National Arbitration Forum

 

DECISION

 

Bob Vandergriff, Jr. and Vandergriff Motorsports, Ltd. v. Ken Sklute and Racers Edge Photography

Claim Number: FA0704000959691

 

PARTIES

Complainants are Bob Vandergriff, Jr. and Vandergriff Motorsports, Ltd. (collectively, “Complainant”), represented by W. Scott Creasman, of Powell Goldstein LLP, 1201 West Peachtree Street, Atlanta, GA 30309.  Respondents are Ken Sklute and Racers Edge Photography (collectively, “Respondent”), 1928 E LaVieve Lane, Tempe, AZ 85284.

 

REGISTRAR AND DISPUTED DOMAIN NAMES

The domain names at issue are <bobvandergiff.com> and <vandergriffmotorsports.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.

 

Hon. Sir Ian Barker, QC as Panelist.

 

PROCEDURAL HISTORY

Complainant submitted a Complaint to the National Arbitration Forum electronically on April 11, 2007; the National Arbitration Forum received a hard copy of the Complaint on April 12, 2007.

 

On April 12, 2007, Schlund+Partner Ag confirmed by e-mail to the National Arbitration Forum that the <bobvandergriff.com> and <vandergriffmotorsports.com> domain names are registered with Schlund+Partner Ag and that the Respondent is the current registrant of the names.  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 April 19, 2007, a Notification of Complaint and Commencement of Administrative Proceeding (the “Commencement Notification”), setting a deadline of May 9, 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@bobvandergriff.com and postmaster@vandergriffmotorsports.com by e-mail.

 

The Response was received after the deadline for response.  It was also not submitted in hard copy format.  The Forum has therefore determined it to be deficient according to Supplemental Rule 5(a).

 

An Additional Submission was submitted by Complainant on May 16, 2007.  Payment for the filing fee on this submission was received by National Arbitration Forum after the deadline for additional submissions. 

 

In the interests of justice, the Panel has decided to admit both the Response and the Additional Submission, despite the above deficiencies.  Both documents were essential to the Panel’s understanding of the issues in this case.

 

RELIEF SOUGHT

Complainant requests that the disputed domain names be transferred from Respondent to Complainant.

 

PARTIES’ CONTENTIONS

A.     Complainant

 

Complainants filed signed declarations made under penalty in support of the Complaint.

 

Complainant, Bob Vandergriff, Jr. (“BVJ”), is a professional drag-car racer in the National Hot Rod Association.  This body is the largest organiser of drag auto racing and promotes drag racing events throughout the United States in which BVJ and others compete.

 

Complainant, Vandergriff Motorsports Ltd (“VMS”), is the company formed by BVJ to operate his business as a professional racing driver and market merchandise relating to his activities.  BVJ began his professional racing career in 1994 and since then has enjoyed considerable success in that career.

 

In connection with BVJ’s racing career, both Complainants have developed an official line of products using the mark of VANDERGRIFF.  These include uniform and other jackets, t-shirts, other items of apparel, blankets, seat cushions and other items of merchandise. 

 

There is no registered trade mark for VANDERGRIFF or VANDERGRIFF MOTORSPORTS but Complainants allege that the marks have achieved sufficient notoriety as to qualify as common law trade marks.  Complainants refer to UDRP cases which have found that professional racing drivers can have trade marks in their personal names, where there has been merchandising under that name.  See Danica Racing Inc and Danica Patrick v. Webmaster, FA 629203 (Nat. Arb. Forum Mar. 3, 2006).  Complainants refer to other cases such as Julia Roberts v. Russell Boyd, D2002-0210 (WIPO May 29, 2000), involving various celebrities with common law marks in merchandising.

 

Complainant hired Respondent, Mr. Sklute, as a public relations manager in February 2006.  They also employed Respondent, Racers Edge Photography (“REP”), to create a website focused on Complainant, which would offer for sale Complainant’s products.  REP created the website and was paid $4,500.  The disputed domain names were registered on February 14, 2006 in the name of Respondent.  It is not clear whether this was a joint registration or whether REP is a corporate entity or just a trading name for Mr. Sklute.

 

Complainant claims that it did not know that Mr. Sklute had registered the disputed domain names thus.  BVJ says so as part of a signed declaration made under penalty.  Mr. Sklute, in an unsigned, unsworn declaration, says that Complainants knew he had registered the name.  However, Mr. Sklute does not say why the disputed domain names were registered in his and/or REP’s name(s).

 

In September 2006, Complainant dismissed Mr. Sklute as public relations manager.  Respondents refused to turn over the disputed domain names and continued to operate the website without Complainants’ approval. 

 

From September 2006 until recently, Respondent operated the same website at both disputed domain names.  The website shows it was intended to be the official website of Complainants.  It offered information about Complainant and those associated with them in motor racing.  There was also a link to Complainant’s products, as well as to photography products offered by Respondent.

 

More recently, Respondent blocked access to the website at these domain names.  Respondent has no rights or legitimate interest in the domain names. 

 

Respondent REP has been paid $4,500 for developing the website.  Although Respondent Sklute claims that other monies are owed to him by Complainant for other matters, Respondent has no right to claim a common law lien over the disputed domain names.  Accordingly, Respondent has no rights or legitimate interests in the disputed domain names.

 

This case is similar to that of Ward Burton v. Athlete Direct, FA 100652 (Nat. Arb. Forum Dec. 7, 2001).  There, a professional race car driver had engaged the respondent to perform marketing services on his behalf, including developing a website to promote the driver’s racing-related activities and the sale of merchandise bearing his name.  When the business relationship terminated, the respondent, who had registered the domain names in his own name, refused to transfer the domain names to the driver.  The panel found that the driver held common law trade marks in respect of his professional racing activities and that the domain names were identical to those marks.  The panel found that the respondent had knowledge of the trade mark rights when registering the names based on his business relationship and that the failure to transfer the registrations after termination of the business relationship established bad faith registration and use.  Complainants submit that this case is identical with the present case.

 

Complainant submits that Respondent has registered or used the disputed domain names in bad faith:

 

(a)        by intentionally attempting to attract internet users to the websites by creating the likelihood of confusion with the Complainants’ marks as to the source, sponsorship, affiliation or endorsement of Respondent’s website or a product or service thereof;

 

(b)        by registering the disputed domain names to prevent the trade mark owner from using the mark in a corresponding domain name.  Respondent, Sklute, should not have registered the disputed domain names in his own name and/or that of REP and this failure constitutes bad faith.  Respondent is intentionally preventing Complainant from using the disputed domain names.  The websites now have been changed to block access by means of a message stating “Error 403-forbidden.  You tried to access a document for which you don’t have privileges.”

 

Complainant sent a “cease and desist” letter to Respondent on January 18, 2007.  No reply was made by Respondent.

 

B.     Respondent

 

Respondent concedes that the domain names in question are identical or confusingly similar to trade marks or service marks in which Complainant has rights.  Respondent claims legitimate interests in the disputed domain names in that Mr. Sklute is an unpaid web designer, retaining the domain name registrations as security for payment, under a kind of lien.  Further, Respondent claims that the matter involves a commercial dispute outside the scope of the Policy. 

 

In support of his claim, Respondent exhibited an unsigned and unattested declaration.  There are also exhibited a number of unauthenticated e-mails. 

 

The unsigned declaration recounts a number of alleged debts which Respondent Sklute says Complainant owes him.  In particular, he claims that he has not been paid for photographs in which he owns the copyright or for traveling expenses.  He claims that he is owed money by BVJ, not just for unrelated matters but for the website as well. 

 

He says that he registered the disputed domain names in February 2006, with BVJ being aware of the registration without any objection.  He claims to know nothing of any relationship with a website parking company. 

 

C.     Complainant’s Additional Submissions

 

Complainant alleges that Respondent has attempted to “cloud the issue” by trying to create a dispute involving Respondent’s claim for photographic services and breach of copyright in the hope of bringing the dispute outside the scope of the Policy.  Complainant asserts that REP has been paid in full for creating the website and exhibited a paid cheque for $4,500.  In any event, any claims for photographic services and copyright are irrelevant to the ownership of the disputed domain names. 

 

Moreover, Mr. Sklute has virtually conceded, not only the first element of the Policy, namely that the disputed domain names are identical to and confusingly similar to Complainants’ marks, but also bad faith.  Complainant discussed a number of UDRP cases concerning alleged claims for liens over domain names for payment for web design services. 

 

FINDINGS

(a)        Complainants have common law trade marks in respect of the expressions “Bob Vandergriff” and “Vandergriff Motorsports.”

 

(b)        Mr. Sklute was engaged by Complainant in February 2006 as a public relations consultant.  REP was engaged by Complainant to create a website.  REP was paid $4,500 for preparing the website for Complainant.  It is unclear whether REP is a separate legal entity from Mr. Sklute or merely his trading name.

 

(c)        Respondent registered the website in the names of Mr. Sklute and REP and not those of Complainants.  Since then, until recently, Respondent used the website to attract internet users to the website which clearly refers to Complainant and Complainant’s range of products. 

 

(d)        Mr. Sklute may have claims in respect of breach of copyright and for traveling and other expenses, for which he has not received payment from Complainants.  No finding is made in that regard.

 

(e)        The disputed domain names were registered in October 2006.  Respondents have refused to transfer the disputed domain names to Complainants, claiming a lien.

 

(f)         Complainants sent a “cease and desist” letter to Respondent on January 17, 2007 but no reply was made thereto.

 

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

 

Complainants have satisfied the first criterion under Paragraph 4(a).  There are numerous cases under the Policy concerning what is required to prove a common law trade mark, especially in the case of a sportsperson, pop star, author or other celebrity who markets merchandise under his or her name.  The cases are conveniently summarised in Asper v. Communication X Inc., D2001-0540 (WIPO June 21, 2001) and in R.E. (Ted) Turner v. Fahmi, D2002-0251 (WIPO July 4, 2002). 

 

Respondent concedes that the disputed domain names are identical or confusingly similar to Complainants’ unregistered trade marks.  Accordingly, the Panel has no hesitation in concluding that the first limb of Paragraph 4(a) of the Policy has been proved.

 

Rights or Legitimate Interests

 

The Panel finds that this case is very similar to that cited by Complainants of Ward Burton v. Athlete Direct, supra, in that the parties had a previous business relationship, including a requirement for Respondent to develop a website for Complainants.  When the business relationship terminated, Respondent, who had registered the disputed domain names in his own name, refused to transfer the disputed domain names to Complainants.  In particular, the Panel found that the failure to transfer the registrations after termination of the business relationship established bad faith registration and use and could not find any legitimate right under Paragraph 4(c). 

 

The situation really comes down to Respondents’ claim which, unlike Complainants, is unsupported by a signed (let alone sworn) statement.  The claim is that there is a right to a common law lien vested in the creator of a website over the domain names pertinent to the website.  This is a novel but, possibly legitimate, extension of the common law doctrine of “mechanics lien” to the modern circumstances of the internet.  This Panel is unaware whether such an assertion of a lien has yet been tested in a superior court in a common law jurisdiction.

 

However, even assuming for the purposes of the present argument, that a common law lien can exist in favour of the developer of a website over the domain names pertinent to the website, the common law on “mechanics liens” indicates such that the “mechanic” (using that word in a broad sense) can claim a lien only for the amount of the work done on the item on which the “mechanic” worked.  Thus, an automobile mechanic could claim a lien only for the amount of the cost of repairing the automobile.  In this case, the Panel is satisfied from the evidence that REP has been paid $4,500, which appears to have been the agreed cost of creating the website. 

 

A lien cannot be used as general security for any other debts that the website developer may have against his former client.  Accordingly, Respondent’s claims for unpaid travel expenses and for breach of copyright will have to be litigated in the normal way through the courts.

 

In the Panel’s view, this is not a case where it is inappropriate to invoke the UDRP on the grounds that there is a commercial dispute between the parties.  The Panel agrees with the submissions from counsel for Complainant that there is no basis for refusing to deal with this case under the Policy merely because Respondent claims that he has been unpaid by Complainants in respect of a range of matters. 

 

Accordingly, the Panel concludes that Respondent has not proved that he comes within any part of Paragraph 4(c) and Complainants have therefore proved the second limb of Paragraph 4(a) of the Policy.

 

Registration and Use in Bad Faith

 

As the previous case involving a motor racing driver and a website developer shows, the Panel may infer bad faith registration and use in circumstances such as the present.   Respondent clearly knew at the time of registration of Complainants’ rights in respect of the disputed domain names as reflecting its marks.  Moreover, diverting traffic from Complainant in the way described, clearly indicates bad faith.  This was intended to be  Complainant’s official website and Respondent well knew that.

 

One would have thought that, if Mr. Sklute had a legitimate claim, he would have responded to the “cease and desist” letter sent by the attorneys for Complainant.  Moreover, Respondent has offered no explanation as to why, when REP was engaged (and paid) to create a website for Complainant, he registered the disputed domain names in his own name or names. 

 

The Panel prefers to accept the evidence of BVJ that he did not know that the disputed domain names were being registered in Respondent’s names at the time.  His evidence is by signed statement made under penalty, whereas Mr. Sklute has merely made an assertion in an unsigned statement.

 

Accordingly, the third limb of Paragraph 4(a) of the Policy has been proved.

 

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 domain name <bobvandergriff.com> be transferred by Respondents to Complainant Bob Vandergriff, Jr., and that the domain name <vandergriffmotorsports.com> be transferred by Respondent(s) to Vandergriff Motorsports Ltd.

 

 

 

 

Hon. Sir Ian Barker, QC Panelist
Dated: May 29, 2007

 

 

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