DECISION

 

Choice Hotels International, Inc. v. Michele Dinoia a/k/a SZK.com

Claim Number: FA0406000282792

 

PARTIES

Complainant is Choice Hotels International, Inc. (“Complainant”), represented by N. Christopher Norton, of Arent Fox, PLLC, 1050 Connecticut Avenue N.W., Washington, DC 20036-5339.  Respondent is Michele Dinoia a/k/a SZK.com (“Respondent”), represented by Valerio Donnini, 188, Via P. Gobetti 65121, Pescara PE, Italy.

 

REGISTRAR AND DISPUTED DOMAIN NAMES 

The domain names at issue are <choicehotel.com> and <quality-inn.com>, registered with Tuonome.it and Onlinenic, Inc., respectively.

 

PANEL

The undersigned certifies that he has acted independently and impartially and to the best of his or her knowledge has no known conflict in serving as Panelist in this proceeding.

 

Jacques A. Léger, Q.C. as Panelist.

 

PROCEDURAL HISTORY

Complainant submitted a Complaint to the National Arbitration Forum (the “Forum”) electronically on June 3, 2004; the Forum received a hard copy of the Complaint on June 7, 2004.

 

On June 7, 2004, Onlinenic, Inc. confirmed by e-mail to the Forum that the domain name <quality-inn.com> is registered with Onlinenic, Inc. and that Respondent is the current registrant of the name.  Tuonome.it and Onlinenic, Inc. have both verified that Respondent is bound by the Onlinenic, Inc. and Tuonome.it registration agreements 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 June 18, 2004, Tuonome.it confirmed by e-mail to the Forum that the domain name <choicehotel.com> is registered with Tuonome.it and that Respondent is the current registrant of the name.

 

On June 18, 2004, a Notification of Complaint and Commencement of Administrative Proceeding (the “Commencement Notification”), setting a deadline of July 8, 2004 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@choicehotel.com and postmaster@quality-inn.com by e-mail.

 

A timely Response was received and determined to be complete on July 7, 2004.

 

A timely Additional Submission was received from Complainant and determined to be complete on July 8, 2004.

 

On July 14, 2004, pursuant to Complainant’s request to have the dispute decided by a single-member Panel, the Forum appointed Jacques A. Léger Q.C. as Panelist.

 

RELIEF SOUGHT

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

 

PARTIES’ CONTENTIONS

A.     Complainant

 

Trademark information

 

Complainant owns US and Canadian trademarks. The US trademarks incorporate the elements Quality (U.S. Reg. No. 1,050,372) registered on October 12, 1976, Quality Inn (U.S. Reg. No. 1,183,294) registered on December 22, 1981, and Choice Hotels (U.S. Reg. No. 2,717,062) registered on May 20, 2003. As to the Canadian trademarks, the element Choice Hotel (TMA398,488) was registered on May 22, 1992. These trademarks are related to hotel, motel and restaurant services.

 

Factual Background

 

Complainant is a lodging franchiser with nearly 5,000 hotels in forty-four countries and territories throughout the world operating under the CHOICE HOTEL and CHOICE HOTELS  trademarks and approximately 900 of these are QUALITY and QUALITY INN hotels.

 

Complainant owns and uses the domain names <choicehotels.com>, <choice-hotels.com>, <hotelchoice.com>, <qualityinn.com> and <qualityinns.com> to advertise its hotel services and to facilitate its online reservation services.

 

Identical or confusingly similar

 

As the disputed domain names consist entirely of Complainant’s registered marks, the domain names are confusingly similar.

 

Rights and Legitimate Interests

 

Complainant has registered marks in both Canada and US previously used for hotel, motel and restaurant services.

 

Respondent is redirecting unsuspecting consumers to a third-party search engine which does not constitute a bona fide offering of goods or services, nor a legitimate noncommercial or fair use.

 

Bad Faith

 

Respondent has registered and is using the disputed domain names in bad faith. As Complainant’s marks are registered and used throughout the world, and as Respondent’s websites include references to Complainant’s own website and hotels, Respondent obviously had prior actual knowledge of Complainant’s marks.

 

Respondent has a history of registering domain names featuring famous marks in bad faith.

 

B.     Respondent

 

Identical or confusingly similar

 

The Complainant’s marks are based on common descriptive terms, to demonstrate common law trademark rights Complainant would have to provide evidence that the terms acquired secondary meaning.

 

The individual terms of the Complainant’s asserted marks are at best descriptive, and hence can not be protected without proof of acquired distinctiveness or secondary meaning.

 

Ownership of the mark does not ipso facto give Complainant the exclusive right to the descriptive names CHOICE HOTEL or QUALITY INN in all contexts related to hotel trade.

 

It is not acceptable that a Complainant claims to have exclusive rights in a highly generic and descriptive word.

 

It is only where a domain name has been shown by appropriate evidence to acquire distinctiveness as a trademark that it may be protected under the Policy.

 

Rights and Legitimate Interests

 

Respondent’s business is to register numerous generic names and to resell or to use them for web sites.

 

The use of the domain names as a search engine is a bona fide use that gives rise to rights and legitimate interests.

 

Respondent has registered the domain names without intent for commercial gain to tarnish the trademarks or to misleadingly divert consumers.

 

The domain names are comprised of generic terms that are legitimately open for registration as domain names on a first come, first served basis.

 

Respondent has rights and legitimate interests in domain names where Complainant submitted insufficient evidence to establish either fame or strong secondary meaning in the mark such that consumers are likely to associate.

 

There is no evidence that the consumers seeing the Complainant’s site would be more likely to believe that there is any connection between the Complainant and the Respondent.

 

Bad Faith

 

There is no evidence that the Respondent, living in Italy, was aware of Complainant's registration in USA at the time the Respondent registered the domain names.

 

The Complainant has not provided any evidence of facts which might indicate that the Respondent knew or should have known of Complainant’s trademark interests or even that Respondent was aware of Complainant’s existence when it registered the domain names.

 

It would appear unlikely that the Respondent, an Italian citizen, living and having a place of business in Italy, was aware that the US organization had some registered trademarks or common law marks in what would appear to be generic terms.

 

Both domain names derive from the combination of ordinary English words, which, by their nature, are descriptive of services which involve providing services about hotel trade.

 

The Respondent and his client cannot be considered as competitors of the Complainant, because they are small companies operating in a different country, so that the Respondent’s registration would not disrupt the business of a competitor.

 

 

 

C.     Complainant’s Additional Submissions

 

Identical or confusingly similar

 

The Complainant owns registrations for the mark CHOICE HOTEL in ninety-one countries and the Benelux countries, for the mark CHOICE HOTELS in eight countries and the European community, for the mark QUALITY in fifteen countries and the Benelux countries, and for the mark QUALITY INN in thirty-five countries and the Benelux countries.

 

Common law trademarks are not at issue when Complainant owns registrations for its marks.

 

It is well established that incontestable registrations may not be challenged on the grounds that the marks are descriptive.

 

In Respondent’s home country of Italy, Complainant has twelve franchised properties operating under the marks, including six QUALITY and QUALITY INN hotels.

 

Rights and Legitimate Interests

 

The Respondent is not licensed or authorized to use Complainant’s marks and is not named or commonly known as CHOICE HOTEL or QUALITY INN.

 

The letter attached to the Response makes no mention of the terms of the agreement that purportedly caused Respondent to register the domain names and does not mention any fee for Respondent’s services. The Letter is also unsigned. Even more importantly, as of the date the Complaint was filed, almost three years after the request was allegedly made and the domain names were registered, Respondent had still not used the domain names on behalf of the third party. It is clear that Respondent fabricated the letter for the purpose of these UDRP proceedings.

 

Respondent’s use of the disputed domain name to attract and redirect Internet traffic to a commercial website completely unrelated to Complainant is not a bona fide offering of goods or services.

 

Generic marks are not entitled to registration, and registered marks hold the presumption that they are inherently distinctive and have acquired secondary meaning.

 

Bad Faith

 

Respondent falsely asserts that Complainant owns registrations only in United States. In fact, Complainant owns trademark registrations for its marks, and franchises hotels under the marks, in countries all over the world, including Italy.

 

Based on the prior registrations and the fame of Complainant’s marks, it is clear that Respondent had actual or constructive knowledge of Complainant’s rights. This knowledge is further demonstrated by the appearance of Complainant’s marks on Respondent’s websites located at the domain names at issue.

 

Respondent has a well-established history of bad-faith use and registration of domain names incorporating famous marks.

 

DISCUSSION & FINDINGS

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 the 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 the Respondent is identical or confusingly similar to a trademark or service mark in which the Complainant has rights; and

(2)    the 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

 

It is self rebuttable for a descriptive word not to be registrable as a trademark; according to basis of the trademark laws, once registered, a mark, albeit descriptive benefits from a presumption that it is distinctive or has acquired secondary meaning. The proof to the contrary lies with the challenger.

 

Complainant claims to own the service marks CHOICE HOTEL (Canadian Reg. No. TMA 398,488) and QUALITY INN (U.S. Reg. No. 1,183,294).  Specifically, Complainant alleged that its service marks are used in connection with hotel, motel, and restaurant services.  The Canadian governmental authority lists Complainant’s first use of the CHOICE HOTEL mark as being June 7, 1990.  Likewise, the United States Patent and Trademark Office lists Complainant’s first use of the QUALITY INN mark as being August 31, 1972.  The Panel finds that Complainant’s registrations of the aforementioned service marks with appropriate governmental authorities is prima facie sufficient, under the Policy, to confer rights in the marks to Complainant.  See Janus Int’l Holding Co. v. Rademacher, D2002-0201 (WIPO Mar. 5, 2002) wherein it was found that the Panel have held that the registration of a mark is prima facie evidence of validity, which creates a rebuttable presumption that the mark is distinctive and the Respondent has the burden of refuting this assumption. In the present case, Respondent has failed to discharge its burden to do so. The Panel also finds that Complainant’s registration of the service marks CHOICE HOTEL (U.S. Reg. No. 2,717,062 and TMA398,488) and QUALITY INN (U.S. Reg. No. 1,183,294) with appropriate governmental authorities is sufficient under the Policy to confer rights in the marks aforesaid to Complainant.

 

Furthermore, the Panel finds that the disputed domain names <choicehotel.com> and <quality-inn.com> are identical to Complainant’s corresponding CHOICE HOTEL and QUALITY INN marks because the domain names “consist entirely of Complainant’s registered marks.”  Complaint at 4. Generally, the fact that a domain name incorporates a Complainant’s registered mark is sufficient to establish identical or confusing similarity for purposes of the Policy. See Oki Data Americas, Inc. v. ASD Inc., D2001-0903 (WIPO Nov. 6, 2001); see also Nikon, Inc. v. Technilab, Inc., D2000-1774 (WIPO Feb. 26, 2000), see also Magnum Piering, Inc. v. Mudjackers & Wilson, D2000-1525 (WIPO Jan. 29, 2001)).

 

Moreover, the Panel finds that even though the disputed domain name <quality-inn.com> contains a hyphen separating the words “quality” and “inn,” such an addition fails to alleviate the indistinguishable character between the disputed domain name and Complainant’s QUALITY INN service mark.  Hyphens have been historically deemed irrelevant under the Policy in analyzing the similarity between domain names and marks.  See Innomed Tech., Inc. v. DRP Servs., FA 221171 (Nat. Arb. Forum Feb. 18, 2004)

 

The Panel also finds that deletion of the spaces between the words in the marks does not significantly distinguish the domain names from the marks because the use of spaces is not acceptable in registered domain names. See Hannover Ruckversicherungs-AG v. Ryu, FA 102724 (Nat. Arb. Forum Jan. 7, 2002).

 

Lastly, the Panel finds that the disputed domain names are identical to Complainant’s corresponding service marks because the addition of the generic top-level domain “.com” is irrelevant under the Policy in analyzing the similarity between domain names and marks.  See Daedong-USA, Inc., Kioti Tractor Div. v. O’Bryan Implement Sales, FA 210302 (Nat. Arb. Forum Dec. 29, 2003) wherein Respondent's domain name, <kioti.com>, was identical to Complainant's KIOTI mark because adding a top-level domain name is irrelevant for purposes of Policy ¶ 4(a)(i).

 

Therefore, the Panel finds that Complainant has satisfied its burden under the section 4(a)(i) of the Policy.

 

Rights or Legitimate Interests

 

In providing its Additional Submission, the Complainant has improved its initial Complaint, which arguably, might have been deficient as a Complainant may not solely rely on the benefit of legal presumption derived from trademark registrations.

 

This being said, the Complainant has contended that Respondent is using the disputed domain names to redirect Internet users to a search engine for commercial gain, and has cited Alcoa Inc. v. Dinoia for the proposition that using a domain name, which is identical or confusingly similar to a complainant’s mark, to redirect unsuspecting consumers to a third-party search engine does not constitute a bona fide offering of goods or services pursuant to Policy ¶ 4(c)(i) or a legitimate noncommercial or fair use pursuant to Policy ¶ 4(c)(iii), the Panel so finds.  See Alcoa Inc. v. Dinoia, FA 227654 (Nat. Arb. Forum Mar. 3, 2004); see also Bank of Am. Corp. v. Out Island Props., Inc., FA 154531 (Nat. Arb. Forum June 3, 2003).

 

Furthermore, Complainant has argued that Respondent is not commonly known by the disputed domain names <choicehotel.com> and <quality-inn.com> pursuant to Policy ¶ 4(c)(ii) because Respondent’s name is neither CHOICE HOTEL nor QUALITY INN. 

 

The Panel finds that Respondent is not commonly known by either of the preceding domain names as the WHOIS information fails to imply the same and, in fact, suggests that Respondent is either known as “Michele Dinoia” or more probably “SZK.com.”  See Am. West Airlines, Inc. v. Paik, FA 206396 (Nat. Arb. Forum Dec. 22, 2003) wherein it was found that since Respondent listed its name as being “Ilyoup Paik a/k/a David Sanders” in the WHOIS domain name registration information, Respondent was not commonly known by the domain name <awvacations.com>; see also WV Educ. Broad. Authority v. Thompson, FA 196011 (Nat. Arb. Forum Oct. 27, 2003) wherein it was found that the WHOIS information failed to establish that Respondent was commonly known by the <wvpbs.org> domain name and did not evidence rights or legitimate interests in the domain name pursuant to Policy ¶ 4(c)(ii).

 

The Panel also finds that Respondent lacks rights and legitimate interests in the disputed domain names because Respondent has registered domain names that incorporate Complainant’s registered service marks without the requisite legal authorization to do so.  See State Farm Mut. Auto. Ins. Co. v. LaFaive, FA 95407 (Nat. Arb. Forum Sept. 27, 2000) wherein it was held that unauthorized providing of information and services under a mark owned by a third party cannot be said to be the bona fide offering of goods or services”; see also Telstra Corp. v. Nuclear Marshmallow, D2000-0003 (WIPO Feb. 18, 2000) where it was found that Respondent lacked rights and legitimate interests in the domain name because Respondent was not authorized by Complainant to use its trademarks and the mark was distinct in its nature, such that one would not legitimately choose it unless seeking to create an impression of an association with Complainant.

 

Registration and Use in Bad Faith

 

Complainant asserts that Respondent is using the disputed domain names to direct Internet users to websites that “include references to Complainant’s own website and hotels.”  Complaint at 4.  Complainant infers from this fact that “Respondent obviously had prior actual knowledge of Complainant’s marks [prior to registering the domain names].” It is quite difficult to actually prove bad faith, and yet good faith is to be presumed. However, the Panel finds that Respondent registered and used the disputed domain names in bad faith if Respondent willfully registered the names despite its knowledge of Complainant’s rights in the CHOICE HOTEL and QUALITY INN marks, which can be inferred from reading Respondent website.  See Alcoa Inc. v. Dinoia, FA 227654 (Nat. Arb. Forum Mar. 3, 2004); see also Pfizer, Inc. v. Suger, D2002-0187 (WIPO Apr. 24, 2002) wherein it was found that because the link between Complainant’s mark and the content advertised on Respondent’s website was obvious, Respondent “must have known about the Complainant’s mark when it registered the subject domain name.”

 

Additionally, Complainant argues that Respondent has demonstrated a pattern of conduct involving bad faith registration of domain names that contain well-known marks of third parties.  In fact, Complainant points the Panel to the following cases where Respondent in the instant case was ordered to transfer disputed domain names to various complainants: Alcoa Inc. v. Dinoia, FA 227654 (Nat. Arb. Forum Mar. 3, 2004), Carlson Cos., Inc. v. Szk.com, FA 161568 (Nat. Arb. Forum July 23, 2003), Circuit City Stores, Inc. v. Dinoia, FA 128792 (Nat. Arb. Forum Dec. 12, 2002); and Anheuser-Busch, Inc. v. Dinoia, FA 114465 (Nat. Arb. Forum July 15, 2002).  As the result of the foregoing, the Panel concludes that Respondent registered and used the disputed domain names <choicehotel.com> and <quality-inn.com> in bad faith pursuant to Policy ¶ 4(b)(ii), provided that the Panel finds Respondent registered the names to prevent Complainant from reflecting its service marks in corresponding domain names. See Sony Kabushiki v. Anderson, FA 198809 (Nat. Arb. Forum Nov. 20, 2003) wherein it was found a pattern of registering domain names in bad faith pursuant to Policy ¶ 4(b)(ii) when Respondent previously registered domain names incorporating well-known third party trademarks.

 

The Panel also concludes that Respondent is profiting from the use of the disputed domain names by intentionally attempting to attract Internet users to its website by creating a likelihood of confusion with Complainant’s mark, and thus, it also finds that Respondent registered and used the disputed domain name in bad faith pursuant to Policy ¶ 4(b)(iv). See G.D. Searle & Co. v. Celebrex Drugstore, FA 123933 (Nat. Arb. Forum Nov. 21, 2002) wherein it was found that Respondent registered and used the domain name in bad faith pursuant to Policy ¶ 4(b)(iv) because Respondent used the confusingly similar domain name to attract Internet users to its commercial website; see also Am. Online, Inc. v. Tencent Comm. Corp., FA 93668 (Nat. Arb. Forum Mar. 21, 2000) wherein it was stated that bad faith where Respondent registered and used an infringing domain name to attract users to a website sponsored by Respondent.

 

DECISION

Having established all three elements required under the ICANN Policy, the Panel conclude that relief shall be GRANTED.

 

Accordingly, it is Ordered that the <choicehotel.com> and <quality-inn.com> domain names be TRANSFERRED from Respondent to Complainant by Tuonome.it and Onlinenic, Inc, respectively.

 

 

 

Jacques A. Léger Q.C., Panelist
Dated: July 28, 2004

 

 

 

 

 

 

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