National Arbitration Forum

 

DECISION

 

Victoria's Secret Stores Brand Management, Inc. v. Mark Machuszek

Claim Number: FA0703000945052

 

PARTIES

Complainant is Victoria's Secret Stores Brand Management, Inc. (“Complainant”), represented by Melise R. Blakeslee, of McDermott Will & Emery LLP, 600 13th Street, N.W., Washington, DC 20005.  Respondent is Mark Machuszek (“Respondent”), 1601 N. Sepulveda Blvd #197, Manhattan Beach, CA 90266.

 

REGISTRAR AND DISPUTED DOMAIN NAME

The domain name at issue is <victoriasfitnesssecret.com>, registered with Schlund+Partner Ag.

 

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.

 

Dr. Reinhard Schanda as Panelist.

 

PROCEDURAL HISTORY

Complainant submitted a Complaint to the National Arbitration Forum electronically on March 24, 2007; the National Arbitration Forum received a hard copy of the Complaint on March 26, 2007.

 

On March 29, 2007, Schlund+Partner Ag confirmed by e-mail to the National Arbitration Forum that the <victoriasfitnesssecret.com> domain name is registered with Schlund+Partner Ag and that Respondent is the current registrant of the name.  Schlund+Partner Ag has verified that Respondent is bound by the Schlund+Partner Ag 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 30, 2007, a Notification of Complaint and Commencement of Administrative Proceeding (the “Commencement Notification”), setting a deadline of April 19, 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@victoriasfitnesssecret.com by e-mail.

 

A timely Response was received and determined to be complete on April 19, 2007.

 

A timely Additional Submission from Complainant was received on April 23, 2007 and determined to be complete pursuant to Supplemental Rule 7.

 

A timely Additional Submission from Respondent was received on May 1, 2007 and determined to be complete pursuant to Supplemental Rule 7.

 

An Additional Submission was submitted by Complainant on May 2, 2007 and was determined to be deficient.  The Panel has not chosen to consider this Additional Submission in its decision.

 

An Additional Submission was submitted by Respondent on May 2, 2007 and was determined to be deficient.  The Panel has not chosen to consider this Additional Submission in its decision.

 

On April 26, 2007, pursuant to Complainant’s request to have the dispute decided by a single-member Panel, the National Arbitration Forum appointed Dr. Reinhard Schanda as Panelist.

 

RELIEF SOUGHT

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

 

PARTIES’ CONTENTIONS

A.     Complainant

 

The Complaint is based upon the famous trademark and service mark VICTORIA'S SECRET and variations thereof, which have been adopted and continually used in commerce by the Complainant, its licensees, and predecessors since at least as early as June 12, 1977 in connection with the sale of, inter alia, women's lingerie, beauty products, swimwear, outerwear, and gift items.  Complainant contends that it uses the famous mark VICTORIA'S SECRET as the name of nearly 1,000 Victoria's Secret retail stores located throughout the United States which advertise, offer for sale and sell a wide range of items bearing the mark VICTORIA'S SECRET.  Complainant also uses the mark VICTORIA'S SECRET in conjunction with international mail order catalogue sales and Internet commerce through the Complainant's web site located at <victoriassecret.com>.  In 2005, nearly $4.5 billion of merchandise was sold in connection with or bearing the mark VICTORIA'S SECRET.  In addition, Complainant's prominent advertising campaign featuring its famous models has succeeded in catapulting the VICTORIA'S SECRET brand into the realm of one of the world's most recognized marks.  As a result of this widespread, long-time, continuous, and prominent use of the mark VICTORIA'S SECRET, the mark VICTORIA'S SECRET has acquired significant goodwill, wide public recognition, and fame as a means by which Complainant and its merchandise are known to the public and its source and origin are identified.

 

Complainant’s mark and variations thereof, are duly registered in the United States Patent and Trademark Office under sixteen (16) valid, subsisting and uncancelled registrations, and Complainant is the owner thereof.  According to Complainant many of those registrations are incontestable.  Additionally, Complainant has approximately seventeen (17) applications pending before the United States Patent and Trademark Office that contain the mark VICTORIA'S SECRET and variations thereof.

 

Complainant’s mark has been prominently used on the Internet in connection with the world-famous Victoria’s Secret online fashion shows.

 

Complainant contends that the domain name at dispute is confusingly similar to Complainant’s mark VICTORIA'S SECRET and the domain name used by Complainant in connection with the legitimate sale of products bearing the mark VICTORIA'S SECRET, namely <victoriassecret.com>.  The Domain Name at dispute contains Complainant's identical mark.  The only difference between the two is that Respondent has interposed the word "fitness" between VICTORIA'S and SECRET.  By registering a domain name that merely adds a common word to the famous mark VICTORIA'S SECRET, Respondent creates a likelihood of confusion with Complainant's mark as to the source, sponsorship, affiliation, or endorsement of the Domain Name and the website to which it resolves.  As a result, Respondent's Domain Name is likely to cause confusion, mistake, and misleadingly divert Internet users trying to locate Complainant's official site, or those looking for potentially legitimate affiliated sites.

 

Complainant further contends that Respondent registered the Domain Name for the sole purpose of extracting money from Complainant.  Complainant previously settled a dispute with Respondent last year concerning three infringing domain names that Respondent had registered in bad faith and used at the time: <victoriasbigsecret.com>, <victoriasfunsecret.com> and <victoria-secret-fashion-show.com>.  Respondent transferred the domain names and as part of that settlement Respondent represented that he did not own any other domain names confusingly similar to the trademark Victoria's Secret.  Notwithstanding his clear knowledge that another registration would infringe Complainant's mark, the Respondent cavalierly registered the <victoriasfitnesssecret.com> domain name a mere three months after the previous settlement.  His subsequent registration of a confusingly similar domain name can only be considered an attempt to trigger another settlement.  Respondent is clearly using the Domain Name at dispute to trigger a settlement payment and/or to divert Internet traffic from the legitimate VICTORIA'S SECRET website or divert those seeking potentially legitimate affiliated sites.  Such usage of Complainant's mark to divert Internet traffic to a website that offers competing goods as candle products and services, and derives revenue therefrom does not constitute use in connection with a bona fide offering of goods or services. Furthermore Respondent is not commonly known by the Domain Name at dispute, either as a business, individual, or other organization.  Additionally Respondent is not making a legitimate noncommercial or fair use of the Domain Name <victoriasfitnesssecret.com>.  On information and belief, the sole reason Respondent has chosen the <victoriasfitnesssecret.com> domain name is to extract money from Complainant and/or to divert Internet traffic from Complainant's website to Respondent's for commercial gain.

 

Finally Complainant contends that Respondent registered the Domain Name at dispute with the intent to extort money from Complainant and/or attract Internet users to its website for commercial gain by creating a likelihood of confusion with Complainant’s mark as to the source, sponsorship, affiliation, or endorsement of Respondent’s website, thereby misleadingly diverting Internet traffic from Complainant’s website to Respondent’s for commercial gain.  Respondent has previously registered infringing domain names and benefited from those registrations.  Respondent’s registration of the <victoriasfitnesssecret.com> domain name demonstrates bad faith, particularly in view of his awareness that such a domain infringes Complainant’s rights.  Respondent had actual knowledge of the VICTORIA'S SECRET trademarks and knew his registration of a similar domain would infringe.  Given the fame of the VICTORIA'S SECRET trademark and his previous settlement with Complainant, there is no reason for Respondent to have registered the Domain Name other than to extort money from Complainant and/or trade off of the reputation and goodwill of Complainant's famous trademark while waiting for Complainant to contact him.

 

B.     Respondent

 

Respondent substantially contends that the domain name at dispute is not confusingly similar or identical to Complainant’s mark.  Furthermore Respondent is using the disputed domain name to operate a website that sells candles, which demonstrates Respondent’s rights and legitimate interests in the domain name.  Respondent admits that Respondent has previously owned domain names incorporating Complainant’s VICTORA’S SECRET mark that Respondent has transferred to Complainant.  In this regard Respondent contends that the transfer of these domain names was only for the amount of out-of-pocket expenses plus one dollar.  Finally the domain name at dispute was not registered and used in bad faith by Respondent.

 

C. Additional Submissions

 

In Complainant’s reply to Respondent’s Response, Complainant contends that it is not true that Respondent sold the infringing domain names for “1 dollar each plus out-of-pocket expenses.”  In fact, Complainant paid Respondent approximately $1400 for the domain names <victoriasbigsecret> and <victoriasfunsecret.com>, which is well in excess of his “out-of-pocket” expenses.  According to Complainant, Respondent was on notice that Complainant objected to his holding any domain names incorporating the formative VICTORIA’S SECRET.  Despite his knowledge Respondent cavalierly registered the <victoriasfitnesssecret.com> domain name a mere three months after the previous settlement, which is certainly evidence of bad faith.  Now, Respondent is disgruntled because Complainant has chosen to file this action instead of dealing with him again.  Furthermore Complainant contends that it has extensive, long-standing rights in its VICTORIA’S SECRET mark, not just for lingerie but also retail and online services, clothing such as yoga pants, shorts, and swimwear, beauty care products, and other goods and services, including candles.  Furthermore Complainant contends that a willingness to transfer a domain name is an indication of bad faith, because it demonstrates that Respondent does not have a legitimate interest in the name.  Further the mere registration of a domain name that incorporates a famous mark is evidence of bad faith.

 

In its Additional Submission Respondent is basically repeating his arguments from the Response.  However, Respondent states more precisely that he did sell the domain names for $1.00 each plus expenses.  The total cost was around $1300 for two domain names.  Respondent contends that he did not make any profit on these domain names.

 

FINDINGS

The Panel finds that:

 

1.       the Domain Name <victoriasfitnesssecret.com> is confusingly similar to Complainant’s mark.

 

2.       Respondent has not established any right or legitimate interest in the Domain Name <victoriasfitnesssecret.com > and

 

3.       Respondent has registered and is using the Domain Name <victoriasfitnesssecret.com > 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 asserts rights in the VICTORIA’S SECRET mark through multiple trademark registrations with the United States Patent and Trademark Office (“USPTO”) (Reg. No. 1,908,042 issued August 1, 1995).  The Panel finds that Complainant has established rights in the VICTORIA’S SECRET mark through these registrations under Policy ¶ 4(a)(i).  See Reebok Int’l Ltd. v. Santos, FA 565685 (Nat. Arb. Forum Dec. 21, 2005) (“Complainant owns a United States Patent and Trademark Office (‘USPTO’) registration issued September 5, 2000 for the RBK mark.  This trademark registration is adequate to establish rights pursuant to Policy ¶ 4(a)(i).”); see also Janus Int’l Holding Co. v. Rademacher, D2002-0201 (WIPO Mar. 5, 2002) ("Panel decisions have held that registration of a mark is prima facie evidence of validity, which creates a rebuttable presumption that the mark is inherently distinctive.").      

 

Further the Panel is of the view that the <victoriasfitnesssecret.com> domain name is confusingly similar to Complainant’s VICTORIA’S SECRET mark under Policy ¶ 4(a)(i), as the disputed domain name contains Complainant’s mark in its entirety, with the addition of the term “fitness” in the middle of the two words of Complainant’s mark.  The Panel finds that such an addition does not negate the confusing similarity between Complainant’s mark and Respondent’s disputed domain name under Policy ¶ 4(a)(i).  See Sutton Group Fin. Servs. Ltd. v. Rodger, D2005-0126 (WIPO June 27, 2005) (finding that the domain name <suttonpromo.com> is confusingly similar to the SUTTON mark because the addition of descriptive or non-distinctive elements to the distinctive element in a domain name is immaterial to the analysis under Policy ¶ 4(a)(i)); see also Arthur Guinness Son & Co. (Dublin) Ltd. v. Healy/BOSTH, D2001-0026 (WIPO Mar. 23, 2001) (finding confusing similarity where the domain name in dispute contains the identical mark of the complainant combined with a generic word or term).     

 

While Respondent contends that the <victoriasfitnesssecret.com> domain name is comprised of common terms and as such cannot be found to be identical or confusingly similar to Complainant’s mark, the Panel finds that such a determination is not necessary under Policy ¶ 4(a)(i), as this portion of the Policy considers only whether Complainant has rights in the trademark and whether the disputed domain name is identical or confusingly similar to Complainant’s trademark.  

 

Rights or Legitimate Interests

 

Complainant must show that Respondent has no rights or legitimate interests in respect of the disputed domain name.  Respondent does not assume the burden of proof, but may establish a right or legitimate interest in a disputed domain name by demonstrating in accordance with paragraph 4(c) of the Policy:

 

(a)  He has made preparations to use the domain name or a name corresponding to the domain name in connection with a bona fide offering of goods or services prior to the dispute;

 

(b)  He is commonly known by the domain name, even if he has not acquired any trademark rights; or

 

(c)  He intends to make a legitimate, non-commercial or fair use of the domain name without intent for commercial gain to misleadingly divert consumers or to tarnish the trademark.

 

The Panel determines that Complainant has discharged the onus of proof for the second criterion: Respondent has failed to demonstrate any rights or legitimate interests.

 

According to the majority of Panel decisions this Panel also takes the position that while Complainant has the burden of proof on this issue, once Complainant has made a prima facie showing, the burden of production shifts to Respondent to show by providing concrete evidence that it has rights to or legitimate interests in the domain name at issue.  See Document Techs., Inc. v. Int’l Elec. Comms., Inc., D2000-0270 (WIPO June 6, 2000);  Inter-Continental Hotel Corp. v. Khaled Ali Soussi, D2000-0252 (WIPO July 5, 2000); 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 G.D. Searle v. Martin Mktg., FA 118277 (Nat. Arb. Forum Oct. 1, 2002) (“Because Complainant’s Submission constitutes a prima facie case under the Policy, the burden effectively shifts to Respondent.”).

 

Complainant contends that Respondent has no rights or legitimate interests in the <victoriasfitnesssecret.com> domain name.  Respondent is using the disputed domain name to operate a website that sells candles, a use which Complainant contends is in direct competition with its own offering of candles through its retail stores as well as its own website, located at the <victoriassecret.com> domain name.  The Panel is of the view that Respondent’s use of the <victoriasfitnesssecret.com> domain name to commercially benefit from the use of Complainant’s VICTORIA’S SECRET mark by offering competing products 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 <victoriasfitnesssecret.com> domain name pursuant to Policy ¶ 4(c)(ii).  Respondent’s WHOIS information does not indicate that Respondent is commonly known by the disputed domain name, and Complainant has asserted that Respondent is not authorized to use Complainant’s mark.  See Instron Corp. v. Kaner, FA 768859 (Nat. Arb. Forum Sept. 21, 2006) (finding that the respondent is not commonly known by the <shoredurometer.com> or <shoredurometers.com> domain names where the WHOIS information indicates the registrant of the domain names as “Andrew Kaner c/o Electromatic a/k/a Electromatic Equip’t,” and no other evidence suggests that the respondent is commonly known by the domain names); see also 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).       

 

Registration and Use in Bad Faith

 

The Panel is of the view that Respondent registered the disputed domain name for purposes of commercially benefiting from the goodwill associated with Complainant’s mark by offering goods in competition with those offered by Complainant.  The Panel finds that the <victoriasfitnesssecret.com> domain name is creating a likelihood of confusion as to the source and affiliation of Complainant to the disputed domain name and corresponding website, which illustrates Respondent’s bad faith registration and use of the domain name under Policy ¶ 4(b)(iv).  See Drs. Foster & Smith, Inc. v. Lalli, FA 95284 (Nat. Arb. Forum Aug. 21, 2000) (finding bad faith where the respondent directed Internet users seeking the complainant’s site to its own website for commercial gain); see also Computerized Sec. Sys., Inc. v. Hu, FA 157321 (Nat. Arb. Forum June 23, 2003) (finding that the respondent’s use of the <saflock.com> domain name to offer goods competing with the complainant’s illustrates the respondent’s bad faith registration and use of the domain name, evidence of bad faith registration and use pursuant to Policy ¶ 4(b)(iv)).

 

Furthermore the Panel finds that the use of the <victoriasfitnesssecret.com> domain name to operate a website that sells goods in competition with those offered by Complainant constitutes a disruption of Complainant’s business and is evidence of 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 the respondent acted in bad faith by attracting Internet users to a website that competes with the complainant’s business); see also EthnicGrocer.com, Inc. v. Unlimited Latin Flavors, Inc., FA 94385 (Nat. Arb. Forum July 7, 2000) (finding that the minor degree of variation from the complainant's marks suggests that the respondent, the complainant’s competitor, registered the names primarily for the purpose of disrupting the complainant's business).

 

Additionally, the Panel finds bad faith registration and use under Policy ¶ 4(b)(ii).  Complainant asserts, and Respondent admits, that Respondent has previously owned domain names incorporating Complainant’s VICTORIA’S SECRET mark that Respondent has transferred to Complainant.  While Respondent contends that the transfer of these domain names was only for the amount of out-of-pocket expenses plus one dollar, Complainant contends that it purchased these domain names for approximately $1,400.  The Panel is of the view that Respondent’s registration of the <victoriasfitnesssecret.com> domain name following the previous, voluntary transfer of domain names from Respondent to Complainant, indicates bad faith registration and use under Policy ¶ 4(b)(ii), as Respondent has registered several domain names incorporating Complainant’s VICTORIA’S SECRET mark.  See YAHOO! INC v. Syrynx, Inc., D2000-1675 (WIPO Jan. 30, 2001) (finding a bad faith pattern pursuant to Policy ¶ 4(b)(ii) in the respondent's registration of two domain names incorporating the complainant's YAHOO! mark); see also Harcourt, Inc. v. Fadness, FA 95247 (Nat. Arb. Forum Sept. 8, 2000) (“Registration of more than one domain name that infringes on another’s registered mark(s) supports the inference that Respondent knew of Complainant’s marks upon registering the domain names . . . [and t]he registration of multiple domain names that infringe on Complainant’s trademarks is evidence of a pattern of conduct.”).        

 

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

 

 

 

Dr. Reinhard Schanda, Panelist
Dated: May 7, 2007

 

 

 

 

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