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Interflora, Inc. v. Paul Bryan c/o efloristsRus.com [2004] GENDND 1067 (7 September 2004)


National Arbitration Forum

DECISION

Interflora, Inc. v. Paul Bryan c/o efloristsRus.com

Claim Number: FA0407000301386

PARTIES

Complainant is Interflora, Inc. (“Complainant”), represented by Scott J. Major of Millen, White, Zelano & Branigan, P.C., 2200 Clarendon Boulevard, Suite 1400, Arlington, VA 22201.  Respondent is Paul Bryan c/o efloristsRus.com (“Respondent”), P.O. Box 142, West Perth, Western Australia 6872.

REGISTRAR AND DISPUTED DOMAIN NAME 

The domain name at issue is <interfloraaustralia.com>, registered with Onlinenic, 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.

Dennis A. Foster  as Panelist.

PROCEDURAL HISTORY

Complainant submitted a Complaint to the National Arbitration Forum (the “Forum”) electronically on July 21, 2004; the Forum received a hard copy of the Complaint on July 22, 2004.

On July 22, 2004, Onlinenic, Inc. confirmed by e-mail to the Forum that the domain name <interfloraaustralia.com> is registered with Onlinenic, Inc. and that the Respondent is the current registrant of the name.  Onlinenic, Inc. has verified that Respondent is bound by the Onlinenic, 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 July 27, 2004, a Notification of Complaint and Commencement of Administrative Proceeding (the “Commencement Notification”), setting a deadline of August 16, 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@interfloraaustralia.com by e-mail.

A timely Response was received and determined to be complete on August 12, 2004.

A timely Additional Submission was received from Complainant on August 17, 2004.

A timely Additional Submission was received from Respondent on August 18, 2004.

On  August 26, 2004, pursuant to Complainant’s request to have the dispute decided by a single-member Panel, the Forum appointed Dennis A. Foster as Panelist.

RELIEF SOUGHT

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

PARTIES’ CONTENTIONS

A. Complainant

--As part of its international association services, Complainant operates and maintains a computerized clearinghouse that permits its members to send, accept and/or deliver flowers, floral arrangements, floral emblems, fruits and gifts from or to customers in distant geographic locations.  Complainant's computerized clearinghouse processes, funds, exchanges and credits amongst and between florists--both internationally and in the United States.

--In addition, Complainant prepares the advertisements to promote the purchase of floral arrangements from florists.

--The INTERFLORA mark is Complainant's most significant asset.  Complainant owns all right, title and interest in and to the mark and has registrations for the mark in most major jurisdictions.  Its portfolio includes an incontestable registration in the United States for association services, clearinghouse services, and floral product catalogs (U.S. Reg. No. 1,519,789; copy of online record of the United States Patent and Trademark Office attached as Exhibit 5), and a registration for the INTERFLORA mark in the European Union covering seven international classes of goods and services (CTM Reg. No. 909, 838; copy of the online record of the European Union's Office for Harmonization attached as Exhibit 6).

--Complainant has spent millions to market and promote the INTERFLORA mark and the goods and services offered thereunder.  As a result of its substantial efforts, Complainant has been able to preserve the unique and distinctive character of its mark. 

--The disputed domain name <interfloraaustralia.com> is at least confusingly similar to Complainant's unique, highly distinctive and famous INTERFLORA mark.

--If the domain name at issue incorporates a complainant's distinctive mark in its entirety, there is "sufficient similarity between the mark and the domain to render it confusingly similar."  Eauto, LLC v. Triple S Auto Parts d/b/a Kung Fu Yea Enterprises, Inc., D2000-0047 (WIPO Mar. 24, 2000) (finding the domain name <eautolamps.com > confusingly similar to the EAUTO mark). 

--A finding of confusing similarity is particularly appropriate where the second-level domain for the contested domain name comprises the complainant's mark in combination with a descriptive or generic term. AltaVista Company v. S.M.A., Inc., D2000-0927 (WIPO Oct. 4, 2000) (finding the domain name <altavistausa.com> and Complainant's ALTAVISTA mark confusingly similar; the addition of the geographic descriptor "USA" was deemed to have "little, if any, legal significance").

--In this instance, the disputed domain name incorporates the unique, famous and highly distinctive INTERFLORA mark in its entirety.  This alone is sufficient to support a finding of confusing similarity. 

--Moreover, the term "Australia" is merely a geographic descriptor.  The addition of this word and the top-level domain ".com" to the INTERFLORA mark does not alter its overall commercial impression in any meaningful way.  

--The UDRP sets forth a list of circumstances that can demonstrate a right or legitimate interest in a disputed domain name.  None of these circumstances is present in this case.  Accordingly, the Panel must conclude that Respondent has no right or legitimate interest in the disputed domain name.

--The only "use" of the disputed domain name by Respondent to date is in connection with a web site promoting its retail floral services.  As Respondent is not a member of Complainant's network, the only plausible explanation for Respondent's registration and use of the disputed domain name in this manner is that it constitutes an unauthorized attempt to trade on Complainant's reputation and fame.  This cannot constitute a bona fide offering of goods or services.  See Madonna Ciccone v. Parisi, D2000-0847 (WIPO Oct. 12, 2000).  To conclude otherwise would be to permit a respondent to "rely on intentional infringement to demonstrate a legitimate interest, an interpretation that is obviously contrary to the intent of the [UDRP]".

--Finally, the only other way this limb of the test under the UDRP could favor Respondent is if it shows that it has made legitimate non-commercial or fair use of the domain name, without intent for commercial gain or to misleadingly divert consumers or to tarnish the mark at issue, pursuant to Policy paragraph 4(c)(iii).  Respondent recently deactivated the disputed domain name.  When it was active, its use was in connection with a retail floral web site.  Such use obviously was neither non-commercial nor "fair."  Rather, Respondent was attempting to divert consumers to its site by improperly using the INTERFLORA mark in the domain name.  In summary, Respondent has no right or legitimate interest in the disputed domain name.

--The requisite bad faith is present where a respondent registers a domain name primarily for the purpose of disrupting the business of a competitor, pursuant to Policy paragraph 4(b)(iii).  The disputed domain name directed web users to <efloristsrus.com> (copy of home page attached as Exhibit 11).  This site promotes a floral business that is not licensed by, or otherwise affiliated with, Complainant.  Indeed, it competed directly with Complainant and, in particular, its national unit in Australia and the members thereof.  This alone is sufficient to establish that Respondent has registered and used the domain name in bad faith.

--A respondent also exhibits bad faith where it uses the pertinent domain name to intentionally attempt to attract, for commercial gain, Internet users to its website by creating a likelihood of confusion with the complainant's mark as to the source, sponsorship, affiliation, or endorsement of respondent's website, pursuant to Policy paragraph 4(b)(iv).  Respondent clearly is engaging in this practice.  In this regard, the use of the domain name, which is confusingly similar to the INTERFLORA mark, at a minimum is sufficient to give rise to initial interest confusion.  Brookfield Communications v. West Coast Entertainment Corp., [1999] USCA9 225; 174 F. 3d 10, 50 USPQ2d 1545, 1559 (9th Cir. 1999).

--Any initial interest confusion was likely to yield a more traditional form of confusion when the domain name directed a web user to Respondent's retail floral site at <efloristsrus.com>.  The content of the site is such that there is no reason to doubt that the disputed domain name was registered and used by Respondent in a deliberate attempt to confuse web users, for its own commercial gain, into believing mistakenly that the site to which the disputed domain name led, and the products and services promoted therein, derive from, are sponsored or endorsed by, or are affiliated with the owner of the INTERFLORA mark.

--A finding of bad faith also is required where there is no plausible explanation for the registration of a domain name other than to trade on the goodwill of the complainant.  See Yahoo!Inc. v. Cupcakes, D2000-0777 (WIPO Oct. 2, 2000). 

B. Respondent

--Respondent designs and promotes transaction-based websites for florists across Australia.  Many of these members are also members of INTERFLORA AUSTRALIA, as Complainant is well aware, therefore Respondent believes they have a legitimate right to use the domain name in directing transactions to INTERFLORA members in Australia.

--Respondent is of the opinion Complainant is bringing this dispute to the attention of the NAF in order to discover the methods of Respondent's transacting systems so as to either restrict Respondent's ability to trade or to develop similar processes. 

--On receipt of correspondence from Complainant (Exhibit 1) to desist using the disputed domain name, Respondent replied in good faith and took a considered decision and made an offer for the disputed domain name to be transferred without any cost to Complainant.  Complainant subsequently issued an order, demanding US$20,000 with the condition that should the amount not be paid within 4 days, legal action to the full weight of the law would be pursued (Exhibit 3).

--Respondent is fully aware of the trademarks held by Complainant.  Respondent has not intentionally used the disputed domain name for the purpose of gaining benefit nor has Respondent directly used the disputed domain name for confusing customers into attracting them to the <efloristsrus.com> web site.  It must be noted that there is no reference anywhere on the <efloristsrus.com> website implying or inferring to the general public that <efloristsrus.com> is in any way associated with Complainant.  The main purpose of the <efloristsrus.com> business is to re-direct transactions to <efloristsrus.com> member's web sites, with the majority of these Respondent members being members of INTERFLORA in Australia.  Precise statistics can be provided under a confidentiality agreement. 

--Minimum searching by Respondent of the registered domain names that Complainant apparently so vigorously protects, clearly illustrates an extraordinary number of examples using in part INTERFLORA or trademarks owned by Complainant, see Exhibit 5.  Respondent submits that the domain names listed in Exhibit 5 appear to all be owned by entities other than Complainant.  Respondent therefore submits that a website containing sequential letters such as "interflora" do not constitute a breach of the trademark as it is obvious from this long list, that the "public" use of the sequential letters "interflora" is commonly used throughout the world wide web.

--Respondent is of the opinion it has every right to the interest and exclusive ownership of the disputed domain name.  The domain name assists in the re-directing of transactions to Interflora Australia web sites. 

--Complainant states that the registration of the disputed domain name was for the purpose of disrupting their business.  This is definitely not the case.  Again, we restate that the domain name had sat idle and not even registered for approximately seven years by anyone, let alone Complainant that claims it so fiercely protects its trademark.

--In fact, the confidential statistics will demonstrate that Interflora Australia members have benefited greatly from being involved in the business processes of Respondent.  Respondent whole-heartedly rejects Complainant's suggestion that its business has been damaged.  Respondent is confident that an independent survey of Interflora Australia members who utilize Respondent's business systems and methods will whole-heartedly support and verify this claim in its entirety.

--Complainant also states that Respondent's website promotes a floral business that is not licensed by, or otherwise affiliated with, Complainant.  Respondent agrees with this, i.e., Respondent's web site does not in any way whatsoever refer directly to Complainant (Complaint Exhibit 11).   Therefore, Respondent certainly is not using the disputed domain name in bad faith. 

--When Complainant was offered that the disputed domain name be transferred to it, Complainant refused to accept Respondent's offer without substantial financial payment.  This would indicate that Complainant is not interested in the disputed domain name, only a non-justifiable and unsubstantiated settlement fee which is an attempt to substantially compromise the financial stability of Respondent and the sustainability of Respondent's company.

--It also appears from the anomalies in Exhibit 5 that Complainant is targeting only Respondent's site and remaining silently passive on others.  Certainly this is a questionable practice and one that needs to be viewed with skepticism.

--Respondent is not yet a giant in the Internet trading space, but it is obvious from the aggression of Complainant that they feel threatened by the innovation and overwhelming acceptance of Respondent's systems by the florists of Australia, including many Interflora florist members of Australia.  Respondent is confident that they are providing services that users and Interflora Australia members have been longing for.

--Respondent requests that this matter be dismissed and that the Panel recommend  the disputed domain name not be transferred to the Complainant.     

C. Additional Submissions

Complainant's Additional Submission

--Respondent raises claims that have no relevance to any of the Policy elements.  For example, it alleges that Complainant initiated this proceeding under the Policy for the purpose of gathering information about Respondent's business methods, and that Complainant is seeking to restrict trade.

--Complainant also notes that Respondent's inclusion of settlement correspondence among exhibits to its Response is inappropriate.  Such evidence should not be considered, as its admission would conflict with the public policy of encouraging "parties to settle their disputes amicably by keeping confidential between them all evidence of their settlement negotiations."  Am. Online, Inc. v. Popixel Art, D2001-0957 (WIPO Nov. 20, 2001).

--Respondent's principal argument on the merits appears to be that it is entitled to use the INTERFLORA mark in a domain name because it allegedly provides services and "directs transactions" to some Australian businesses that are members of Complainant's worldwide floral network.  This is entirely devoid of merit.  The members of the INTERFLORA network use the mark under license.  Respondent has no such authorization.  The fact that some of its clients may be making legitimate use of the INTERFLORA mark certainly does not give Respondent the right to register and use to its own commercial advantage a domain name that includes this valuable mark.

--Respondent also points to third-party INTERFLORA domain name registrations and the fact that Complainant had not registered the domain name earlier as supportive of its position.  This is not the case.  Regarding the latter claim, Complainant is under no obligation to register every possible domain name permutation of the INTERFLORA mark.  With respect to the third-party domain registrations, Complainant has not researched each of these.  It is confident that many, if not all, are registered to unrelated entities or individuals. Respondent should not be permitted to benefit from the transgressions of others, and such information would not tilt the balance in favor of Respondent on any of the UDRP elements.

--Respondent alleges as proof of its lack of bad faith that there is "no reference anywhere on the <efloristsrus.com> website implying or inferring to the general public that the Respondent is in any way associated with Interflora whatsoever."  The lack of such a reference on its website would not refute the overwhelming evidence of bad faith.  More important, this statement by Respondent is blatantly false.  The metatags for the <efloristsrus.com> website include the INTERFLORA trademark (printout attached as Exhibit 12, and supported by Supplemental Declaration of Scott J. Major).  This is an obvious attempt by Respondent to enhance the potential for consumer confusion as to whether there is an association between its business and the owner of the INTERFLORA mark.  Such use of the mark is additional evidence of Respondent's bad faith.  Microsoft Corp v. Montrose Corp., D2000-1501 (WIPO Jan. 25, 2001).

Respondent's Additional Submission

--Respondent notes that Complainant pleads for the exclusion of the settlement correspondence and regards the inclusion of said correspondence as not in the interest of "parties settling disputes amicably."  Respondent believes that what all this correspondence really does is present the "real" picture in its entirety.

--As for the use of metatags in web sites, as Complainant should be aware, customers definitely do not purchase products by analyzing what metatags are being utilized by the respective website and that is "drawing a long bow" even assuming customers knew how to analyze or access metatags.  

FINDINGS

Complainant owns the trademark INTERFLORA in the United States and many other countries, and uses it, directly or through licensees, all over the world for the delivery of flowers, floral arrangements, and similar goods.  Complainant has been in this business over 50 years, and the INTERFLORA trademark is well-known all over the world.

Respondent registered the disputed domain name, <interfloraaustralia.com> on February 3, 2004.  Respondent uses it to steer Internet users to Complainant’s licensees in Australia, to Respondent’s website <efloristsrus.com>, and to competitors of Complainant and its licensees in Australia.


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.

Identical and/or Confusingly Similar

Complainant has exhibited a copy of its United States trademark registration for the name INTERFLORA, no. 1519789, dated January 10, 1989 (Complaint Exhibit 5).  It is in international class 35 and includes the electronic transmission of purchase orders for flowers.  Complainant also has exhibited the data for its INTERFLORA and FLEURIN registrations all over the world (Complaint Exhibits 6 and 7) in countries such as the Philippines, Japan and in the European Union member countries.  Interestingly, and as the Respondent points out, Complainant has not registered INTERFLORA in Australia, but rather the French version of this trademark, FLEURIN.  Complainant claims to have licensed various licensees to register and use INTERFLORA in Australia, but Complainant has not troubled itself to exhibit a license agreement.

Respondent is located in Australia, and has stated that its clientele is Australian. The disputed domain name <interfloraaustralia.com> also leads the Panel to believe the clientele for the domain name is primarily Australian.  However, the Internet is at once a national and an international medium, and Complainant's registrations and use of its INTERFLORA trademark are so international and ubiquitous that the Panel does not doubt that Complainant's INTERFLORA trademark is well known in Australia.  Also, Response Exhibit 1 shows Complainant's Australian affiliate, Interflora Australian Unit Limited, wrote to Respondent on June 22, 2004 to complain that Respondent's disputed domain name infringed the affiliate’s trademark rights.

Having decided Complainant does have trademark rights in the name INTERFLORA, the Panel must decide whether the disputed domain name <interfloraaustralia.com> is  identical or confusingly similar to Complainant's trademark.  The Panel agrees with Complainant that the disputed domain name <interfloraaustralia.com> is confusingly similar to Complainant's trademark, INTERFLORA, because Respondent has only added a geographic name, Australia, used in its geographic sense.  It is widely recognized under the Policy that this type of addition does not create a new, distinctive name.  On the contrary, Respondent's disputed domain name <interfloraaustralia.com> merely leads the public to believe Respondent is the Australian branch of Complainant.  The Panel therefore finds Complainant has carried its burden of proof under Policy paragraph 4(a)(i).   See, e.g., CMGI, Inc. v. Reyes, D2000-0572 (WIPO Aug. 8, 2000) (finding the domain name <cmgiasia.com> confusingly similar to the Complainant's CMGI trademark); see also AltaVista Company v. S.M.A., Inc., D2000-0927 (WIPO Oct. 4, 2000) (stating that adding “USA” to a trademark does not create a new, distinctive name).

Rights or Legitimate Interests

Complainant asserts it has licensed its INTERFLORA trademark to various business partners in Australia, but that Respondent is not among them.  For its part, Respondent contends it does have rights and legitimate interests in the disputed domain name per paragraph 4(c)(i) of the Policy.  That is to say, Respondent contends that, before it received notice of this dispute, it had already begun making a bona fide offer of goods and services to Complainant’s affiliates in Australia and to other floral businesses.

In the Respondent's own words,

The Respondent utilises this domain name to re-direct transactions to INTERFLORA AUSTRALIA customers.  The Respondent has been authorised by INTERFLORA members in Australia to assist them in promoting their internet trading.  These members are independent members of INTERFLORA AUSTRALIA and as such have legitimate right to transact on the internet using this domain name.

Respondent offers no proof that the either Complainant or one of its licensees in Australia licensed Respondent to use Complainant's trademark that has been in constant international use for over a half century.  Furthermore, Respondent readily acknowledges that it knew of Complainant's trademark when it registered the disputed domain name.  Thus, Respondent not being authorized to use Complainant's trademark, and Respondent being well aware of Complainant's trademark rights when Respondent registered the disputed domain name, the Panel finds Respondent could not have been making a bona fide offering of its goods and services.  The Panel believes Respondent is being deceptively disingenuous when it claims it has a right to use Complainant’s trademark without permission.  Respondent is, in effect, posing as Complainant’s licensee and at times funnels business to Complainant’s competitors (Complaint Exhibit 11 and Response Exhibit 6).

The Panel finds the Complainant also has carried its burden of proof, under paragraph 4(a)(ii) of the Policy, to show that Respondent has no legitimate rights or interests in the disputed domain name.    


Registration and Use in Bad Faith

Complainant asserts several grounds under which Respondent registered and is using the disputed domain name in bad faith, i.e., in violation of the Policy at paragraph 4(a)(iii).

Initially, Complainant states Respondent registered the disputed domain name primarily for the purpose of disrupting Respondent’s business, in violation of the Policy at paragraph 4(b)(iii).  However, the Panel does not find this to be so.  On the contrary, Respondent does not seek to disturb Complainant’s business, but instead wants to meld into the business of Complainant and its affiliates in Australia.  While it is true that Respondent uses the disputed domain name to direct the public to licensees of Complainant as well as competitors of Complainant’s licensees, it does not appear to the Panel that Respondent’s primary goal is to disrupt Complainant’s business.

The Panel does however agree with Complainant that Respondent has registered and is using the disputed domain name in violation of the bad faith provisions of the Policy at paragraph 4(b)(iv).  Respondent is well aware that the disputed domain name will lead the public to believe it is affiliated with Complainant and Complainant’s Australian licensees, and Respondent seeks to gain commercially from this confusing similarity.   See G.D. Searle & Co. v. Celebrex Drugstore, FA 123933 (Nat. Arb. Forum, Nov. 21, 2002) (finding bad faith where Respondent directed Internet users seeking Complainant’s web site to its own web site for commercial gain); see also CMG Worlwide, Inc. v. Lombardi, FA 95966 (Nat. Arb. Forum Jan. 12, 2001) (finding that Respondent’s use of the VINCE LOMBARDI trademark to divert Internet users to its commercial website constituted bad faith use and registration of the disputed domain name).

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

 Dennis A. Foster, Panelist
Dated: September 7, 2004


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