National Arbitration Forum

 

DECISION

 

Avery Dennison Corporation v. Dennison-Hesperia S.A.

Claim Number: FA0612000873273

 

PARTIES

Complainant is Avery Dennison Corporation (“Complainant”), represented by David J. Steele, of Christie, Parker & Hale, LLP, 3501 Jamboree Road, Suite 6000, Newport Beach, CA 92660.  Respondent is Dennison-Hesperia S.A. (“Respondent”), represented by Perla M. Kuhn, of Hughes Hubbard & Reed LLP, One Battery Park Plaza, New York, NY 10004.

 

 

REGISTRAR AND DISPUTED DOMAIN NAME

The domain name at issue is <dennison-hesperia.com>, registered with DotRegistrar.com.

 

PANEL

The undersigned certify that they have acted independently and impartially and to the best of their knowledge have no known conflict in serving as Panelists in this proceeding.

 

Jeffrey M. Samuels, Hon. Carolyn M. Johnson (Ret.), and M. Kelly Tillery, as Panelists.

 

PROCEDURAL HISTORY

Complainant submitted a Complaint to the National Arbitration Forum electronically on December 18, 2006; the National Arbitration Forum received a hard copy of the Complaint on December 19, 2006.

 

On December 20, 2006, DotRegistrar.com confirmed by e-mail to the National Arbitration Forum that the <dennison-hesperia.com> domain name is registered with DotRegistrar.com and that the Respondent is the current registrant of the name.  DotRegistrar.com has verified that Respondent is bound by the DotRegistrar.com 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 December 28, 2006, a Notification of Complaint and Commencement of Administrative Proceeding (the “Commencement Notification”), setting a deadline of January 17, 2007 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@dennison-hesperia.com by e-mail.

 

A Response was untimely received on January 18, 2007[1].

 

On February 14, 2007, pursuant to Respondent’s  request to have the dispute decided by a three-member Panel, the National Arbitration Forum appointed Jeffrey M. Samuels, Hon. Carolyn M. Johnson (Ret.), and M. Kelly Tillery as Panelists.

 

RELIEF SOUGHT

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

 

PARTIES’ CONTENTIONS

A. Complainant

 

Since 1881, Dennison Manufacturing Co. and its successors in interest have used the mark DENNISON in connection with paper products and office supplies.  Complainant Avery Dennison Corp. was formed in 1990 from the merger of Dennison Manufacturing Co. and Avery International Corp.  For each of the past three years, Complainant’s total product sales (both consumer and industrial) have been approximately $4 billion.

 

Complainant owns numerous registrations for its DENNISON marks around the world (see Exhibit 3 to Complaint), including U.S. Registration No. 70,426 (see Exhibit 2) and Spanish Registration No. 2,022,371 (see Exhibit 4).

 

The disputed domain name <dennison-hesperia.com> was registered by Respondent on November 12, 1998.  Respondent Dennison-Hesperia S.A. is a former licensee of Complainant.

 

Complainant contends that the disputed domain name is confusingly similar to the DENNISON mark insofar as it merely includes a hyphen between the DENNISON mark and the geographically descriptive term “Hesperia.”  According to Complainant, the term “Hesperia” merely refers to Spain, the country where Respondent is located.

 

Complainant further argues that Respondent has no rights or legitimate interests in the <dennison-herperia.com> domain name.  Complainant maintains that Respondent registered and is using the domain name to misdirect Internet users to its website which offers goods that directly compete with Complainant.  See Complaint, Exhibit 5.  None of the products offered at Respondent’s website are DENNISON or AVERY DENNISON products.  As a result, Complainant argues, Respondent cannot be found to be using the domain name in connection with a bona fide offering of goods or services under paragraph 4(c)(1) of the Policy.

 

Respondent’s registration and use of the subject domain name also violates the parties’ former license agreement, Complainant urges.  It points out that, in 1994, Complainant sold its wholly-owned Spanish distributing company, Dennison España S.A., to Manufacturas Hesperia, S.A.[2] and, at the same time, granted Dennison España a limited-duration license to use Complainant’s DENNISON mark in connection with the continued distribution of Complainant’s goods.  The license agreement expired in 1999, and was not renewed.  Section 4.3 of the agreement provides that:

 

Upon termination of this Agreement for whatever cause or reason, all rights and obligations of the parties shall cease and terminate, including [Dennison España S.A.’s] right to use the Dennison trade name, trademarks and patents described in clause 8.1 of this Agreement.

 

Section 8.1 of the Agreement further provides, in pertinent part, that “all intellectual property rights, including trademarks or patents to the Products, shall at all times remain vested in [Complainant] or its subsidiaries or affiliated companies.”

 

As a result, Complainant contends, Respondent does not own any intellectual property rights in the domain name, or in the DENNISON mark, and is no longer authorized to distribute Complainant’s goods or use the DENNISON mark.  Respondent’s registration of the domain name, Complainant asserts, constitutes a material breach of the license agreement with Complainant.    

 

Complainant argues that Respondent has registered and is using the domain name in bad faith in that, through its use of the domain name, Respondent is intentionally attempting to attract, for commercial gain, internet users to its website by creating a likelihood of confusion with Complainant’s mark as to the source, sponsorship, affiliation or endorsement of such site, in violation of paragraph 4(b)(iv) of the Policy.  In support of its assertion of “bad faith” registration and use, Complainant also alleges that Respondent registered the domain name in violation of the license agreement, that Respondent knew of Complainant’s rights in the DENNISON mark at the time of registration, and that the disputed domain name is confusingly similar to a mark that is obviously connected with Complainant.

 

B. Respondent

 

Respondent contends that this proceeding was brought as leverage to curtail Respondent’s challenge to the Community Trademark application filed by Complainant for the mark AVERY-DENNISON.  It also maintains that the instant matter raises a number of issues that cannot be resolved without a meaningful opportunity to take discovery.  These issues include whether Complainant’s authorization to use the DENNISON mark extended to a company acquired by Respondent’s predecessor, Complainant’s knowledge of, and acquiescence to, Respondent’s challenged website and to Respondent’s use of the “Dennison-Hesperia” trade and corporate name, and the effect of Respondent’s registration in Spain for the DENNISON mark for the past eight to ten years.  Respondent emphasizes that the UDRP process “is intended only for clear cases of abusive misuse of domain names of the type commonly known as cybersquatting.”  McCarthy on Trademarks, §25.74-75.

 

According to Respondent, Complainant’s predecessor, Dennison International Co., “authorized” its related company, Dennison España, S.A., to use and register the DENNISON trademark.[3]  This authorization, Respondent maintains, did not have an expiration date and to its knowledge was in effect and unrevoked as of 1994 when Respondent, through a predecessor in interest, purchased the entire stock of Dennison España from Dennison Manufacturing Co.  Respondent notes that the Stock Purchase Agreement did not exclude any of the assets owned by Dennison España, including the 1990 authorization.  See Response, Exhibit C. Article 4(3) of the Stock Purchase Agreement recited that the parties were also entering into an exclusive distribution license agreement.  The distribution agreement provided Respondent’s predecessor with the exclusive right and license to distribute, manufacture and sell the products listed in Annex A to the agreement in Spain and the non-exclusive right to use the trademarks appearing on the products listed in Annex A to the agreement.  According to Respondent, a review of the products listed in Annex A reveals various trademarks, none of which includes the DENNISON mark.

 

Respondent points out that, towards the end of the term of the distribution agreement, Complainant advised Respondent that the agreement would not be renewed upon its termination in February 1999.  In response, Respondent, in a letter dated February 22, 1999 (See Response, Exhibit E), asserted its intention to continue using the DENNISON mark and enclosed a copy of the 1990 Authorization.[4] According to Respondent, Complainant never responded to this assertion and, over the past eight years or so, never objected to Respondent’s continued use of the DENNISON mark, until the filing of the instant UDRP complaint.

 

Respondent also asserts that the disputed domain name is not confusingly similar to Complainant’s marks.  Respondent contends that the domain name contains the distinguishing feature “Hesperia.”  Respondent indicates that Complainant presented no evidence to support its assertion that “Hesperia” is a geographic indication to Spain or Italy.  In any event, Respondent argues, “hesperia” is not an actual geographical term but has multiple meanings, including a personality from Greek mythology, a genus of butterflies, an asteroid, and two U.S. cities, such that consumers would not understand the term to identify an actual geographic location.

 

Even if “hesperia’ is a geographically descriptive term, Respondent maintains, it is still a distinguishing feature of the challenged domain name.  Such terms, Respondent notes, may acquire distinctiveness based on use and Respondent has been using the word “hesperia” as part of its business name, Manufacturas Hesperia, since 1956, and in its “Dennison Hesperia” name since 1996.  During the past ten years alone, Respondent observes that it has sold approximately 15 million euros worth of products under this name.

 

Respondent further points out that while Complainant, at one point, owned a trademark registration (No. 36,740) in Spain for the DENNISON mark, such registration has lapsed.

Respondent emphasizes that it owns a registration (No. 1,966,088) for the DENNISON mark in Spain covering paper goods.  See Response, Exhibit J.

 

Respondent also argues that it has legitimate interests in the <dennison-hesperia.com> domain name.  It reiterates that it has been using the domain name since 1998, and has been using the corporate and trade name Dennison-Hesperia S.A. since 1996.  This use follows 40 years of use of the Manufacturas Hesperia trade name by Respondent’s predecessor in interest.

 

Moreover, Respondent asserts, Complainant’s failure to bring this ICANN proceeding for more than eight years since Respondent registered the disputed domain name evidences Respondent’s valid and legitimate claim to the site.

 

Respondent also maintains that it registered and is using the disputed domain name in good faith.  It contends that it has been using the name long prior to having received any notice of the instant challenge made by Complainant, is commonly known by the name “Dennison-Hesperia,” and owns a registration in Spain for the DENNISON mark.

 

Respondent argues that it has not breached the distribution agreement between the parties.  Paragraph 4.3 of the agreement, Respondent notes, refers to the termination of Respondent’s “right to use the Dennison trade name, trademarks and patents described in clause 8.1 of [the agreement],” but clause 8.1 does not reference the DENNISON mark.

 

Finally, Respondent urges that Complainant has engaged in “reverse domain name hijacking.”  In support of such assertion, Respondent contends that Complainant failed to: (1) object to Respondent’s use of the disputed domain name for more than eight years; (2) challenge Respondent’s use of the “Dennison-Hesperia” trade and corporate name for more than seven years since the expiration of the distribution agreement; (3) respond to Respondent’s assertion of its intent to continue to use the “Dennison-Hesperia” trade and corporate name; and (4) acknowledge Respondent’s ownership of the registered mark DENNISON in Spain.

 

FINDINGS

The Panel determines that: (1) Complainant has rights in the DENNISON mark; (2) that the domain name is confusingly similar to the mark; (3) that Respondent has rights or legitimate interests in the domain name; (4) that the domain name was not registered in bad faith; and (5) Complainant did not engage in reverse domain name hijacking.

 

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

 

The Panel finds that Complainant has established, through its ownership of registrations for, and use of, the DENNISON mark, rights in the mark.

 

The Panel[5] further concludes that the disputed domain name dennison-hesperia.com is confusingly similar to the DENNISON mark.  The parties dispute whether the term “hesperia” is geographically descriptive and, thus, of weak trademark significance absent proof of secondary meaning.  However, even if, as Respondent contends, “Hesperia” is not an actual geographical term, the Panel notes that the term “dennison” constitutes the first and, thus, dominant portion of the domain name and that the domain name incorporates Complainant’s mark in its entirety. 

 

Rights or Legitimate Interests

 

The Panel further concludes that Respondent has rights or legitimate interests in the domain name.  The evidence establishes that Complainant’s predecessor in interest, in 1990, authorized Respondent’s predecessor in interest to register and use the DENNISON name in Spain and that Respondent obtained a registration for the DENNISON mark in Spain prior to its registration of the disputed domain name.  The evidence also indicates that Respondent has been using the corporate and trade name Dennison-Hesperia S.A. since 1996, following 40 years of use of the trade name Manufacturas Hesperia by Respondent’s predecessor in interest.  Under such circumstances, the Panel finds that Respondent was using the domain name in connection with a bona fide offering of goods and services before any notice of the dispute, within the meaning of paragraph 4(c)(i) of the Policy.

 

Registration and Use in Bad Faith

           

Given the determination that Respondent registered the domain name during a period of time when it was authorized by Complainant to register and use the DENNISON mark in Spain, the Panel[6] concludes that the domain name was not registered in bad faith.

 

 

DECISION

Finding that all three elements required under the ICANN Policy have not been established by Complainant, the Panel concludes that relief shall be DENIED.

 

 

 

Jeffrey M. Samuels, Hon. Carolyn M. Johnson (Ret.), and M. Kelly Tillery, Panelists
Dated: March 5, 2007

 

 

 

 



[1] The Panel has been informed that while the electronic copy of the Response was timely received on January 17, 2007, the hard copy of the Response and payment for the three-member panel were untimely received on January 18, and that, as a result, the National Arbitration Forum does not consider the response to be in compliance with ICANN Rule 5.  Exercising its general powers under Rule 10, including the power to ensure that each party is given a fair opportunity to present its case, the Panel decides to consider Respondent’s Response.

[2] In 1996, Manufacturas Hesperia, S.A. merged with Dennison España S.A. to form Respondent Dennison-Hesperia S.A.  See Response, Exhibit B.

[3] The “Authorization” authorizes Dennison España to register and use the DENNISON name in Spain, “this authorization being deemed not to prejudice or undermine the rights we may have in Trademark, No. 36,740 called `DENNISON’S’ which will not suffer any loss.”  See Response, Exhibit 1.

[4] The letter states, in part, as follows: “As agreed, I am sending you a copy of the authorization for our company to use the Dennison trademark, preserving the rights of Dennison Manufacturing Co. in trademark no. 36740, as has been done.”

[5] Panelist Tillery dissents from this portion of the Panel’s decision.  Panelist Tillery finds that the term “Hesperia” in the domain name is a significant part of the name and acts to diminish any possible confusion.

[6] Panelist Johnson would not reach the issue of bad faith registration and use in view of the Panel’s finding on the issue of rights or legitimate interests.

 

 

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