National Arbitration Forum

 

DECISION

 

Harrah's License Company, LLC v. Jerald Thompson a/k/a Educationbeyond.com

Claim Number: FA0704000956391

 

PARTIES

Complainant is Harrah's License Company, LLC (“Complainant”), represented by Pamela K. Lina, of Alston & Bird, LLP, 1201 West Peachtree Street, Atlanta, GA 30309.  Respondent is Jerald Thompson a/k/a Educationbeyond.com (“Respondent”), 5120 Main Rd W, Emmaus, PA 18049.

 

REGISTRAR AND DISPUTED DOMAIN NAME

The domain name at issue is <harrahspa.com>, registered with Go Daddy Software, Inc.

 

PANEL

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

 

Richard Hill as Panelist.

 

PROCEDURAL HISTORY

Complainant submitted a Complaint to the National Arbitration Forum electronically on April 6, 2007; the National Arbitration Forum received a hard copy of the Complaint on April 6, 2007.

 

On April 9, 2007, Go Daddy Software, Inc. confirmed by e-mail to the National Arbitration Forum that the <harrahspa.com> domain name is registered with Go Daddy Software, Inc. and that Respondent is the current registrant of the name.  Go Daddy Software, Inc. has verified that Respondent is bound by the Go Daddy Software, 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 April 25, 2007, a Notification of Complaint and Commencement of Administrative Proceeding (the “Commencement Notification”), setting a deadline of May 15, 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@harrahspa.com by e-mail.

 

A timely Response was received and determined to be complete on May 15, 2007.

 

A timely Additional Submission was submitted by Complainant and was determined to be complete on May 21, 2007.

 

A timely Additional Submission was submitted by Respondent and was determined to be complete on May 22, 2007.

 

On May 22, 2007, pursuant to Complainant’s request to have the dispute decided by a single-member Panel, the National Arbitration Forum appointed Richard Hill as Panelist.

 

RELIEF SOUGHT

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

 

PARTIES’ CONTENTIONS

A. Complainant

According to Complainant, it is a wholly owned subsidiary of Harrah’s Operating Company (HOC), which owns or manages more than forty casinos on four continents, making it the largest casino entertainment company in the world.

 

Since at least 1937, Complainant has continuously used the mark HARRAH’S to identify casino and other entertainment services and products.  Complainant currently operates 19 casinos in 11 states in the USA, under the mark HARRAH’S.  One of these casinos is located in Chester, Pennsylvania and is named “Harrah’s Chester”.

 

According to Complainant, its mark HARRAH’S is one of the most well respected and readily recognized marks in the casino entertainment industry.  Complainant owns registered trademarks for HARRAH’S and operates a website at <harrahs.com>.

 

Respondent, a resident of Pennsylvania, registered the disputed domain name on January 11, 2006, without Complainant’s knowledge or consent.  Respondent used the disputed domain name to point to a website that displayed a large image of Harrah’s Chester casino and provided links to gambling blogs and Harrah’s casinos. 

 

According to Complainant, on October 4, 2006, Respondent filed an intent-to-use trademark registration application for the mark “HarrahsPA.COM” for use in connection with the dissemination of advertising for others via the Internet.  This application was refused by the US Patent and Trademark Office because it was held to be confusingly similar to Complainant’s marks.

 

In response to a letter from Complainant, on December 6, 2006, Respondent wrote to state that his actions were non-commercial in nature and that his website included links to Harrah’s websites, including the one for Harrah’s Chester.

 

Complainant replied to the effect that the trademark application indicated that Respondent’s intent was commercial use and that the admitted relation to the casino Harrah’s Chester created a likelihood of confusion.

 

On March 21, 2007, Respondent offered to transfer the disputed domain name to Complainant for the sum of US $ 2,500,000 (two million five hundred thousand), justifying the amount as compensation for “extensive time, effort, personal and professional expenses including expenses for domain registration and website maintenance, advertising revenue generated by the site with over 50,000 hits, and personal effort put into this project.”

 

According to Complainant, the disputed domain name is confusingly similar to Complainant’s mark HARRAH’S, because the addition of the letters “PA” at the end of the domain name do not prevent confusion.

 

Complainant alleges that Respondent has no rights or legitimate interests in the disputed domain name because his use of that name is a blatant attempt to trade on the goodwill and fame associated with Complainant’s mark.  Respondent’s allegation that he registered the disputed domain name for non-commercial use appears to be nothing more than an after-the-fact fabrication made in an effort to legitimize Respondent’s actions.  It is contradicted by his trademark application (which mentioned a commercial purpose, namely advertising) and by his stating that he earned advertising revenue from the site at the disputed domain name.

 

According to Complainant, by luring users seeking information on Harrah’s Chester casino to Respondent’s website, and by redirecting that traffic to third party commercial websites, Respondent creates actual and initial interest confusion.  Thus Respondent intentionally attempted to attract Internet users to his website for commercial gain by creating a likelihood of confusion with Complainant’s mark, in violation of the Policy.

 

Further, alleges Complainant, given that Complainant’s mark is well known, and that Respondent had actual knowledge of that mark, as shown by his website (which includes links to the Harrah’s Chester casino), it is clear that Respondent registered the disputed domain name in order to create the likelihood of confusion with Complainant’s mark as to the source, sponsorship, affiliation or endorsement of Respondent’s website, which constitutes bad faith use in violation of Policy ¶ 4(b)(iv).

 

Finally, says Complainant, bad faith is also established by Respondent’s offer to sell the disputed domain name for US $ 2,500,000, which is in excess of documented out-of-pocket costs and shows that Respondent registered the disputed domain name in order to profit by selling it, which constitutes bad faith use in violation of Policy ¶ 4(b)(i).

 

B. Respondent

Respondent states that the website at the disputed domain name was created by him over 2 years ago as an informational website.  Complainant does not own every site or trademark with Harrah’s as a part of the identifier and to allow them to do so would violate fair trade rules.  After creating the website at the disputed domain name, he offered Complainant to use the website for advertising, which they declined.  ICANN Rule 3(b)(ix)(1); ICANN Policy ¶ 4(a)(i).

 

However, Respondent states that he has made no financial profit from ownership of the disputed domain name.  In fact, there is no advertising on the site only a link to his blogs.  ICANN Rule 3(b)(ix)(3); ICANN Policy ¶ 4(a)(iii).

 

Further, Respondent raises an issue regarding an alleged inaccuracy in the Complaint regarding his name.  He states: “while the correct form of my name, Jerald Thompson, Respondent, is used, I do not own the domain name eductionbeyond.com.”  That is, Respondent notes that the word “education” was misspelled as “eduction” in the Complaint.

 

Respondent requests that, due to that inaccuracy, the case be dismissed, since Complainant failed to correct the inaccuracy within the time limit provided under the Policy, which, according to Respondent, was April 23, 2007.

 

C. Additional Submissions

Complainant

Concerning the alleged inaccuracy in the Complaint with respect to Respondent’s name, Complainant states that, at the request of the Forum, it amended the Complaint to include a reference to “educationbeyond.com.”  However, due to a typographical error, this was misspelled at “eductionbeyond.com” in the April 23, 2007 version of the Complaint and was subsequently corrected on April 24, 2007.

 

According to Complainant, Respondent shows bad faith by contradicting his prior statements.  In Respondent’s letter of March 21, 2007 to Complainant, he stated that he had received “advertising revenue generated by the site with over 50,000 hits.”  Respondent’s statement that he has made no financial profit from the disputed domain name can only be deemed (according to Complainant) to be an attempt to deceive the Panel into believing that he has a legitimate interest in the disputed domain name.

 

Respondent

Respondent alleges that the amended Complaint filed one day after the deadline (on April 24, 2007) was still incorrect and thus inadmissible.  Further, says Respondent, a version of the Complaint containing the correct name of Respondent was only filed on May 21, 2007, well after the deadline.  Thus, he alleges, the Complaint is inadmissible.

 

Respondent states, once again, that he has acquired NO financial gain from his ownership of the disputed domain name; as previously stated, Respondent was in contact with Complainant to inquire if it would be interested in advertising on his domain site.  Respondent had owned the disputed domain name for over 1.5 years at the time of his contact with Complainant.

 

Respondent admits to having received over 50,000 hits through the disputed domain name; however there was never any financial gain by Respondent and this was only due to his advertising the site, which required intensive manpower, blogs, and constant daily monitoring and maintenance of the site.

 

Respondent has parked the disputed domain name to show good faith during the UDRP process.

 

FINDINGS

Complainant owns registered trademark rights in the string HARRAH’S and is a well-known operator of casinos in the USA and elsewhere.

 

Respondent used the disputed domain name to point to a website providing links to Complainant’s Harrah’s Chester casino and to other websites related to gambling.

 

Respondent derived advertising revenue from the disputed domain name.

 

Respondent offered to sell the disputed domain name to Complainant for the sum of US $ 2,500,000 (two million five hundred thousand).

 

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.

 

Before addressing the substantive issues, the Panel will address the procedural issue raised by Respondent, namely the alleged misspelling of “aka <educationbeyond.com>” in the name of Respondent in the Complaint.

 

The version of the Complaint transmitted by the Forum to the Panel, dated April 24, 2007, does not contain the typographical error described by Respondent.  Since this is the formal document to be considered by the Panel, the Panel holds that Respondent’s allegation regarding the misspelled name is without merit.

 

Further, had there been such a misspelling, the Panel would in any case (in accordance with Paragraphs 10, 12 and 15(a) of the Rules) have held it to be immaterial, since the misspelling did not have any practical consequence: it did not prevent Respondent from receiving the Complaint or from recognizing himself as the intended recipient of the Complaint, as proven by Respondent’s filing a Response and an Additional Submission.

 

Identical and/or Confusingly Similar

 

It is obvious that the disputed domain name is confusingly similar to Complainant’s mark HARRAH’S.  See Daddy’s Junky Music Stores, Inc. v. Kausar, FA 140598 (Nat. Arb. Forum Feb. 11, 2003) (“The lack of an apostrophe in the domain name is not a distinguishing difference because punctuation is not significant in determining the similarity of a domain name and a mark.”); 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).

 

Rights or Legitimate Interests

 

On the basis of the evidence, and the information provided by Respondent, the Panel holds that Respondent registered the disputed domain name in order to generate advertising revenue by redirecting Internet users.  Indeed, Respondent applied for a trademark registration for “HarrahPA.COM” for the purpose of “dissemination of advertising for others via the Internet.”  Further, on March 21, 2007, Respondent stated that he had received significant “advertising revenue generated by the site with over 50,000 hits.”

 

Such a use does not establish rights or legitimate interests under the policy.  See Black & Decker Corp. v. Clinical Evaluations, FA 112629 (Nat. Arb. Forum June 24, 2002) (holding that the respondent’s use of the disputed domain name to redirect Internet users to commercial websites, unrelated to the complainant and presumably with the purpose of earning a commission or pay-per-click referral fee did not evidence rights or legitimate interests in the domain name); see also Prudential Ins. Co. of Am. v. Stonybrook Invs., LTD, FA 100182 (Nat. Arb. Forum Nov. 15, 2001) (finding no rights or legitimate interests in the disputed domain name where the respondent was using the complainant’s mark to redirect Internet users to a website offering credit card services unrelated to those services legitimately offered under the complainant’s mark).

 

Registration and Use in Bad Faith

 

Respondent is using the disputed domain name to operate a website that provides links to various commercial websites related to gambling.  This use will likely lead to confusion among Internet users as to Complainant’s sponsorship of or affiliation with the resulting websites.  Indeed, the US Patent and Trademark Office rejected Respondent’s application for the trademark “HarrahsPA.COM” because of a likelihood of confusion with Complainant’s marks, stating:

 

Purchasers of the applicant’s [Respondent’s] services could mistakenly assume that such services were performed by the registrant [Complainant], or that applicant and registrant are related in some way.

 

By his own admission in his March 21, 2007 correspondence (see above) with Complainant (and despite subsequent denials), Respondent profited from using the disputed domain name by obtaining revenue, presumably in the form of referral fees for each redirected Internet user.  Such use constitutes bad faith registration and use pursuant to Policy ¶ 4(b)(iv).  See Am. Univ. v. Cook, FA 208629 (Nat. Arb. Forum Dec. 22, 2003) (“Registration and use of a domain name that incorporates another's mark with the intent to deceive Internet users in regard to the source or affiliation of the domain name is evidence of bad faith.”); see also Perot Sys. Corp. v. Perot.net, FA 95312 (Nat. Arb. Forum Aug. 29, 2000) (finding bad faith where the domain name in question is obviously connected with the complainant’s well-known marks, thus creating a likelihood of confusion strictly for commercial gain).

 

Further, it is not contested that Respondent made an offer to sell the disputed domain name for $2,500,000 (two million five hundred thousand), justifying the amount as compensation for “extensive time, effort, personal and professional expenses including expenses for domain registration and website maintenance, advertising revenue generated by the site with over 50,000 hits, and personal effort put into this project.”  It is clear that the amount requested is well above out-of-pocket costs.

 

Thus Respondent’s behavior is conclusive evidence of bad faith registration and use pursuant to Policy ¶ 4(b)(i).  See Lyon v. Casserly, FA 193891 (Nat. Arb. Forum Oct. 29, 2003) (finding that the domain name was acquired primarily for the purpose of transferring the domain name to the complainant for valuable consideration in excess of the respondent's out-of-pocket costs because the respondent made various requests for concert tickets, backstage passes, press passes and a website development contract); see also World Wrestling Fed’n Entm’t., Inc. v. Bosman, D99-0001 (WIPO Jan. 14, 2000) (finding that the respondent used the domain name in bad faith because he offered to sell the domain name for valuable consideration in excess of any out-of-pocket costs).

 

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 <harrahspa.com> domain name be TRANSFERRED from Respondent to Complainant.

 

 

 

 

Richard Hill, Panelist
Dated: June 4, 2007

 

 

 

 

 

 

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