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Deckers Outdoor Corporation v. Choi joo yeon [2005] GENDND 125 (10 January 2005)


National Arbitration Forum

national arbitration forum

DECISION

Deckers Outdoor Corporation v. Choi joo yeon

Claim Number: FA0411000362468

PARTIES

Complainant is Deckers Outdoor Corporation (“Complainant”), represented by Tom Fitzsimons, of Greer, Burns & Crain, Ltd., 300 South Wacker Drive, Suite 2500, Chicago, IL 60606. Respondent is Choi joo yeon (“Respondent”), Gyeonggi-do Yongin Si Guseong-eup.

REGISTRAR AND DISPUTED DOMAIN NAME

The domain name at issue is <uggshop.com>, registered with Gabia, Inc. d/b/a Gabia.com.

PANEL

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

Sandra Franklin as Panelist.

PROCEDURAL HISTORY

Complainant submitted a Complaint to the National Arbitration Forum electronically on November 10, 2004; the National Arbitration Forum received a hard copy of the Complaint on November 10, 2004. The Complaint was submitted in both Korean and English.

On November 18, 2004, Gabia, Inc. d/b/a Gabia.com confirmed by e-mail to the National Arbitration Forum that the domain name <uggshop.com> is registered with Gabia, Inc. d/b/a Gabia.com and that Respondent is the current registrant of the name. Gabia, Inc. d/b/a Gabia.com has verified that Respondent is bound by the Gabia, Inc. d/b/a Gabia.com 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 November 29, 2004, a Korean language Notification of Complaint and Commencement of Administrative Proceeding (the "Commencement Notification"), setting a deadline of December 20, 2004 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@uggshop.com by e-mail.

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

On December 27, 2004, pursuant to Complainant's request to have the dispute decided by a single-member Panel, the National Arbitration Forum appointed Sandra Franklin as Panelist.

Having reviewed the communications records, the Administrative Panel (the "Panel") finds that the National Arbitration Forum has 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 National Arbitration Forum's Supplemental Rules and any rules and principles of law that the Panel deems applicable, without the benefit of any Response from Respondent.

Pursuant to Rule 11(a) the Panel determines that the language requirement has been satisfied through the Korean language Complaint and Commencement Notification and, absent a Response, determines that the remainder of the proceedings may be conducted in English.

RELIEF SOUGHT

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

PARTIES' CONTENTIONS

A. Complainant makes the following assertions:

1. Respondent’s <uggshop.com> domain name is identical to Complainant’s UGG mark.

2. Respondent does not have any rights or legitimate interests in the <uggshop.com> domain name.

3. Respondent registered and used the <uggshop.com> domain name in bad faith.

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

FINDINGS

Complainant, a producer of sheepskin footwear, handbags, outerwear, and clothing, holds numerous registrations for the UGG mark, including U.S. Reg. No. 1,973,743, on file at the United States Patent and Trademark Office (issued May 14, 1996). Over the last eight years, Complainant has spent over eight million dollars promoting and advertising the UGG mark. Complainant’s UGG mark and UGG brand footwear have been promoted and advertised in various popular magazines, newspapers, television shows, and motion pictures. Sales of UGG brand products totaled $34.6 million in 2003, and 2004 estimated sales exceed $90 million. Complainant also operates a website at the <uggaustralia.com> domain name.

Respondent registered the <uggshop.com> domain name on November 13, 2003. The domain name resolves to a website that offers for sale counterfeit goods, designed to look like Complainant’s footwear products, that compete with Complainant’s products. Respondent is not authorized or licensed to use Complainant’s UGG mark for any purpose. Respondent offered to sell the <uggshop.com> domain name registration to Complainant for $20,000 after receiving from Complainant a cease and desist letter that requested transfer of the disputed domain name.

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."

In view of Respondent's 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 draw such inferences it 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 and/or Confusingly Similar

Complainant has established that it has rights in the UGG mark through registration with the United States Patent and Trademark Office and through continuous use of the mark in commerce. 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.

The <uggshop.com> domain name is confusingly similar to Complainant’s UGG registered trademark because the disputed domain name fully incorporates the mark while merely adding the generic term “shop” and the “.com” generic top-level domain. Neither the addition of a generic term nor the addition of a generic top-level domain distinguishes the disputed domain name from Complainant’s mark. See Pomellato S.p.A v. Tonetti, D2000-0493 (WIPO July 7, 2000) finding <pomellato.com> identical to Complainant’s mark because the generic top-level domain (gTLD) “.com” after the name POMELLATO is not relevant; see also L.L. Bean, Inc. v. ShopStarNetwork, FA 95404 (Nat. Arb. Forum Sept. 14, 2000) finding that combining the generic word “shop” with Complainant’s registered mark “llbean” does not circumvent Complainant’s rights in the mark nor avoid the confusing similarity aspect of the ICANN Policy; see also Space Imaging LLC v. Brownell, AF-0298 (eResolution Sept. 22, 2000) finding confusing similarity where Respondent’s domain name combines Complainant’s mark with a generic term that has an obvious relationship to Complainant’s business; 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 Policy ¶ 4(a)(i) has been satisfied.

Rights or Legitimate Interests

Respondent has failed to submit a Response in this proceeding. Therefore, Complainant’s submission has gone unopposed and its arguments unrefuted. In the absence of a Response, the Panel accepts as true all reasonable allegations contained in the Complaint unless clearly contradicted by the evidence. Because Respondent has failed to submit a Response, it has failed to propose any set of circumstances that could substantiate its rights or legitimate interests in the <uggshop.com> domain name. See Parfums Christian Dior v. QTR Corp., D2000-0023 (WIPO Mar. 9, 2000) finding that by not submitting a Response, Respondent has failed to invoke any circumstance which could demonstrate any rights or legitimate interests in the domain name; see also Vertical Solutions Mgmt., Inc. v. webnet-marketing, inc., FA 95095 (Nat. Arb. Forum July 31, 2000) holding that Respondent’s failure to respond allows all reasonable inferences of fact in the allegations of the Complaint to be deemed true.

Respondent is not using the disputed domain name in connection with a bona fide offering of goods or services under Policy ¶ 4(c)(i), nor is Respondent making a legitimate noncommercial or fair use of the domain name pursuant to Policy ¶ 4(c)(iii). The record reveals that Respondent’s domain name directs unsuspecting Internet users to a website that offers for sale counterfeit goods that compete with Complainant’s products. Respondent makes opportunistic use of Complainant’s mark in order to capitalize on the goodwill and fame associated with the UGG moniker; thus, Respondent fails to establish rights or legitimate interests in the <uggshop.com> domain name. See Ticketmaster Corp. v. DiscoverNet, Inc., D2001-0252 (WIPO Apr. 9, 2001) finding no rights or legitimate interests where Respondent generated commercial gain by intentionally and misleadingly diverting users away from Complainant's site to a competing website; see also Am. Online, Inc. v. Fu, D2000-1374 (WIPO Dec. 11, 2000) (“[I]t would be unconscionable to find a bona fide offering of services in a respondent’s operation of [a] web-site using a domain name which is confusingly similar to the Complainant’s mark and for the same business”); see also Hewlett-Packard Co. v. Inversiones HP Milenium C.A., FA 105775 (Nat. Arb. Forum Apr. 12, 2002) finding Respondent’s use of the confusingly similar domain name <hpmilenium.com> to sell counterfeit versions of Complainant’s HP products was not a bona fide offering of goods or services pursuant to Policy ¶ 4(c)(i).

No evidence before the Panel suggests that Respondent is commonly known by the <uggshop.com> domain name under Policy ¶ 4(c)(ii). Respondent’s WHOIS information indicates that the registrant of the disputed domain name is known as “Choi joo yeon” and is not known by the confusing second-level domain that infringes on Complainant’s UGG mark. Moreover, Respondent is not authorized or licensed to use Complainant’s mark for any purpose. See Tercent Inc. v. Yi, FA 139720 (Nat. Arb. Forum Feb. 10, 2003) stating “nothing in Respondent’s WHOIS information implies that Respondent is ‘commonly known by’ the disputed domain name” as one factor in determining that Policy ¶ 4(c)(ii) does not apply; 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".

Respondent’s offer to sell the <uggshop.com> domain name registration to Complainant is further evidence that Respondent lacks rights or legitimate interests in the disputed domain name pusuant to Policy ¶ 4(a)(ii). See Am. Nat’l Red Cross v. Domains, FA 143684 (Nat. Arb. Forum Mar. 4, 2003) (“Respondent’s lack of rights and legitimate interests in the domain name is further evidenced by Respondent’s attempt to sell its domain name registration to Complainant, the rightful holder of the RED CROSS mark”); see also Mothers Against Drunk Driving v. Shin, FA 154098 (Nat. Arb. Forum May 27, 2003) holding that under the circumstances, Respondent’s apparent willingness to dispose of its rights in the disputed domain name suggested that it lacked rights or legitimate interests in the domain name.

The Panel finds that Policy ¶ 4(a)(ii) has been satisfied.

Registration and Use in Bad Faith

Respondent uses a confusingly similar variation of Complainant’s UGG mark within the <uggshop.com> domain name to ensnare unsuspecting Internet users. Respondent then redirects the users to its website, which offers counterfeit goods for sale. Respondent commercially benefits from this diversion by offering products for sale to Internet users who are searching under Complainant’s mark. Such infringement is what the Policy was intended to remedy. Thus, the Panel finds Respondent registered and used the domain name in bad faith under Policy ¶ 4(b)(iv). See G.D. Searle & Co. v. Celebrex Drugstore, FA 123933 (Nat. Arb. Forum Nov. 21, 2002) finding that Respondent registered and used the domain name in bad faith pursuant to Policy ¶ 4(b)(iv) because Respondent was using the confusingly similar domain name to attract Internet users to its commercial website; see also 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).

Respondent offered to sell the <uggshop.com> domain name registration to Complainant for a price that undoubtedly exceeds Respondent’s out-of-pocket expenses with respect to the disputed domain name. Respondent uses the disputed domain name to sells goods that resemble Complainant’s products; therefore, the Panel infers that Respondent registered the domain name with knowledge of Complainant’s rights in the UGG mark. Thus, the Panel concludes that Respondent deliberately registered the disputed domain name so that it could ultimately sell its domain name registration to Complainant, which evidences bad faith registration and use pursuant to Policy ¶ 4(b)(i). See Pocatello Idaho Auditorium Dist. v. CES Mktg. Group, Inc., FA 103186 (Nat. Arb. Forum Feb. 21, 2002) ("[w]hat makes an offer to sell a domain [name] bad faith is some accompanying evidence that the domain name was registered because of its value that is in some way dependent on the trademark of another, and then an offer to sell it to the trademark owner or a competitor of the trademark owner"); see also Little Six, Inc v. Domain For Sale, FA 96967 (Nat. Arb. Forum Apr. 30, 2001) finding Respondent's offer to sell the domain name at issue to Complainant was evidence of bad faith; see also World Wrestling Fed’n Entmt., Inc. v. Bosman, D99-0001 (WIPO Jan. 14, 2000) finding that 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.

Respondent has registered and used a domain name that is confusingly similar to Complainant’s mark for the purpose of offering for sale products that compete with Complainant’s products. Respondent’s use of the <uggshop.com> domain name establishes that Respondent registered the domain name for the purpose of disrupting the business of a competitor pursuant to Policy ¶ 4(b)(iii).  See S. Exposure v. S. Exposure, Inc., FA 94864 (Nat. Arb. Forum July 18, 2000) finding Respondent acted in bad faith by attracting Internet users to a website that competes with Complainant’s business; see also Puckett v. Miller, D2000-0297 (WIPO June 12, 2000) finding that Respondent has diverted business from Complainant to a competitor’s website in violation of Policy ¶ 4(b)(iii); see also EthnicGrocer.com, Inc. v. Latingrocer.com, FA 94384 (Nat. Arb. Forum July 7, 2000) finding bad faith where Respondent’s sites pass users through to Respondent’s competing business.

Furthermore, while each of the four circumstances listed under Policy ¶ 4(b), if proven, evidences bad faith use and registration of the <uggshop.com> domain name, additional factors can also be used to support findings of bad faith.  See Twentieth Century Fox Film Corp. v. Risser, FA 93761 (Nat. Arb. Forum May 18, 2000) finding that in determining if a domain name has been registered in bad faith, the Panel must look at the “totality of circumstances”; see also Do The Hustle, LLC v. Tropic Web, D2000-0624 (WIPO Aug. 21, 2000) (“the examples [of bad faith] in Paragraph 4(b) are intended to be illustrative, rather than exclusive”).

Respondent’s registration of the disputed domain name, which incorporates Complainant’s well-known registered mark and simply adds the generic term “shop,” suggests that Respondent knew of Complainant’s rights in the UGG mark. Additionally, Complainant’s trademark registration, on file at the United States Patent and Trademark Office, gave Respondent constructive notice of Complainant’s mark. Thus, the Panel finds that Respondent chose the <uggshop.com> domain name based on the distinctive and well-known qualities of Complainant’s mark, which evidences bad faith registration and use pursuant to Policy ¶ 4(a)(iii). See Pavillion Agency, Inc. v. Greenhouse Agency Ltd., D2000-1221 (WIPO Dec. 4, 2000) finding that the “domain names are so obviously connected with the Complainants that the use or registration by anyone other than Complainants suggests ‘opportunistic bad faith’”; see also Sony Kabushiki Kaisha v. Inja, Kil, D2000-1409 (WIPO Dec. 9, 2000)finding bad faith registration and use where it is “inconceivable that the respondent could make any active use of the disputed domain names without creating a false impression of association with the Complainant”; see also Reuters Ltd. v. Teletrust IPR Ltd., D2000-0471 (WIPO Sept. 8, 2000) finding that Respondent demonstrated bad faith where Respondent was aware of Complainant’s famous mark when registering the domain name as well as aware of the deception and confusion that would inevitably follow if he used the domain names; see also Digi Int’l v. DDI Sys., FA 124506 (Nat. Arb. Forum Oct. 24, 2002) determining that Policy paragraph 4(b) sets forth certain circumstances, without limitation, that shall be evidence of registration and use of a domain name in bad faith; see also Samsonite Corp. v. Colony Holding, FA 94313 (Nat. Arb. Forum Apr. 17, 2000) finding that evidence of bad faith includes actual or constructive knowledge of a commonly known mark at the time of registration; see also Orange Glo Int’l v. Blume, FA 118313 (Nat. Arb. Forum Oct. 4, 2002) (“Complainant’s OXICLEAN mark is listed on the Principal Register of the USPTO, a status that confers constructive notice on those seeking to register or use the mark or any confusingly similar variation thereof”).

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

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

Sandra Franklin, Panelist

Dated:  January 10, 2005


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