National Arbitration Forum

 

DECISION

 

Grant Street Group, Inc. v. RealAuction.com

Claim Number: FA0412000385809

 

PARTIES

 

Complainant is Grant Street Group, Inc. (“Complainant”), represented by Paul S. Chirgott, 429 Forbes Avenue, Suite 1800, Pittsburgh, PA 15219.  Respondent is RealAuction.com (“Respondent”), represented by Teresa Ragatz, of Isicoff Ragatz & Koenigsberg, P.L., 1101 Brickell Avenue, Suite 800 South Tower, Miami, FL 33131.

 

REGISTRAR AND DISPUTED DOMAIN NAME 

 

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

 

Bruce Meyerson as Panelist.

 

PROCEDURAL HISTORY

 

Complainant submitted a Complaint to the National Arbitration Forum electronically on December 20, 2004; the National Arbitration Forum received a hard copy of the Complaint on December 20, 2004.

 

On December 21, 2004, Network Solutions, Inc. confirmed by e-mail to the National Arbitration Forum that the domain name <realauction.com> is registered with Network Solutions, Inc. and that the 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 December 22, 2004, a Notification of Complaint and Commencement of Administrative Proceeding (the “Commencement Notification”), setting a deadline of January 11, 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@realauction.com by e-mail.

 

A timely Response was received and determined to be complete on January 11, 2005.

 

            Complainant has submitted an Additional Submission which was received in a timely             manner according to the National Arbitration Forum Supplemental Rule No.7.

 

On January 17, 2005, pursuant to Complainant’s request to have the dispute decided by a single-member Panel, the National Arbitration Forum appointed Bruce Meyerson as Panelist.

 

RELIEF SOUGHT

 

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

 

PARTIES’ CONTENTIONS

 

A. Complainant

 

Complainant asserts that it has been in the business, among other things, of developing, servicing and hosting Internet-based auction platforms since 1997.  One of the business activities engaged in by Complainant pertains to the advertising and auctioning of delinquent tax certificates.  Complainant contends that beginning in October 2003, it began using the REALAUCTION mark in connection with this aspect of its business.  The mark was first registered in the State of Florida on October 21, 2004.  Complainant contends that Respondent initially began doing business in Florida under the name of “Internet Auction Solutions, LLC” and subsequently changed its name to “RealAuction.com, LLC.”

 

Complainant contends the Respondent knew of its “rights” in the REALAUCTION mark five months before it began using the disputed domain name.  Complainant states that at the time it filed the Complaint, no services were offered on Respondent’s website.  Complainant argues that Respondent’s activities demonstrate that its purpose is to compete directly with Complainant’s business and to attract customers for commercial gain, by creating a likelihood of confusion with Complainant’s mark.

 

 

B. Respondent

 

According to Respondent, as the result of a change in Florida law in 2004, Respondent became involved in conducting tax certificate sales via the Internet.  On October 6, 2004, Respondent changed its name from Internet Auction Solutions to RealAuction.com.  Respondent changed its name because, among other things, earlier that year it purchased the disputed domain name from a third party.

 

Respondent contends that before it received notice of the any dispute with Complainant, it made use of the domain name at issue through a bona fide offering of services.  Respondent contends that it is not using the domain name in bad faith and that when it purchased the domain name, there was “no sign of RealAuction” or “RealAuction.com” on Complainant’s website, that Complainant owned no trademark registrations for the REALAUCTION or REALAUCTION.COM marks and finally that Complainant had no pending trademark applications for the REALAUCTION or REALAUCTION.COM marks.

 

C. Additional Submissions

 

In its Additional Submission, Complainant contends, among other things, that its first use of the REALAUCTION and REALAUCTION.COM occurred in 2003 before Respondent purchased the domain name at issue.  Moreover, Complainant contends that it started using the REALAUCTION trademark on its website in April 2004.

 

FINDINGS

 

Respondent acquired the domain name on September 21, 2004.   On October 6, 2004, Respondent filed with the Florida Department of State its amended articles of incorporation wherein it changed its name to RealAuction.com.  Complainant registered its mark with the State of Florida on October 21, 2004. 

 

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 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;

(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.

 

Three elements must be proven by a successful complainant in these proceedings.  If a complainant is unsuccessful with respect to any one element, the complainant must fail. 

 

Here, Complainant cannot prove bad faith registration of the disputed domain name because Complainant did not establish rights in the REALAUCTION mark until, at the earliest, Oct. 21, 2004, after Respondent acquired the domain name.

 

Registration and Use in Bad Faith

 

It is Complainant’s contention that Respondent has registered and used the domain name in “bad faith” because, according to Complainant, Respondent violated Policy 4(b)(iv) (attracting Internet users to its site by creating a likelihood of confusion with Complainant’s mark).   But under this, or any theory of bad faith, it is necessary for Complainant to have established rights in the identical or similar mark before the registration of the domain name at issue.  See, e.g., Ode v. Intership Ltd., D2001-0074 (WIPO May 1, 2001) (“We are of the unanimous view that the trademark must predate the domain name.”); see also Robert A. Badgley, Domain Name Disputes § 8.03 (2002) (“It should go without saying that an ICANN respondent could not have registered his domain name in ‘bad faith’ if, at the time of such registration, there was no identical or similar trademark out there.”)  

 

Here the record reflects that the domain name at issue had been owned by a third party, and acquired by Respondent on September 21, 2004.[1]   Two weeks later, on October 6, 2004, Respondent filed with the Florida Department of State its amended articles of incorporation wherein it changed its name to RealAuction.com.  Complainant registered its mark with the State of Florida on October 21, 2004.  As of the date that Respondent acquired the domain name, Complainant had not registered its mark.[2]  Accordingly, prior to the time that Respondent acquired ownership of the domain name, Complainant had not established “rights” in a mark similar or identical to the domain name.

 

DECISION

 

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

 

 

Bruce Meyerson, Panelist
Dated: February 7, 2005

 

 

 

Click Here to return to the main Domain Decisions Page.

 

Click Here to return to our Home Page

 

National Arbitration Forum


 



[1] The record reflects that Respondent began using the domain name to promote its business at least by January 2005. 

[2] Complainant makes no contention that it has established common law rights to its mark.