National Arbitration Forum

 

DECISION

 

NAC Marketing Company, LLC v. Chen Bao Shui

Claim Number: FA0704000957159

 

PARTIES

Complainant is NAC Marketing Company, LLC (“Complainant”), represented by Rocco S. Barrese, of Dilworth & Barrese, LLP, 333 Earle Ovington Boulevard, Uniondale, NY 11553.  Respondent is Chen Bao Shui (“Respondent”), 1187 Nanmatou Rd., Building 28 Room 601, Shanghai 200126, CN.

 

REGISTRAR AND DISPUTED DOMAIN NAME 

The domain name at issue is <cheapvitamin.com>, registered with Enom, 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.

 

Roberto A. Bianchi as Panelist.

 

PROCEDURAL HISTORY

Complainant submitted a Complaint to the National Arbitration Forum electronically on April 10, 2007; the National Arbitration Forum received a hard copy of the Complaint on April 10, 2007.

 

On April 10, 2007, Enom, Inc. confirmed by e-mail to the National Arbitration Forum that the <cheapvitamin.com> domain name is registered with Enom, Inc. and that Respondent is the current registrant of the name.  Enom, Inc. has verified that Respondent is bound by the Enom, 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 18, 2007, a Notification of Complaint and Commencement of Administrative Proceeding (the “Commencement Notification”), setting a deadline of May 8, 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@cheapvitamin.com by e-mail.

 

A Response was received on May 8, 2007, and was considered deficient by the National Arbitration Forum pursuant to ICANN Rule 5(a) because it was only received in electronic form.  A hard copy of the Response was later received on May 9, 2007.  The Panel decides to consider the deficient e-mail of May 8, 2007 together with the hard copy of May 9, 2007 as Respondent’s Response.  On considerations of natural justice, a delay of only one day after the deadline is not enough for this Panel to decide that Respondent is in default.

 

A timely Additional Submission from Complainant was received on May 10, 2007 in accordance with the Forum’s Supplemental Rule 7.  An Additional Submission was made by Respondent on May 15, 2007, and sent to the Panel on May 16, 2007.  The Panel agrees with the Forum that Respondent’s Additional Submission was received after the deadline for submissions, and is therefore not in compliance with the Forum’s Supplemental Rules.  In any case, most if not all allegations contained in Respondent’s late submission are already contained in his Response of May 8-9, 2007.

 

On May 16, 2007, pursuant to Complainant’s request to have the dispute decided by a single-member Panel, the National Arbitration Forum appointed Roberto A. Bianchi as Panelist.

 

On May 18, 2007, the Forum received a Letter from Complainant requesting the Panel not to consider Respondent’s late submissions - allegedly non-compliant with the Forum’s Rules - and to reprimand Respondent for some – quoting Complainant – “abusive remarks, accusations and intimidations” allegedly made by Respondent in several e-mails to the Forum and in his late reply of May 15, 2007.  On May 25, 2007, Respondent sent a “Respondent’s Reply to Complainant 's Second Reply” to the Forum.  Without condoning any improper remark from any Party in these proceedings, the Panel finds that neither Complainant’s Letter nor Respondent’s Reply thereto are in compliance with the Forum’s Rules, and decides not to consider them.

 

RELIEF SOUGHT

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

 

PARTIES’ CONTENTIONS

A. Complainant

 

 In its Complaint, Complainant contends as follows:

 

Respondent's domain name is identical to Complainant's registered U.S. Trademark and registered domain name.

 

Respondent should be considered as having no rights or legitimate interests in the domain name <cheapvitamin.com>.  Respondent's domain name <cheapvitamin.com> is not associated with any bona fide offering of goods and services.  The domain is used as a directory to other web pages offering a multitude of goods and services other than the sale of vitamins.  Respondent is not commonly known by domain name <cheapvitamin.com>.  Respondent has no legitimate use of the domain name other than to divert consumers from Complainant's website and to mislead consumers into believing that Respondent is somehow associated with Complainant's business and trademark.

 

Respondent has, in bad faith, registered the domain name <cheapvitamin.com> for no other purpose other than to intentionally attract business to Respondent's website by creating a likelihood of confusion with Complainant's U.S. registered trademark and registered domain name.  It is apparent that consumers may believe that Complainant's trademark is CHEAPVITAMIN.COM rather than CHEAPVITAMINS.COM and by inadvertently omitting the letter "S" after "VITAMIN" will come across Respondent's website page and will be offered links to other websites that offer airline tickets, mortgages, hotels and numerous other products unrelated to vitamins and other nutritional supplements.  This diversion is an attempt to disrupt the business of Complainant for commercial gain and in effect may force Complainant to offer to buy the domain name from Respondent as to alleviate confusion for legitimate consumers looking to buy vitamins from CHEAPVITAMINS.COM.  Respondent's registration of  <cheapvitamin.com> is therefore an attempt to deter, in bad faith, consumers from a Complainant's legitimate business.

 

B. Respondent

In its Response, Respondent contends the following:

 

Respondent's <cheapvitamin.com> has been registered on December 7, 1999. Complainant's <cheapvitamins.com> has been registered on August 30, 2001.

 

According to Complainant’s exhibit No. 1, the trademark CHEAPVITAMINS.COM is allegedly in commercial use since August 31, 2001. This is almost two years after the domain name <cheapvitamin.com> has been registered.  The trademark CHEAPVITAMINS.COM has been filed on January 4, 2005, that is five years after <cheapvitamin.com> has been registered.  The registration date of the trademark, August 8, 2006, is almost six years after the <cheapvitamin.com> domain name has been registered.

 

"Cheap vitamin" are two common generic words.  That is why Complainant chose to use it for his business in the first place.  Should <cheapvitamin.com> be available for registration at the time Complainant was starting his business, he would very likely register it.  But it was not free at that time anymore, of course, and now Complainant is trying to take the domain name in an unfair, dirty way.

 

Recently a federal court in Canada ordered a similar trademark ("cheap tickets") to be struck from the trademark register.

 

Respondent has a legitimate interest in the <cheapvitamin.com> domain name - it is an asset (two-word generic domain) for possible future use - development, vitamin sales.

 

The domain has recently been parked at Domainsponsor, and it shows advertisements most of which are for sales of vitamins, which is a "bona fide offering" for a domain <cheapvitamin.com>, methinks.

 

But even if Respondent would use the domain name for selling cars, credit cards or would not have made it available via http at all - it is Respondent’s, not Complainant’s business.  There are no rules how and if a ".com" domain name must be used.

There is no proof whatsoever that people typing <cheapvitamin.com> are looking for <cheapvitamins.com> rather than simply for buying "cheap vitamin."

 

The <cheapvitamin.com> domain name has been registered in 1999 when no <cheapvitamins.com> existed yet, therefore the domain could NOT have been registered in bad faith.

 

Complainant has NOT sent the Complaint via email, maybe hoping that Respondent's address is not real, and that Respondent will not file a response.  Which could be yet another proof of Complainant’s bad intentions and Complainant’s knowledge that his arguments do not have any grounds.

 

If this is not a domain name hijacking attempt, I wonder what one looks like...

The domain hijacking schema according to Complainant should work this way -find a domain which is not in use (parked etc.) -register or buy a similar domain -create some business on it -register a TM on this similar domain -file a UDRP complaint and try to steal the original domain.

 

Searching for “cheap vitamin” on <google.com> does list <cheapvitamins.com> practically nowhere to find (94th result of search results).  Respondent's <cheapvitamin.com> has been registered 7.12.1999.  Complainant's <cheapvitamins.com> has been registered 30.8. 2001.  Trademark cheapvitamins.com is allegedly "first time in commercial use” since August 31st 2001 according to "evidence No 1.," which is almost two years after the domain name <cheapvitamin.com> has been registered.  Therefore <cheapvitamin.com> could not have been registered in "bad faith" as registrant could not have contemplated Complainant's non-existent rights at that time.  Also, trademark CHEAPVITAMINS.COM has a Filing Date January 4, 2005 which is five years after <cheapvitamin.com> has been registered.  According to <web.archive.com> as of September 22, 2001, <cheapvitamins.com> was obviously not in “commercial use.”           

 

C. Additional Submissions

In its Additional Submission of May 9, 2007 Complainant replies to Respondent’s Response as follows:

 

Respondent's Responses to the Complaint are not in compliance with ICANN UDRP or Forum requirements.  Complainant therefore requests that the panel treat Respondent's documents as non‑compliant and issue a decision in Complainant's favor.

 

The domain name <cheapvitamin.com> was first registered (by a third party) on November 3, 1999.  This registration was prior to Respondent's registration of <cheapvitamin.com> on December 7, 1999.  In all likelihood, this is why it was necessary for Respondent to register the less desirable form (improper English form) <cheapvitamin.com> over the more desirable form (proper English form) <cheapvitamins.com>.

 

Respondent's website <cheapvitamin.com> had no bona fide commercial purpose and did not offer any goods or services (and even these offerings are of a dubious nature), until November 23, 2003, well after Complainant's domain name registration of <cheapvitamins.com> on August 30, 2001 and also well after Complainant's first date of use in commerce (August 31, 2001), as recited in Complainant's U.S. Reg. No. 3,128,227, of the trademark CHEAPVITAMINS.COM. This chronology of events clearly evidences Respondent's bad faith in attempting to play off Complainant's well known and active domain name and trademark CHEAPVITAMINS.COM.

 

Regarding Respondent's remarks relating to "generic words," Complainant submits that its trademark has become distinctive of Complainant's goods and has achieved secondary meaning.

 

Respondent admits that its domain name is parked and merely shows advertisements directing traffic to other websites clearly unassociated with the sale of vitamins.  Most of the advertisements are not for the sale of vitamins but rather are for airline tickets, hotels, car rentals, car insurance, mortgages, real estate, etc.  Since Complainant filed its Complaint, Respondent has been amending its website to emphasize the sale of vitamins in an obvious attempt to remedy its bad faith and in an apparent attempt to deceive the panel into believing Respondent has a legitimate interest in the domain name.

 

Respondent's website advertises mortgages, real estate, airline tickets, hotels, car rentals, credit reports, etc.  Why would a consumer looking for these goods or services go to a website entitled <cheapvitamin.com>?  Why not use a domain name, such as, for example, <cheapgoodsandservices.com>?  Clearly, Respondent has no legitimate interest in the domain name other than to play off Complainant's well known website and direct traffic to its website.

 

Respondent's domain name <cheapvitamin.com> was registered (December 7, 1999) after the domain name <cheapvitamins.com> was registered (November 3, 1999). Respondent's website only became active well after Complainant's website became well known clearly evidencing Respondent's bad faith attempt to play off Complainant's reputation and to divert Complainant's customers to Respondent's website which offers goods and services totally unrelated to vitamins.  Respondent's typosquatting and cybersquatting scheme goes like this:

-                     Register a domain name one letter away from a desirable previously registered domain name;

-                     Wait until the previously registered domain name becomes very well known to the public;

-                     Then begin playing off the notoriety of the earlier registered domain name and divert customers to Respondent's website; and possibly

-                     Wait for an offer to purchase Respondent's domain name.

 

Notwithstanding the dates of domain registration, Complainant submits that ICANN Policy paragraph 4(a)(i) does not state and therefore does not require and should not require that trademark rights need to be in existence when a domain name is registered to evidence bad faith but rather that trademark rights need only be existent at the time of filing the Complaint and that bad faith can be shown subsequent thereto.  Otherwise, paragraph 4(a)(i) would allow for activity such as that of Respondent herein.

 

Regarding Respondent's statement that Complainant did not e‑mail its Complaint to Respondent, the initial information available to Complainant (WHOIS page dated March 26, 2007) appears to recite a bogus e‑mail address and therefore Complainant chose not to use it.

 

Complainant has not brought this action in bad faith and is not attempting to "hijack" Respondent's domain name but rather has brought this action because Complainant believes it has been harmed by Respondent and will continue to be harmed by Respondent unless Respondent's domain name is transferred to Complainant.

 

In reply to Respondent's reference to search results on <google.com>, it should be noted that Respondent's conclusions are irrelevant since the Complainant's position in this matter is that consumers looking for Complainant's website by making a simple typographical error (omitting the "s") are directed to Respondent's website, which is more than likely what Respondent is hoping to happen. 

 

In reply to Respondent's statement that Complainant is not the owner of U.S. Reg. No. 3,128,227, CHEAPVITAMINS.COM, the panel's attention is directed to item No. 2 on the schedule of documents submitted with its Complaint evidencing the assignment of the U.S. Trademark Registration from JJC Marketing Inc. to NAC Marketing Company LLC.

 

FINDINGS

The Panel finds that the <cheapvitamin.com> domain name is almost identical or confusingly similar to the CHEAPVITAMINS.COM mark, in which Complainant has rights.  The domain name in dispute, made of two generic terms forming the also generic compound “cheap vitamin,” appears to have been selected by Respondent for registration precisely because of its generic nature.  Thus, Respondent appears to have legitimate rights in such generic expression on a “first come, first served” basis.  As the domain name was registered twenty months before Complainant’s mark was first used, and five years and eight months before Complainant’s trademark was applied for, Respondent cannot be held to have registered the <cheapvitamin.com> domain name in bad faith, i.e. with Complainant’s future or potential mark in mind.

 

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

 

According to the registration certificate and the Trademark Assignment Abstract of Title exhibited as Annexes 1 and 2 to the Complaint, respectively, on January 4, 2005 JJC Marketing, Inc. applied for the CHEAPVITAMINS.COM trademark before the U.S.P.T.O, for on-line ordering services featuring nutritional supplements in class 35.  On August 4, 2005 the U.S.P.T.O. recorded the assignment of the mark to Complainant NAC Marketing Company, LL, as assignee. On August 8, 2006 the trademark registration was granted under Reg. No. 3128227.  Complainant has thus evidenced that it has rights in the CHEAPVITAMINS.COM mark.

 

The trademark application for CHEAPVITAMINS.COM was made on January 4, 2005, well after Respondent had registered the domain name.  Contrary to Respondent’s claim, this chronology has no consequence as to the first requirement of the Policy, because the UDRP makes no specific reference to the date of which the owner of the trademark acquired rights.  See Walsh Bishop Assocs., Inc. v. Honggi, Honggi Kim, FA 907521 (Nat. Arb. Forum Mar. 6, 2007); see also Document Techs., Inc. v. Int’l Elec. Commc’ns Inc., D2000-0270 (WIPO June 6, 2000) (“Significantly, the Policy does not require the Complainant to prove that it had rights in a trademark "as of the date of the domain name registration"”); see also Digital Vision, Ltd. v. Advanced Chemill Sys., D2001-0827 (WIPO Sept. 23, 2001); see also Motorola, Inc. v. R3 Media, D2006-1393 (WIPO Feb. 15, 2007) (“According to established precedent, Complainant need only have the rights at the time the Complaint was filed.”)

 

The domain name at issue is almost identical or confusingly similar to Complainant’s mark.  The former only lacks the final “s” in “vitamin.”  Such a minor difference is not sufficient to distinguish Respondent’s domain name from Complainant’s registered mark.  See State Farm Mut. Auto. Ins. Co. v. Try Harder & Co., FA 94730 (Nat. Arb. Forum June 15, 2000) (finding that the domain name <statfarm.com> is confusingly similar to the complainant’s STATE FARM mark).

 

Accordingly, the Panel finds that the first element of the Policy is met.

 

Rights or Legitimate Interests

 

Respondent registered <cheapvitamin.com>, a second-level domain name made of two generic terms (“cheap” and “vitamin”), composing the also generic phrase “cheap vitamin”, on December 7, 1999, one year and eight months before Complainant registered and began using its <cheapvitamins.com> domain name, or could have acquired rights in its CHEAPVITAMINS.COM U.S. registered mark. See Exhibit 3 to the complaint, showing that the record of the <cheapvitamins.com> domain name registration was created on August 30, 2001.

 

In its submission of May 10, 2007, Complainant contends that the registration of the <cheapvitamins.com> domain name by a third party predated the registration of the domain name at issue.  On May 28, 2007, following the suggestion of Complainant, the Panel visited the web page at <web.archive.org/web/19991103083119/http://www.cheapvitamins.com>.  However, the Panel found no evidence that the <cheapvitamins.com> domain name was used in relation to vitamins, or cheap vitamins by November 3, 1999 or before Respondent registered its domain name.  There is also no evidence that the registrant or any other party had any trademark rights on the <cheapvitamins.com> domain name at the time of the registration of the <cheapvitamin.com> generic domain name.  In sum, the Panel believes that Complainant has failed in demonstrating that Respondent lacks rights or legitimate interests in such a generic domain name.  See Energy Source Inc. v. Your Energy Source, FA 96364 (Nat. Arb. Forum Feb. 19, 2001) (finding that a respondent has rights and legitimate interests in the domain name where “Respondent has persuasively shown that the domain name is comprised of generic and/or descriptive terms, and, in any event, is not exclusively associated with Complainant’s business”); see also Coming Attractions, Ltd. v. Comingattractions.com, FA 94341 (Nat. Arb. Forum May 11, 2000) (finding a respondent had the right to register the subject domain name, <comingattractions.com>, based upon the generic use of the term "coming attractions").

 

Registration and Use in Bad Faith

 

It is not contested that Respondent registered the <cheapvitamin.com> domain name on December 7, 1999, one year and eight months before Complainant registered its <cheapvitamins.com> domain name, or that Complainant first used its CHEAPVITAMINS.COM trademark in commerce, and five years and eight months before Complainant applied for this trademark before the U.S.P.T.O.  This chronology is certainly relevant to assess the bad faith requirement.  See Digital Vision, Ltd. v. Advanced Chemill Sys., D2001-0827 (WIPO Sept. 23, 2001) (holding that the fact that complainant’s marks postdated the domain name registration may be relevant in assessing the bad faith element pursuant to Paragraph 4(a)(iii)).

 

Registration in bad faith requires that the registrant has registered the domain name with the intent of extracting a profit from a mark known to belong to a third party, or otherwise aiming at causing prejudice to the mark owner. Thus, “bad faith registration generally cannot be found if the disputed domain name was registered before trademark rights were established by the complainant.”  See Primal Quest, LLC v. Salas, D2005-1083 (WIPO Dec. 15, 2005).  It would be difficult for the Panel to conceive of how Respondent could have known of Complainant’s future or potential CHEAPVITAMINS.COM mark at the time of the domain name registration, and therefore to have registered the domain name in bad faith. See Diamond Shamrock Refining and Mktg. Co. v. CES Mktg. Group Inc, FA 96766 (Nat. Arb. Forum Apr. 20, 2001) (finding that there was no evidence that respondent had any knowledge of the complainant when it registered the domain name prior to the issuance of the complainant’s registered trademark); see also Grow.net, Inc. v. Long, D2001-0902 (WIPO Oct. 22, 2001) (as the disputed domain name was registered in May 1997 and the complainant had not began using its trademark in its business until April 2000, the panel found that it was inconceivable that the respondent knew of the complainant at the time of the domain name registration, and therefore registered the domain name in bad faith).

 

The Panel concludes that Respondent cannot have registered the domain name in bad faith.  This finding makes it unnecessary for the Panel to consider the issue of use in bad faith.

 

In sum, Complainant failed to evidence the third requirement of the Policy i.e. that the domain name was registered and is being used in bad faith.

 

Reverse Domain Name Hijacking

 

In his Response, Respondent wonders somewhat rhetorically whether Complainant has not committed reverse domain name hijacking i.e. that Complainant brought this Complaint in bad faith, in order to obtain an order that the domain name registration be transferred from Respondent to Complainant.

 

It is clear that a summary research would have shown that the present Complaint had few chances to succeed.  See Dreamgirls, Inc. v. Dreamgirls Entm’t, D2006-0609 (WIPO, Aug. 10, 2006) (stating that numerous precedents have established that where the domain name was registered prior to the establishment of trademark rights, bad faith registration usually will not be found and the complaint usually will fail).  Although the Panel agrees with the Dreamgirls panel that such precedents can hardly be ignored, it is also true that counsel for Complainant has not cited to any decision in support of its claims, which would allow a panel to infer that he is sufficiently familiar with UDRP precedent – as counsel for the complainant certainly was in Dreamgirls.  Therefore, the Panel is not satisfied that the Complaint was brought in bad faith.

 

DECISION

As Complainant has not succeeded in proving the second and third requirements under the ICANN Policy, the Panel concludes that relief shall be DENIED.

                                               

 

                                   

 

Roberto A. Bianchi, Panelist
Dated: May 28, 2007.

 

 

 

 

 

 

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