forum appointed James Bridgeman as Panelist.

 

An Additional Written Statement was filed by Respondent on December 5, 2006.

 

The Panel considered all submissions including the Additional Written Statements filed by both Parties.

 

 

RELIEF SOUGHT

Complainant requests that the domain name <flowerfarmstogo.com> be transferred from Respondent to Complainant.

 

 

PARTIES’ CONTENTIONS

 

A. Complainant

 

Complainant is the owner of U.S. Federal Trademark Registration No. 2,294,197 FLOWERFARM in international class 31 for “cut flowers.”  The application was made by Flower Farm Direct Corporation Florida and the registration was assigned to Complainant.

 

The application for registration of said trademark was filed on June 4, 1998, it was published for opposition on August 31, 1999 and registered on November 23, 1999.  Complainant claims to have continuously used that trademark in commerce since at least as early as March 3, 1999 in connection with “cut flowers.”

 

Complainant also claims to be the owner of the domain name <flowerfarm.com> and claims to have used that domain name since 1998 as the address of an Internet site on which freshly cut flowers are sold.

 

Complainant submits that it has developed goodwill and reputation in the use of its FLOWERFARM registered trademark both within the floral industry and among the consuming public at large.

 

Complainant submits that the domain name <flowerfarmstogo.com> is identical and/or confusingly similar to its said registered trademark.  The addition of the letter “s” to make the plural of the element comprising the word “farm” and the addition of the descriptive words “to go” is not sufficient to prevent confusion.  Complainant submits that anyone viewing the <flowerfarmstogo.com> domain name would find it identical and/or confusingly similar to Complainant’s mark and would be likely to be misled into believing that the website established at that address was somehow connected with Complainant’s registered trademark.  The distinctive elements of both the domain name in dispute and the mark are identical and/or confusingly similar.

 

Complainant further submits that Respondent has no rights or legitimate interests in the domain name <flowerfarmstogo.com> because

 

(i)                  Respondent has neither used nor made any demonstrable preparations to use the domain name or any corresponding name in connection with a bona fide offering of goods or services.  Instead it has used this confusingly similar domain name to offer goods and services that compete directly with Complainant’s business;

 

(ii)                Respondent is not identified by the name FLOWERFARM or FLOWERFARMSTOGO and there is nothing in the record to indicate otherwise. Respondent is known as Flower Dealers International LLC and the domain name in dispute is registered in that name;

 

(iii)               Respondent is not making any legitimate non-commercial or fair use of the domain name in dispute.  Respondent’s use is clearly commercial.

 

Complainant submits that Respondent registered and is using the domain name <flowerfarmstogo.com> in bad faith.

 

The domain name <flowerfarmstogo.com> was registered on June 28, 2001 long after Complainant had adopted, used, and secured registration of its FLOWERFARM registered trademark on November 23, 1999.  Respondent registered the said domain name with actual or constructive knowledge of Complainant’s rights in said registered trademark.

 

Respondent has consistently used the domain name in dispute to attract customers to its website, where it offers and sells flowers in direct competition with Complainant.  Such use of the domain name by Respondent clearly demonstrates an intentional attempt to attract for commercial gain, Internet users to its website by creating a likelihood of confusion with Complainant’s mark as to the source, affiliation or endorsement of Respondent’s website.

 

Registration and use of a domain name that is confusingly similar to the trademark of another to operate a website that provides a market for goods and services in competition with the trademark owner is evidence of bad faith registration and use under Policy ¶ 4(b)(iii).

 

 

 

 

B. Respondent

 

Respondent is an established company, with offices in Colombia and Florida, U.S.A, and has serviced customers in the flower industry for the past twelve years.  Since June 2001, Respondent has used the domain name in dispute in connection with its business, namely, the online sale of farm-fresh flowers to customers throughout the world.  Between June 2001 and October 2005, Respondent used the domain name to promote its business and as a portal to receive incoming orders from customers worldwide who were looking to purchase farm-fresh flowers in bulk.

 

Addressing the similarity of the domain name and Complainant’s mark, Respondent argues that the domain name <flowerfarmstogo.com> is not identical or confusingly similar to Complainant’s trademark, FLOWERFARM and although the domain name incorporates Complainant’s mark, there are numerous, material differences that distinguish the domain name from Complainant’s mark. 

 

In particular Respondent argues that there are two significant differences between the domain name and Complainant’s mark viz. the addition of an “s” at the end of the word “flowerfarm”, and the addition of the words “to go” following the “s.”  Although Complainant blithely states that the domain name is “plainly identical and/or confusingly similar” to Respondent’s mark, no National Arbitration Forum case has ever addressed whether the addition of both the “s” and the “to go” suffixes would be sufficient to avoid confusion between dispute and Complainant’s trademark.

 

Addressing its claim to have rights and legitimate interests in the domain name, Respondent submits that it has used the domain name <flowerfarmstogo.com> for five years and has conducted its business using the domain name without complaint from Complainant until very recently.  Over those years Respondent has built a successful business using the domain name.  Respondent submits that Complainant now unabashedly seeks to usurp the goodwill, tremendous customer base and significant business interests that Respondent has established using the domain name.  To transfer the domain name to Complainant as requested would be unjustified and unfair and would provide Complainant with a windfall that it neither earned nor deserves.  Respondent argues that it is extremely unlikely that anyone would ever accidentally type the plural form of Complainant’s mark, and then compound that accident by adding the words “to go” to the end of the name. 

 

Respondent submits that prior to any notice to the Respondent of the instant dispute, Respondent used the domain name <flowerfarmstogo.com> in connection with a bona fide offering of goods and services.

It was not until October 2005—more than four years after Respondent began using the domain name—that Complainant, for the first time, raised the issue of transferring the domain name to Complainant.

 

Notably, the facts that (i) Complainant waited more than four years to contact Respondent about the domain name, and (ii) waited five years to institute any sort of action relating to the domain name, are missing from the Complaint in this matter.  Complainant’s obvious attempt to hide these facts from the Panel speaks volumes about the legitimacy (or lack thereof) of Complainant’s claim that Respondent has no rights in the domain name.  In sum, Respondent has been offering services and goods to the public since 2001 using the domain name, and has rights in the domain name superior to those of any other person or entity, including Complainant.

Respondent has been, and continues to be, commonly known by the domain name. Respondent is not generally known by its corporate name; but instead, it is almost exclusively known by the domain name <flowerfarmstogo.com>. Respondent uses the domain name in all of its advertising, website promotion, and packaging.

Respondent denies that the domain name was registered and used in bad faith. Complainant and Respondent have peacefully co-existed online for half a decade, without any protest or objection from Complainant whatsoever.  It is logical to assume that if Respondent’s registration and use of the domain name prevented Complainant from using its own trademarks, Complainant would have taken less than four years to raise such objection.  Indeed, if Complainant brought this argument in a federal court in the United States, its claim would be thrown out of court as falling outside of the Lanham Act’s statute of limitations, which is generally regarded as being no longer than four years.

 

This leads to the inescapable conclusion that Complainant never perceived Respondent’s use of the domain name as a threat to Complainant’s business or to Complainant’s use of its own trademarks.  In fact, Respondent is unaware of any occasion in which customers were confused between Respondent and Complainant’s companies.  Notably, Complainant has failed to provide this Panel with any evidence that a single event of confusion has ever occurred, or is likely to occur.

Respondent has not registered the domain name for the purpose of disrupting Complainant’s business.  Its President has been using the mark “FARMS TO GO” for over a decade.  Furthermore, Complainant has been sued in the past for claiming that it offers the same services provided by Respondent (i.e., shipping flowers directly from a flower farm and delivering them directly to customers).  Respondent refers to a complaint, filed in the Northern District of Illinois against Complainant by Florists’ Transworld Delivery, Inc. (a/k/a “FTD”) dated August 2005.  In that complaint, the famous flower distribution company FTD sued Complainant alleging that Complainant was misleading consumers by claiming that Complainant obtained flowers from a flower farm and delivered them directly to consumers.

According to official court records, the case was settled out of court and as a result of the lawsuit by FTD, Complainant apparently stopped promoting itself as providing the same service as that provided by Respondent.

It is inconceivable how Complainant could seriously allege that Respondent was trying to disrupt its business, as the two companies operate in two different areas of the flower industry.  Complainant sells pre-packaged floral bouquets that are decorative and ready for use “out of the box.”  Respondent, on the other hand, sells flowers cut fresh from the farm, delivered in bulk, which are not generally ready for display right out of the box.

Respondent has never tried to attract Internet users to its website by creating a likelihood of confusion with Complainant’s website. There has not been a single incident in which a customer was confused by Respondent’s use of the Domain Name.  Moreover, Complainant has failed to provide this arbitration panel with any evidence that such confusion has ever occurred.

 

C. Additional Submissions of Complainant

 

The most pertinent element of Complainant’s Additional Written Statement addressed the question of whether Respondent had acquired rights or legitimate interest in the domain name through the delay by Complainant in bringing these proceedings.  Complainant submits that the fact that it did not complain for four years after the registration of the domain name in June 2001 and long after its first use by Respondent is irrelevant.

 

Complainant submits that there is no application of a defense of laches in the Policy and cites numerous cases in that regard: Drown Corp. v. Premier Wine & Spirits, FA 616805 (Nat. Arb. Forum Feb. 13, 2006); citing F.W. Scripps Co. v. Sinologic Indus., D2003-0447 (WIPO July 1, 2003); Hebrew Univ. of Jerusalem v. Alberta Hot Rods, D2002-0616 (WIPO Oct 7, 2002); Those Characters From Cleveland Inc. v. User51235 (38so92lf@whois-privacy.net), D2006-0950 (WIPO Oct. 10, 2006).

 

Even if the delay period was applicable the delay would only run from the time a complainant first learns of infringing conduct.  In casu, Complainant sent a cease and desist letter promptly after learning of Respondent’s registration and use of the domain name.  The Parties negotiated for more than a year before it became apparent to Complainant that no amicable resolution could be reached.  Time spent negotiating settlement does not count either as delay for the purposes of a defense of laches.

 

 

D. Additional Submissions of Respondent

 

The main points in Respondent’s Additional Written Statement are that there has not been a single instance of confusion in five years, and while prior cases may hold that the addition of a word or letter does not distinguish otherwise confusingly similar names, here we have the addition of multiple letters and words which, apparently, have been more than sufficient to distinguish the domain name in dispute and Complainant’s mark.

 

Respondent restates that the companies have entirely different customer bases.

 

Respondent has presented sworn testimony, supported by corporate documents on file with the State of Florida, that it was using a name virtually identical to the domain name in Colombia and the U.S. (i.e., Farms To Go) long before Complainant even began its online activities.  The addition of the word “flower” was clearly a natural extension of its corporate moniker.

 

The descriptiveness of the domain name identically matches what Respondent does, which is strong evidence (if not conclusive evidence) that Respondent did not register the domain name to feed off of Complainant’s trademark.

 

Respondent has shown undisputed proof that it (i) has invested tens of thousands of dollars to promote the domain name, (ii) uses the domain name in its business, (iii) is known by its domain name, and (iv) has accumulated thousands of customers through its use of the domain name in furtherance of its legitimate flower business over the past five years.  All of these facts are supported by sworn affidavit, corporate records, and state and federal records. It is unfathomable to imagine how anyone could argue that Respondent has no legitimate interests in the domain name.

 

 

 

FINDINGS

 

Complainant has established that it is the registered owner of United States Registered Trademark FLOWERFARM No. 2,294,197 issued November 23, 1999.

 

The Panel finds that the domain name in dispute is confusingly similar to the registered trademark FLOWERFARM in which Complainant has rights.

 

There is no basis within the Policy on which the Panel can either make a finding that a party has acquired rights in the use of a domain name that is confusingly similar to a complainant’s registered trademark due to delay or acquiescence on the part of the registered owner of the mark or allow a defense of laches.  The jurisdiction of a panelist is very limited and restricted to making findings within the Policy.

 

Complainant has made out a prima facie case that Respondent has no rights or legitimate interests in said domain name and Respondent has failed to discharge the burden of proof and establish that it has secured such rights.

 

Respondent had constructive knowledge of Complainants trademark and on the balance of probabilities had actual knowledge of Complainant’s domain name <flowerfarm.com> when it registered and started use of the domain name in dispute.

 

 

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.”

 

Policy ¶ 4 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 is the registered owner of the United States Registered Trademark FLOWERFARM No. 2,294,197 registered on November 23, 1999 and consequently Complainant has established rights in the FLOWERFARM mark through this registration under Policy ¶ 4(a)(i).  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.”).

 

Complainant contends that the <flowerfarmstogo.com> domain name is confusingly similar to Complainant’s FLOWERFARM mark under Policy ¶ 4(a)(i).  The disputed domain name is comprised of Complainant’s mark in its entirety with the addition of the letter “s,” making the plural form of the mark, and the addition of the common terms “to” and “go.” 

 

The domain name in dispute is clearly confusingly similar to Complainant’s trademark. This Panel accepts Complainant’s submission that these additions do not negate the confusing similarity between Complainant’s FLOWERFARM mark and Respondent’s <flowerfarmstogo.com> domain name.  See Nat’l Geographic Soc’y v. Stoneybrook Invs., FA 96263 (Nat. Arb. Forum Jan. 11, 2001) (finding that the domain name <nationalgeographics.com> was confusingly similar to the complainant’s NATIONAL GEOGRAPHIC mark); see also Napster Inc. v. Mededovic, D2005-1263 (WIPO Jan. 17, 2006) (finding the <napstertogo.com> domain name confusingly similar to the NAPSTER mark).

 

Complainant has therefore established the first element of the test in Policy ¶ 4(a).

 

Rights or Legitimate Interests

 

Respondent claims that notwithstanding the fact that Complainant is the owner of the FLOWERFARM registered trademark, Respondent has acquired rights and legitimate interests in the domain name in dispute by its unchallenged use of the domain name over a period of four years after the registration of the domain name in June 2001.

 

Complainant submits that the four-year delay by Complainant in raising any objection to the use of the domain name by Respondent is irrelevant.  The Panel cannot accept such a broad statement.  A long delay in bringing proceedings must be a factor to be considered by a panel and depending on the circumstances of any given case it will have varying relevance.

 

That being said there is a strong line of decisions by panelists in cases brought under the Policy that there is no room for a stand-alone defense of laches in the Policy. Complainant has cited a number of such cases (supra).

                                                                                                            

In this regard a three-member panel in Yell Limited v. Ultimate Search, D2005-0091 (WIPO April 6, 2005) rejected a defense of laches in the Policy in the following terms:

 

 

“The Respondent raised the equitable defence of laches, and we will address that submission first.  The argument is based on the Complainant’s alleged lengthy delay in challenging the <yel.com> domain name, which was registered over six years ago. 

 

In the Panel’s view, while unreasonable delays in bringing a case may constitute a factor in a panel’s determination, there is no room in the Policy for the stand-alone application of a defence such as laches.  The Panel is concerned only with the application of the three paragraphs of the Policy. 

 

In that respect, the Panel respectfully agrees with the decision of the three-member Panel in Edmunds.com, Inc. v. Ult.Search Inc, WIPO Case D2001-1319, where the Panel said:

 

‘Although the concept of “rights” under the second criterion in the Policy may include some kind of equitable right conferred on a Respondent by a Complainant, there is no room for general equitable doctrines under the Policy such as would be possessed by Courts in common law jurisdictions.  These doctrines, if applicable, could, include for example, laches (which would operate against a Complainant tardy in asserting its rights after it had known of an offending domain name) or “unclean hands” by a Complainant.’”

This reasoning was also more recently accepted by the learned panel in Givi Srl and G. Visenzi Motomarket Srl v. Anup Shahi, D2005-0392 (WIPO July 11, 2005).

While taken on their face, the arguments of Respondent evoke the Panel’s sympathy, particularly given the fact that there was substantial expenditure by Respondent on promoting its website, and while there may be a relief available in another forum, this Panel cannot find in favour of Respondent on its delay point.

 

Once Complainant makes out a prima facie case in support of its allegations, the burden shifts to Respondent to establish that it has rights or legitimate interests pursuant to Policy ¶ 4(a)(ii).  See Do The Hustle, LLC v. Tropic Web, D2000-0624 (WIPO Aug. 21, 2000) (holding that, where the complainant has asserted that the respondent has no rights or legitimate interests with respect to the domain name, it is incumbent on the respondent to come forward with concrete evidence rebutting this assertion because this information is “uniquely within the knowledge and control of the respondent”); see also Clerical Med. Inv. Group Ltd. v. Clericalmedical.com, D2000-1228 (WIPO Nov. 28, 2000) (finding that, under certain circumstances, the mere assertion by the complainant that the respondent has no right or legitimate interest is sufficient to shift the burden of proof to the respondent to demonstrate that such a right or legitimate interest does exist).

It follows that Complainant has made out a prima facie case that Respondent has no rights or legitimate interest in said domain name.

 

Respondent has failed to discharge the burden of proof and establish that it has secured any such rights.  In the circumstances of this case, the Panel cannot accept Respondent’s submission that prior to any notice to the Respondent of the instant dispute, Respondent has used the domain name in connection with a bona fide offering of goods and services. The Panel is of the view that the use of the domain name is not bona fide because of the similarity of the domain name and Complainant’s registered trademark and Complainant’s statutory rights.

 

In casu, therefore Complainant has made out a prima facie case that Respondent has no rights or legitimate interest in said domain name and Respondent has failed to discharge the burden of proof and establish that it has secured such rights.

 

Complainant has therefore established the second element of the test in Policy ¶ 4(a).

 

Registration and Use in Bad Faith

 

While there is an argument that Complainant’s trademark is not the most distinctive of trademarks, nonetheless, while Respondent may not have had actual knowledge of Complainant’s trademark registration when it registered the disputed domain name, on the balance of probabilities it had actual knowledge of Complainant’s business.

According to the results of a WHOIS search carried out by this Panel the domain name <flowerfarm.com> was created on May 16, 1996 and is registered to Proflowers at the same address as Complainant.

 

Respondent clearly chose a domain name that was confusingly similar to a domain name that had been registered and was being used in commerce by Complainant in the flower industry, and whatever about actual knowledge of Complainant’s registered trademark, it is most probable that Respondent became aware of Complainant’s domain name registration when the domain name in dispute was being registered.

 

It follows that Respondent registered the domain name in dispute for the purpose of commercially benefiting from the good will associated with Complainant’s mark.

 

Respondent’s <flowerfarmstogo.com> domain name is capable of creating a likelihood of confusion as to the source and affiliation of Complainant to the disputed domain name and corresponding website and this is indicative of bad faith registration and use under Policy ¶ 4(b)(iv).  See Gardens Alive, Inc. v. D&S Linx, FA 203126 (Nat. Arb. Forum Nov. 20, 2003) (“Respondent registered and used the <my-seasons.com> domain name in bad faith pursuant to Policy ¶¶ 4(b)(iii) and (iv) because Respondent is using a domain name that is confusingly similar to the MYSEASONS mark for commercial benefit by diverting Internet users to the <thumbgreen.com> website, which sells competing goods and services.”); see also Am. Online, Inc. v. Tencent Commc’ns Corp., FA 93668 (Nat. Arb. Forum Mar. 21, 2000) (finding bad faith where the respondent registered and used a domain name confusingly similar to the complainant’s mark to attract users to a website sponsored by the respondent).

 

This Panel is satisfied on the balance of probabilities that Respondent knowingly registered the domain name in bad faith conscious that it would be confusingly similar to Complainants trademark and domain name <flowerfarm.com> and has since continued to use the domain name in dispute in bad faith to attract customers to its website, where it offers and sells flowers.

 

While the Panel is conscious that Respondent has emphasised that there is a difference in the type of business carried out by the respective parties in that Complainant sells ready packaged bouquets while Respondent sells bulk flowers, the registration and use of the domain name by Respondent in the circumstances outlined, on the balance of probabilities, demonstrates an intentional attempt to attract for commercial gain, Internet users to its website by creating a likelihood of confusion with Complainant’s mark as to the source, affiliation or endorsement of Respondent’s website.

 

Complainant has therefore satisfied all three elements of the test in paragraph 4(a).

 

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

 

 

 

James Bridgeman Panelist
Dated: 18 December 2006

 

 

 

 

 

 

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