National Arbitration Forum

 

DECISION

 

Marcus & Joy LLC v. BABYLIFE

Claim Number: FA0703000937081

 

PARTIES

Complainant is Marcus & Joy LLC (“Complainant”), 480 Gate 5 Road, Suite 200, Sausalito, CA 94965.  Respondent is BABYLIFE (“Respondent”), represented by Victor Mattison, 712 N. Second Street, Suite 300, St. Louis, MO 63102.

 

REGISTRAR AND DISPUTED DOMAIN NAME 

The domain name at issue is <babylife.com>, registered with Network Solutions, Inc.

 

PANEL

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

 

Carol M. Stoner, Esq., as Panelist.

 

PROCEDURAL HISTORY

Complainant submitted a Complaint to the National Arbitration Forum electronically on March 13, 2007; the National Arbitration Forum received a hard copy of the Complaint on March 19, 2007.

 

On March 14, 2007, Network Solutions, Inc. confirmed by e-mail to the National Arbitration Forum that the <babylife.com> domain name is registered with Network Solutions, Inc. and that Respondent is the current registrant of the name.  Network Solutions, Inc. has verified that Respondent is bound by the Network Solutions, 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 March 20, 2007, the National Arbitration Forum advised Complainant that the Complaint was deficient, in that Complainant was not consistently named; no telephone number was listed for Complainant’s authorized representative; a copy of the ICANN Policy was not appended to the Complaint; and the filing fee of $1,300 was not supplied. Complainant rectified the deficiencies within the required five calendar day time period.

 


On March 26, 2007, a Notification of Complaint and Commencement of Administrative Proceeding (the “Commencement Notification”), setting a deadline of April 16, 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@babylife.com by e-mail.

 

A timely Response was received and determined to be complete on April 20, 2007.

 

On April 30, 2007, pursuant to Complainant’s request to have the dispute decided by a single-member Panel, the National Arbitration Forum appointed Carol M. Stoner, Esq., as Panelist.

 

RELIEF SOUGHT

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

 

Respondent requests that pursuant to ICANN Rule 15 (e), that the Panel make a finding of reverse domain name hijacking.

 

PARTIES’ CONTENTIONS

A. Complainant

Complainant filed for the trademark BABYLIFE on January 12, 2006 in international classes 10 and 28, for the respective goods and services of “cups adapted for feeding babies and children and infant toys”.  Complainant presents no evidence that the application has matured into a registration and offers only the date of publication of August 23, 2006 and the Notice of Allowance Date of October 05, 2006.  Marcus and Joy LLC, of which Pam Marcus is a partner, was incorporated in California as a Limited Liability Corporation in 2005.

 

Complainant filed for trademark registration with the stated intent to sell baby products and apparel.  Shortly after starting the business, Complainant hired Sedo (the leading marketplace [per Complainant] for buying and selling domain names and websites) at the recommendation of Network Solutions.  Complainant proffers an Appraisal for

<babylife.com> in which the conclusion is that the domain name of <babylife.com> is valued at $2,750.00.  Complainant decided to pursue the domain through Sedo, to launch Complainant’s website.  Complainant attached a report from <sedo.com> regarding the acquisition of the name from the owner.

 

Complainant admits that Respondent did not register the domain in order to prevent the owner of the trademark to register the domain, nor for the purpose of disrupting the business of a competitor.

 

However, Complainant alleges that Respondent had abandoned the BABYLIFE trademark on August 26, 1997, and is not making a legitimate non-commercial or fair use of the domain, as it has been parked with tetranet for 11 years.

 

Complainant further states that Respondent is not commonly known by the disputed domain, because neither a Yellow Page search nor a Google Search produce a connection to Respondent.

 

Complainant states that Respondent is retaining the domain in hopes of selling it to a future trademark owner, yet has rebuffed any attempts for Complainant to purchase the disputed domain name at a reasonable price.

 

B. Respondent

 

Respondent admits that its domain name of <babylife.com> is the same or similar of that of Complainant’s trademark.  However, he asserts that the trademark rights should be narrow in scope due to Complainant’s narrow description of goods and services as “cups adapted for feeding babies and children and infant toys.”

 

Respondent alleges that Complainant was aware of Respondent’s ownership and use of the domain, before Complainant was incorporated, or filed for its trademark, or filed any other domain name registration.  Complainant applied for its trademark on January 12, 2006, more than 10 months after becoming aware that Respondent was making use of this domain name and was not interested in selling the domain name.

 

Respondent alleges that Complainant has a less than business like website, accessed under the name of <visitbabylife.com>, noting its absence of a marketing front page, a root directory without much linkage, other than with counterfeit ownership pictures of Hillary Clinton and Frank Lloyd Wright with the partnership bios.

 

The <babylife .com> domain namehas been registered and used as an online service and website address in conjunction with the promotion of baby-proofing houses and selling products and services that enhance the life of children.

 

Respondent states that it prefers to retain ownership of the disputed domain name and thus has never marketed the name.  However, Respondent did rebuff a vague and unsubstantiated offer of less than $3000.  And for purposes of instant arbitration, 

Respondent hired a financial expert who evaluated the worth of the disputed domain name to be $250,000.

 

In support of its request that Panel make a finding on reverse domain name hijacking, Respondent further alleges as follows:

 

That Complainant attempted to purchase a domain name which was valid in its use and registration for an under market price, for the sole purpose of reaping a profit when selling it to a competitor.

 

That Complainant is not commonly known by the disputed name in that it posted a website (March 20, 2007) only in conjunction with filing of the Complaint; that website is hastily done and does not evince a legitimate business purpose of selling products consistent with the scope of its trademark; and further, that Complainant’s company name is neither found in the Yellow Pages, nor produced as a product of a Google search.

 

That if Complainant was sincere in its purpose to launch and promote a babylife website, it could have availed itself of the currently available domain name of <babylife.biz>.

 

FINDINGS

(1) The domain name registered by Respondent is not identical or confusingly similar to a trademark or service mark in which Complainant has rights; and

 

(2) Respondent has rights or legitimate interests in respect of the domain name;

and

 

(3) Respondent has not registered the domain name <babylife.com>, nor used said domain name, in bad faith.

 

(4) Complainant is not guilty of reverse domain name hijacking.

 

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

 

Complainant provides only limited evidence of its use of the BABYLIFE mark, including a trademark registration application for the mark and an assertion in the Complaint that it began using the mark in 2006.  The Panel finds that Complainant has not provided enough evidence to show its mark has acquired the secondary meaning necessary for it to establish common law rights in the mark under Policy ¶ 4(a)(i).  See Cashmore v. URLPro, D2004-1023 (WIPO Mar. 14, 2005) (finding no common law rights where the complainant did not present any credible evidence establishing acquired distinctiveness); see also Build-A-Bear Workshop, Inc. v. Pallone, FA 874279 (Nat. Arb. Forum Mar. 1, 2007) (finding that the complainant did not establish common law rights in the BEAR BUILDER or BEAR BUILDER marks because the evidence it submitted was insufficient to show the mark had acquired any secondary meaning).  

 

Moreover, Respondent claims that it registered the <babylife.com> domain name long before Complainant began using the BABYLIFE mark.  The WHOIS information indicates that Respondent registered it on January 15, 1996, ten years before Complainant alleges it first began using the mark.  As a result, the Panel finds  that Complainant cannot establish rights in the mark that predate Respondent’s registration of the disputed domain name, in which case Complainant has failed to satisfy Policy ¶ 4(a)(i).  See Phoenix Mortgage Corp. v. Toggas, D2001-0101 (WIPO Mar. 30, 2001) (“[Policy ¶ 4(a)(i)] necessarily implies that the Complainant’s [trademark] rights predate the Respondent’s registration and use of the Domain Name.  Any other interpretation would allow a junior trademark user to challenge a prior domain name registration, a possibility that is obviously contrary to the intent of the Policy and to trademark law generally”); see also EU Prop. Portfolio Ltd. v. Salvia Corp., FA 873726 (Nat. Arb. Forum Feb. 7, 2007) (finding that the complainant could not establish rights in the <eupp.com> domain name where its use of the EUPP mark did not predate the respondent’s registration of the domain name).

 

The Panel concludes that Complainant has failed to satisfy Policy ¶ 4(a)(i) because it does not have rights in the BABYLIFE mark that predate Respondent’s registration of the <babylife.com> domain name,

 

The Panel would be within its rights to decline  to analyze the other two elements of the Policy.  See Creative Curb v. Edgetec Int’l Pty. Ltd., FA 116765 (Nat. Arb. Forum Sept. 20, 2002) (finding that because the complainant must prove all three elements under the Policy, the complainant’s failure to prove one of the elements makes further inquiry into the remaining element unnecessary); see also Trujillo v. 1Soft Corp., FA 171259 (Nat. Arb. Forum Sept. 10, 2003) (“As Complainants have not shown that their rights pre-date Registrant's domain name, Complainants have not satisfied paragraph 4(a)(i) of the Policy.”).  However, as Respondent has entered a request for a finding of reverse domain name hijacking, this Panel believes that a more extensive threshing of the evidence is warranted.

 

Rights or Legitimate Interests

 

Respondent asserts that Complainant is incorrect in its allegation that Respondent has never used the <babylife.com> domain name.  Respondent alleges that it has used the <babylife.com> domain name in the past to promote its baby-proofing business, in conjunction with its other domain name, <childproofers.com>.  Respondent also claims that it never received an offer from Complainant to buy the <babylife.com> domain name.  The Panel finds that Respondent’s use of the <babylife.com> domain name to market its business is a bona fide offering of goods or services pursuant to Policy ¶ 4(c)(i).  See Am. Online, Inc. v. West, FA 638005 (Nat. Arb. Forum Mar. 20, 2006) (finding that the respondent was making a bona fide offering of goods or services at the <aol-city.com> domain name where it had used the domain name for over five years in connection with a real estate business in the UK and there was little chance of consumer confusion); see also Modern Props, Inc. v. Wallis, FA 152458 (Nat. Arb. Forum June 2, 2003) (finding that the respondent’s operation of a bona fide business of online prop rentals for over two years was evidence that the respondent had rights or legitimate interests in the disputed domain name); see also Chicago Bd. Options Exch. Inc. v. Private, FA 804703 (Nat. Arb. Forum Nov. 29, 2006) (finding it a persuasive factor that the respondent had used the disputed domain name for over seven years in concluding that the respondent had rights or legitimate interests in the disputed domain name).

 

The WHOIS information lists “BABYLIFE” as the registrant of the <babylife.com> domain name, and Respondent has provided evidence that it has used the BABYLIFE mark in the past in connection with its business.  As a result, this Panel holds that Respondent is commonly known by the disputed domain name under Policy ¶ 4(c)(ii).  See Avnet, Inc. v. Aviation Network, Inc., D2000-0046 (WIPO Mar. 24, 2000) (finding that the respondent was commonly known by the <avnet.net> domain name because the respondent submitted “evidence that it was known by the name AVNET for at least ten years prior to its domain name registration”); see also Digitronics Inventioneering Corp. v. @Six.Net Registered, D2000-0008 (WIPO Mar. 1, 2000) (finding that the respondent was commonly known by the <six.net> and <sixnet.com> domain names even though the complainant had registered the SIXNET trademark because the respondent demonstrated that its customers associated the respondent’s company with the domain names).  

 

Moreover, Respondent registered the <babylife.com> domain name ten years prior to Complainant’s alleged first use of the BABYLIFE mark.  This constitutes additional evidence that Respondent has rights or legitimate interests in the disputed domain name under Policy ¶ 4(a)(ii).  See Parachute, Inc. v. Jones, FA 94947 (Nat. Arb. Forum July 12, 2000) (denying transfer of the domain name because the respondent’s use of the PARACHUTE mark and the domain name in question preceded any use of the service mark by the complainant); see also Warm Things, Inc.  v. Weiss, D2002-0085 (WIPO Apr. 18, 2002) (finding that the respondent had rights or legitimate interests in a domain name when its registration of that domain name occurred before the complainant had established rights in its alleged mark). 

 

Registration and Use in Bad Faith

 

The Panel holds that Respondent has rights or legitimate interests in the <babylife.com> domain name pursuant to Policy ¶ 4(a)(ii), and therefore, the Panel also finds  that Respondent did not register or use the disputed domain name in bad faith pursuant to Policy ¶ 4(a)(iii).  See Pensacola Christian Coll. v. Gage, FA 101314 (Nat. Arb. Forum Dec. 12, 2001) (“Because the Panel has found that Respondent has rights and interests in respect of [sic] the domain name at issue, there is no need to decide the issue of bad faith.”); see also Lee Procurement Solutions Co. v. getLocalNews.com, Inc., FA 366270 (Nat. Arb. Forum Jan. 7, 2005) (“Respondent's rights and legitimate interests in the domain name pursuant to Policy ¶ 4(a)(ii), allow a finding that there was no bad faith registration or use under Policy ¶ 4(a)(iii).”).                        

 

Respondent contests Complainant’s allegation that it asked for $80,000 in exchange for transferring the <babylife.com> domain name registration to Complainant.  Respondent claims that it never even received an offer from Complainant, and that it has only ever received one offer, for $75,000, several years ago.  Respondent claims it has no intention to sell the disputed domain name and that its own third-party appraisal values the <babylife.com> domain name at $250,000.  The Panel finds that Respondent’s assertions are credible and therefore, the Panel also finds that it has not violated Policy ¶ 4(b)(i).  See PRIMEDIA Special Interest Publ’ns Inc. v. Treadway, D2000-0752 (WIPO Aug. 21, 2000) (finding that the respondent did not register the domain names in bad faith where there is no evidence that the respondent intended to sell the domain names and actually refused several offers from third parties); see also Gen. Mach. Prod. Co. v. Prime Domains, FA 92531 (Nat. Arb. Forum Mar. 16, 2000) (finding it significant that the complainant, and not the respondent had initiated contact, inquiring about purchasing the domain name <craftwork.com>, and that this fact tended to weigh against a finding of bad faith); see also JCM Germany GmbH v. McClatchey Jr., D2004-0538 (WIPO Sept. 17, 2004) (holding that the respondent did not violate Policy ¶ 4(b)(i) by attempting to sell the disputed domain name for profit because the respondent did not register the domain name with the intent to sell it to the complainant or one of its competitors).  

 


Respondent claims that it registered the <babylife.com> domain name in good faith, for it registered it in 1996, ten years before Complainant’s first use of the BABYLIFE mark, and therefore it could not have been aware of Complainant at the time it registered the disputed domain name.  The Panel also finds that Respondent’s registration of the disputed domain name long before Complainant’s first use of the mark indicates that Respondent did not register the disputed domain name in bad faith according to Policy ¶ 4(a)(iii).  See Open Sys. Computing AS v. degli Alessandri, D2000-1393 (WIPO Dec. 11, 2000) (finding no bad faith where the respondent registered the domain name in question before application and commencement of use of the trademark by the complainant); see also Interep Nat'l Radio Sales, Inc. v. Internet Domain Names, Inc., D2000-0174 (WIPO May 26, 2000) (finding no bad faith where the respondent registered the domain prior to the complainant’s use of the mark).

 

The Panel also finds that Respondent has not registered or used the disputed domain name in bad faith because it finds that Respondent has not violated any of the remaining Policy ¶ 4(b) factors.  See Goldmasters Precious Metals v. Gold Masters srl, FA 95246 (Nat. Arb. Forum Aug. 21, 2000) (finding no bad faith use, even though the respondent’s ownership and purported use of the domain name frustrated the complainant’s business efforts, because nothing indicated that the respondent intended to prevent the complainant from reflecting its mark in a corresponding domain name, to disrupt the complainant’s business, or to intentionally attract the complainant’s customers to the respondent’s site by creating a likelihood of confusion); see also Energy Source Inc. v. Your Energy Source, FA 96364 (Nat. Arb. Forum Feb. 19, 2001) (finding that the respondent successfully rebutted the complainant’s averments that it registered and used the domain name at issue in bad faith and that the complainant produced no credible evidence of bad faith on the part of the respondent).                          

 

Reverse Domain Name Hijacking 

 

Based upon a review of all the evidence, the Panel is satisfied that Complainant brought this action in good faith, based upon a faulty understanding of the legitimacy of its own rights, such as they exist in a complex area of the law.

 

Complainant makes a layman’s case for believing that Respondent’s disputed domain name was dormant and/or abandoned.  Their request to purchase the name was based upon good faith, research, and an appraisal, as suggested by Network Solutions.  Complainant’s resultant disappointment at being rebuffed, and the filing of the instant action may have been based upon naiveté, or even an inflated sense of entitlement.  But there is not sufficient evidence to indicate that the sole motive in seeking the purchase was to seize Respondent’s goodwill for their own, or to flip the name for substantial profit.

 

This Panel rules that the bar for achieving a ruling of reverse domain name hijacking should be set at such a formidable height, that Complainant is not deterred or chilled in exercising its rights in an approved Forum to seek a determination of domain name ownership, even in an arguably close case. 

 

See also Renaissance Hotel Holdings, Inc. v. The Renaissance Cochin, FA 932344 (Nat. Arb. Forum Apr. 23, 2007) (finding no reverse domain name hijacking of the <renaissancecochin.com> domain name, for it appeared that the complainant brought the complaint in the good faith belief based on its longstanding rights in the RENAISSANCE mark).

 

Thus, the Panel makes no finding of reverse domain name hijacking.

 

DECISION

Having failed to establish all three elements required under the ICANN Policy, the Panel concludes that Complainant's request for relief shall be DENIED.

 

Accordingly, it is Ordered that the <babylife.com> domain name SHALL NOT BE TRANSFERRED from Respondent to Complainant.

 

 

 

Carol M. Stoner, Esq., Sole Panelist

Dated: May 14, 2007

 

 

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