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Deckers Outdoor Corporation v. Bills Distribution [2004] GENDND 1546 (20 December 2004)


National Arbitration Forum

national arbitration forum

DECISION

Deckers Outdoor Corporation v. Bills Distribution

Claim Number:  FA0410000358035

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 Bills Distribution (“Respondent”), 4B Oak Leaf Lane, Circle Pines, MN 55014.

REGISTRAR AND DISPUTED DOMAIN NAME

The domain name at issue is <poormansuggs.com>, registered with Wild West Domains, 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.

Hon. Ralph Yachnin as Panelist.

PROCEDURAL HISTORY

Complainant submitted a Complaint to the National Arbitration Forum electronically on October 29, 2004; the National Arbitration Forum received a hard copy of the Complaint on October 29, 2004.

On November 1, 2004, Wild West Domains, Inc. confirmed by e-mail to the National Arbitration Forum that the domain name <poormansuggs.com> is registered with Wild West Domains, Inc. and that Respondent is the current registrant of the name. Wild West Domains, Inc. has verified that Respondent is bound by the Wild West Domains, 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 November 1, 2004, a Notification of Complaint and Commencement of Administrative Proceeding (the "Commencement Notification"), setting a deadline of November 22, 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@poormansuggs.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 6, 2004, pursuant to Complainant's request to have the dispute decided by a single-member Panel, the National Arbitration Forum appointed Hon. Ralph Yachnin 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.

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 <poormansuggs.com> domain name is confusingly similar to Complainant’s UGG mark.

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

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

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

FINDINGS

Complainant, Deckers Outdoor Corporation, is a producer of premium sheepskin footwear and of boots in particular.  Complainant’s predecessor was UGG Holdings Inc., which was merged into Complainant on September 30, 2004.  Complainant now does business under the trade name UGG Australia. 

Complainant holds numerous registrations in several countries for the UGG mark and stylized versions and phonoyms of the mark such as UGH, including a registration with the United States Patent and Trademark Office for the UGG mark (U. S. Reg. No. 1973,743 issued May 14, 1996).  Complainant and its predecessors in interest have been using the UGG mark since at least as early as 1979 and its multiple trademark registrations including the UGG mark date to 1970.

In the last eight years, Complainant has spent more than $8 million on advertising for its UGG brand.  In 2003, Complainant’s highly successful marketing campaign won Complainant’ 2003 Brand of the Year honors in a leading footwear industry publication, Footwear News.  In addition, many magazines and newspapers have featured stories about the widespread popularity of the UGG brand, including the New York Times, Wall Street Journal, Chicago Tribune, and Entertainment Weekly.  Complainant has also placed paid advertising in magazines such as Elle, O: the Oprah Magazine, Teen Vogue and Vogue.  UGG boots have also been featured on several television shows seen worldwide, including Oprah, Sex and the City, and the popular game show Jeopardy!, were also featured in the movies and movie posters for Raising Helen and Eternal Sunshine of the Spotless Mind. 

Due to the widespread fame of the UGG brand for footwear, Complainant has also extended the brand into clothing and accessories, including handbags, ponchos, and miniskirts.  Complainant also operates a website and online store for its products located at the <uggaustralia.com> domain name.  Sales for the UGG brand totaled approximately $23.5 million for 2002 and $34.6 million in 2003.  Additionally, Complainant predicts sales in excess of $90 million for 2004.   

Respondent registered the <poormansuggs.com> domain name on May 5, 2004.  Respondent is using the disputed domain name to divert Internet users to a website that offers look-alike sheepskin boots not made by Complainant or under Complainant’s authority.  Respondent also makes unauthorized use of the UGG mark on its website to promote the look-alike boots. 

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 in this proceeding that it has rights in the UGG mark through registration in numerous countries and with the United States Patent and Trademark Office and by continuous use of its mark in commerce since at least as early as 1970.  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 <poormansuggs.com> domain name registered by Respondent is confusingly similar to Complainant’s UGG mark because the domain name incorporates Complainant’s mark in its entirety, adding only the generic or descriptive terms “poor” and “mans” and the letter “s.”  The mere addition of generic or descriptive terms and the letter “s” to Complainant’s registered mark does not negate the confusing similarity of Respondent’s domain name pursuant to Policy ¶ 4(a)(i).  See 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); see also Am. Online, Inc. v. Anytime Online Traffic Sch., FA 146930 (Nat. Arb. Forum Apr. 11, 2003) (finding that Respondent’s domain names, which incorporated Complainant’s entire mark and merely added the descriptive terms “traffic school,” “defensive driving,” and “driver improvement” did not add any distinctive features capable of overcoming a claim of confusing similarity); see also Nat’l Geographic Soc’y v. Stoneybrook Invs., FA 96263 (Nat. Arb. Forum Jan. 11, 2001) (finding that the domain name <nationalgeographics.com> was confusingly similar to Complainant’s “National Geographic” mark).

Accordingly, the Panel finds that Policy ¶ 4(a)(i) has been satisfied. 

Rights or Legitimate Interests

Complainant has alleged that Respondent has no rights or legitimate interests in the <poormansuggs.com> domain name, containing Complainant’s UGG mark in its entirety.  Because Respondent failed to respond to the Complaint, the Panel assumes that Respondent lacks rights and legitimate interests in the disputed domain name.  In fact, once Complainant makes a prima facie case in support of its allegations, the burden shifts to Respondent to show that it does have such rights or legitimate interests pursuant to Policy ¶ 4(a)(ii).  See G.D. Searle v. Martin Mktg., FA 118277 (Nat. Arb. Forum Oct. 1, 2002) (holding that where Complainant has asserted that Respondent has no rights or legitimate interests with respect to the domain name it is incumbent on Respondent to come forward with concrete evidence rebutting this assertion because this information is “uniquely within the knowledge and control of the respondent”); see also Do The Hustle, LLC v. Tropic Web, D2000-0624 (WIPO Aug. 21, 2000) (finding that once Complainant asserts that Respondent has no rights or legitimate interests with respect to the domain, the burden shifts to Respondent to provide credible evidence that substantiates its claim of rights and legitimate interests in the domain name).

Furthermore, the Panel finds that Complainant has made a prima facie showing.  Since Respondent has not Respondent, the Panel is entitled to accept all reasonable allegations and inferences in the Complaint as true.  See 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 Complainant to be deemed true); see also 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”).

Respondent is using the <poormansuggs.com> domain name to redirect Internet users to a website that offers look-alike sheepskin boots not made by Complainant.  Respondent’s use of a domain name that is confusingly similar to Complainant’s UGG mark to redirect Internet users interested in Complainant’s products to a commercial website that offers products and services in competition with Complainant is not a use in connection with a bona fide offering of goods or services pursuant to Policy ¶ 4(c)(i) or a legitimate noncommercial or fair use of the domain name pursuant to Policy ¶ 4(c)(iii).  See 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)); see also Avery Dennison Corp. v. Steele, FA 133626 (Nat. Arb. Forum Jan 10, 2003) (finding that Respondent had no rights or legitimate interests in the disputed domain name where it used Complainant’s mark, without authorization, to attract Internet users to its business, which competed with Complainant); see also Chip Merch., Inc. v. Blue Star Elec., D2000-0474 (WIPO Aug. 21, 2000) (finding that the disputed domain names were confusingly similar to Complainant’s mark and that Respondent’s use of the domain names to sell competing goods was illegitimate and not a bona fide offering of goods).

Respondent has offered no evidence that Respondent is commonly known by the <poormansuggs.com> domain name, and nothing in the WHOIS information supports such a finding.  Additionally, Complainant has not licensed Respondent to use its UGG mark.  Thus, Respondent has not established rights or legitimate interests in the disputed domain name pursuant to Policy ¶ 4(c)(ii).  See Tercent Inc. v. Lee 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 Compagnie de Saint Gobain v. Com-Union Corp., D2000-0020 (WIPO Mar. 14, 2000) (finding no rights or legitimate interest where Respondent was not commonly known by the mark and never applied for a license or permission from Complainant to use the trademarked name).

Thus, the Panel finds that Policy ¶ 4(a)(ii) has been satisfied.        

Registration and Use in Bad Faith

Complainant is a producer of sheepskin footwear, including boots.  Respondent is using the <poormansuggs.com> domain name to redirect Internet users to a website that uses Complainant’s UGG mark to offer look-alike sheepskin boots.  The Panel finds that this shows that Respondent registered the domain name primarily to disrupt Complainant’s competing business and that this is evidence of bad faith registration and use pursuant to Policy ¶ 4(b)(iii).  See Hewlett Packard Co. v. Full Sys., FA 94637 (Nat. Arb. Forum May 22, 2000) (finding that Respondent registered and used the domain name primarily for the purpose of disrupting the business of Complainant by offering personal e-mail accounts under the domain name <openmail.com> which is identical to Complainant’s services under the OPENMAIL mark); see also 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 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).

Respondent’s <poormansuggs.com> domain name is confusingly similar to Complainant’s UGG mark and is used to divert Internet users to Respondent’s commercial website in competition with Complainant.  Furthermore, Respondent is unfairly and opportunistically benefiting from the goodwill associated with Complainant’s UGG mark to profit from look-alike products not manufactured by Complainant.  Thus, the Panel finds that Respondent’s practice of diversion to create a likelihood of confusion for commercial gain is evidence of bad faith registration and use pursuant to Policy ¶ 4(b)(iv).  See Fossil Inc. v. NAS, FA 92525 (Nat. Arb. Forum Feb. 23, 2000) (finding that Respondent acted in bad faith by registering the <fossilwatch.com> domain name and using it to sell various watch brands where Respondent was not authorized to sell Complainant’s goods); see also Perot Sys. Corp. v. Perot.net, FA 95312 (Nat. Arb. Forum Aug. 29, 2000) (finding bad faith where the domain name in question is obviously connected with Complainant’s well-known marks, thus creating a likelihood of confusion strictly for commercial gain); see also Luck's Music Library v. Stellar Artist Mgmt., FA 95650 (Nat. Arb. Forum Oct. 30, 2000) (finding that Respondent had engaged in bad faith use and registration by linking the domain name to a website that offers services similar to Complainant’s services, intentionally attempting to attract, for commercial gain, Internet users to its website by creating a likelihood of confusion with Complainant’s marks).

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

Hon. Ralph Yachnin, Panelist

Justice, Supreme Court, NY (Ret.)

Dated:  December 20, 2004


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