DECISION

 

Pacific International Securities Inc. v. Greg Hart

Claim Number: FA0612000862847

 

PARTIES

Complainant is Pacific International Securities Inc. (“Complainant”), represented by Bradley J. Freedman of Borden Ladner Gervais LLP, 1200 – 200 Burrard Street, Vancouver, BC, Canada, V7X 1T2.  Respondent is Greg Hart (“Respondent”), POB 73155, Puyallup, WA, 98373.

 

REGISTRAR AND DISPUTED DOMAIN NAME 

The domain name at issue is <pisecurities.us>, registered with Melbourne It Ltd.

 

PANEL

The undersigned certifies that she has acted independently and impartially and that to the best of her knowledge she has no known conflict in serving as Panelist in this proceeding.  Hon. Carolyn Marks Johnson sits as Panelist.

 

PROCEDURAL HISTORY

Complainant submitted a Complaint to the National Arbitration Forum (the “Forum”) electronically December 6, 2006; the Forum received a hard copy of the Complaint December 7, 2006.

 

On December 12, 2006, Melbourne It Ltd confirmed by e-mail to the Forum that the <pisecurities.us> domain name is registered with Melbourne It Ltd and that Respondent is the current registrant of the name.  Melbourne It Ltd verified that Respondent is bound by the Melbourne It Ltd registration agreement and thereby has agreed to resolve domain-name disputes brought by third parties in accordance with the U.S. Department of Commerce’s usTLD Dispute Resolution Policy (the “Policy”).

 

On December 20, 2006, a Notification of Complaint and Commencement of Administrative Proceeding (the “Commencement Notification”) setting a deadline of January 9, 2007, by which Respondent could file a Response to the Complaint, was transmitted to Respondent in compliance with Paragraph 2(a) of the Rules for usTLD Dispute Resolution Policy (the “Rules”).

 

Having received no Response from Respondent, the Forum transmitted to the parties a Notification of Respondent Default.

 

On January 15, 2007, pursuant to Complainant’s request to have the dispute decided by a single-member Panel, the Forum appointed Hon. Carolyn Marks Johnson as Panelist.

 

Having reviewed the communications records, the Administrative Panel (the “Panel”) finds that the Forum has discharged its responsibility under Paragraph 2(a) of the Rules.  Therefore, the Panel may issue its decision based on the documents submitted and in accordance with the Policy, the Rules, the 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 name be transferred from Respondent to Complainant.

 

PARTIES’ CONTENTIONS

A. Complainant makes the following allegations in this proceeding:

 

1.      The domain name that Respondent registered, <pisecurities.us>, is confusingly similar to Complainant’s PI mark.

 

2.      Respondent has no rights to or legitimate interests in the <pisecurities.us> domain name.

 

3.      Respondent registered and used the <pisecurities.us> domain name in bad faith.

 

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

 

 

FINDINGS

Complainant, Pacific International Securities Inc, provides investment advice to individuals and businesses located in Western Canada and the United States.  Complainant’s total assets exceed $1 billion and Complainant has more than 15,000 clients.  As early as 1982, Complainant began doing business under the PACIFIC INTERNATIONAL SECURITIES mark and has been continuously using the abbreviated PI mark in connection with its investment services since 1993.  Complainant licensed a subsidiary to begin doing business in the United States in 2003.  Complainant has utilized the <pisecurities.com> domain name as its primary website since 2001.

 

The disputed domain name that Respondent registered, <pisecurities.us>, which Respondent registered June 19, 2006, does not resolve to an active website.  Complainant contends that Respondent is a former customer of Complainant and that Respondent became upset with Complainant and attempted to coerce Complainant and its employees to agree to Respondent’s business demands.

 

Respondent’s <pisecurities.info> domain name has already been subject to a proceeding under the UDRP, in September 2006, and the panel in that case ordered the transfer of that domain name registration to Complainant.  See Pac. Int’l Sec. Inc. v. Hart, FA 758615 (Nat. Arb. Forum Sept. 11, 2006).  Respondent also has been a party to a UDRP proceeding for its registration of the <westminstersavings.com> domain name, which the panel found was confusingly similar to Westminster Savings Credit Union’s WESTMINSTER SAVINGS CREDIT UNION mark.  See Westminster Savings Credit Union v. Hart Indus. Inc, D2002-0637 (WIPO Aug. 30, 2002).

 

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.”

 

Respondent failed to submit a Response and the Panel shall decide this administrative proceeding on the basis of Complainant's undisputed representations pursuant to Paragraphs 5(f), 14(a) and 15(a) of the Rules and will draw such inferences as the Panel 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 Complainant to 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) Respondent has no rights or legitimate interests in respect of the domain name; and

(3) the domain name has been registered or is being used in bad faith.

 

Given the similarity between the Uniform Domain Name Dispute Resolution Policy (“UDRP”) and the usTLD Policy, the Panel will draw upon UDRP precedent as applicable in rendering its decision.

 

Identical to and/or Confusingly Similar

 

Although Complainant has not registered the PI or PACIFIC INTERNATIONAL SECURITIES marks with the United States or Canadian trademark authorities, ownership of a valid trademark registration is not required under Policy ¶ 4(a)(i) if a complainant can establish common law rights in a mark.  See Zee TV USA, Inc. v. Siddiqi, FA 721969 (Nat. Arb. Forum July 18, 2006) (finding that the complainant need not own a valid trademark registration for the ZEE CINEMA mark in order to demonstrate its rights in the mark under UDRP Policy ¶ 4(a)(i)); see also LA Millennium Video Prods. v. Classic Moments Video Production, FA 856336 (Nat. Arb. Forum Jan. 12, 2007) (finding that the Policy does not require ownership of a trademark registration in order for a complainant to demonstrate its rights in a mark for purposes of satisfying UDRP Policy ¶ 4(a)(i)).

 

Complainant has continuously used the PACIFIC INTERNATIONAL SECURITIES mark since 1982 and the abbreviated PI mark since 1993 in connection with its investment advice business.  Moreover, Complainant has shown considerable growth and financial investment associated with the marks.  The Panel finds that this is sufficient time and development for both marks to acquire secondary meaning in reference to Complainant’s services.  Therefore, Complainant established common law rights in the PI and PACIFIC INTERNATIONAL SECURITIES marks pursuant to Policy ¶ 4(a)(i).  See Quality Custom Cabinetry, Inc. v. Cabinet Wholesalers, Inc., FA 115349 (Nat. Arb. Forum Sept. 7, 2002) (finding that complainant established common law rights in the mark through continuous use of the mark since 1995 for the purpose of UDRP Policy ¶ 4(a)(i)); see also Stellar Call Ctrs. Pty Ltd. v. Bahr, FA 595972 (Nat. Arb. Forum Dec. 19, 2005) (finding that complainant established common law rights in the STELLAR CALL CENTRES mark because complainant demonstrated that its mark had acquired secondary meaning).

 

With respect to the <pisecurities.us> domain name, Respondent merely abbreviated the terms “PACIFIC INTERNATIONAL” in Complainant’s PACIFIC INTERNATIONAL SECURITIES mark; or, alternatively, added the term “securities” to Complainant’s PI mark.  In either case, Respondent failed to sufficiently distinguish the disputed domain name from Complainant’s marks.  Accordingly, the Panel finds the <pisecurities.us> domain name to be confusingly similar to the marks pursuant to Policy ¶ 4(a)(i).  See 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); see also Minn. State Lottery v. Mendes, FA 96701 (Nat. Arb. Forum Apr. 2, 2001) (finding the <mnlottery.com> domain name to be confusingly similar to the complainant’s MINNESOTA STATE LOTTERY registered mark); see also Sutton Group Fin. Servs. Ltd. v. Rodger, D2005-0126 (WIPO June 27, 2005) (finding the domain name <suttonpromo.com> to be confusingly similar to the SUTTON mark because the addition of descriptive or non-distinctive elements to the distinctive element in a domain name is immaterial to the analysis under UDRP Policy ¶ 4(a)(i)).

 

The Panel concludes that Complainant satisfied usTLD Policy ¶ 4(a)(i).

 

Rights to or Legitimate Interests

 

Complainant contends that Respondent lacks rights to and legitimate interests in the <pisecurities.us> domain name.  Once Complainant makes a prima facie case in support of its allegations, the burden shifts to Respondent to show it does have rights or legitimate interests pursuant to Policy ¶ 4(a)(ii).  See Hanna-Barbera Prods., Inc. v. Entm’t Commentaries, FA 741828 (Nat. Arb. Forum Aug. 18, 2006) (holding that  complainant must first make a prima facie case that respondent lacks rights and legitimate interests in the disputed domain name under UDRP Policy ¶ 4(a)(ii) before the burden shifts to respondent to show that it does have rights or legitimate interests in a domain name); see also AOL LLC v. Gerberg, FA 780200 (Nat. Arb. Forum Sept. 25, 2006) (“Complainant must first make a prima facie showing that Respondent does not have rights or legitimate interest in the subject domain names, which burden is light.  If Complainant satisfies its burden, then the burden shifts to Respondent to show that it does have rights or legitimate interests in the subject domain names.”).

 

Respondent’s failure to answer the Complaint raises a presumption that Respondent has no rights or legitimate interests in the <pisecurities.us> domain name.  See Eroski, So. Coop. v. Getdomains Ishowflat Ltd., D2003-0209 (WIPO July 28, 2003) (“It can be inferred that by defaulting Respondent showed nothing else but an absolute lack of interest on the domain name.”); see also 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.”).  However, the Panel examines the record to determine the record shows that Respondent has rights or legitimate interests under Policy ¶ 4(c).

 

Because Complainant established with extrinsic proof in this proceeding that it has rights to the PI and PACIFIC INTERNATIONAL SECURITIES marks and because Respondent has not come forward with any evidence showing it is the owner or beneficiary of a mark identical to the <pisecurities.us> domain name, Complainant has satisfied Policy ¶ 4(c)(i).  See Meow Media Inc. v. Basil, FA 113280 (Nat. Arb. Forum Aug. 20, 2002) (finding that there was no evidence that the respondent was the owner or beneficiary of a mark that is identical to the <persiankitty.com> domain name); see also Pepsico, Inc. v. Becky, FA 117014 (Nat. Arb. Forum Sept. 3, 2002) (holding that because the respondent did not own any trademarks or service marks reflecting the <pepsicola.us> domain name, it had no rights or legitimate interests pursuant to Policy ¶ 4(c)(i)). 

 

Respondent registered the contested domain name under the name “Greg Hart,” and no other evidence in the record suggests that Respondent is commonly known the by <pisecurities.us> domain name.   Therefore, the Panel concludes that Respondent has not established rights or legitimate interests in the disputed domain name pursuant to Policy ¶ 4(c)(iii).  See M. Shanken Commc’ns v. WORLDTRAVELERSONLINE.COM, FA 740335 (Nat. Arb. Forum Aug. 3, 2006) (finding that the respondent was not commonly known by the <cigaraficionada.com> domain name under UDRP Policy ¶ 4(c)(ii) based on the WHOIS information and other evidence in the record); see also Coppertown Drive-Thru Sys., LLC v. Snowden, FA 715089 (Nat. Arb. Forum July 17, 2006) (concluding that the respondent was not commonly known by the <coppertown.com> domain name where there was no evidence in the record, including the WHOIS information, suggesting that the respondent was commonly known by the disputed domain name).

 

Furthermore, the confusingly similar <pisecurities.us> domain name does not resolve to an active website and Respondent has not come forward with any evidence to indicate that it has made demonstrable preparations to use the disputed domain name for any purpose.  In Chanel, Inc. v. Heyward, D2000-1802 (WIPO Feb. 23, 2001), the panel concluded that the respondent did not have rights or legitimate interests in the <chanelparee.com> domain name where it did not respond to the complaint and had failed to use the domain name.  As this case involves similar circumstances, the Panel finds that Respondent has not used the disputed domain name in connection with a bona fide offering of goods or services under Policy ¶ 4(c)(ii) and has not made a legitimate noncommercial or fair use of it under UDRP Policy ¶ 4(c)(iv).  See Flor-Jon Films, Inc. v. Larson, FA 94974 (Nat. Arb. Forum July 25, 2000) (finding that the respondent’s failure to develop the site demonstrates a lack of legitimate interest in the domain name). 

 

The Panel concludes that Complainant satisfied usTLD Policy ¶ 4(a)(ii).

 

Registration and Use in Bad Faith

 

Complainant next alleged that Respondent acted in bad faith in registering and holding a domain name containing in its entirely Complainant’s mark.  Respondent has been the subject of two previous UDRP proceedings, including one brought by this Complainant, and the Panel finds that this demonstrates a pattern of registering domain names containing others’ marks in order to prevent these parties from reflecting their marks in domain names.  Such conduct is prohibited under Policy ¶ 4(b)(ii) and considered to be in bad faith.  See Yahoo! Inc. v. Deiana, FA 339579 (Nat. Arb. Forum Nov. 22, 2004) (“It is found and determined that Respondent is in violation of Policy ¶ 4(b)(ii) because Respondent registered the disputed domain names to prevent Complainant from reflecting its YAHOO! mark in the corresponding domain names.  The registration of the [<ayhooo.com>, <ayhooo.net >, <ayhooo.org>, <ayhoooindia.com>, <ayhoookids.com>, <ayhooorealty.com>, <ayhooorealty.net>, <ayhoooshopping.com>, <ayhooo-uk.com>, and <searchayhooo.com>] domain names herein constitutes a pattern of registering trademark-related domain names in bad faith.”); see also Nat’l Abortion Fed’n v. Dom 4 Sale, Inc., FA 170643 (Nat. Arb. Forum Sept. 9, 2003) (finding bad faith pursuant to Policy ¶ 4(b)(ii) because the domain name prevented complainant from reflecting its mark in a domain name and respondent had had several adverse decisions against it in previous UDRP proceedings, which established a pattern of cybersquatting).

 

The Panel also finds that Respondent’s failure to make any demonstrable preparations to use the <pisecurities.us> domain name since registering it more than six months ago further suggests bad faith registration and use pursuant to Policy ¶ 4(a)(iii).  See 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); see also Telstra Corp. v. Nuclear Marshmallows, D2000-0003 (WIPO Feb. 18, 2000) (“[I]t is possible, in certain circumstances, for inactivity by the Respondent to amount to the domain name being used in bad faith.”).

 

As a former client of Complainant that repeatedly made serious threats to Complainant, including legal action, the Panel finds that Respondent had actual knowledge of Complainant and Complainant’s rights in the mark.  Complainant includes e-mail correspondence in its exhibits demonstrating these threats and Respondent has not come forward to contradict or dispute the threats and statements.  As a result, the Panel finds that Respondent’s conduct provides additional evidence of bad faith under Policy ¶ 4(a)(iii).  See Reuters Ltd. v. Teletrust IPR Ltd., D2000-0471 (WIPO Sept. 8, 2000) (finding that respondent demonstrated bad faith where respondent was aware of  complainant’s famous mark when registering the domain name as well as aware of the deception and confusion that would inevitably follow if he used the domain names); see also Kraft Foods (Norway) v. Wide, D2000-0911 (WIPO Sept. 23, 2000) (“[T]he fact that Respondent chosen [sic] to register a well known mark to which [it] has no connections or rights indicates that [it] was in bad faith when registering the domain name at issue.”).

 

The Panel concludes that Complainant satisfied usTLD Policy ¶ 4(a)(iii).

 

DECISION

Complainant having established all three elements required under the usTLD Policy, the Panel concludes that relief shall be GRANTED.

 

Accordingly, it is Ordered that the <pisecurities.us> domain name be TRANSFERRED from Respondent to Complainant.

 

 

Hon. Carolyn Marks Johnson, Panelist

Dated: January 29, 2007.

 

 

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