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Hanson Medical Inc. v. JMM Distributing [2000] GENDND 964 (25 August 2000)


National Arbitration Forum

DECISION

Hanson Medical Inc. v. JMM Distributing, Inc.

Claim Number: FA0006000095072

PARTIES

The Complainant is Hanson Medical Inc., Kingston, WA, USA ("Complainant"). The Respondent is JMM Distributing, Inc., Silverdale, WA, USA ("Respondent").

REGISTRAR AND DISPUTED DOMAIN NAMES

The domain names at issue are "SCARFADE.COM", "HANSONMEDICAL.COM", and "ORCASURGICAL.COM", registered with Network Solutions Inc ("NSI").

PANELIST

The Panelist, James P. Buchele, certifies that he has acted independently and impartially and to the best of his or her knowledge has no known conflict in serving as the panelist in this proceeding.

PROCEDURAL HISTORY

Complainant submitted a Complaint to the National Arbitration Forum ("The Forum") electronically on 06/27/2000; The Forum received a hard copy of the Complaint on 06/27/2000.

On 07/11/2000, NSI confirmed by e-mail to The Forum that the domain names "SCARFADE.COM", "HANSONMEDICAL.COM", and "ORCASURGICAL.COM", are registered with NSI and that the Respondent is the current registrant of the name. NSI has verified that Respondent is bound by the Network Solutions Service Agreement Version 4.0 and has thereby agreed to resolve domain-name disputes brought by third parties in accordance with ICANNís UDRP.

On 07/18/2000, a Notification of Complaint and Commencement of Administrative Proceeding (the "Commencement Notification"), setting a deadline of 08/07/2000 by which Respondent could file a Response to the Complaint, was transmitted to Respondent via e-mail, post and fax, and to all entities and persons listed on Respondentís registration as technical, administrative and billing contacts by e-mail.

On August 11, 2000, pursuant to Complainantís request to have the dispute decided by a Single Member panel, The Forum appointed James P. Buchele as Panelist.

RELIEF SOUGHT

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

PARTIESí CONTENTIONS

    1. Complainant

The Complainant contends that the Respondents have registered as domain names marks which are identical or confusingly similar to trademarks and established business names used by the Complainant, that Respondent has no rights or legitimate interests in respect to any of the domain names at issue and that Respondent has registered and is using the domain names in bad faith.

    1. Respondent

Respondents contend that Complainant and Respondents were formerly associated in business and that the domain name "Scarfade.com" was prepared and registered with the verbal permission of Complainant and that Complainant had requested assistance in establishing and designing websites for Hanson Medical, Inc. and Orca Surgical, Inc. and registration of the corporate names as domain names was with Complainants permission. It is the Respondents position that they have and should retain an interest in the domain names until resolution of the disputes arising out of the partyís former business relationship

FINDINGS

      1. It is not disputed that at the time the domain name Scarfade.com was registered (June 15, 1999) the Parties had an agreement that Respondents would market at retail a product named "ScarFade" which is manufactured by Complainant.
      2. On June 25, 1999, Complainant terminated the Respondents distributorship for ScarFade. Any legitimate interest that Respondents have in use of the mark "ScarFade" arises out of the marketing agreement between the Parties. When the distributorship was terminated on June 25, 1999 Respondents right to use Complainants mark ScarFade ended.
      3. There is a lawsuit pending between these parties in the Superior Court of Kitsap County Washington, Case No. 99-2-02431-3. In that case, the parties stipulated, inter alia, that Respondents shall have no rights to sell or claim any right to the term or product Scarfade.
      4. Respondent registered the domain name "OrcaSurgical.com" on June 28, 1999 and the domain name "HansonMedical.com" on June 29, 1999 after the distributor agreement had been terminated and without Complainants knowledge or consent.

DISCUSSION

Paragraph 4(a) of the ICANN Uniform Domain Name Dispute Policy ("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; and

(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.

Identical and/or Confusingly Similar

Complainant is the manufacturer of the product labled Scarfade and is the owner of a State of Washington trademark for Scarfade. Complainant is the owner of corporations named Hanson Medical, Inc. and Orca Surgical, Inc. and transacted business under those names prior to June 25, 1999.

The domain names registered by Respondents are identical or confusingly similar to Complainants product and business names.

Rights or Legitimate Interests

Respondents have not shown a legitimate right or interest in the three domain names at issue. Respondents have in fact stipulated in the lawsuit that they will not make any commercial use of the domain names. Any claims by either party against the other over their prior business relationship should be resolved in the pending lawsuit, not by cyber squatting.

Registration and Use in Bad Faith

Respondentís only right to use any of the domain names arises out of permission from the Complainant. After the distributorship contract was terminated, Respondents had no legitimate right to the use of the mark Scarfade. They have maintained registration of the domain name "Scarfade.com" to prevent its use by Complainant who manufactures the product and to disrupt his business due to a disagreement over the severance of their business relationships.

By registering the domain names "HansonMedical.com" and "OrcaSurgical.com" for no apparent reason after the distributorship agreement had been terminated, Respondents established a pattern of conduct to prevent Complainantís use of the established business names as domain names and to disrupt and distract from the Complainants business.

DECISION

For all of the foregoing reasons, the Arbitrator finds that the domain names registered by Respondents are identical or confusingly similar to the trademark in which the Complainant has rights, and that the Respondent has no rights or legitimate interests in respect of the domain names, and that the Respondentís domain names have been registered and are being used in bad faith. Accordingly, pursuant to Paragraph 4 of the Policy, the Arbitrator requires that the registration of the domain name "Scarefade.com",

"HansonMedical.com" and "OrcaSurgical.com" be transferred to the Complainant.

Judge James P. Buchele (Ret.)

Arbitrator

Date: August 25, 2000

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