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President Casinos, Inc. v. Holger Aulenbach d/b/a DiamantClub Ltd. [2004] GENDND 910 (13 July 2004)


National Arbitration Forum

DECISION

President Casinos, Inc. v. Holger Aulenbach d/b/a DiamantClub Ltd.

Claim Number: FA0405000271202

PARTIES

Complainant is President Casinos, Inc. (“Complainant”), represented by Randy L. Canis, of Greensfelder, Hemker & Gale, P.C., 10 South Broadway, Suite 2000, St. Louis, MO 63102. Respondent is Holger Aulenbach d/b/a DiamantClub Ltd.  (“Respondent”), represented by Carlos Corrales-Azuola, of CORRALES & ASOCIADOS, Ave. 6, St. 17-19, #1753, San Jose, Costa Rica.

REGISTRAR AND DISPUTED DOMAIN NAMES 

The domain names at issue are <presidentcasinos.com>, <president-casino.com>, <presidentpoker.com>, <president-poker.com>, <presidentsports.com> and <presidentsportsbook.com>, registered with Key-Systems Gmbh.

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.

Fernando Triana, Esq., as Panelist.

PROCEDURAL HISTORY

Complainant submitted a Complaint to the National Arbitration Forum (the “Forum”) electronically on May 12, 2004; the Forum received a hard copy of the Complaint on May 14, 2004.

On May 13, 2004, Key-Systems Gmbh confirmed by e-mail to the Forum that the domain names <presidentcasinos.com>, <president-casino.com>, <presidentpoker.com>, <president-poker.com>, <presidentsports.com> and <presidentsportsbook.com> are registered with Key-Systems Gmbh and that Respondent is the current registrant of the names.  Key-Systems Gmbh has verified that Respondent is bound by the Key-Systems Gmbh 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 May 18, 2004, a Notification of Complaint and Commencement of Administrative Proceeding (the “Commencement Notification”), setting a deadline of June 7, 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@presidentcasinos.com, postmaster@president-casino.com, postmaster@presidentpoker.com, postmaster@president-poker.com, postmaster@presidentsports.com and postmaster@presidentsportsbook.com by e-mail.

According to Respondent, an extension of ten days was granted to file the Response (with Complainant’s consent). The Response was received on June 18, 2004. Admission of the Response will be discussed below.

On June 29, 2004, pursuant to Complainant’s request to have the dispute decided by a single-member Panel, the Forum appointed Fernando Triana, Esq., as Panelist.

RELIEF SOUGHT

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

PARTIES’ CONTENTIONS

A. Complainant

According to the Complaint, Complainant President Casinos Inc. is a corporation which owns and operates directly or by its subsidiaries dockside gaming casinos. Its business takes place mainly in Biloxi, Mississippi and St. Louis, Missouri. Complainant asserts that it undertakes business under its principal website at the <presidentcasino.com> domain name. It is stated by Complainant that through its subsidiaries it operates another website at the <presidentbroadwater.com> domain name. It states that it spends more than US $5,000,000 in advertising and marketing its services. Evidence of such publicity is attached to the Complaint.

Complainant has registered before the United States Patent and Trademark Office (hereinafter USPTO) the following service marks:

SERVICE MARK REGISTERED

STATUS

PRESIDENT CASINO and Design

Registration No. 2,323,213, in Class 41 for entertainment services, namely, conducting casino gambling games. Registered since June 22, 1998.

PRESIDENT RIVERBOAT CASINO

Registration No. 2,516,595 in Class 39. Entertainment services, namely, conducting boat excursions for tourists. Also registered in Class 41 for entertainment services, namely, conducting casino gambling games and presenting live musical and comedy shows. Registered since March 23, 2000.

PRESIDENT CAPTAIN'S CLUB CASINO and Design

Registration No. 2,295,355 in Class 41. Entertainment services, namely, conducting casino gambling and presenting musical and comedy shows. Registered since April 30, 1998.

PRESIDENT CASINO CAPTAIN'S CLUB BY THE ARCH and Design

Registration No. 2295356 in Class 41. Entertainment services, namely, conducting casino gambling and presenting musical and comedy shows. Registered since April 30, 1998.

Complainant states that it has been using its service mark to identify and distinguish the services offered prior to the registration of the domain names in dispute by Respondent, as Complainant registered its domain name <presidentcasino.com> on April 2, 1996.

Complainant attached to its Complaint evidence that proves the registration of the abovementioned service marks by President Casinos Inc., and the registration of the domain names directly or by its subsidiaries.

It is asserted by Complainant that Respondent registered on March 7, 2003 the domain name <presidentpoker.com>. After that, Respondent proceeded to register the following: <president-poker.com> on March 10, 2003; <presidentcasinos.com> on April 15, 2003; <president-casino.com> on November 17, 2003; and <presidentsports.com> and <presidentsportsbook.com> on January 9, 2004. Complainant alleges that the aforementioned domain names have information and deep linking to Complainant’s webpages and casinos.

On March 11, 2004, Complainant sent a cease and desist letter to Respondent for the infringement of the registered service marks owned by Complainant and use of the domain names. Complainant demanded the removal of any linking that redirects users from Respondent’s webpage to Complainant’s and that Respondent refrain from using the image of the President Casino Broadwater Resort at the <presidentcasinos.com> domain name. A copy of said letter and a copy of the delivery certification by FEDEX are attached to the Complaint.

Due to the fact that Respondent did not answer Complainant’s request a second letter was sent to Respondent electronically and via facsimile. Attached to the Complaint there is evidence of the letter sent on April 6, 2004.

A Response to said communications was given on April 12, 2004. Respondent stated that the image of the President Casino Broadwater Resort would be removed immediately according to Complainant’s demands, and the linking to Complainant’s webpage would also be removed. Additionally, he informed Complainant that the <presidentpoker.com> domain name was a registered trademark in Classes 28, 41 and 42 by the German Trademark Office, property of DiamantClub Ltd.

 

On April 13, 2003, Respondent sent a new communication to Complainant, in which it asked, in order to transfer the domain names <presidentcasinos.com> and <president-casino.com>, for a: “reasonable financial offer in order to take action on such transfer.”

 

Additionally, on April 26, 2004, Respondent sent an e-mail that was originally directed to President Casinos Inc., but was received, as stated by Complainant, “inadvertently” by Respondent.

On the same day, Complainant received an e-mail in which it was informed by Respondent that: “other casinos (virtual and landbased) do intend in transferring our generic domain www.casinos.de where we also have a registered trademark for. Some of them also are interested transferring (sp) the domains presidentpoker.com, president-poker.com, presidentcasinos.com, president-casinos.com,and other ‘president’ domains from us to them as well, having international expansion in mind.” A copy of mentioned e-mail is attached to the Complaint.

Complainant states that on April 28, 2004, it sent a new communication to Respondent. The highlights of the mentioned communication are, as stated by Complainant and according to the reviewed evidence attached to the Complaint, the following: (i) though the image of the President Casinos Broadwater Resort image was removed, Respondent uses an image of the St. Louis Arch, which is considered by Complainant to be: “disingenuous and totally unacceptable.” The aforementioned is alleged by Complainant on the basis that it has a casino located in the city of St. Louis, Missouri, two blocks away from the St. Louis Arch, and it believes that the use of such image: “seeks to demonstrate to an internet user a relationship between your service and our clients goodwill.” (ii) President Casinos Inc., offered to pay the sum of US $15.00 to Respondent for the: ”out of pocket expenses directly related to the registration of the infringing domain names.”

As stated in the Complaint, on April 29, 2004, Respondent answered the aforementioned communication and monetary offer, demanding Complainant to refrain from using the expression “president poker” and to transfer: “all domain names regarding President Poker to DiamantClub Ltd.” Regarding the economic offer Respondent stated that: “if you wish us to stop registering or to purchase ‘President’ Domain names and companies we can talk about this any time, but we ask you to do that in a reasonable way. We do not take the ‘one time’ offer you made to us serious. Put another 6 zeros behind the 15 $ US, than it could be possible taking you offer amicable and serious.”

Complainant alleges that the domain names registered by Respondent are confusingly similar to the service mark registered by President Casinos, Inc. These allegations are based on the fact that the: “deletion of a generic or descriptive word from an established trademark does not defeat the owner’s rights in its trademark.

Additionally it states that the: “addition of a generic word to an established trademark does not defeat the owner’s rights in the mark.” Complainant based the aforementioned affirmations on the grounds that Respondent has incorporated into Complainant’s mark generic words such as “sports” and “casinos.”

Furthermore it states that the top-level domain extensions, spaces between words and punctuation cannot be considered in order to confer distinctiveness to the domain names. Finally, Complainant alleges that the fact that Respondent uses images of Complainant’s casino, has deep linking to Complainant’s webpages, and uses images of a historic landmark that references the location of Complainant’s casinos, all divert the web user’s attention gives the impression that the webpages of Respondent are related to Complainant.

In relation to the legitimate interest of Respondent, Complainant alleges that though Respondent registered the trademark PRESIDENT POKER with the German Trademark Office in International Classes 28, 41 and 42 on July 15, 2003, these registrations were made after the registration of the service mark made by President Casinos Inc.’s with the USPTO and Complainant’s first use of the mark in commerce. Additionally, it is alleged by Complainant that Respondent uses images of President Casinos Inc.’s casinos and deep linking to Complainant’s websites. Complainant considers that the fact that Respondent is demanding the sum of US $15,000,000 for transfer of the domain names demonstrates bad faith according to the Policy.

Its also alleged by Complainant that a: “reasonable internet user would assume that the domain names are somehow affiliated with Complainant.” This affirmation is structured on the basis that Complainant believes that all the actions of Respondent were done with the intention of: “usurping Complainant goodwill by registration and use of the domain names, and obtain traffic that was intended for Complainant.”

Pursuant to its allegations, Complainant considers that the fact that Respondent is making a profitable use of the domain names evidences the fact that there is no: “bona fide, non commercial or fair use” of the disputed domain names.

Finally, Complainant asserts that the fact that Respondent registered and uses domain names that create a: “likelihood and confusion with the PRESIDENT marks,” diverting the traffic originally directed to Complainant’s websites, demonstrates that Respondent’s use of the mentioned domain names is in bad faith. Complainant lists the facts that evidence Respondent’s bad faith, i.e., the fact that both parties are in the same field of business, the fact that Complainant registered the service marks long before Respondent, the unauthorized linking made by Respondent to Complainant’s webpages, and the unauthorized use by Respondent of an image of Complainant’s casino. Complainant believes that the aforementioned is sufficient evidence of Respondent’s bad faith.

Therefore the remedy sought by Complainant is that the disputed domain names registered by Respondent be transferred to President Casinos Inc.

B. Respondent

According to the case coordinator from the Forum, Respondent filed its Response to the Complaint after the date established as the deadline by the Forum—June 7, 2004. Respondent stated that an extension to file its Response was granted with Complainant’s consent, and therefore it was received timely by the Forum on June 18, 2004. Late Responses are not in compliance with Paragraph 5(a) of the Rules.

The Panel will address the admissibility of the Response further in this decision.

Respondent, prior to contending with Complainant’s allegations, states that DiamantClub, Ltd.: “acknowledges the trademark rights of President Casinos Inc., in the United States of America to the ‘domain name’ ‘presidentcasino.com’.” Pursuant to that recognition and as an act of good faith, Respondent’s accepts transfer to Complainant of the following two disputed domain names: <presidentcasinos.com> and <president-casino.com>.

This transfer, as stated by Respondent, is based on the grounds that it wishes to “respect the goodwill of Complainant, taking as true their factual grounds on the Complaint.”

Respondent alleges that the disputed domain names <presidentpoker.com>, <president-poker.com>, <presidentsports.com>, and <presidentsportsbook.com> are not confusingly similar to Complainant’s trademarks.

Respondent recognizes the fact that Complainant has registered service marks with the USPTO, though it states that DiamantClub Ltd. also registered before the German Trademark Office the mark PRESIDENT POKER on October 13, 2003, in International Classes 28, 41, and 42.

Respondent refutes Complainant’s allegations with regard to the similarity of the domain names, alleging the marks are: “not similar in appearance.” Respondent proceeds to make a study of the trademarks in dispute, as it considers that this: “comparison must be made as a whole.”

In order to demonstrate the differences between Complainant’s mark and Respondent’s mark, it is stated the differences between the graphic elements that accompany the mark when visualized, i.e. that the mark registered by President Casinos, Inc.: “uses a star on top of the word ‘president’,(…) is all in caps lock letters (sic) in white color and with a black background.”

Respondent states that the mark registered before the German Trademark Office has completely different visual elements, i.e.: “the font of the words is different, more stylish font with a gray background, and the falcon with opened wings in yellow color. It is the substantial distinctive element in the trademark.”

Respondent considers that though both marks include the word “president” this is not: “a substantial element in the distinctive sign.”

Pursuant to the evidence, Respondent states that the differences of the elements between the registered marks have more: “distinguishable elements than similar elements.” This affirmation is based on the ground of a visual comparison of each registered mark.

Respondent states that the word “president” is descriptive and commonly used. According to its definition it: “gives the understanding that whatever product or service is, it will have a higher status.”

It is asserted by Respondent that the fact that the registered trademarks by either party are accompanied by another word, i.e., casino or poker with visual graphics, evidence the weakness of the word “president” in order to distinguish each other. Respondent recognizes that Complainant has legal rights in regard to its registered service mark, though it states that it: “does not hold exclusive rights to use every form of its mark PRESIDENT CASINO.”

In reference to the domain names <presidentsports.com> and <presidentsportsbook.com>, Respondent considers that though these are not registered marks, they are not confusingly similar to Complainant’s marks. In that sense, Respondent states that: “registered and operational with webpages exist using the commonly words mentioned of ‘president’, ‘poker’, ‘sports’ and ‘sport books’, ” attaching to the Response evidence of webpages that include in some way either of the above referred words.

In reference to the legitimate right and interest of Respondent, it states that DiamantClub Ltd. is a limited company according to the laws of Antigua and Barbuda, which was: “constituted to do all business activities, betting or book making, marketing, promotion, advertising, among others.”

Pursuant to its business objective, Respondent alleges that it incurred different expenses to widen and strengthen its business, such as “hiring” computer software: “in order to proceed with gambling online.” Respondent asserts that it subscribed to a License Agreement with a Canadian company named “World Poker Central,” and with a Swedish company named “Boss Media.”

In relation to the registration of its mark, Respondent asserts that this was made with the German Trademark Office because Respondent’s nationality is German, and Respondent was ignorant of Complainant’s business, contending that he was first aware of the existence of President Casinos Inc., by its communication dated March 11, 2004.

Respondent alleges that it has made a considerable investment in Respondent’s business, i.e.: “screen designs, purchasing domains, creation of webpages, translation of German and English languages to become the first multilingual poker website in the world, trademark registration, technicians, software providers,” among others. Respondent believes that these expenses are sufficient to evidence the legitimate interest in the use of the disputed domain names, in contention with Complainant allegations.

Finally, in regard to the alleged bad faith of Respondent in registering the disputed domain names, it is contended in the Response that the fact that Respondent was ignorant of the existence of Complainant’s business and that the domain names were available at the moment of registration is evidence that there is no proof of bad faith in Respondent’s actions.

Contending the allegations made by Complainant in relation with the sum of money demanded by Respondent in order to transfer the disputed domain names, Respondent alleges that the sum of US$15,000,000 was intentionally, “exaggerated” as it did not intend to sell and/or negotiate for the domain names.

According to all the aforementioned statements and contentions, Respondent alleges that the fact that it has agreed to transfer the domain names <presidentcasinos.com> and <president-casino.com> evidences its lack of bad faith.

For all the foregoing reasons Respondent requests that the relief sought by Complainant be denied.

FINDINGS AND 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.”

Likewise, Paragraph 10(d) of the Rules for Uniform Domain Name Dispute Resolution Policy, provides that: “[t]he Panel shall determine the admissibility, relevance, materiality and weight of the evidence.”

In the present case, the Panel wants to place emphasis in the importance of the evidence filed by the parties to prove their assertions, which has been studied to determine its relevance and weight in arriving at a decision. The Panel wishes to clarify that the statements that have been accompanied by evidence have been given more importance than the mere statements made by the parties without further demonstration of their existence.

The Case Coordinator at the Forum informed the Panel by communication dated June 21, 2004, that the Response was not received in the time frame established for submitting the Response, according to Paragraph 5(d) of the Rules and Paragraph 6 of the Supplemental Rules. As a consequence the Panel is not obligated to accept this late Response, in accordance to Paragraph 10 of the Policy. According to the Rules Paragraph 14, the Panel can draw inferences that it considers appropriate, if it finds either party to be in default.

The fact that Respondent submitted the Response after the deadline, according to Paragraph 14(b) of the Rules, constitutes a technical default, which allows the Panel to take such fact as evidence against the party in default, i.e., Respondent. The aforementioned is based on the grounds that the Forum never acknowledged receipt of the request for an extension by Respondent to Complainant, nor is it stated by Complainant that it consented to the mentioned extension, as seen by the Panel in the documentation included in the case file.

Notwithstanding the aforementioned, the Panel wants to underline that in order to have an adequate vision of the facts that gave ground to the present proceeding, it has determined to take into consideration certain contentions and evidence filed by Respondent, in regard to the allegations filed by Complainant.

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;

(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.

The Panel will proceed to make a thorough study in order to make its decision in regard to the present matter. The Panel has decided to arrange in pairs the disputed domain names, to make methodical study. In that order of ideas, these have been divided as follows:

a. <presidentcasinos.com> and <president-casino.com>

b. <presidentpoker.com> and <president-poker.com>

c. <presidentsportsbook.com> and <presidentsports.com>

Identical and/or Confusingly Similar

a.    <presidentcasinos.com> and <president-casino.com>

Respondent has declared in its Response its intention to transfer the domain names <presidentcasinos.com> and <president-casino.com> to Complainant. This statement is based on the grounds that Respondent acknowledges Complainant’s rights over the mentioned domain names, based on Complainant’s trademark, and recognizes Complainant’s goodwill in the industry of gambling.

Therefore Complainant’s assertion in regard to the fact that the disputed domain names <presidentcasinos.com> and <president-casino.com> are confusingly similar to President Casinos Inc.’s registered trademarks has been evidenced, and therefore Complainant has succeeded according to Paragraph 4(a)(i) of the Policy.

b. <presidentpoker.com> and <president-poker.com>

It has been evidenced by both parties that they have a registered trademark, before competent Trademark Offices, and evidence of such registrations has been attached to both the Complaint and the Response. Complainant had a registered trademark and had registered its domain name by 1996, and has been making public use of both since that time, according to the evidence attached.

Respondent registered its trademark before the German Trademark Office, though it has no domicile and/or current business in the Republic of Germany.

It is noteworthy that the fact that both parties have a registered trademark gives both of them right to register domain names incorporating their marks. Therefore, the Panel has given special weight to the evidence attached to each of the briefs filed by the parties.

The examination of similarity that has to be made in order to establish confusing similarity between domain names and registered marks has a special ingredient: to valuate what the ordinary web surfer is looking for when he enters the Internet, in order to be able to establish whether or not a domain name is confusingly similar to Complainant’s trademarks.

Complainant has evidenced that it is a company that operates directly or through its subsidiaries dockside casinos, and has gained a recognition in the gambling industry. Respondent has recognized Complainant’s goodwill in this industry.

For this Panel, the word “President” is the predominant expression in the mark context, the one that will identify and differentiate it from other companies in the same industry.

An ordinary web surfer, if looking for special services regarding this industry, will relate to the word President, and not to the words that follow.

Therefore, the fact that Complainant has recognized goodwill in the gambling sector, though its service mark is PRESIDENT CASINOS, it is likely that confusion might arise from the fact that when searching the web, a consumer of those services when finding <president-poker.com> and/or <presidentpoker.com> is led to believe that these are subsidiaries or affiliates of Complainant.

It is very important to note that when the consumer public is searching the Internet, it does not have the opportunity to make a visual comparison of the graphic  features that accompany the trademark, i.e., letter font and colors. In regard to domain names, the predominant valuation is the orthographical similarity, as it is on these grounds that the user will be diverted from its original search, misbelieving that there is a connection between one and other. There is no use for the general criteria of comparison in the similarities of marks, and therefore this Panel considers that the analysis made by Respondent in this regard is not appropriate..

Moreover, the fact that a domain name includes well known marks adding generic words, i.e. poker[1], cannot divert the fact that the predominant, well known, recognized word will be that the web surfers will be searching. In the present case, due to Complainant’s goodwill, the predominant word will be “President” when searching for gambling services.

In the case of Telstra Corporation Limited v. Peter Lombardo, Marino Sussich and Ray Landers[2], the Panel stated that:

It is clear that the Domain Names incorporate, as their first part, the word TELSTRA. Given the finding above the question arises whether the addition of a descriptive or generic element to the trade mark is sufficient to render it distinguishable. Complainant refers to the previous WIPO decision Quixstart Investments Inc. v Dennis Hoffman, WIPO D2000-0253 where the panel found that the addition of generic words to Complainant’s mark was not sufficient to escape the finding of similarity. Likewise, Complainant referred to the WIPO decision Cherno Communications Inc. v Jonathan Dennis Kimball, WIPO D2000-0119, that the placement of hyphens is also irrelevant in determining confusing similarity.

According to this indisputable fact, when evaluating the similarity and confundability of the disputed domain names <presidentpoker.com> and <president-poker.com> to the registered trademark of Complainant, the Panel considers that it has been evidenced that there are grounds to affirm that these are sufficiently similar to Complainant’s marks, as the predominant and identifier word of the services offered by Complainant is the word “President,” included in both disputed domain names. The addition of generic words is not enough, especially when the generic word is closely related to the business undertaken by Complainant through its registered marks. The Panel considers that any web surfer would be confused into thinking that the disputed domain names are associated with Complainant somehow.

Based on the foregoing, the Panel considers that Complainant’s domain names and trademarks are confusingly similar to those domain names registered by Respondent and examined hereto, and therefore Complainant has succeeded in meeting the requirements of Paragraph 4(a)(i) of the Policy.

c. <presidentsportsbook.com> and <presidentsports.com>

In regard with the disputed domain names <presidentsportsbook.com> and <presidentsports.com>, the word “president” is accompanied by a generic word, i.e., sports [3]and sportsbook.

The determination of confundability between trademarks and registered domain names implies that the words that compose them have to be considered as a whole, unveiling the registrant’s intention when filing its registration in order to enable the web user to easily  identify its services when searching a certain domain name.

The Panel considers that both the words “sports” and “sportsbook” are generic terms which identify services and/or activities in the gambling industry. The addition of said words to a recognized mark for services of gambling, i.e. “president”, whose goodwill has been recognized by Respondent, does not give enough distinctiveness to the registered domain names <presidentsportsbook.com> and <presidentsports.com> by Respondent, in order to avoid any kind of association by a consumer to webpages that offer Complainant’s services.

It is noteworthy to the Panel that the trademark of Complainant is the prefix  in both domain names, i.e. the word “president” plus a generic word such as sport. It is considered by the Panel that these domain names are confusingly similar to Complainant’s trademarks.

When making the study of confusing similarity between trademarks and domain names there are several criteria that have to be considered. Some of these criteria are, for example, likelihood in the orthography or typing of the registered mark and the disputed domain name. The fact that only minor written differences exist between a mark and a domain name, i.e., spelling mistakes that any ordinary consumer can incur when searching the web, evidence a domain name that is confusing to the registered trademark. Also, the fact that there is a visual similarity between the mark and the registered domain name can create likelihood of confusion between the mark and the domain name. Finally, the fact that the disputed domain names offers services in the same industry as the registered mark leads the web surfer to believe that he is accessing a webpage of the owner of the trademark, i.e., domain names bearing the trademark “president”, such as <presidentsportsbook.com> and <presidentsports.com> can lead a consumer to believe he is accessing a webpage of President Casinos Inc., if searching for gambling services, when he is not. Plus, the addition of generic words for the business of gambling, such as “sports” and “sportsbook”, generate strong ideological similarity between the signs that are being compared, as the Internet user can easily make an association in his mind between the domain name and the trademark.

Pursuant to the aforementioned, there is no dispute in the fact that Complainant has been well recognized in the industry of gambling. Though Respondent has registered the domain names <presidentsportsbook.com> and <presidentsports.com>, these domain names include generic words, i.e., sports and sportsbook. Furthermore, the expression “sportsbook” is associated with the activity of gambling, once again directly related with the activity and industry of Complainant.

For this Panel, Respondent failed to present sufficient proof of a distinctive element of the disputed domain names, whilst Complainant attached evidence that demonstrated its well recognized activity, industry, and notoriety of its service marks. For the Panel, the word “president has by itself sufficient notoriety, distinctiveness, and it has the enough phonetical strength to lead a consumer of services in the industry of gambling and casinos, only by the use of said word. The Panel disagrees with Respondent’s assertion that the word “president” is: “merely descriptive and commonly used.” In fact, applying trademark principles as the ones invoked by Respondent, there is nothing descriptive in the term “president” with regard to any of the  products and/or services of the International Trademark Classification.

In a very similar case held between Donald J. Trump and Trump Hotels & Casino Resorts Inc. v. Sports Management[4], the Panel stated:

Complainant, through registration and use has established that it has rights in the TRUMP PLAZA mark.  Furthermore, Respondent's <trumpplazasportsbook.com> domain name is confusingly similar to Complainant's mark because it incorporates the entirety of Complainant's mark and merely adds the descriptive term "sportsbook."  The use of a descriptive term with a famous mark does not create a mark capable of overcoming a claim of confusing similarity (Emphasis added).

The Panel considers that Respondent used generic and/or descriptive words when registering the disputed domain names. The similarity to Complainant’s trademark, and furthermore the goodwill recognized by Respondent of the services in the industry of gambling of President Casinos Inc., evidences there is confusing similarity with Complainant’s trademarks.

Therefore the Panel considers that these disputed domain names are not sufficiently distinctive to avoid confusion. The Panel concludes that Complainant has met the requirements of Paragraph 4(a)(i) of the Policy.

Rights or Legitimate Interests

a.       <presidentcasinos.com> and <president-casino.com>

Considering that Respondent has agreed to transfer the domain names <presidentcasinos.com> and <president-casino.com>, the Panel considers that no further study has to be made on Respondent rights or legitimate interest in regard to said domain names, since it has expressly recognized that it lacks of such rights and interest.

Therefore the Panel considers that Complainant has met the requirements of Paragraph 4(a)(ii) of the Policy.

b. <presidentpoker.com> and <president-poker.com>

Respondent contends in its Response that it registered the trademark PRESIDENT POKER before the German Trademark Office. The Panel assumes that the registered trademark by Respondent was made according to the requisites of the German Trademark Law.

The Panel is convinced that the German Trademark Office did the correspondent analysis of similarity with other registered trademarks before that Office, and proceeded with its registration on the grounds that the interest of the registrant was to make use of said trademark in good faith. The fact that is noteworthy for this Panel, amongst the others that will be addressed further on, is that the registration was made before the German Trademark Office, when this trademark was not going to be used to offer current services in the German market. In light of the aforementioned, it is relevant to emphasize that domain names when registered do not necessarily imply that they are going to be used in a certain market, as the scope and advantage of Internet services and domain names is to create possibilities to commercialize, offer services and information worldwide just by accessing the webpage. What is highly suspicious to the Panel is that there is no evidence filed by Respondent explaining the reason for registering the trademark before the German Trademark Office other than the fact that it is the Respondent’s birthplace.

A thorough study of the evidence attached by the parties has been made by this Panel, and of the facts that have surrounded and gave basis to the present proceeding, in order to establish the absence of rights and legitimate interest by Respondent to own and use the domain names <presidentpoker.com> and <president-poker.com>, as alleged by Complainant.

The Panel considers that Respondent failed to contradict any of Complainant’s allegations and claims. In addition to the fact that it agreed to transfer two of the six disputed domain names, acknowledging Complainant’s rights and goodwill, was considered by this Panel sufficient proof to demonstrate Respondent has no right or legitimate interest in regard to the <presidentcasinos.com> and <president-casino.com> domain names. The aforementioned is an indicium to the Panel that Respondent has no legitimate interest in the disputed domain names, as there is no evidence of its bona fide offering of services, but rather a clear intention to divert Complainant’s customers by registering those domain names.

This has been addressed by other Panels, as in the case Colgate-Palmolive Company v. Domains For Sale[5], in which it was stated that:

Respondent’s willingness to transfer the domain name to Complainant as reflected in its Response is evidence that it has no rights or legitimate interests in the domain name. In addition, there is no evidence presented by Respondent that would indicate that it is commonly known by the domain name or that the domain name is being used in connection with any bona fide offering of goods or services (Emphasis added).

The Panel considers that it has been thoroughly proved by Complainant that it has been making public use of its trademarks and services in the industry of gambling, for which it has gained public recognition and goodwill. This fact has been recognized by Respondent.

Although Respondent submitted evidence of the existence of a corporation also engaged in the industry of gambling, it has not filed any evidence that proves that it is recognized by its domain name and/or registered trademark. Moreover, though it is contended by Respondent that it had no knowledge of Complainant’s business, this was not properly evidenced, but on the contrary, Respondent recognized Complainant’s goodwill in the gambling industry. Additionally, the fact that one of the disputed domain names used an image of one of Complainant’s casinos leads this Panel to believe that these assertions made by Respondent are not credible.

The fact that Respondent has a registered trademark and has registered the domain names initially indicates that DiamantClub Ltd. has rights and legitimate interest in said disputed domain names. However, exceptions can be made when the evidence leads to the conclusion that the trademark registrations were not made in good faith.

In the case of Madonna Ciccone p/k/a/ Madonna v. Dan Parisi and “Madonna.com”[6], the Panel stated that:

Respondent contends that it has rights in the domain name because it registered MADONNA as a trademark in Tunisia prior to notice of this dispute. Certainly, it is possible for a Respondent to rely on a valid trademark registration to show prior rights under the Policy. However, it would be a mistake to conclude that mere registration of a trademark creates a legitimate interest under the Policy. If an American-based Respondent could establish "rights" vis a vis an American Complainant through the expedient of securing a trademark registration in Tunisia, then the ICANN procedure would be rendered virtually useless. To establish cognizable rights, the overall circumstances should demonstrate that the registration was obtained in good faith for the purpose of making bona fide use of the mark in the jurisdiction where the mark is registered, and not obtained merely to circumvent the application of the Policy.

This Panel agrees with the fact that although the owner’s rights derived from a trademark registration are not under dispute, the domain name registration must be accompanied by evidence that demonstrates that it has been made in good faith, for a bona fide offering of its services, and not to profit from another’s goodwill and public recognition.

Additionally, there is no evidence that proves Respondent is making a bona fide offering of goods and services for a legitimate fair use. Acknowledging Complainant’s rights, claims and goodwill, plus the fact that one of Respondent’s webpages had deep linking to one of Complainant’s webpages shows the intention to divert and confuse the public for commercial gain.

Finally, the Panel considers that it has not been evidenced that Respondent is authorized to advertise its webpages using images of Complainant’s casinos, or that it is an authorized distributor or operator of President Casinos Inc., nor that its activity is non-commercial. Respondent contends not only that it has invested over US $ 600,000, but in his requirements for selling its domain names Respondent demanded the sum of US $ 15,000,000 from Complainant in order to transfer the disputed domain names.

This Panel considers that, along with the facts evidenced and presented by both parties, and though Respondent has a registered trademark along with the domain names, the fact that Respondent has recognized Complainant’s goodwill and has failed to prove any of the circumstances in regard to Paragraph 4(c) of the Policy, it is the Panel’s conclusion that there was an intentional infringement by Respondent, with a clear intent to divert consumers to its webpages and services.

The Panel considers that Complainant has met the requirements of paragraph 4(a)(ii) of the Policy, as there is sufficient evidence that Respondent has neither rights nor legitimate interests in the domain names<president-poker.com> and <presidentpoker.com>.

c. <presidentsportsbook.com> and <presidentsports.com>

In regard to the disputed domain names <presidentsportsbook.com> and <presidentsports.com>, this Panel relies upon the aforementioned observations. Though it wants to make emphasis in regard to the fact that adding a generic word to a registered, well known trademark does not give rights or evidence legitimate interests in the use of the disputed domain names.

As addressed before, Respondent has recognized Complainant’s goodwill. This is an irrefutable fact for the Panel. Pursuant to the aforementioned facts, it has been evidenced that Complainant’s services are identified solely as “President,” and therefore an ordinary web surfer when navigating the Internet will search for the “president” webpages, when searching services related to the gambling industry. This can lead a web user to make an association with Complainant’s services when using the webpages associated with the <presidentsportsbook.com> and <presidentsports.com> domain names, registered by Respondent.

Furthermore, Respondent has failed in evidencing his legitimate interest in the use of mentioned domain names, as no proof has been attached that demonstrates that Respondent, prior to having any notice or contact with Complainant or this proceeding, has made a bona fide offering of goods and services or a non commercial use of the disputed domain names. To the contrary, the Panel finds enough evidence that demonstrates that Respondent was fully aware of the existence of Complainant prior to registering the disputed domain names. In fact, the Panel is led to believe that this awareness was the main reason for which Respondent chose such domains, to the detriment of Complainant.

In the case Dixons Group Plc v Mr. Abu Abdullaah[7], the Panel considered that:

The use must not be such as "to misleadingly divert consumers or to tarnish the trademark or service mark at issue." On the evidence before the Panel, it is reasonable to conclude that the first of these things will occur, even if briefly. Thus, Respondent's website (Tab 8, Complaint) requires the viewer to read to the end of the page before Respondent's disclaimer appears. Prior to this, however, the headings "Dixons-Online.com, Dixons-Online.co.uk" and the sub-heading "Dedicated to YOU the customers of Dixons PLC" give rise to the clear impression that the site is operated by Complainant and not by an altruistic consumer Complaints service.

The fact that web surfers can easily be diverted, confused and misled, believing that they are using Complainant’s services, is a fact that was not properly contended by Respondent. Evidence was attached in the Complaint that proved that this diversion could happen, as there is no distinctiveness in Respondent’s registered domain names that can differentiate them from the well recognized marks of President Casinos Inc.

The Panel that studied the case Ansell Healthcare Products Inc. v. Australian Therapeutics Supplies Pty, Ltd[8], considered that:

Nor is there any evidence that Respondent is commonly known by the domain name or is making a legitimate noncommercial or fair use of the domain name within the meaning of paragraph 4 (c)(ii) or (iii) of the Policy. As discussed below, Complainant's evidence suggests that Respondent has attempted to use the domain name for commercial gain.

The fact that Respondent is profiting from the registered domain names, diverting traffic that is supposedly directed to Complainant’s webpages and making consumers believe that they are using the services offered by Complainant, evidences that Respondent is using said domain names for commercial gain. No evidence has been attached in which it is demonstrated that the registration of mentioned domain names was made for a bona fide offering of services, or for a non-commercial use by its registrant.

Based on the upon mentioned, the Panel considers that Respondent failed to demonstrate its rights or legitimate interest over the domain names <presidentsportsbook.com> and <presidentsports.com>, as Complainant met the requirements of Paragraph 4(a)(ii) of the Policy.

Registration and Use in Bad Faith

The Panel considers appropriate to make the following comments with respect to this element of the Policy.

According to Paragraph 4(b) of the Policy, the following circumstances, in particular but without limitation, if found by the Panel to be present, shall be evidence of the registration and use of a domain name in bad faith:

(i) Circumstances indicating that Respondent has registered or has acquired the domain name primarily for the purpose of selling, renting, or otherwise transferring the domain name registration to Complainant who is the owner of the trademark or service mark or to a competitor of that Complainant, for valuable consideration in excess of Respondent’s documented out-of-pocket costs directly related to the domain name; or

(ii) Circumstances indicating that Respondent has registered the domain name in order to prevent the owner of the trademark or service mark from reflecting the mark in a corresponding domain name, provided that Respondent has engaged in a pattern of such conduct; or

(iii) Circumstances indicated that Respondent has registered the domain name primarily for the purpose of disrupting the business of a competitor; or

(iv) Circumstances indicating that, by using the domain name, Respondent has intentionally attempted to attract, for commercial gain, Internet users to his website or other on-line location, by creating a likelihood of confusion with Complainant's mark as to the source, sponsorship, affiliation, or endorsement of his website or location or of a product or service on his website or location.

Taking the above into consideration, and according to the study of the present case, this Panel wants to make the following observations in regard to the disputed domain names at issue.

a.        <presidentcasinos.com> and <president-casino.com>

In regard to bad faith by Respondent, the fact that it agreed to transfer the disputed domain names <presidentcasinos.com> and <president-casino.com>, leads this Panel to avoid addressing this issue in regard to said domain names, taking into account that Respondent has expressly stated its intention to transfer said domain names as an act of good faith, accepting the claims alleged by Complainant.

The Panel considers on this matter that the fact that Respondent has accepted Complainant’s allegations as a whole concerning the domain names <presidentcasinos.com> and <president-casino.com> it is an irrefutable indicium of Respondent’s bad faith in registration and use of said domain names.

Therefore the Panel considers that Complainant has met the requirements of Paragraph 4(a)(iii) of the Policy.

b. <presidentpoker.com> and <president-poker.com>

Notwithstanding the fact that Respondent has registered the trademark PRESIDENT POKER and the domain names <presidentpoker.com> and <president-poker.com>, as it has been studied and stated by this Panel, the fact is that no evidence has been attached in regard to the rights and legitimacy of use of the domain names, demonstrating that Respondent’s actions related with the registration of the disputed domain names and use have been made in bad faith.

The Policy establishes some facts that can evidence bad faith by Respondent. First, the fact that Respondent has made an offer to sell the domain names, at a value above the costs of registration, is prima facie evidence of bad faith. The Panel considers that domain names, as trademarks can be commercialized, and for that matters the owner, in this case DiamantClub Ltd., can state its initial price. This price must reflect the real value of the trading commodity, in order to be purchasable.

It has to be considered that when a party is interested in acquiring a domain name on a legitimate basis that the domain name has not been registered for different purposes than to rightfully commercialize its services on the Internet. If it can be inferred that a domain name has been registered in order to bring forth an excess of out of pocket costs, from a party that is being directly affected by the registration, there is evidence of bad faith.

In this case, the Panel has considered and studied thoroughly the evidence submitted by each party. For the Panel the following facts are highly suspicious:

1. The fact that Respondent alleges to have its domicile in Antigua and Barbuda, while its server is in Costa Rica, and chose to register the trademark in Germany, this being neither its domicile for business nor the principal language for the domain names registered, solely on the grounds that Germany is Respondent’s birth place. The aforementioned facts lead the Panel to believe that Respondent made this registration before the German Trademark Office, as a way to have a registered trademark confusingly similar to Complainant’s and therefore to enable him to allege legitimate rights over the domain names.

2. That Respondent offered to sell the domain names to Complainant for the sum of US $15,000,000.

3. That Respondent insinuated that if there was no commercial offer to buy the domain names by Complainant, these could be offered and sold to third parties, namely, competitors of Complainant.

4. That Respondent’s webpages have links to Complainant’s webpages.

5. That Respondent’s webpages use images of Complainant’s casinos, and used images of historic places i.e., the Arch of St. Louis, when it does not have physical establishments operating in mentioned city, while Complainant does.

6. That Respondent has recognized Complainant’s goodwill in the industry of gambling, though alleging it did not have any previous knowledge of its existence.

The fact that in order to transfer the domain names Respondent has requested the sum of US $15,000,000, without giving credible or supported evidence of the commercial cost of the domain names, is for the Panel evidence of its bad faith. Moreover the Panel considers that the lack of consistency in Respondent’s domicile, work area and registration activities, is a veil for its illegitimate interests in diverting and using the goodwill of a third party for its own commercial benefit.

Additionally, both the trademark and domain names bear the well recognized mark PRESIDENT. This is indicative of Respondent’s intentions to the Panel, as Respondent knew of the services and goodwill of Complainant. Complainant has submitted sufficient evidence that shows Respondent’s intention to sell the domain names at an excessive price, a fact that was not contended with credible allegations by Respondent.

In the case of General Electric Company v. Normina Anstalt a/k/a Igor Fyodorov[9] the Panel stated the following:

In this case, Respondent offered to sell the disputed domain names to Complainant in Response to an inquiry from Complainant that indicated a desire to acquire the names. Standing alone, an offer to sell domain names in Response to a query from another party does not constitute bad faith within the meaning of the Policy. There is nothing inherently wrongful in the offer or sale of domain names, without more, such as to justify a finding of bad faith under the Policy.

However, the fact that domain name registrants may legitimately and in good faith sell domain names does not imply a right in such registrants to sell domain names that are identical or confusingly similar to trademarks or service marks of others without their consent.

Respondent in this case has offered to sell to Complainant, at a substantial price, domain names corresponding to marks in which Complainant has rights. Absent some exceptional justification from Respondent, it is reasonable to infer that it registered the names with the primary intention of selling them to Complainant (or to a competitor) for valuable consideration in excess of its out-of-pocket expenses directly related to the names. This constitutes bad faith within the meaning of paragraph 4(b)(i) of the Policy (Emphasis added).

As in the case cited above, the Panel concludes that the circumstances of the present dispute indicate that Respondent registered the domain names at issue primarily with the intention to sell them to Complainant or its competitors, as expressly proposed by Respondent to Complainant in the e-mail of April 26, 2004. Hence, it was Respondent’s purpose to obtain economic profit from the unlawful sale of the domain names, which is a clear case of bad faith.

Furthermore, Complainant has attached evidence that demonstrates that the consumer public is being confused by the existence of domain names confusingly similar to the service marks registered by Complainant. This allegation has not been contended by Respondent. Additionally, the Panel considers that because Respondent recognized Complainant’s goodwill in the Response, it is likely (as it has already been addressed) that there is the intention by Respondent to divert the web surfers, and make believe that by someway the disputed domain names are somehow endorsed, authorized distributors, or operators of the services offered by Complainant.

The fact that a graphic of Complainant’s casino is included on one of the webpages of Respondent, and that there is linking to Complainant’s webpages, imply some kind of relationship between the parties, as they are in the same industry. This can affect the economical interest of Complainant, as the traffic that was intended for President Casinos Inc.’s webpages has been diverted to Respondent’s webpages.

The Panel that studied the case of Ticketmaster Corporation v. Woofer Smith[10], considered that:

Respondent's diversion of traffic to "www.ticketvault.com", a website offering goods and services competing with those of Ticketmaster, is also indicative of bad faith pursuant to Sections 4(b)(iii) and (iv) of the Policy. Ticketmaster Corporation v. netAfrik,(…) finding bad faith where the domain names and the services offered were similar such that there was "no doubt Respondent deliberately chose the disputed domain names"; EBAY, Inc. v. MEOdesigns and Matt Oettinger, (…), finding that Respondent registered and used the domain name <eebay.com> in bad faith to promote competing auction sites. One administrative panel has even explained that "although not specifically mentioned in the non-exhaustive Policy bad faith provisions, the very fact of registering such a famous mark to use in the same business as Complainant reeks of bad faith." Christie's Inc. v. Tiffany's Jewelry Auction, Inc.

The Panel considers that there is sufficient evidence that demonstrates that Respondent has registered the disputed domain names in bad faith, and is making use of them with the intention to create a likelihood of confusion with Complainant’s trademarks. This is based on the grounds that Respondent has revealed its intentions to sell the domain names to Complainant or to a third party, evidencing its lack of interest in keeping the registered domain names.

Furthermore, the fact that Complainant’s business has been disrupted, as Respondent’s domain names have diverted traffic that was originally directed to Complainant’s webpages, because of the great similarity in the registered domain names by Respondent with the marks of Complainant, demonstrate Respondent’s bad faith.

Additionally Respondent has failed to place any sort of disclaimers on its webpages which evidence that Respondent is not endorsed by, sponsored or affiliated with Complainant’s business, evidencing that Respondent’s intention was to create this kind of confusion with the consumer, in order to have commercial gain by using the domain names.

 

Pursuant to all the aforementioned, the Panel considers that Respondent’s failure to dispute Complainant’s allegations allows the Panel to infer that the claims filed by Complainant are true, and therefore evidences Respondent’s registration and use of the domain names in bad faith.

This conclusion is made by the Panel after evidencing that Respondent failed to address with or without purpose the following facts alleged by Complainant:

1.     The fact that Respondent did not make any reference or alleged unawareness of Complainant’s business in their responses to the cease and desist letters sent by Complainant.

2.     The fact that Respondent did not contend the statement that in its webpages there was linking to Complainant’s webpages. Neither did it contend the fact that it used images of Complainant’s casinos.

3.     The fact that after the first cease and desist letter sent by Complainant, Respondent changed the image of Complainant’s casino in St. Louis, for the St. Louis Arch. This change was made even though Respondent did not file any evidence of having or operating a casino in the city of St. Louis, Missouri, or contending Complainant’s allegations on this regard.

In the case Reuters Limited v Global Net 2000, Inc[11], the Panel stated:

The Panel draws two inferences where Respondent has failed to submit a Response: (a)"Respondent does not deny the facts which Complainant asserts" and (b) "Respondent does not deny the conclusions which Complainant asserts can be drawn from those facts.

According to the aforementioned, this Panel concludes that Complainant has met its burden to evidence Respondent’s bad faith in registering and using the domain names <presidentpoker.com> and <president-poker.com>, as stated in Paragraph 4(a)(iii) of the Policy.

c. <presidentsportsbook.com> and <presidentsports.com>

The Panel is consistent with its aforementioned observations in relation with Respondent’s registration and use in bad faith of these domain names. Regardless of all the aforesaid, considering the disputed domain names <presidentsportsbook.com> and <presidentsports.com>, the Panel wants to make the following observations.

It is clear that Respondent’s business activity is in the same industry as Complainant. The disputed domain names are directly connected to Complainant’s business as they all bear the trademark PRESIDENT. Moreover, it has been well evidenced that they both have gambling websites, hence it has been acknowledged that Complainant has a recognized goodwill in the gambling industry. For the Panel the fact that generic words have been added to Complainant’s trade mark, i.e., sports and sportsbook, is sufficient evidence of Respondent’s intention to attract business and traffic to its websites. Respondent has created a likelihood of confusion for the web surfer.

In the case Beemak Plastics, Inc. v. WestRep Group[12], the Panel stated that:

It is also clear from the annexes that the domain name at issue had resolved to Complainant's competitor's website at which products were offered for sale that directly competed with Complainant's trademarked products and at which Complainant's trademark was used in metatags in order to attract search engines when a user entered Complainant's trademark in the search request. Complaint, Annexes K and M. The Panel believes that such conduct constitutes the registration of a domain name primarily for the purpose of disrupting the business of a competitor. Such conduct constitutes bad faith registration and use under paragraph 4(b)(iii) of the policy. (Emphasis added).

The considerations made by the Panel concerning Respondent’s offer to sell the domain names to Complainant or its competitors for an excessive price, made in the prior section, are also found applicable to the <presidentsports.com> and <presidentsportsbook.com>domain names. As a consequence, the Panel finds clear evidence of bad faith on the part of Respondent.

According to the observations and study made by this Panel, it is considered that Complainant has met the requirements of Paragraph 4(a)(iii) of the Policy, in demonstrating Respondent’s bad faith in registration and use of the domain names <presidentsportsbook.com> and <presidentsports.com>.

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 <presidentcasinos.com>, <president-casino.com>, <presidentpoker.com>, <president-poker.com>, <presidentsports.com> and <presidentsportsbook.com> domain names be TRANSFERRED from Respondent to Complainant.

Fernando Triana, Esq., Panelist
Dated: July 13, 2004


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