National Arbitration Forum

 

DECISION

 

George Weston Bakeries Inc. v. Charles McBroom

Claim Number: FA0703000933276

 

PARTIES

Complainant is George Weston Bakeries Inc. (“Complainant”), represented by Richard M. Assmus, of Mayer, Brown, Rowe & Maw LLP, 71 South Wacker Drive, Chicago, IL 60606.  Respondent is Charles McBroom (“Respondent”), 71 Charter Circle, 4J, Ossining, NY 10562.

 

REGISTRAR AND DISPUTED DOMAIN NAME 

The domain name at issue is <gwbakeries.mobi>, registered with GoDaddy.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.

 

Calvin A. Hamilton as Panelist.

 

PROCEDURAL HISTORY

Complainant submitted a Complaint to the National Arbitration Forum electronically on March 6, 2007; the National Arbitration Forum received a hard copy of the Complaint on March 7, 2007.

 

On March 7, 2007, GoDaddy.com, Inc. confirmed by e-mail to the National Arbitration Forum that the <gwbakeries.mobi> domain name is registered with GoDaddy.com, Inc. and that Respondent is the current registrant of the name.  GoDaddy.com, Inc. has verified that Respondent is bound by the GoDaddy.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 March 15, 2007, a Notification of Complaint and Commencement of Administrative Proceeding (the “Commencement Notification”), setting a deadline of April 4, 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@gwbakeries.mobi by e-mail.

 

A timely Response was received and determined to be complete on April 3, 2007.

 

An Additional Submission from Complainant was timely received on April 9, 2007, which has also been considered along with the rest of the materials submitted for our review.

 

On April 11, 2007, pursuant to Complainant’s request to have the dispute decided by a single-member Panel, the National Arbitration Forum appointed Calvin A. Hamilton as Panelist.

 

RELIEF SOUGHT

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

 

PARTIES’ CONTENTIONS

A.  Complainant makes the following assertions:

 

                                                 1.       The domain name <gwbakeries.mobi> is identical and/or confusingly similar to a trademark or service mark in which Complainant has common law trademark rights;

                                                 2.       Respondent has no rights or legitimate interests in respect of the domain name that is subject to the Complaint;

                                                 3.       Respondent registered and used the domain name in bad faith.

 

B.  Respondent makes the following assertions:

 

1.      When he registered the disputed domain name, “gwbakeries” was not a registered trademark.

2.      The registration of the domain name <gwbakeries.mobi> was for purposes of resale and that Respondent was not concerned with who might purchase the domain name.

3.      Respondent contends that he did not register and hold the domain name with the specific intent to trade off Complainant’s goodwill.

4.      As a reseller of an item, such as a domain name, it is a prerogative of Respondent to request compensation that is in excess of out-of-pocket expenses related to the item.

 

C.  Complainant makes the following assertions in its Additional Submission:

 

1.      Respondent has admitted important facts as to the resale purposes of the registration and use of the disputed domain name, together with the motivation of outrageously trading on the goodwill of Complainant.

2.      Respondents’ admissions constitute further evidence of bad faith use and registration of the disputed domain name.

 

FINDINGS

1)      Complainant George Weston Bakeries Inc. is in the business of producing fresh bread, buns and cake products distributed under a variety of well-known brands and private labels.

2)  Complainant registered and maintained a website to promote its various brands and their respective products under the domain name <gwbakeries.com> on or about April 19, 2001, which has served as Complainant’s primary Internet presence for customers and the general public including the information about Complainant as well as information about the various food product offerings manufactured and sold by Complainant. Complainant has provided evidence as to the existence of common law rights on the trademark.

4)  Respondent registered an identical domain name under a different top-level domain name extension, <gwbakeries.mobi>, on November 27, 2006.

5)  Shortly thereafter, in December 2006, Respondent contacted Complainant in an attempt to sell the <gwbakeries.mobi> domain name.

7)  <gwbakeries.mobi> is identical or confusingly similar to Complainant’s mark.

8)  Respondent has no rights or legitimate interests in respect of the domain name <gwbakeries.mobi>.

9)  Registration and use of <gwbakeries.mobi> was made 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 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 or service mark in which Complainant has rights;

(2)   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 does not hold a trademark registration for the GW BAKERIES mark.  However, Complainant alleges that it has longstanding common law rights in the mark as it has continously used and established common law rights in the trademarks “George Weston Bakeries,” “GW Bakeries” or variations thereof in connection with its food products by means of conspicuous use of the words “George Weston Bakeries” in connection with its various brands and product lines as well as on its Internet site, achieving significant name recognition through its growth during the years.  Further, Complainant has been using the mark “GW Bakeries” in connection with its Internet site and domain names since 2001.

 

Through its consistent and continuous use, the marks used by Complainant in connection with its food products have become distinctive and have engendered significant goodwill in North America.

 

In order to satisfy Policy ¶ 4(a)(i), Complainant does not need to have a valid trademark registration so as to demonstrate its rights in a mark.  See Artistic Pursuit LLC v. calcuttawebdevelopers.com, FA 894477 (Nat. Arb. Forum Mar. 8, 2007) (finding that Policy ¶ 4(a)(i) does not require a trademark registration if a complainant can establish common law rights in its mark); see also 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 Zee TV USA, Inc. v. Siddiqi, FA 721969 (Nat. Arb. Forum July 18, 2006) (finding that the complainant need not own a valid trademark registration for the ZEE CINEMA mark in order to demonstrate its rights in the mark under Policy ¶ 4(a)(i)).

 

Complainant alleges that it has continuously and extensively used the GW BAKERIES and GEORGE WESTON BAKERIES marks since at least 2001 in connection with bakery products, including fresh bread, buns, and cake products that it markets under various private labels, including Thomas’, Entenmann’s, Brownberry, and Boboli.  Complainant also alleges that it maintains a website at the <gwbakeries.com> domain name.  The Panel determines that the GW BAKERIES mark has acquired secondary meaning in connection with Complainant’s bakery products, so it may be concluded that Complainant has established common law rights in the GW BAKERIES mark pursuant to Policy ¶ 4(a)(i).  See Kahn Dev. Co. v. RealtyPROshop.com, FA 568350 (Nat. Arb. Forum June 23, 2006) (holding that the complainant’s VILLAGE AT SANDHILL mark acquired secondary meaning among local consumers sufficient to establish common law rights where the complainant had been continuously and extensively promoting a real estate development under the mark for several years); see also Stellar Call Ctrs. Pty Ltd. v. Bahr, FA 595972 (Nat. Arb. Forum Dec. 19, 2005) (finding that the complainant established common law rights in the STELLAR CALL CENTRES mark because the complainant demonstrated that its mark had acquired secondary meaning).

 

Complainant asserts that the <gwbakeries.mobi> domain name is identical to its GW BAKERIES mark.  The Panel concludes that the elimination of spaces between terms of the mark and the addition of the top-level domain “.mobi” are merely functional changes required of every domain name and that as a result, the <gwbakeries.mobi> domain name is identical to Complainant’s GW BAKERIES mark pursuant to Policy ¶ 4(a)(i).  See Starkey v. Mr. Bradley, FA 874575 (Nat. Arb. Forum Feb. 12, 2007) (“The suffix .mobi should be treated the same way as .com and should be ignored when comparing the mark and the disputed domain name.”); see also The Vanderbilt University v. U Inc., FA 893000 (Nat. Arb. Forum Feb. 19, 2007) (finding the <vanderbilt.mobi> domain name to be identical to the VANDERBILT mark because it did not add anything except the top-level domain “.mobi”).

 

According to the abovementioned reasoning, the Panel finds that the disputed domain name <gwbakeries.mobi> is identical, and confusingly similar, to Complainant’s mark under Policy ¶ 4(a)(i).

 

Rights or Legitimate Interests

 

Complainant has made a prima facie case that Respondent lacks rights and legitimate interests in the disputed domain name under Policy ¶ 4(a)(ii), and the burden then shifts to Respondent to show it does have rights or legitimate interests.  See AOL LLC v. Gerberg, FA 780200 (Nat. Arb. Forum Sept. 25, 2006) (“Complainant must first make a prima facie showing that Respondent does not have rights or legitimate interest in the subject domain names, which burden is light.  If Complainant satisfies its burden, then the burden shifts to Respondent to show that it does have rights or legitimate interests in the subject domain names.”); see also Hanna-Barbera Prods., Inc. v. Entm’t Commentaries, FA 741828 (Nat. Arb. Forum Aug. 18, 2006) (holding that the complainant must first make a prima facie case that the respondent lacks rights and legitimate interests in the disputed domain name under Policy ¶ 4(a)(ii) before the burden shifts to the respondent to show that it does have rights or legitimate interests in a domain name).

 

Complainant alleges that there is no evidence in the record suggesting that Respondent is commonly known by the domain name in dispute, including the WHOIS information, which lists “Charles McBroom” as the registrant of the disputed domain name.  Complainant also asserts that it has not authorized or licensed Respondent to register or use a domain name incorporating Complainant’s GW BAKERIES mark.  The Panel agrees that Respondent is not commonly known by the disputed domain name.  Therefore, Respondent does not have rights or legitimate interests in the domain name pursuant to Policy ¶ 4(c)(ii).  See Instron Corp. v. Kaner, FA 768859 (Nat. Arb. Forum Sept. 21, 2006) (finding that the respondent was not commonly known by the <shoredurometer.com> and <shoredurometers.com> domain names because the WHOIS information listed Andrew Kaner c/o Electromatic a/k/a Electromatic Equip't as the registrant of the disputed domain name and there was no other evidence in the record to suggest that the respondent was commonly known by the domain names in dispute); see also Elenie Reese v. Morgan, FA 917029 (Nat. Arb. Forum Apr. 5, 2007) (concluding that the respondent was not commonly known by the <lilpunk.com> domain name as there was no evidence in the record showing that the respondent was commonly known by that domain name, including the WHOIS information as well as the complainant’s assertion that it did not authorize or license the respondent’s use of its mark in a domain name).

 

Complainant maintains that Respondent has never made active use of the <gwbakeries.mobi> domain name since registering it on November 27, 2006.  Respondent’s non-use of the <gwbakeries.mobi> domain name does not constitute a bona fide offering of goods or services pursuant to Policy ¶ 4(c)(i) or a legitimate noncommercial or fair use pursuant to Policy ¶ 4(c)(iii).  See Bloomberg L.P. v. SC Media Servs. and Info. SRL, FA 296583 (Nat. Arb. Forum Sept. 2, 2004) (“Respondent is wholly appropriating Complainant’s mark and is not using the <bloomberg.ro> domain name in connection with an active website.  The Panel finds that the passive holding of a domain name that is identical to Complainant’s mark is not a bona fide offering of goods or services pursuant to Policy ¶ 4(c)(i) nor is it a legitimate noncommercial or fair use of the domain name pursuant to Policy  ¶ 4(c)(iii).”); see also Hewlett-Packard Co. v. Shemesh, FA 434145 (Nat. Arb. Forum Apr. 20, 2005) (finding that passive holding of a domain name that is identical to a complainant’s mark is not a bona fide offering of goods or services pursuant to Policy ¶ 4(c)(i) or a legitimate noncommercial or fair use pursuant to Policy ¶ 4(c)(iii)).

 

The Complaint also asserts that Respondent contacted Complainant with an offer to sell the <gwbakeries.mobi> domain name registration for $750,000.  The Panel concludes that this amount of money is in excess of Respondent’s out-of-pocket costs associated with registering the disputed domain name, and that such a disproportionate offer provides evidence that Respondent lacks rights and legitimate interests in the disputed domain name pursuant to Policy ¶ 4(a)(ii).  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).

 

Based on the above, the Panel finds that Complainant has satisfied the burden of proof under Policy ¶ 4(a)(ii).

 

Registration and Use in Bad Faith

 

The record shows that Respondent contacted Complainant after Respondent registered the <gwbakeries.mobi> domain name with an offer to sell the contested domain name.  After Complainant asked Respondent to make an offer, Respondent allegedly asked for $750,000.  Complainant claims that this amount is far in excess of Respondent’s out-of-pocket costs, which Complainant estimates at only $15 per year, giving Respondent a 50,000% return on its initial investment if Complainant were to accept Respondent’s offer.  Based on Complainant’s allegations, the Panel understands that Respondent has registered and used the disputed domain name in bad faith pursuant to Policy ¶ 4(b)(i).  See Neiman Marcus Group, Inc. v. AchievementTec, Inc., FA 192316 (Nat. Arb. Forum Oct. 15, 2003) (finding the respondent’s offer to sell the domain name for $2,000 sufficient evidence of bad faith registration and use under Policy ¶ 4(b)(i)); see also Universal City Studios, Inc. v. Meeting Point Co., D2000-1245 (WIPO Dec. 7, 2000) (finding bad faith where the respondent made no use of the domain names except to offer them to sale to the complainant).

 

Complainant further alleges that Respondent’s <gwbakeries.mobi> domain name has never been active.  Respondent’s non-use of the disputed domain name since its registration in November 2006 indicates bad faith registration and use pursuant to Policy ¶ 4(a)(iii).  See Am. Broadcasting Cos., Inc. v. Merrill Sech, FA 893427 (Nat. Arb. Forum Feb. 28, 2007) (concluding that the respondent’s failure to make active use of its domain name in the three months after its registration indicated that the respondent registered the disputed domain name in bad faith); see also DCI S.A. v. Link Commercial Corp., D2000-1232 (WIPO Dec. 7, 2000) (concluding that the respondent’s non-use of a domain name satisfies the requirement of ¶ 4(a)(iii) of the Policy).

 

The Panel considers that Policy ¶ 4(a)(iii) has been satisfied in order to establish that Respondent registered and used the disputed domain name in 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 <gwbakeries.mobi> domain name be TRANSFERRED from Respondent to Complainant.

 

 

 

Calvin A. Hamilton, Panelist
Dated: April 25, 2007

 

 

 

 

 

 

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