national arbitration forum

 

DECISION

 

Texas Lottery Commission v. Admin c/o LaPorte Holdings

Claim Number:  FA0506000493451

 

PARTIES

Complainant is Texas Lottery Commission (“Complainant”), represented by Dwayne K. Goetzel, 700 Lavaca, Suite 800, Austin, TX 78701.  Respondent is Admin c/o LaPorte Holdings (“Respondent”), 5482 Wilshire Blvd. # 90036, Los Angeles, CA 90036.

 

REGISTRAR AND DISPUTED DOMAIN NAMES

The domain names at issue are <txloterry.com>, <texasalottery.com>, <texasllottery.com>, <texaslottorey.com>, and <texaslottory.net>, registered with Nameking.com, Inc.

 

PANEL

The undersigned certifies that he or she 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.

 

Tyrus R. Atkinson, Jr., as Panelist.

 

PROCEDURAL HISTORY

Complainant submitted a Complaint to the National Arbitration Forum electronically on June 8, 2005; the National Arbitration Forum received a hard copy of the Complaint on June 10, 2005.

 

On June 16, 2005, Nameking.com, Inc. confirmed by e-mail to the National Arbitration Forum that the domain names <txloterry.com>, <texasalottery.com>, <texasllottery.com>, <texaslottorey.com>, and <texaslottory.net> are registered with Nameking.com, Inc. and that Respondent is the current registrant of the names. Nameking.com, Inc. has verified that Respondent is bound by the Nameking.com, 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 June 16, 2005, a Notification of Complaint and Commencement of Administrative Proceeding (the "Commencement Notification"), setting a deadline of July 6, 2005 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@txloterry.com, postmaster@texasalottery.com, postmaster@texasllottery.com, postmaster@texaslottorey.com, and postmaster@texaslottory.net by e-mail.

 

Having received no Response from Respondent, using the same contact details and methods as were used for the Commencement Notification, the National Arbitration Forum transmitted to the parties a Notification of Respondent Default.

 

On July 13, 2005, pursuant to Complainant's request to have the dispute decided by a single-member Panel, the National Arbitration Forum appointed Tyrus R. Atkinson, Jr.,as Panelist.

 

Having reviewed the communications records, the Administrative Panel (the "Panel") finds that the National Arbitration Forum has discharged its responsibility under Paragraph 2(a) of the Rules for Uniform Domain Name Dispute Resolution Policy (the "Rules") "to employ reasonably available means calculated to achieve actual notice to Respondent."  Therefore, the Panel may issue its decision based on the documents submitted and in accordance with the ICANN Policy, ICANN Rules, the National Arbitration Forum's Supplemental Rules and any rules and principles of law that the Panel deems applicable, without the benefit of any Response from Respondent.

 

RELIEF SOUGHT

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

 

PARTIES' CONTENTIONS

A.  Complainant makes the following assertions:

 

1.      Respondent’s <txloterry.com>, <texasalottery.com>, <texasllottery.com>, <texaslottorey.com>, and <texaslottory.net> domain names are confusingly similar to Complainant’s TEXAS LOTTERY mark.

 

2.      Respondent does not have any rights or legitimate interests in the <txloterry.com>, <texasalottery.com>, <texasllottery.com>, <texaslottorey.com>, and <texaslottory.net> domain names.

 

3.      Respondent registered and used the <txloterry.com>, <texasalottery.com>, <texasllottery.com>, <texaslottorey.com>, and <texaslottory.net> domain names in bad faith.

 

B.  Respondent failed to submit a Response in this proceeding.

 

FINDINGS

Complainant, Texas Lottery Commission, provides lottery services and various games of chance for the state of Texas and has done so continuously since 1992.  Complainant’s lottery services have been among the most successful in the United States and worldwide bringing them increasing renown throughout the years.

 

Complainant has registered the TEXAS LOTTERY mark with the United States Patent and Trademark Office (“USPTO”) (Reg. No. 2,712,848 issued May 6, 2003) for use in conducting and administering lottery services and various games of chance as well as in promotional and marketing materials.  From 1992 through 1999, the Texas Lottery Commission spent over $200 million in advertising and promoting the games and services offered under the TEXAS LOTTERY mark.

 

Over a period of twelve months in 2004, Respondent registered the following domain names: <txloterry.com>, <texasalottery.com>, <texasllottery.com>, <texaslottorey.com>, and <texaslottory.net>.  There is no evidence that any of Respondent’s domain names are currently used in connection with an active website.

 

DISCUSSION

Paragraph 15(a) of 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."

 

In view of Respondent's failure to submit a Response, the Panel shall decide this administrative proceeding on the basis of Complainant's undisputed representations pursuant to paragraphs 5(e), 14(a) and 15(a) of the Rules and draw such inferences it considers appropriate pursuant to paragraph 14(b) of the Rules.  The Panel is entitled to accept all reasonable allegations and inferences set forth in the Complaint as true unless the evidence is clearly contradictory.  See Vertical Solutions Mgmt., Inc. v. webnet-marketing, Inc., FA 95095 (Nat. Arb. Forum July 31, 2000) (holding that the respondent's failure to respond allows all reasonable inferences of fact in the allegations of the complaint to be deemed true); see also Talk City, Inc. v. Robertson, D2000-0009 (WIPO Feb. 29, 2000) ("In the absence of a response, it is appropriate to accept as true all allegations of the Complaint.").

 

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; and

(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

 

Complainant has submitted evidence of registration of the TEXAS LOTTERY mark with the USPTO.  In the absence of evidence suggesting otherwise, the Panel accepts Complainant’s assertion that the mark is inherently distinctive and rights are established for the purposes of Policy ¶ 4(a)(i).  See Janus Int’l Holding Co. v. Rademacher, D2002-0201 (WIPO Mar. 5, 2002) (finding that panel decisions have held that registration of a mark is prima facie evidence of validity, which creates a rebuttable presumption that the mark is inherently distinctive); see also U.S. Office of Pers. Mgm’t v. MS Tech. Inc., FA 198898 (Nat. Arb. Forum Dec. 9, 2003) (“[O]nce the USPTO has made a determination that a mark is registrable . . . an ICANN panel is not empowered to, nor should it, disturb that determination.”).

 

Each of Respondent’s five domain names is a variation of some sort on Complainant’s registered mark.  Two of the domain names, <texasalottery.com> and <texasllottery.com>, contain Complainant’s entire mark along with an added letter, whereas <texaslottorey.com> and <texaslottory.net> are simply misspelled variations of Complainant’s mark.  Panels have long held that such additions or misspellings are insufficient to properly distinguish domain names from registered marks pusuant to Policy ¶ 4(a)(i).  See Victoria’s Secret v. Zuccarini, FA 95762 (Nat. Arb. Forum Nov. 18, 2000) (finding that, by misspelling words and adding letters to words, a respondent does not create a distinct mark but nevertheless renders the domain name confusingly similar to the complainant’s marks); see also Am. Online, Inc. v. Tencent Commc’ns Corp., FA 93668 (Nat. Arb. Forum Mar. 21, 2000) (finding that <oicq.net> and <oicq.com> are confusingly similar to the complainant’s mark, ICQ); see also Kelson Physician Partners, Inc. v. Mason, CPR003 (CPR 2000) (finding that <kelsonmd.com> is identical or confusingly similar to the complainant’s federally registered service mark, “Kelson”).  The fifth domain name, <txloterry.com>, also includes a misspelled variation of the mark in conjunction with the well known postal abbreviation for the state of Texas.  Again, these are distinctions insufficient to properly differentiate the domain name from Complainant’s registered mark pursuant to Policy ¶ 4(a)(i).  See Belkin Components v. Gallant, FA 97075 (Nat. Arb. Forum May 29, 2001) (finding the <belken.com> domain name confusingly similar to the complainant's BELKIN mark because the name merely replaced the letter “i” in the complainant's mark with the letter “e”); See also Microsoft Corp. v. Montrose Corp., D2000-1568 (WIPO Jan. 25, 2001) (finding the domain name <ms-office-2000.com> to be confusingly similar even though the mark MICROSOFT is abbreviated).

 

The Panel finds that Complainant has satisfied Policy ¶ 4(a)(i).

 

Rights or Legitimate Interests

 

Complainant contends that Respondent does not have rights or legitimate interests in the confusingly similar <txloterry.com>, <texasalottery.com>, <texasllottery.com>, <texaslottorey.com>, and <texaslottory.net> domain names.  Complainant’s assertion is sufficient to establish a prima facie case in support of its contentions shifting the burden onto Respondent to demonstrate that such rights or legitimate interests exist.  See Clerical Med. Inv. Group Ltd. v. Clericalmedical.com, D2000-1228 (WIPO Nov. 28, 2000) (finding that under certain circumstances the mere assertion by the complainant that the respondent has no right or legitimate interest is sufficient to shift the burden of proof to the respondent to demonstrate that such a right or legitimate interest does exist); see also Do The Hustle, LLC v. Tropic Web, D2000-0624 (WIPO Aug. 21, 2000) (holding that where the complainant has asserted that the respondent has no rights or legitimate interests with respect to the domain name it is incumbent on the respondent to come forward with concrete evidence rebutting this assertion because this information is “uniquely within the knowledge and control of the respondent”).  By failing to submit a response, Respondent has not met the burden of proof necessary to establish rights and legitimate interests pursuant to Policy ¶ 4(a)(ii).  As a result, the Panel accepts Complainant’s allegations that no rights or legitimate interests exist.  See Am. Express Co. v. Fang Suhendro, FA 129120 (Nat. Arb. Forum Dec. 30, 2002) (“[B]ased on Respondent's failure to respond, it is presumed that Respondent lacks all rights and legitimate interests in the disputed domain name.”); see also Broadcom Corp. v. Ibecom PLC, FA 361190 (Nat. Arb. Forum Dec. 22, 2004) (“Respondent’s failure to respond to the Complaint functions as an implicit admission that [Respondent] lacks rights and legitimate interests in the disputed domain name.  It also allows the Panel to accept all reasonable allegations set forth…as true.”).

 

Respondent has not made use of any of the five domain names nor has evidence been presented suggesting that preparations have been made to use the domain names in connection with a bona fide offering of goods or services.  As a result the Panel finds that Respondent lacks rights and legitimate interests pursuant to Policy ¶ 4(a)(ii).  See Pharmacia & Upjohn AB v. Romero, D2000-1273 (WIPO Nov. 13, 2000) (finding no rights or legitimate interests where the respondent failed to submit a response to the complaint and had made no use of the domain name in question); see also Vestel Elektronik Sanayi ve Ticaret AS v. Kahveci, D2000-1244 (WIPO Nov. 11, 2000) (“Merely registering the domain name is not sufficient to establish rights or legitimate interests for purposes of paragraph 4(a)(ii) of the Policy.”).

 

Furthermore, the fact that Respondent’s domain names are all typosquatted versions of Complainant’s TEXAS LOTTERY mark, is evidence “in and of itself that the respondent lacks rights or legitimate interests in the disputed domain name[s] . . . .”  Diners Club Int’l Ltd. v. Domain Admin******It's all in the name******, FA 156839 (Nat. Arb. Forum June 23, 2003); see also Medline, Inc. v. Domain Active Pty. Ltd., FA 139718 (Nat. Arb. Forum Feb. 6, 2003) (“Considering the nonsensical nature of the [<wwwmedline.com>] domain name and its similarity to Complainant’s registered and distinctive [MEDLINE] mark, the Panel concludes that Policy ¶ 4(c)(ii) does not apply to Respondent.”).

 

Finally, nothing in the record indicates that Respondent has been commonly known by or authorized to register any derivation of the disputed domain names.  Therefore, no rights or legitimate interests exist pursuant to Policy 4(c)(ii).  See Gallup, Inc. v. Amish Country Store, FA 96209 (Nat. Arb. Forum Jan. 23, 2001) (finding that the respondent does not have rights in a domain name when the respondent is not known by the mark); see also Ian Schrager Hotels, L.L.C. v. Taylor, FA 173369 (Nat. Arb. Forum Sept. 25, 2003) (finding that without demonstrable evidence to support the assertion that a respondent is commonly known by a domain name, the assertion must be rejected).

 

The Panel finds that Complainant has satisfied Policy ¶ 4(a)(ii).

 

Registration and Use in Bad Faith

 

Respondent has failed to connect any of the five registered domain names with a functioning website since their 2004 registration.  Such failure to use domain names for legitimate purposes amounts to passive holding and supports a reasonable inference of bad faith registration and use pursuant to 4(a)(iii).  See DCI S.A. v. Link Commercial Corp., D2000-1232 (WIPO Dec. 7, 2000) (concluding that the respondent’s passive holding of the domain name satisfies the requirement of ¶ 4(a)(iii) of the Policy); see also Clerical Med. Inv. Group Ltd. v. Clericalmedical.com, D2000-1228 (WIPO Nov. 28, 2000) (finding that merely holding an infringing domain name without active use can constitute use in bad faith). 

 

Furthermore, registration of domain names that are confusingly similar to another’s mark with actual or constructive knowledge of the mark holder’s rights is evidence of bad faith registration and use under Policy ¶ 4(a)(iii).  See Digi Int’l v. DDI Sys., FA 124506 (Nat. Arb. Forum Oct. 24, 2002) (holding that “there is a legal presumption of bad faith, when Respondent reasonably should have been aware of Complainant’s trademarks, actually or constructively”); see also Entrepreneur Media, Inc. v. Smith, 279 F.3d 1135, 1148 (9th Cir. 2002) ("Where an alleged infringer chooses a mark he knows to be similar to another, one can infer an intent to confuse.").  In the case at hand, Complainant has registered the TEXAS LOTTERY mark with the USPTO prior to any notice of Respondent’s domain name registrations.  Complainant’s registration puts the public on notice that exclusive rights exist in this particular mark and unauthorized use is not permitted.  Therefore, constructive knowledge is conferred on Respondent at the time of each domain name registration, violating Policy ¶ 4(a)(iii).  See Orange Glo Int’l v. Blume, FA 118313 (Nat. Arb. Forum Oct. 4, 2002) (“Complainant’s OXICLEAN mark is listed on the Principal Register of the USPTO, a status that confers constructive notice on those seeking to register or use the mark or any confusingly similar variation thereof.”).

 

The Panel finds that Complainant has satisfied Policy ¶ 4(a)(iii).

 

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 <txloterry.com>, <texasalottery.com>, <texasllottery.com>, <texaslottorey.com>, and <texaslottory.net> domain names be TRANSFERRED from Respondent to Complainant.

 

 

 

 

Tyrus R. Atkinson, Jr., Panelist

Dated:  July 22, 2005

 

 

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