Your Source for Domain Dispute News and Information October 08, 2008, Vol. 9 No. 10
 

Welcome to Domain News, a complimentary news service of the National Arbitration Forum. The National Arbitration Forum is one of the world's largest neutral administrators of arbitration services and one of three ICANN-approved providers. We invite you to visit our website at www.adrforum.com.

 

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In This Issue

 

 

Patrick Dempsey and TDS 66 Productions, Inc. v. Frisby

 

Hidden Metatags: Evidence of Bad Faith? Judges and Panelists Disagree

 

Cybersquatters Move in on Merged Bank Names

 

Cybercriminals Using Celebrity Names to Lure in Internet Users

 

 

Recent Decisions

 

 

Hawaii Community Federal Credit Union v. Texas Int’l Prop. Assocs.

 

Complainant, Hawaii Community Federal Credit Union, sought relief from Respondent for its registration and use of the <hawaiicommunityfcu.com> domain name.  The Panel found the disputed domain name to be confusingly similar to Complainant’s HAWAII COMMUNITY FEDERAL CREDIT UNION trademark under Policy ¶ 4(a)(i).  Respondent argued it was in the business of selecting and joining together descriptive, generic and geographic words and names to form domain names and host websites where advertising and information is provided corresponding to those registered domain names.  In dispute was whether or not Respondent was aware of Complainant’s Hawaiian Credit Union at the time of registration of the disputed domain name.  The Panel determined that “the probability of randomly forming the specific sequential combination here of two particular terms and an abbreviation that just happens to be a well-known equivalent for the rest of Complainant’s mark, is so small as to be negligible.”  Accordingly, the Panel ordered the transfer of the disputed domain name to Complainant finding that Respondent lacked rights and legitimate interests in the disputed domain name under Policy ¶ 4(a)(ii) and registered and was using the disputed domain name in bad faith pursuant to Policy ¶ 4(a)(iii). 

Hawaii Cmty. Fed. Credit Union v. Tex. Int’l Prop. Assocs., FA 1210174 (Nat. Arb. Forum Sept. 3, 2008). 

 

 

Freeman Honda v. Domain Administrator

 

Complainant, Freeman Honda, an automobile dealership brought a complaint against Respondent.  Respondent failed to submit a Response.  The Panel found the <freemanhonda.com> domain name to be identical to Complainant’s FREEMAN HONDA mark.  Additionally, since the disputed domain name resolved to a website displaying links to competitors of Complainant, the Panel determined that Respondent lacked rights and legitimate interests in the disputed domain name pursuant to Policy ¶ 4(a)(ii).  However, the disputed domain name was registered on April 20, 2002 and Complainant provided evidence of its earliest use of the FREEMAN HONDA mark to be only May 2, 2005.  The disputed domain name was registered at least three years before Complainant established rights in its mark.  Accordingly, the Panel found Complainant had failed to prove that Respondent registered the disputed domain name in bad faith pursuant to Policy ¶ 4(a)(iii).  As a result, the Panel denied Complainant’s requested relief in its entirety. 

Freeman Honda v. Domain Adm’r, FA 1215197 (Nat. Arb. Forum, Sept. 2, 2008). 

 

 

CLIFF Elec. Components Ltd. v. Cliff Elec. Components

 

Complainant, a manufacturer and seller of electrical components, brought a UDRP Complaint against Respondent for the registration and use of the <cliffusa.com> domain name.  There was no dispute that the disputed domain name was confusingly similar to Complainant’s mark pursuant to Policy ¶ 4(a)(i).  For fifteen years, Respondent had been a distributor and reseller of Complainant’s CLIFF products.  Each party submitted significant evidence of a contractual relationship concerning the disputed domain name.  Accordingly, the Panel declined to conduct a Policy ¶ 4(a)(ii) analysis, finding the Policy not to be intended to resolve the scope of the dispute between the parties.  Additionally, because of the parties’ business relationship, the Panel found evidence that even though Respondent was aware of Complainant’s rights in the CLIFF mark when it registered the disputed domain name, Complainant appeared to have accepted Respondent’s registration and use of the disputed domain name.  Therefore, the Panel found that Respondent had not registered the <cliffusa.com> domain name in bad faith pursuant to Policy ¶ 4(a)(iii).  Consequently, the Panel denied the transfer of the disputed domain name. 

CLIFF Elec. Components, Ltd. v. Cliff Elec. Components, FA 1212866 (Nat. Arb. Forum Sept. 1, 2008). 

 

 

Patrick Dempsey and TDS 66 Productions, Inc. v. Frisby

 

Complainant brought a UDRP claim against Respondent, Jennifer Frisby, for the <patrick-dempsey.org> domain name.  Complainant is an internationally recognized and award-winning actor of television and motion pictures.  Complainant contended that Respondent was using Complainant’s PATRICK DEMPSEY mark to operate a website which incorporated unauthorized use of Complainant’s publicity rights and requested visitors to pay “donations” to keep the website active.  The website resolving from the disputed domain name also provided advertisements and links to third-party websites unrelated to the career of Complainant.  The Panel found that Complainant had established rights in its PATRICK DEMPSEY mark, and that the disputed domain name was identical to that mark under Policy ¶ 4(a)(i).  The Panel also found that Respondent lacked rights and legitimate interests in the disputed domain name pursuant to Policy ¶ 4(a)(ii).  Finally, the Panel found that Respondent’s registration of the disputed domain name with knowledge of Complainant’s rights was evidence of bad faith registration and use under Policy ¶ 4(a)(iii), particularly because the disputed domain was being used commercially.  The Panel transferred the disputed domain name to Complainant.

Dempsey and TDS 66 Prods., Inc. v. Frisby, FA 11218786 (Nat. Arb. Forum Sept. 5, 2008).

 

 

The Neiman Marcus Group, Inc. & NM Nevada Trust v. Cieply

 

Complainant, The Neiman Marcus Group, Inc. & NM Nevada Trust, brought a UDRP claim against Respondent, Alyson Cieply, for the <nemanmarcos.com> domain name.  Complainant operates a chain of retail stores and a mail order catalog retail business.  Respondent asserted that it adopted the <nemanmarcos.com> domain name as an adaptation of the acronyms NEMA (National Electronics Manufacturing Associations) and MARCOS (Magnetic Applications to Radiation Computed by Oscillating Systems).  Respondent stated its NEMANMARCOS project was a group of students and faculty members conducting research in radiation treatment.  Complainant argued that Respondent provided no proof of the existence of its purported project and provided no explanation why the letter “n” was added between the two acronyms.  After finding that the Complainant had satisfied Policy ¶ 4(a)(i), the Panel then found Respondent’s contentions “patently absurd,” because there was no justification for the coupling of a manufacturing trade association with the acronym of a research project.  Thus, the Panel found that Respondent had not established rights or legitimate interests in the disputed domain name pursuant to Policy ¶ 4(a)(ii) and had registered and used the disputed domain name in bad faith pursuant to Policy ¶ 4(a)(iii).  The Panel transferred the disputed domain name to Complainant.

Neiman Marcus Grp., Inc. v. Cieply, FA 1215817 (Nat. Arb. Forum Sept. 2, 2008).

 

 

 

E-PRACTICE

 

 

Hidden Metatags: Evidence of Bad Faith? Judges and Panelists Disagree

 

Website owners and designers utilize metatags to present their websites to Internet users searching for certain keywords in a search engine.  A metatag is a “special HTML tag that is used to store information about a Web page but is not displayed in a Web browser.  For example, metatags provide information such as what program was used to create the page, a description of the page, and keywords that are relevant to the page.  Many search engines use the information stored in metatags when they index Web pages.”  Website owners may add metatags containing keywords describing their products or competitors’ products to attract Internet users searching for similar products.  Problems develop when owners add metatags comprising the trademarks of third-parties.  Although an Internet user may not see the use of the third-party trademark, the use of the metatag will cause the website to be displayed as a search result when the user runs a query in a search engine, such as Google, for the third-party’s trademark. 

 

Courts and administrative panels around the world are now forced to deal with the issue of whether or not utilizing a metatag containing a third-party’s trademark constitutes bad faith (in a UDRP proceeding) or trademark infringement when only the Internet user’s computer has “seen” the third party’s trademark and not the actual user. 

 

In the United Kingdom, in rejecting a lower court’s argument of infringement, Lord Justice Jacob held that, “[a]ssuming metatag use counts as use of a trade mark, there is simply no confusion here.  I confess to not following the [lower court] Judge's reasoning on the point. He said that the 'ultimate purpose [of the metatag] is to use the sign to suggest a connection which does not exist.'  But purpose is irrelevant to trade mark infringement and causing a site to appear in a search result, without more, does not suggest any connection with anyone else.” 

 

On the other hand, in a 2003 UDRP decision from, the panel held that “[t]he use of the metatags incorporating the Complainant’s trademarks to misleadingly attract persons searching the web for information on Complainant’s products and services to Respondent’s website as opposed to a legitimate complaint website is evidence of use in bad faith.”

 

In a leading United States 11th Circuit Court of Appeals case, the court relied less on the argument that the use of metatags showed a likelihood of confusion, and more so on the argument that the use of metatags constituted a “use in commerce,” which is also part of the trademark infringement standard.  Because metatags are used primarily to promote a website in the context of a search engine’s rankings, and because the defendant used the plaintiff’s mark in its metatags, the defendant therefore used the plaintiff’s marks abusively in commerce.

 

Some articles suggest tips for website owners to avoid creating a likelihood of confusion while still utilizing third-party marks.  One suggestion is to “consider including a prominent disclaimer or other wording on the website which makes it clear to web users that the trade marks are the property of the trade mark owner and that the website is not affiliated with, sponsored by or approved by the trade mark owner.”  However, this suggestion would do nothing to avoid initial interest confusion.  Another suggestion is to just avoid third-party trademarks altogether or obtain permission from trademark holders. 

 

On a related note, courts have relieved the fears of many advertisers and search engine providers by acknowledging the legitimate use of displaying third-party trade marks when Internet users search by those marks.  In 1-800-Contacts, Inc. v. Whenu.com, Inc., a pop-up advertisement case, the 2nd Circuit Court of Appeals held that “[a] company’s internal utilization of a trademark in a way that does not communicate it to the public is analogous to a [sic] individual’s private thoughts about a trademark.  Such conduct simply does not violate the Lanham Act, which is concerned with the use of trademarks in connection with the sale of goods or services in a manner likely to lead to consumer confusion as to the source of such goods or services.”

 

For the moment, it seems that pop-up ads are safe from being held liable for trademark infringement in the Second Circuit; however, using another’s trademark to place your website next to theirs may still constitutes an improper use.  Yet the question remains: if your website is competing for customers, isn’t it fair use to identify the competing good or service in this manner?  As with most inquiries into fair use, the answer to this question may differ from case to case. 

 

 

 

In The News

 

 

Internet Service Providers Discuss Consumer Privacy on Capitol Hill

 

Cnet.com, September 25, 2008:  Several of the largest Internet Service Providers (“ISPs”) met with members of Congress about protecting consumer privacy against targeted ad campaigns.  The ISPs urged lawmakers to stay away from stiff regulations on Internet advertising and instead asked them to focus on giving the ISPs a chance to self-regulate.  Gigi Sohn, president of public-interest advocacy group Public Knowledge, outlined measures that ISPs, advertising networks, and search engine companies should be deploying, as the use of targeted online advertising gains favor with advertisers.  In addition, she stressed the importance of ISPs not using deep-packet inspections as a means for targeting consumers.  "Deep-packet inspection is the Internet equivalent of the postal service reading your mail. They might be reading your mail for any number of reasons, but the fact remains that your mail is being read by people whose job it is to deliver it," Sohn said.  Link to Full Story

 

 

Cybersquatters Move in on Merged Bank Names

 

BBC News, September 17, 2008:  Opportunistic cyber-squatters are seeking to capitalize on the rush of emergency mergers on Wall Street by snapping up domain names related to the collapsed banks and their buyers.  Among the web addresses snapped up are <barclayslehman.com> and <bankofamericamerrilllynch.com>, which have been put up for sale on eBay.  Also available on the online auction site are <bofaml.com>, <bankofamericaml.com> and a series of derivative web addresses.  The value of collecting click-through fees for these merged bank names is cited as the major reason for their acquisitions, but cybersquatters are also hoping to profit from the high sales prices these domain names could command at auction.  Link to Full Story

 

 

Cybercriminals Using Celebrity Names to Lure in Internet Users

Reuters, September 16, 2008:  A report done by Internet security firm McAfee Inc. has shown that the most dangerous celebrity names to search are “Brad Pitt” and “Beyonce.”  The report showed that 18 percent of all searches on the two celebrity names led to their PCs being infected with a virus, spyware, spam, phishing and adware.  Other celebrities on McAfee's most dangerous list include singers Mariah Carey, Rihanna and Fergie and film stars Angelina Jolie, Jessica Alba, Cameron Diaz and George Clooney.  McAfee outlined in the report that reasonable precautions are being taken to protect the normal Internet user and stated that the reasons for planting spyware range from simple marketing purposes to more serious things like stealing files or passwords used to access sensitive financial information.  Link to Full Story

 

Thailand Government Shuts Down 400 Websites

 

The Guardian, September 3, 2008:  Thailand's Information and Communications Technology Ministry sought court orders yesterday to shut down about 400 websites and advised Internet service providers to block 1,200 sites it claims are disturbing the social order or are a danger to national security.  The move to shut down online dissent follows the Thai government’s declaration of a state of emergency as thousands of demonstrators took to the streets to demand the government's resignation.  The anti-government movement became more active and violent in late August and early September, and some portray the move by the Thai government to shut down the websites as an attempt to block communications between Thai anti-government demonstrators.  Link to Full Story

 

 

 

Upcoming events

 

 

 

October 23-25, 2008

AIPLA Annual Meeting
Washington, D.C.

November 2-7, 2008

ICANN Meeting
Cairo, Egypt

 

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Note: The information found in this newsletter is designed to provide accurate and authoritative information regarding the subject covered, but is not intended as legal advice.