National Arbitration Forum

 

DECISION

 

Key II, Inc. d/b/a Collector's Armoury v. Confino, Vico

Claim Number: FA0704000954029

 

PARTIES

Complainant is Key II, Inc. d/b/a Collector's Armoury (“Complainant”), represented by Patrick J. Jennings, of Pillsbury Winthrop Shaw Pittman, LLP, 2300 N Street, N.W., Washington, DC 20037.  Respondent is Confino, Vico (“Respondent”), 6601 Lyons Road D-1, Lyons Business Park, Coconut Creek, FL 33073.

 

REGISTRAR AND DISPUTED DOMAIN NAME 

The domain name at issue is <collectorsarmory.com>, registered with Network Solutions, 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.

 

Joel Grossman as Panelist.

 

PROCEDURAL HISTORY

Complainant submitted a Complaint to the National Arbitration Forum electronically on April 4, 2007; the National Arbitration Forum received a hard copy of the Complaint on April 11, 2007.

 

On April 4, 2007, Network Solutions, Inc. confirmed by e-mail to the National Arbitration Forum that the <collectorsarmory.com> domain name is registered with Network Solutions, Inc. and that Respondent is the current registrant of the name.  Network Solutions, Inc. has verified that Respondent is bound by the Network Solutions, 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 April 16, 2007, a Notification of Complaint and Commencement of Administrative Proceeding (the “Commencement Notification”), setting a deadline of May 7, 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@collectorsarmory.com by e-mail.

 

On May 3, 2007, Respondent submitted a request for additional time to submit a response pursuant to National Arbitration Forum Supplemental Rule 6(a)(i).  An Extension of Time to Respond was issued, setting a new deadline of May 21, 2007 by which Respondent could file a Response to the Complaint.

 

A timely Response was received and determined to be complete on May 18, 2007.

 

On May 23, 2007, Complainant filed an Additional Submission with the National Arbitration Forum that was determined to be timely and complete pursuant to Supplemental Rule 7.

 

On May 25, 2007, Respondent submitted an Additional Submission, consisting of a cover letter and a CD which purports to be a recording of a conversation between Respondent and the President of Complainant.  According to Respondent’s cover letter, the CD “contains a complete timeline negotiation conversation between the Respondent and the Complainant President James Kemp via telephone.”

 

On May 30, 2007, Complainant objected to the admission of the CD in this proceeding.

 

Respondent states, and Complainant concurs, that the CD represents only Respondent’s side of a conversation purportedly concerning Complainant’s potential purchase of the disputed domain name from Respondent.  The CD is by definition incomplete and of no value to the Panel.  The Panel therefore will not consider the CD in its deliberations.  The Panel will discuss the relevance of the potential purchase of the domain name in the Bad Faith section below.

 

On May 25, 2007, pursuant to Complainant’s request to have the dispute decided by a single-member Panel, the National Arbitration Forum appointed Joel Grossman as Panelist.

 

RELIEF SOUGHT

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

 

PARTIES’ CONTENTIONS

A. Complainant

 

Complainant asserts that it owns the registered trademarks “The Collector’s Armoury” and “Collector’s Armoury, Ltd.”  It further contends that Respondent’s domain name, <collectorsarmory.com>, is identical to, or confusingly similar to these marks. Complainant contends that Respondent has no rights or legitimate interests in the disputed domain name since it is using the disputed domain name to confuse Complainant’s potential customers, and is trying to divert traffic from Complainant’s site to Respondent’s site.  Finally, Complainant asserts that Respondent registered the disputed domain name, and continues to use the disputed domain name, in bad faith.  Among other things, Complainant asserts that Respondent is using the disputed domain name to disrupt Complainant’s business or pass itself off in the marketplace as Complainant, and that the disputed domain name causes confusion in the marketplace.  Complainant asserts that Respondent had actual and constructive knowledge of Complainant’s trademarks when it registered the disputed domain name, and that Respondent offered to sell the disputed domain name to Complainant for $50,000, each of which is further evidence of bad faith.  

 

B. Respondent

 

Respondent cannot and does not contend that the disputed domain name is not similar or identical to Complainant’s marks.  Rather, Respondent contends that it is a legitimate reseller of Complainant’s goods, and is engaged in a bona fide offering of goods and services prior to any notice of the dispute.  Respondent notes that it does hundreds of thousands of dollars of business with Complainant, and has done so for years. Respondent points out that it paid $2,000 to Complainant in 1999 to upgrade its relationship with Complainant to “contract” status, entitling Respondent to certain favored terms.  Respondent notes that Complainant commonly received orders from Respondent’s customers which Complainant shipped directly to Respondent’s customers.  Respondent asserts that Complainant had actual or constructive knowledge of Respondent’s use of the disputed domain name, and made no objections to Respondent’s use until 2007.  While Respondent does not use the term “laches,” in its Response, it notes that: “the failure of the Complainant to notify the Respondent of any dispute for eight years while continuing to accept payment for its products can be perceived as ‘implied consent’ to a valid relationship.”  Respondent points out that it has a checking account and credit card using the disputed domain name, and that it registered its business in the State of Florida using the name.  Respondent further contends that it did not approach Complainant with an offer to sell the disputed domain name.  Rather, Complainant approached Respondent and offered to purchase the disputed domain name for $3,000, and Respondent then replied that the disputed domain name was valued on its books at $50,000.  Finally, Respondent contends that in light of the eight years of consent to the domain name, Complainant is now engaged in reverse domain name hijacking.

 

C. Additional Submissions

 

In its Additional Submission Complainant states that it never consented to Respondent’s registration of the disputed domain name.  Complainant further states that “to the extent there may have ever been an implied consent between the parties, such consent would have been terminated on January 23, 2007 when Complainant sent Respondent its first cease and desist letter.”  Complainant points out that if Respondent is attempting to use the defense of laches, it will not succeed since the equitable doctrine of laches does not apply under the Policy.  Complainant confirms that it was Complainant who initially approached Respondent with an offer to purchase the disputed domain name for $3,000 but characterizes Respondent’s comment that the disputed domain name had been valued at $50,000 as an implied counter-offer to sell the disputed domain name for $50,000. Complainant notes that it is acting in good faith in asserting its claims and is not engaged in reverse domain name hijacking.

 

Respondent submitted an Additional Submission consisting of a CD and a cover letter. The CD was purportedly a recording of a portion of a conversation between Complainant and Respondent.  As noted above, the Panel has rejected this submission.

 

FINDINGS

The Panel finds as follows:

1.      The domain name is confusingly similar or identical to Complainant’s marks;

2.      Respondent’s use of the domain name is in connection with a bona fide offering of goods or services; and

3.      The domain name was not registered and is not being used 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

 

There is no doubt that the domain name <collectorsarmory.com> is virtually identical to Complainant’s COLLECTORS ARMOURY marks.  The exclusion of the letter “u” in the word “armory” is of no consequence.  See Microsoft Corp. v. Domain Registration Phillipines, FA 877979 (Nat. Arb. Forum Feb. 20, 2007) (addition of an additional “s” in “microssoft.com” insufficient to avoid a finding of confusing similarity).

 

Rights or Legitimate Interests

 

Respondent has been using the disputed domain name since it was registered in 1999 as part of its marketing of Complainant’s products to Respondent’s customers with the full cooperation of Complainant.  Respondent has been granted special “contract” status with Complainant, and has purchased for resale over $400,000 of Complainant’s goods. Respondent had no knowledge of the current dispute until January 2007 when it received the first cease and desist letter from Complainant.  As noted above, Complainant’s Additional Submission states that: “to the extent that there may have ever been an implied consent between the parties, such consent would have been terminated on January 23, 2007 when Complainant sent Respondent its first cease and desist letter.”  It thus appears that Respondent was using the name in connection with the bona fide sale of goods before any knowledge of the dispute.  The Panel concludes that Respondent has established that it is an authorized reseller of Complainant’s goods and as such it is using the disputed domain name in connection with the bona fide offering of goods and services prior to knowledge of the dispute.  See Grobet File Co. of Am., Inc. v. Exch. Jewelry Supply, FA 94960 (Nat. Arb. Forum July 14, 2000) (since prior to the dispute respondent was an authorized distributor of complainant’s goods, the domain name—which was identical to complainant’s mark—was registered and used in connection with a bona fide offering of goods and services.); see also K&N  Eng’g, Inc. v. Kinnor Servs., D2000-1077 (WIPO Jan. 19, 2001).

 

Registration and Use in Bad Faith

 

Because the Panel has determined that Respondent, without notice of the dispute, was using the disputed domain name in connection with the bona fide offering of goods and services, it follows that the name was not registered or being used in bad faith.  The Panel notes that Respondent never approached Complainant with an offer to sell the name; rather the Complainant sought to purchase the name for $3,000 and Respondent said that it had valued the disputed domain name on its books at $50,000.  Even if this statement was an implied counter-offer to sell the name to Complainant for $50,000, in connection with a showing of bad faith it is important to note that it was Complainant who initially approached Respondent about the sale.  See Puky GmbH v. Agnello, D2001-1345 (WIPO Jan. 3, 2002).  It is also noted that because the Panel does not need to reach the issue of laches; given the result, this issue is moot.  Finally, the Panel does not find that Complainant engaged in this process in bad faith, and therefore declines to find that Complainant is guilty of reverse domain name hijacking.  See Church in Houston v. Moran, D2001-0683 (WIPO Aug. 2, 2001).

 

DECISION

Having failed to establish all three elements required under the ICANN Policy, the Panel concludes that relief shall be DENIED.

 

 

 

 

 

Joel M. Grossman, Panelist
Dated: June 5, 2007

 

 

 

 

 

 

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