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International PADI, Inc. v. George Smitha/k/a Boldon Leisure Ltd. and Michael Stoker [2003] GENDND 993 (21 October 2003)


National Arbitration Forum

DECISION

International PADI, Inc. v. George Smith a/k/a Boldon Leisure Ltd. and Michael Stoker

Claim Number: FA0308000190514

PARTIES

Complainant is International PADI, Inc., Rancho Santa Margarita, CA (“Complainant”) represented by Diane M. Reed of Knobbe Martens Olson & Bear, LLP. Respondents are George Smith a/k/a Boldon Leisure Ltd. and Michael Stoker, Bangkok, Thailand (“Respondents”).

REGISTRAR AND DISPUTED DOMAIN NAME

The domain names at issue are <padimail.com>, <padimail.net>, <padimail.org>,   <padipros.net>, <padipros.org>, <padipro.net>, <padipro.org>, <padisearch.com>, <padisearch.net> and <padisearch.org> registered with Gandi and <padipro.com> and <padipros.com> registered with Melbourne It, Ltd. d/b/a Internet Names Worldwide (hereinafter the “disputed domain names”).

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 on August 22, 2003; the Forum received a hard copy of the Complaint on August 25, 2003.

On August 26, 2003, Gandi confirmed by e-mail to the Forum that the domain names <padimail.com>, <padimail.net>, <padimail.org>, <padipros.net>, <padipros.org>, <padipro.net>, <padipro.org>, <padisearch.com>, <padisearch.net> and <padisearch.org> are registered with Gandi and that Respondents are the current registrant of the names. Gandi verified that Respondents are bound by the Gandi registration agreement and have 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 August 27, 2003, Melbourne It, Ltd. d/b/a Internet Names Worldwide confirmed by e-mail to the Forum that the domain names <padipro.com> and <padipros.com> are registered with Melbourne It, Ltd. d/b/a Internet Names Worldwide and that Respondents are the current registrant of the names. Melbourne It, Ltd. d/b/a Internet Names Worldwide verified that Respondents are bound by the Melbourne It, Ltd. d/b/a Internet Names Worldwide registration agreement and has thereby agreed to resolve domain-name disputes brought by third parties in accordance with the Policy.

On September 4, 2003, a Notification of Complaint and Commencement of Administrative Proceeding (the "Commencement Notification"), setting a deadline of September 24, 2003 by which Respondents could file a Response to the Complaint, was transmitted to Respondents via e-mail, post and fax, to all entities and persons listed on Respondents’ registration as technical, administrative and billing contacts, and to postmaster@padimail.com, postmaster@padimail.net, postmaster@padimail.org, postmaster@padipro.com, postmaster@padipros.com, postmaster@padipros.net, postmaster@padipros.org, postmaster@padipro.net, postmaster@padipro.org, postmaster@padisearch.com, postmaster@padisearch.net and postmaster@padisearch.org by e-mail.

Having received no Response from Respondents, using the same contact details and methods as were used for the Commencement Notification, the Forum transmitted to the parties a Notification of Respondent Default.

On October 7, 2003, 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 discharged its responsibility under Paragraph 2(a) of the Rules for Uniform Domain Name Dispute Resolution Policy (the "Rules") "to employ reasonably available means calculated to achieve actual notice to Respondent."  Therefore, the Panel may issue its decision based on the documents submitted and in accordance with the ICANN Policy, ICANN 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 Respondents.

RELIEF SOUGHT

Complainant requests that the domain names be transferred from Respondents to Complainant.

PARTIES' CONTENTIONS

A.  Complainant makes the following assertions:

1. The domain names registered by Respondents are confusingly similar to Complainant’s PADI mark.

2. Respondents have no rights to or legitimate interests in the disputed domain names.

3. Respondents registered and used the disputed domain names in bad faith.

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

FINDINGS

Complainant established in this proceeding that it has rights in the PADI mark.  Complainant produced evidence of a number of trademark registrations with the United States Patent and Trademark Office (“USPTO”) for the PADI mark, including Reg. No. 1,005,461 (registered on February 25, 1975) in relation to educational services, namely offering diver training at the instructor level. Complainant uses its PADI mark, based on an acronym for Professional Association of Diving Instructors, in connection with services related to scuba diving.

Respondents are using the <padimail.com>, <padimail.net>, <padimail.org>,   <padipros.net>, <padipros.org>, <padipro.net>, <padipro.org>, <padipro.com> and <padipros.com> domain names to sell e-mail services and advertising space to scuba dive instructors and dive centers. Respondents are using the <padisearch.com>, <padisearch.net> and <padisearch.org> domain names as a search engine for finding scuba diving instructors and dive centers.

When Respondent Stoker registered the disputed domain names, he was a scuba diving instructor and a member of Complainant’s organization. Furthermore, Stoker was contractually obligated not to register any domain names that contained the PADI mark.

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."

Complainant can submit one complaint for the twelve disputed domain names because the same individual or entity registered each domain name, Respondent, George Smith.

The Rules provide that “[t]he complaint may relate to more than one domain name, provided that the domain names are registered by the same domain-name holder.” See Adobe Systems, Inc. v. Domain OZ, D2000-0057 (WIPO Mar. 22, 2000). The Panel recognizes that Complainant would be faced with an “unjustifiable economic burden” if it was required to bring several separate administrative proceedings, “and that it would be a burden on the administrative process” to require it to duplicate its effort in the same case. Id. Thus, the Panel accepts as true and inserts into its decision relevant sections of paragraph 5 of the Complaint, explaining that Respondent is George Smith. 

With regard to the identity of Respondent, Complainant alleged the following in its Complaint:

On information and belief, the domain names were first registered by Mr. Michael Stoker. After being contacted by Complainant, Mr. Stoker transferred the domain names to Respondent, who has continued use of the domain names in the same wrongful manner as Mr. Stoker. Also on information and belief, Mr. Stoker is the web designer for Respondent and has acted throughout this dispute on behalf of Respondent.

On or about June 17, 2002, Complainant first became aware that Mr. Stoker, one of its PADI members, had registered the domain names <padimail.com> and <padipros.com>. Complainant contacted Mr. Stoker by letter dated June 18, 2002 and requested that Mr. Stoker deactivate the website at <padipros.com> and cease the use of any domain names that include the PADI mark. Complainant received an e-mail from Mr. Stoker on June 19, 2002 in which Mr. Stoker stated, “I didn’t think that PADI would be very pleased with what I did.” Mr. Stoker indicated that on that day, he had applied to the registrar to get the <padipros.com> domain name removed. On July 6, 2002, Verio, Inc. confirmed cancellation of the domain name <padipros.com>.

On July 11, 2002, Complainant wrote to Mr. Stoker and asked if he had also cancelled the <padimail.com>, <padimail.org>, <padimail.net>, <padipros.org> and <padipros.net> domain names. On July 12, 2002, Mr. Stoker responded that these other domain names “are with another company than Verio, but are all under way in the same manner.”

On or about May 14, 2003, Complainant learned that Mr. Stoker had transferred the <padimail.com> domain name to Respondent. On May 14, 2003, Complainant received an e-mail from Respondent stating that Respondent had been given a point of contact at PADI regarding the <padimail.com> domain name, and that Respondent “will be pleased to discuss the matter with [PADI].”

On May 20, 2003, Complainant received an e-mail from Mr. Stoker stating that, as to the transfer of the domain names to Mr. Smith, Mr. Stoker was not aware that PADI has trademark rights to this domain name and its derivatives.

On June 6, 2003, Complainant received an e-mail from Mr. Stoker stating that Respondent would certainly transfer the domain names to PADI, but that there will be a cost to PADI for him to do so. Complainant responded that it would unlikely even reimburse Mr. Stoker or Respondent for costs. On June 7, 2003, Mr. Stoker responded that negotiations had come to an impasse.

Respondent now owns and uses the domain names. All of the domain names automatically link to the <padimail.com> domain name. Mr. Stoker has retained ownership of the <padipro.net> and <padipro.org> domain names, which are also linked to the website at the <padimail.com> domain name.

In August 2003, Complainant learned that Respondent had registered the <padisearch.com>, <padisearch.net> and <padisearch.org> domain names and is operating an active website at these domain names.

According to the UDRP Rules, by which this administrative proceeding must abide, Complainant met all procedural requirements. Respondent offered no evidence to the contrary and Complainant has clearly shown that the disputed domain name registrants are the same. Thus, the Panel finds that it is appropriate for Complainant to proceed with a single complaint.

In view of Respondents’ failure to submit a Response, the Panel shall decide this administrative proceeding on the basis of Complainant's undisputed representations pursuant to paragraphs 5(e), 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.

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; and

(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 to and/or Confusingly Similar

For purposes of Policy ¶ 4(a)(i), Complainant established that it has rights in the PADI mark through its trademark registrations with the USPTO. See Men’s Wearhouse, Inc. v. Wick, FA 117861 (Nat. Arb. Forum Sept. 16, 2002) (“Under U.S. trademark law, registered marks hold a presumption that they are inherently distinctive and have acquired secondary meaning”); see also Janus Int’l Holding Co. v. Rademacher, D2002-0201 (WIPO Mar. 5, 2002) (finding that Panel decisions have held that registration of a mark is prima facie evidence of validity, which creates a rebuttable presumption that the mark is inherently distinctive. Respondent has the burden of refuting this assumption).

Complainant argues that the disputed domain names are confusingly similar to Complainant’s PADI mark because the domain names incorporate Complainant’s mark and merely add a generic or descriptive term such as “mail,” “pro,” “pros” and “search” to the end of the mark. The addition of a generic or descriptive term does not serve to alleviate the confusing similarity between the disputed domain names and the registered trademark. See Sony Kabushiki Kaisha v. Inja, Kil, D2000-1409 (WIPO Dec. 9, 2000) (finding that “[n]either the addition of an ordinary descriptive word . . . nor the suffix ‘.com’ detract from the overall impression of the dominant part of the name in each case, namely the trademark SONY” and thus Policy ¶ 4(a)(i) is satisfied); see also Arthur Guinness Son & Co. (Dublin) Ltd.  v. Healy/BOSTH, D2001-0026 (WIPO Mar. 23, 2001) (finding confusing similarity where the domain name in dispute contains the identical mark of Complainant combined with a generic word or term).

The Panel finds that Complainant has satisfied Policy ¶ 4(a)(i).

Rights to or Legitimate Interests

Complainant established that it has rights to and legitimate interests in the mark used in each of these disputed domain names.  Respondents have not chosen to favor the Panel with a Response in this proceeding. Therefore, the Panel accepts all reasonable allegations and inferences in the Complaint as true. See Do the Hustle, LLC v. Tropic Web, D2000-0624 (WIPO Aug. 21, 2000) (“Failure of a respondent to come forward to [contest complainant’s allegations] is tantamount to admitting the truth of complainant’s assertion in this regard”); see also Desotec N.V. v. Jacobi Carbons AB, D2000-1398 (WIPO Dec. 21, 2000) (finding that failing to respond allows a presumption that Complainant’s allegations are true unless clearly contradicted by the evidence).

Furthermore, based on Respondents’ failure to respond in this proceeding, the Panel presumes that Respondents lack any rights to or legitimate interests in the disputed domain names with regard to Policy ¶ 4(a)(ii). See Pavillion Agency, Inc. v. Greenhouse Agency Ltd., D2000-1221 (WIPO Dec. 4, 2000) (finding that Respondents’ failure to respond can be construed as an admission that they have no legitimate interest in the domain names); see also Canadian Imperial Bank of Commerce v. D3M Virtual Reality Inc., AF-0336 (eResolution Sept. 23, 2000) (finding no rights or legitimate interests where no such right or interest was immediately apparent to the Panel and Respondent did not come forward to suggest any right or interest it may have possessed).

Respondents are using the <padimail.com>, <padimail.net>, <padimail.org>,   <padipros.net>, <padipros.org>, <padipro.net>, <padipro.org>, <padipro.com> and <padipros.com> domain names to sell e-mail services and advertising space to scuba dive instructors and dive centers. Respondents are using the <padisearch.com>, <padisearch.net> and <padisearch.org> domain names as a search engine for finding scuba diving instructors and dive centers. Respondents’ unauthorized, commercial use of Complainant’s PADI mark establishes neither a bona fide offering of goods or services under Policy ¶ 4(c)(i) nor a legitimate noncommercial or fair use under Policy ¶ 4(c)(iii). See U.S. Franchise Sys., Inc. v. Thurston Howell III, FA 152457 (Nat. Arb. Forum May 6, 2003) (holding that Respondent’s use of Complainant’s mark and the goodwill surrounding that mark as a means of attracting Internet users to an unrelated business was not a bona fide offering of goods or services); see also Toronto-Dominion Bank v. Karpachev, 188 F.Supp.2d 110, 114 (D. Mass. 2002) (finding that, because Respondent's sole purpose in selecting the domain names was to cause confusion with Complainant's website and marks, its use of the names was not in connection with the offering of goods or services or any other fair use).

Moreover, Respondents have offered no proof and no evidence in the record indicates that Respondents have been commonly known by the disputed domain names. Thus, the Panel finds that Respondents have not established any rights to or legitimate interests in the disputed domain names pursuant to Policy ¶ 4(c)(ii). See Gallup Inc. v. Amish Country Store, FA 96209 (Nat. Arb. Forum Jan. 23, 2001) (finding that Respondent does not have rights in a domain name when Respondent is not known by the mark); see also RMO, Inc. v. Burbridge, FA 96949 (Nat. Arb. Forum May 16, 2001) (interpreting Policy ¶ 4(c)(ii) "to require a showing that one has been commonly known by the domain name prior to registration of the domain name to prevail").

Accordingly, the Panel finds that Complainant has satisfied Policy ¶ 4(a)(ii).

Registration and Use in Bad Faith

When Respondent Stoker registered the disputed domain names, he was a scuba diving instructor and a member of Complainant’s organization. Furthermore, Stoker was contractually obligated not to register any domain names that contained the PADI mark. Under these circumstances, the Panel presumes Stoker had actual or constructive knowledge of Complainant’s rights in its mark. Stoker’s registration and use of the disputed domain names despite knowledge of Complainant’s rights evidences bad faith registration and sue pursuant to Policy ¶ 4(a)(iii). See Digi Int’l v. DDI Sys., FA 124506 (Nat. Arb. Forum Oct. 24, 2002) (holding that “there is a legal presumption of bad faith, when Respondent reasonably should have been aware of Complainant’s trademarks, actually or constructively”); see also Entrepreneur Media, Inc. v. Smith, [2002] USCA9 115; 279 F.3d 1135, 1148 (9th Cir. Feb. 11, 2002) (finding that "[w]here an alleged infringer chooses a mark he knows to be similar to another, one can infer an intent to confuse").

Moreover, Respondents’ unauthorized, commercial use of domain names confusingly similar to Complainant’s PADI mark constitutes bad faith registration and use under Policy ¶ 4(b)(iv). See Kmart v. Khan, FA 127708 (Nat. Arb. Forum Nov. 22, 2002) (finding that if Respondent profits from its diversionary use of Complainant's mark when the domain name resolves to commercial websites and Respondent fails to contest the Complaint, it may be concluded that Respondent is using the domain name in bad faith pursuant to Policy ¶ 4(b)(iv)); see also State Fair of Texas v. Granbury.com, FA 95288 (Nat. Arb. Forum Sept. 12, 2000) (finding bad faith where Respondent registered the domain name <bigtex.net> to infringe on Complainant’s goodwill and attract Internet users to Respondent’s website).

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

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 disputed domain names be TRANSFERRED from Respondents to Complainant.

Hon. Carolyn Marks Johnson, Panelist

Dated: October 21, 2003.


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