National Arbitration Forum

 

DECISION

 

Sonic Automotive - 9103 E. Independence, NC, LLC d/b/a Infiniti of Charlotte v. Domain Admin c/o AMSI

Claim Number: FA0610000830734

 

PARTIES

Complainant is Sonic Automotive - 9103 E. Independence, NC, LLC d/b/a Infiniti of Charlotte (“Complainant”), represented by Ashley L. Ellis, of Parker, Poe, Adams & Bernstein L.L.P., Three Wachovia Center, 401 South Tryon Street, Suite 3000, Charlotte, NC 28202.  Respondent is Domain Admin c/o AMSI (“Respondent”), represented by John F. Walsh 515 North Flagler Drive, Suite P400, West Palm Beach, FL 33401.

 

 

REGISTRAR AND DISPUTED DOMAIN NAMES 

The domain names at issue are <infinityofcharlotte.com> and <charlotteinfiniti.com>, registered with Networksolutions.

 

PANEL

The undersigned, Daniel B. Banks, Jr., as Panelist, 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

Complainant submitted a Complaint to the National Arbitration Forum electronically on October 31, 2006; the National Arbitration Forum received a hard copy of the Complaint on November 1, 2006.

 

On November 1, 2006, Networksolutions confirmed by e-mail to the National Arbitration Forum that the <infinityofcharlotte.com> and <charlotteinfiniti.com> domain names are registered with Networksolutions and that the Respondent is the current registrant of the names.  Networksolutions has verified that Respondent is bound by the Networksolutions 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 13, 2006, a Notification of Complaint and Commencement of Administrative Proceeding (the “Commencement Notification”), setting a deadline of December 4, 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@infinityofcharlotte.com and postmaster@charlotteinfiniti.com by e-mail.

 

A timely Response was received and determined to be complete on December 1, 2006.

 

On December 6, 2006 an Additional Submission was received from the Complainant and was considered.  On December 8, 2006 an Additional Submission was received from the Respondent and was considered.

 

On December 7, 2006, pursuant to Complainant’s request to have the dispute decided by a single-member Panel, the National Arbitration Forum appointed Daniel B. Banks, Jr., as Panelist.

 

RELIEF SOUGHT

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

 

PARTIES’ CONTENTIONS

A. Complainant:

Complainant has operated an Infiniti motor vehicle dealership since November 1998 in Charlotte, North Carolina.  It uses the name “Infiniti of Charlotte” to promote this dealership and has registered the name as an assumed name with the Mecklenburg County Register of Deeds in North Carolina.  It currently uses the domain name <infinitiofcharlotte.com> to promote its dealership.  Under North Carolina law, an entity that first adopts and uses a trade name in connection with its business has a valid property right in that name.  Further, as recognized by the arbitration panel Sonic-Crest Cadillac, LLC v. Hayes, FA212652 (Nat. Arb. Forum Jan. 14, 2004), a motor vehicle dealership that “has established source identifying, secondary meaning” associated with its mark within its geographic area has common law rights to that mark. 

 

Respondent’s domain names <infinityofcharlotte.com> and <charlotteinfiniti.com> are confusingly similar to Complainant’s trade name.  The first is identical to Complainant’s trade name except for the simple misspelling of the word “Infiniti” by one letter.  The second simply inverts the words in Complainant’s trade name and removes the word “of.”  Despite these slight variations, the domain names are confusingly similar to Complainant’s mark.  Such use creates a strong likelihood of confusion as to the ownership of any website associated with the domain names. 

 

Respondent has no rights or legitimate interest in the disputed domain names.  It registered the names in 2004, almost six years after Complainant first used its trade name “Infiniti of Charlotte.”  Complainant has not licensed or otherwise authorized Respondent to use the “Infiniti of Charlotte” mark.  And, Respondent is using the domain names to link to the website of a direct competitor of Complainant, another Infiniti dealership operating under the name “Lake Norman Infiniti,” which is located in Cornelius, North Carolina, approximately 17 miles from Charlotte, North Carolina.  In fact, in June 2006, the General Manager of Lake Norman Infiniti, Steve O’Kane, confirmed Complainant’s exclusive right to this trade name in conversations with Complainant’s General Manager, Mark Austin.  Steve O’Kane agreed to have Respondent discontinue using the domain names to link to the competing dealership’s website. 

 

On July 28, 2006, counsel for Complainant sent Respondent a letter explaining Complainant’s rights in the domain names and requesting the transfer of the domain names.  Steve Suggs responded on behalf of Respondent stating that Lake Norman Infiniti would not transfer the domain names without payment.  When an amount was requested, the reply was “Tell me what it is worth to you.” 

 

Respondent has never used the domain names or the names “Infinity of Charlotte” or “Charlotte Infiniti” in connection with a bona fide offering of goods or services, nor has it made a legitimate non-commercial or fair use of the domain names.  Further, the Respondent has never been commonly known by the names “Infiniti of Charlotte” or “Charlotte Infiniti.”  Instead, Respondent links the domain names to the website of “Lake Norman Infiniti.” 

 

The domain names were registered and are being used in bad faith.  Registration of a domain name confusingly similar to Complainant’s mark despite actual knowledge of Complainant’s right is evidence of bad faith.  Respondent registered and is using the disputed domain names to intentionally attempt to attract, for commercial gain, Internet users to its website by creating a likelihood of confusion with the Complainant’s mark as to the source, sponsorship, affiliation, or endorsement of the website or location or of a product or service on the website or location.  The diversionary website of Respondent offers goods and services in competition with Complainant’s business and indicates that the domain names were registered and are being used in bad faith. 

 

Also, Respondent is relying on the goodwill surrounding Complainant’s mark to redirect Internet users to Complainant’s direct competitor’s website that is selling Infiniti automobiles.  This equates to bad faith use and registration. 

 

Finally, Respondent’s request for payment from Complainant for the domain names is evidence of bad faith. 

 

B. Respondent:

Complainant has no trademark or service mark rights in the registered domain names.  The word “Infiniti” is a federally trademarked name owned by Nissan of North America, Inc. which licenses the use of the Infiniti mark to dealers around the country.  Both Complainant and Respondent represent licensed Infiniti dealers with all the same rights and restrictions on the use of the Infiniti name.  Neither can be said to hold the exclusive rights to the trademark or service mark in “Infiniti.” 

 

The word “Charlotte” is nothing more than a geographical designation and as such, is in the public domain in the sense that every seller should have the right to inform customers of the geographical origin of his goods.  Both Complainant and Respondent represent licensed Infiniti dealers in the Charlotte region.  Each sells the same exact products, advertises in the same markets and attracts customers within the same geographic area. 

 

Complainant has also failed to provide any evidence that <charlotteinfiniti.com> has acquired secondary meaning such that it may claim the exclusive right to use it as a trademark.  Complainant can not claim “Charlotte” as a unique source identifier nor can Respondent.  In fact, Complainant erroneously claims to have operated an Infiniti motor vehicle dealership in Charlotte since 1998.  A basic search of the Complainant’s zip code reveals the dealership is actually located in Matthews, North Carolina, a suburb roughly 11 miles southeast of Charlotte.  Respondent’s dealership is located in Cornelius, a suburb roughly 15 miles northwest of Charlotte.  That Complainant fails to even operate in the geographic location it claims as a “unique” source identifier proves they lack legitimate rights in the alleged trade or service mark. 

 

Respondent has rights and a legitimate interest in respect to the disputed domain names.  Prior to any notice of the subject dispute, Respondent had retained several advertising clients in Charlotte and the surrounding areas.  Each of these entities relied on Respondent for marketing both traditional and on-line.  The disputed domain names link to a website created for Respondent that is a business directory of companies using the Infinity and Infiniti names in the Charlotte, North Carolina area.  The intent of the website is to gain exposure for all Infiniti and Infinity related business in Charlotte thereby bringing traffic to those entities.  Respondent had contacted Complainant on numerous occasions about participating in the directory listing but received no response.  Despite Complainant’s failure to respond, they were included among the directory listing anyway.  Because Respondent has rights and legitimate interest in the disputed domain names, Complainant’s request must be denied.

 

Respondent has registered and used the disputed domain names in good faith.  The automobile dealership with which Respondent is affiliated was incorporated on June 25, 2004.  Shortly thereafter, the disputed domain names were registered.  Respondent continued to expend significant amounts of money and effort to market both the dealership and the on-line business directory.  The uncontradicted evidence is that for 6 years (from 1998 to 2004) they had no interest in and made no effort to register the disputed domain names.  Only after Respondent’s businesses were formed and prospering for more than two years did Complainant object to Respondent’s open and continuous use of the domain names. 

 

Complainant argues that its customers were misled or confused by the domain names.  The fact that Complainant’s business is listed on the Respondent’s website flies in the face of any intent to mislead customers. 

 

Lastly, Respondent has neither sought payment for use of the disputed domain names nor for inclusion on the directory listing.   

 

 

C. Additional Submissions

Complainant: 

Complainant asserts its rights in the name “Infiniti of Charlotte” based on continuous use for more than six years; its first use of that trade name in connection with its business; and, its registration of the trade name as an assumed name with the North Carolina Secretary of State.  As a result of this continuous use, Complainant’s trade name has acquired secondary meaning, at least for the Charlotte geographical area.  Additionally, consumers in the Charlotte identify the name as a source identifier.  Moreover, secondary meaning is presumed to exist in this case because of Respondent’s intentional copying.  Respondent’s use of the same or similar names creates a likelihood of confusion. 

 

Respondent does not have rights to or a legitimate interest in the domain names.  With respect to Respondent’s assertion that he uses the domains to link to an allegedly legitimate business directory of entities using the “Infiniti” or “Infinity” name in the Charlotte area, there is no evidence that Respondent represents any of those entities other than Lake Norman Infiniti.  Of 18 attempted contacts of those entities set out by Respondent, two had disconnected numbers, three have only facsimile numbers.  Of the ten contacted, none (1) knew their businesses were listed; (2) knew the directory existed; (3) had ever given permission for listings; (4) had never heard of Respondent (Automotive Advertising Group a/k/a AAG); and (5) were represented by AAG.  Ten gave statements to this effect.  The only entity listed that was aware of this directory or of AAG is Lake Norman Infiniti, whom Respondent is representing in this matter.  Moreover, Lake Norman Infiniti is hardly independent of Respondent, as they have the same President, Terry Taylor, and the same secretary, John Lace. 

 

The true facts are that the domains were registered by Respondent in 2004 to direct consumers to Lake Norman Infiniti as admitted by one of its owners and the General Manager at the time, Jack Salzman to Gerald Dillard.  The domains linked to Lake Norman Infiniti’s website in June 2006, when Complainant’s former General Manager, Mark Austin, spoke with the current General Manager of Lake Norman Infiniti concerning this issue.  Respondent did change the link after Complainant filed its Complaint in this matter. 

 

Respondent has not registered or used the disputed domain names in good faith.  Respondent registered the domain names to disrupt Complainant’s business as admitted by Lake Norman Infiniti’s owner and General Manager at the time.  Respondent not attempts to claim it is making a legitimate use with its Infiniti/Infinity business directory.  However, until Complainant filed its Complaint, the domain names linked to Complainant’s competitor’s website. 

 

Finally, Respondent claims it never sought payment for the domains.  After receiving a cease and desist letter from Complainant, Lake Norman Infiniti requested an offer of payment as set out in correspondence attacked as Exhibit H. 

 

Respondent:

Respondent disputes the claim that Jack Salzman admitted to improperly registering the disputed domain names.  It also disputes the claim that Steve O’Kane admitted that Complainant held the exclusive rights to the disputed domain names and that Respondent would relinquish them. 

 

 

FINDINGS

1-     The disputed domain names are confusingly similar to a trademark in which Complainant has rights.

2-     Respondent has no rights or legitimate interests in respect of the domain names.

3-     Respondent registered and is using the domain names 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 asserts rights in the INFINITI OF CHARLOTTE mark through common law usage of the mark since 1998.  Under Policy ¶ 4(a)(i), Complainant is not required to have a registered trademark provided it can demonstrate secondary meaning associated with its mark sufficient to provide common law meaning.  See SeekAmerica Networks Inc. v. Masood, D2000-0131 (WIPO Apr. 13, 2000) (finding that the Rules do not require that the complainant's trademark or service mark be registered by a government authority or agency for such rights to exist); see also British Broad. Corp. v. Renteria, D2000-0050 (WIPO Mar. 23, 2000) (noting that the Policy “does not distinguish between registered and unregistered trademarks and service marks in the context of abusive registration of domain names” and applying the Policy to “unregistered trademarks and service marks”).

 

Complainant contends that it has continuously used the INFINITI OF CHARLOTTE mark in connection with the sale and service of Infiniti automobiles in Charlotte, North Carolina since November 1998.  Complainant has also registered INFINITI OF CHARLOTTE as an assumed name with the Mecklenburg County Register of Deeds in North Carolina.  Complainant also operates a website at the <infinitiofcharlotte.com> domain name.  The Panel finds that Complainant has demonstrated extensive and continuous use of the INFINITI OF CHARLOTTE mark, and finds common law rights in the mark under Policy ¶ 4(a)(i).  See Tuxedos By Rose v. Nunez, FA 95248 (Nat. Arb.

Forum Aug. 17, 2000) (finding common law rights in a mark where its use was continuous and ongoing, and secondary meaning was established); see also Keppel TatLee Bank v. Taylor, D2001-0168 (WIPO Mar. 28, 2001) (“[O]n account of long and substantial use of [KEPPEL BANK] in connection with its banking business, it has acquired rights under the common law.”).

 

Complainant asserts that the <infinityofcharlotte.com> domain name is confusingly similar to Complainant’s INFINITI OF CHARLOTTE mark as the disputed domain name contains Complainant’s mark in its entirety with the misspelling of the first word by changing the last “i” to a “y.”  The Panel finds that the disputed domain name is thus phonetically similar to Complainant’s mark.  This minor variation between Respondent’s disputed domain name and Complainant’s mark does not negate the confusing similarity between the two under Policy ¶ 4(a)(i).  See Pfizer Inc. v. Phizer's Antiques, D2002-0410 (WIPO July 3, 2002) (finding the <phizer.com> domain name phonetically equivalent and confusingly similar to the PFIZER mark); see also Belkin Components v. Gallant, FA 97075 (Nat. Arb. Forum May 29, 2001) (finding the <belken.com> domain name confusingly similar to the complainant's BELKIN mark because the name merely replaced the letter “i” in the complainant's mark with the letter “e”).   

 

Additionally, Complainant asserts that the <charlotteinfiniti.com> domain name is confusingly similar to its mark as the disputed domain name inverts the words in the INFINITI OF CHARLOTTE mark and deletes the term “of” between the words.  The Panel finds that such changes do not negate the confusing similarity between Complainant’s mark and Respondent’s disputed domain name under Policy ¶ 4(a)(i).  See Bloomberg L.P v. Herrington Hart, NIRT, FA 464790 (Nat. Arb. Forum June 1, 2005) (“The Panel finds that the use of transposed words, similar to transposed letters does not suffice to differentiate the disputed domain name from Complainant’s mark to create a separate and distinct mark.”); see also Saul Zaentz Co. v. Dodds, FA 233054 (Nat. Arb

Forum Mar. 16, 2004) (the domain name merely omitted the definite article “the” and the preposition “of” from the complainant’s mark and thus, failed to “sufficiently distinguish the domain name from the mark pursuant to Policy ¶ 4(a)(i)”).           

 

            Rights or Legitimate Interests

 

The Panel is aware that once Complainant makes a prima facie case in support of its allegations, the burden shifts to Respondent to show that is does have 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).

 

Complainant contends that Respondent has no rights or legitimate interests in the <infinityofcharlotte.com> and <charlotteinfiniti.com> domain names, but is using the disputed domain names to attract Internet users attempting to locate Complainant to Respondent’s competiting website for its own commercial gain.  Complainant states that Respondent is a competing car dealership in the same geographical area and is using Complainant’s mark to attract customers attempting to locate Complainant to Respondent’s business.  The Panel finds that such competing use is neither a bona fide offering of goods or services under Policy ¶ 4(c)(i) nor a legitimate noncommercial or fair use under Policy ¶ 4(c)(iii).  See Computerized Sec. Sys., Inc. v. Hu, FA 157321 (Nat. Arb. Forum June 23, 2003) (“Respondent’s appropriation of [Complainant’s] SAFLOK mark to market products that compete with Complainant’s goods does not constitute a bona fide offering of goods and services.”); see also Gardens Alive, Inc. v. D&S Linx, FA 203126 (Nat. Arb. Forum Nov. 20, 2003) (finding that the respondent used a domain name for commercial benefit by diverting Internet users to a website that sold goods and services similar to those offered by the complainant and thus, was not using the name in connection with a bona fide offering of goods or services nor a legitimate noncommercial or fair use).

 

The Panel also finds that Respondent is not commonly known by the disputed domain names pursuant to Policy ¶ 4(c)(ii).  Respondent’s WHOIS information does not indicate that Respondent is commonly known by the <infinityofcharlotte.com> and <charlotteinfiniti.com> domain names and Complainant asserts that Respondent is not authorized to use its common law mark.  See Compagnie de Saint Gobain v. Com-Union Corp., D2000-0020 (WIPO Mar. 14, 2000) (finding no rights or legitimate interest where the respondent was not commonly known by the mark and never applied for a license or permission from the complainant to use the trademarked name); see also RMO, Inc. v. Burbridge, FA 96949 (Nat. Arb. Forum May 16, 2001) (interpreting Policy ¶ 4(c)(ii) "to require a showing that one has been commonly known by the domain name prior to registration of the domain name to prevail").    

 

Additionally, Complainant asserts that Respondent has demonstrated its lack of rights and legitimate interests in the disputed domain names by offering to sell them to Complainant.  The Panel finds that such an offer was suggested by the correspondence from Respondent and is indicitive of a lack of rights and legitimate interests in the <infinityofcharlotte.com> and <charlotteinfiniti.com> domain names.  See Mothers Against Drunk Driving v. Hyun-Jun Shin, FA 154098 (Nat. Arb. Forum May 27, 2003) (holding that under the circumstances, the respondent’s apparent willingness to dispose of its rights in the disputed domain name suggested that it lacked rights or legitimate interests in the domain name); see also Wal-Mart Stores, Inc. v. Stork, D2000-0628 (WIPO Aug. 11, 2000) (finding the respondent’s conduct purporting to sell the domain name suggests it has no legitimate use).       

 

Registration and Use in Bad Faith

 

Complainant asserts that Respondent is using the disputed domain names to disrupt its business by diverting Internet users attempting to locate Complainant’s website to Respondent’s competing website.  The Panel agrees and finds bad faith registration and use under Policy ¶ 4(b)(iii).  See S. Exposure v. S.  Exposure, Inc., FA 94864 (Nat. Arb. Forum July 18, 2000) (finding that the respondent registered the domain name in question to disrupt the business of the complainant, a competitor of the respondent); see also Lubbock Radio Paging v. Venture Tele-Messaging, FA 96102 (Nat. Arb. Forum Dec. 23, 2000) (concluding that domain names were registered and used in bad faith where the respondent and the complainant were in the same line of business in the same market area).

 

The Panel also finds that Respondent registered the <infinityofcharlotte.com> and <charlotteinfiniti.com> domain names for the purpose of commercially benefiting from the good will associated with Complainant’s mark.  The panel also determines that the disputed domain names are capable of creating a likelihood of confusion as to the source and affiliation of Complainant to the disputed domain names and corresponding websites.  Such a determination may lead to a finding 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).

 

Complainant also asserts that Respondent offered to sell the disputed domain names.  A solicitation to sell was made in this case and  the panel finds that it constitutes evidence of bad faith registration and use under Policy ¶ 4(b)(i).  See Am. Anti-Vivisection Soc’y v. “Infa dot Net” Web Serv., FA 95685 (Nat. Arb. Forum Nov. 6, 2000) (finding that “general offers to sell the domain name, even if no certain price is demanded, are evidence of bad faith”); see also Little Six, Inc. v. Domain For Sale, FA 96967 (Nat. Arb. Forum Apr. 30, 2001) (finding the respondent's offer to sell the domain name at issue to the complainant was evidence of bad faith).   

 

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 <infinityofcharlotte.com> and <charlotteinfiniti.com> domain names be TRANSFERRED from Respondent to Complainant.

 

 

 

Daniel B. Banks, Jr., Panelist
Dated: December 20, 2006

 

 

 

 

 

 

 

 

 

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