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Monarch Import Company v. Jinlong Xu [2000] GENDND 1729 (14 December 2000)


National Arbitration Forum

DECISION

Monarch Import Company v Jinlong Xu

Claim Number: FA0010000095773

PARTIES

The Complainant is Monarch Import Company, USA ("Complainant") represented by Kevin C Trock, Laff, Whitesel & Saret Ltd. The Respondent is Jinlong Xu, Draper, UT, USA ("Respondent").

REGISTRAR AND DISPUTED DOMAIN NAME

The domain name at issue is tsingtaobeer.com registered with Network Solutions.

PANELIST

The Panelist 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 the panelist in this proceeding.

Judge Harold Kalina (Ret.) as Panelist.

PROCEDURAL HISTORY

Complainant submitted a Complaint to the National Arbitration Forum ("the Forum") electronically on October 10, 2000; The Forum received a hard copy of the Complaint on October 16, 2000.

On October 16, 2000, Network Solutions confirmed by e-mail to the Forum that the domain name tsingtaobeer.com is registered with Network Solutions and that the Respondent is the current registrant of the name. Network Solutions has verified that Respondent is bound by the Network Solutions 5.0 registration agreement and has thereby agreed to resolve domain-name disputes brought by third parties in accordance with ICANN’s UDRP.

On November 6, 2000, a Notification of Complaint and Commencement of Administrative Proceeding (the "Commencement Notification"), setting a deadline of November 27, 2000 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@tsingtaobeer.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 Forum transmitted to the parties a Notification of Respondent Default.

On December 5, 2000, pursuant to Complainant’s request to have the dispute decided by a One Member panel, the Forum appointed Judge Harold Kalina (Ret.) as Panelist.

Having reviewed the communications records, the Administrative Panel (the "Panel") finds that the Forum has discharged its responsibility under Paragraph 2(a) of the Uniform 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 the Respondent.

RELIEF SOUGHT

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

PARTIES’ CONTENTIONS

    1. Complainant
    2. Complainant alleges the following:

      1. Complainant, Monarch Import Company ("Monarch") has the exclusive rights to the trademarks TSINGTAO and TSINGTAO BEER in the United States. The trademarks TSINGTAO and TSINGTAO BEER are registered in the United States as Reg. Nos. 1,187,046 and 1,254,707 respectively. Monarch acquired these rights through an exclusive Distribution Agreement with Tsingtao Brewery Company Limited, the manufacturer of TSINGTAO BEER in China and the assignee of record for the U.S. trademark registrations. Under this Agreement, Monarch is the exclusive importer and distributor of TSINGTAO BEER in the U.S. Further evidence of Monarch’s exclusive rights in the TSINGTAO and TSINGTAO BEER trademarks is shown by Certifications for the labels used on bottling issued to Monarch by the U.S. Bureau of Alcohol, Tobacco and Firearms. Accordingly, no other entity or individual has rights to use the trademarks TSINGTAO or TSINGTAO BEER in the United States other than Monarch.
      2. Earlier this year, Monarch developed a plan to register and use the domain names TSINGTAO.COM and TSINGTAOBEER.COM as part of a marketing plan to promote the distribution and sale of the beer in the United States. In May of this year, Monarch became aware that an individual, Mr. Jinlong Xu, had registered the domain name TSINGTAOBEER.COM. The domain name TSINGTAOBEER.COM is identical to the registered trademark TSINGTAO BEER and is confusingly similar to the registered trademark TSINGTAO.

      3. Mr. Xu is not affiliated with Monarch or the Tsingtao Brewery Company and has no authorization or right to use the marks TSINGTAO or TSINGTAO BEER in any manner. There is no website being operated by Mr. Xu at the domain name TSINGTAOBEER.COM. Accordingly, Mr. Xu cannot claim that he is using the domain name with any bona fide offering of goods or services or that he is making a legitimate non-commercial or fair use of the domain name.
      4. Monarch contacted Mr. Xu on June 21, 2000, to resolve the problem of his unauthorized and improper registration and use of the domain name TSINGTAOBEER.COM. Monarch explained to Mr. Xu that Monarch held the exclusive rights to the trademarks TSINGTAO and TSINGTAO BEER in the United States. Mr. Xu admitted to Monarch that he had no legitimate rights to the trademarks TSINGTAO and TSINGTAOBEER.COM. Monarch explained to Mr. Xu its desire to use the domain name TSINGTAOBEER.COM as part of its marketing plan and requested that Mr. Xu transfer registration of the domain name TSINGTAOBEER.COM to Monarch. Monarch even offered to reimburse Mr. Xu his costs for registering the domain name. Mr. Xu refused to transfer the domain name TSINGTAOBEER.COM to Monarch and stated that reimbursement of his registration costs would be insufficient. Mr. Xu then indicated that he would only transfer the domain name to Monarch for an amount much higher than his registration costs. Monarch informed Mr. Xu that it believed he was attempting to extort money from Monarch and that Monarch would initiate an arbitration proceeding to transfer the domain name.

B. Respondent

Respondent did not submit a response in this matter.

FINDINGS

The Rules for Uniform Domain Name Dispute Resolution Policy ("ICANN Rules") state the following with regard to default cases:

a) In the event that a Party, in the absence of exceptional circumstances, does not comply with any of the time periods established by these Rules or the Panel, the Panel shall proceed to a decision on the complaint.

(b) If a Party, in the absence of exceptional circumstances, does not comply with any provision of, or requirement under, these Rules or any request from the Panel, the Panel shall draw such inferences therefrom as it considers appropriate.

ICANN Rules 14. Therefore, at the direction of the rules, this panelist will proceed to a decision based on the evidence presented, and will infer that the averments in the complaint are true. See Talk City, Inc. v. Robertson, D2000-0009, (WIPO Feb. 29, 2000) ("In the absence of a response, it is appropriate to accept as true all allegations of the Complaint").

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;

(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

The domain name at issue is confusingly similar to Complainat’s federally registered trademark. The evidence indicates that Complainant holds federal trademark registrations for TSINGTAO and TSINGTAO BEER in the United States. This confers sufficient rights under the ICANN Policy.

If not for the presence of ‘.com’ the domain name tsingtaobeer.com would be identical to Complainant’s mark. Several UDRP decisions have instructed that for the purposes of considering whether a domain name is identical or confusingly similar, a TLD or space between words may be ignored. See State Fair of Texas v. Granbury.com, FA 95288 (Nat. Arb. Forum Sept. 12, 2000) (finding that the ".com" is part of the Internet address and does not add source identity significance").

Therefore, this Panelist concludes that the domain name is, at the least, confusingly similar to the marks in which Complainant has rights.

Rights or Legitimate Interests

Respondent may demonstrate its rights or legitimate interests in a domain name by providing evidence of any of the following:

(i) before any notice to you [Respondent] of the dispute, your use of, or demonstrable preparations to use, the domain name or a name corresponding to the domain name in connection with a bona fide offering of goods or services; or

(ii) you [Respondent] (as an individual, business, or other organization) have been commonly known by the domain name, even if you have acquired no trademark or service mark rights; or

(iii) you [Respondent] are making a legitimate noncommercial or fair use of the domain name, without intent for commercial gain to misleadingly divert consumers or to tarnish the trademark or service mark at issue.

Respondent has failed to provide any evidence from which this Panelist could determine that Respondent has any rights or legitimate interest in the domain name at issue. Therefore, this Panelist must conclude that Respondent has no such rights under the ICANN Policy. See Geocities v. Geociites.com, D2000-0326 (WIPO June 19, 2000) (finding that Respondent has no rights or legitimate interest in the domain name because the Respondent never submitted a response nor provided the panel with evidence to suggest otherwise).

Registration and Use in Bad Faith

A panel may consider any evidence of bad faith, including, without limitation, the specific circumstances outlined in the ICANN Policy. In this situation, this Panelist determines that Respondent has acted in bad faith, in registering and passively holding the domain name at issue.

First, this panelist acknowledges that Respondent registered the domain name with actual or constructive knowledge of Complainant’s mark. See CBS Broadcasting, Inc. v. LA-Twilight-Zone, D2000-0397 (WIPO June 19, 2000) (finding bad faith where Respondent failed to provide any evidence to controvert Complainant's allegation that it registered the domain name in bad faith and where any future use of the domain name would do nothing but cause confusion with the Complainant’s mark) By doing so, Respondent violated ICANN Policy 2(b) which requires a Respondent, when registering a domain name, to state that "to your [Respondent’s] knowledge, the registration of the domain name will not infringe upon or otherwise violate the rights of any third party. This panel finds that the domain name does infringe.

The only apparent reason for Respondent’s registration of a domain name so similar to Complainant’s mark is to reap a financial award from his activities. The evidence indicates that Respondent has no plans to use the domain in any bona fide offering, and Respondent is willing to transfer the domain name for a fee. This indicates that Respondent registered the domain name "primarily for the purpose of selling, renting, or otherwise transferring the domain name registration to the complainant who is the owner of the trademark or service mark or to a competitor of that complainant, for valuable consideration in excess of your documented out-of-pocket costs directly related to the domain name." There is no other explanation for Respondent’s conduct. See Household International, Inc. v. Cyntom Enterprises, FA95784 (NAF Nov. 7, 2000) ("Just as the employment of a well-known business name for no particularly good reason undermines any claim to legitimate interest, so it may also support an inference of a bad-faith attempt to use the name to harass or exploit its legitimate owner. See also Cruzeiro Licenciamentos Ltda v. Sallen and Sallen Enterprises, D2000-0715 (WIPO Sept. 6, 2000) (finding that mere passive holding of a domain name can qualify as bad faith if the domain name owner’s conduct creates the impression that the name is for sale).

DECISION

For the foregoing reasons, this Panelist determines that the requested relief be granted. Accordingly, it is ordered that the domain name tsingtaobeer.com be transferred from Respondent to Complainant.

Honorable Harold Kalina, (Ret.), Panelist

Dated: December 14, 2000


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