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BowTie Inc. v. HotWebNames.com a/k/a Tom Bodner [2004] GENDND 964 (30 August 2004)


National Arbitration Forum

DECISION

BowTie Inc. v. HotWebNames.com a/k/a Tom Bodner

Claim Number: FA0407000294190

PARTIES

Complainant is BowTie Inc. (“Complainant”), represented by Robert S. Gurwin of Rader, Fishman & Grauer PLLC, 1233 20th Street, Washington, DC 20036.  Respondent is HotWebNames.com a/k/a Tom Bodner (“Respondent”), 36500 Ford Road, Suite 174, Westland, MI 48185.

REGISTRAR AND DISPUTED DOMAIN NAME

The domain name at issue is <popularpets.com>, registered with Moniker Online Services, Inc.

PANEL

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

Carlos Rodriguez-Garcia as Panelist.

PROCEDURAL HISTORY

Complainant submitted a Complaint to the National Arbitration Forum (the “Forum”) electronically on July 8, 2004; the Forum received a hard copy of the Complaint on July 9, 2004.

On July 12, 2004, Moniker Online Services, Inc. confirmed by e-mail to the Forum that the domain name <popularpets.com> is registered with Moniker Online Services, Inc. and that Respondent is the current registrant of the name.  Moniker Online Services, Inc. has verified that Respondent is bound by the Moniker Online Services, 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 14, 2004, a Notification of Complaint and Commencement of Administrative Proceeding (the “Commencement Notification”), setting a deadline of August 3, 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@popularpets.com by e-mail.

A timely Response was received and determined to be complete on August 2, 2004.  Furthermore, on August 9, 2004, Complainant filed a Supplemental written statement.

On August 9, 2004, pursuant to Complainant’s request to have the dispute decided by a single-member Panel, the Forum appointed Carlos Rodriguez-Garcia as Panelist.

RELIEF SOUGHT

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

PARTIES’ CONTENTIONS

A. Complainant

In summary, this Complaint concerns an individual who registered a domain name that is absolutely identical to Complainant’s famous trade name and trademark POPULAR PETS, and now attempts to capitalize on the goodwill associated with Complainant’s POPULAR PETS mark through sale of the directly corresponding .com domain name for an amount well in excess of its registration and maintenance costs.

BowTie owns three registrations in the United States for its POPULAR PETS Marks, including Registration No. 2,632,042 for the POPULAR PETS mark, for use in connection with “printed publications, namely magazines relating to animals, birds, reptiles, fish and insects,” in International Class 16, and “computer services, namely providing an online magazine and information relating to animals, birds, reptiles, fish and insects” in International Class 42.

As a result of BowTie’s extensive use of its BowTie Marks, including its POPULAR PETS Mark, in connection with its pet and animal publications and related goods and services, the BowTie Marks, and in particular, the POPULAR PETS Mark is extremely well known, highly distinctive and associated by consumers with BowTie and its pet and animal goods and services. In fact, BowTie grossed $5.7 million in sales alone from its POPULAR PETS publications during 2003, and sold over 2 million copies.  Accordingly BowTie considers its BowTie Marks, including the POPULAR PETS Mark to be famous, and the POPULAR PETS Mark is therefore entitled to protection from infringers and infringement.

Without having any legitimate rights to the POPULAR PETS name or marks, Respondent applied for and secured a registration for the domain name <popularpets.com>.

Thereafter, Respondent placed the name up for sale on an active website in connection with the Infringing Name, entitled “Animal Domain Names for Sale - Hot Website Names for Sale!”. Upon receipt of the demand letter from Complainant’s counsel, asserting BowTie’s exclusive rights in and to its POPULAR PETS Mark, Respondent specifically acknowledged Complainant’s trademark registration, for POPULAR PETS, which specifically includes computer services, namely providing an online magazine and information relating to animals, birds, reptiles, fish and insects, but demanded between fifteen and thirty thousand dollars to sell the Infringing Name to BowTie. Such tactics of bad faith overacts under the Policy since it is abundantly clear that Respondent attempts to reap financial gain from selling the Infringing Name to Complainant as the legitimate registered trademark holder for a price well in excess of what it paid.

The <popularpets.com> domain name is identical in every way to Complainant’s registered and famous POPULAR PETS Mark.  In reviewing the identical issue, arbitration panels at both WIPO and National Arbitration Forum have reached the same conclusion.

B. Respondent

It was never Respondent’s intention to register the domain name of a trademarked word or combination of words. At the time that he registered the <popularpets.com> domain name on April 24, 1999 this word combination did not appear to have a trademark on it when he conducted a search at the USPTO (United States Patent and Trademark Office) website. He has since learned that the generic word combination “Popular Pets” was officially registered to Fancy Publications (a.k.a. BowTie, Inc.) on October 8, 2002. It looks like they first attempted to register this generic word combination on December 23, 1997 but it took them almost 5 (five) years to finally get someone at the USPTO to submit to their numerous requests to grant them official registration status.

Respondent is not sure why the generic word combination “popular pets” did not show up when he conducted a trademark search at the USPTO website on April 24, 1999.

FINDINGS

With sales of over $60 million in 2003, BowTie is the market leader in publishing pet and animal related books and magazines. BowTie currently holds over 80% of the market share for its goods and services among U.S. consumers, and has developed a significant customer base in Canada as well.

BowTie was founded in 1974 as Fancy Publications. Its publishing business began by acquiring three defunct magazines, first Private Pilot (in 1974), followed by Dog Fancy and Cat Fancy (in 1975).

BowTie currently engages in the business of publishing and circulating dozens of specialty pet and animal, veterinary trade, and lifestyle publications which are marketed and circulated under their respective trademarks, including POPULAR PETS (collectively, the “BowTie Marks”). In fact, BowTie owns rights to over 200 such titles sold under its BowTie Marks. BowTie offers its goods and services on the Internet under and in connection with the BowTie Marks as discussed below.

BowTie owns three registrations in the United States for its POPULAR PETS Marks, including Registration No. 2,632,042 for the POPULAR PETS mark, for use in connection with “printed publications, namely magazines relating to animals, birds, reptiles, fish and insects,” in International Class 16, and “computer services, namely providing an online magazine and information relating to animals, birds, reptiles, fish and insects” in International Class 42.

As a result of BowTie’s extensive use of its BowTie Marks, including its POPULAR PETS Mark, in connection with its pet and animal publications and related goods and services, the BowTie Marks, and in particular, the POPULAR PETS Mark is extremely well known, highly distinctive and associated by consumers with BowTie and its pet and animal goods and services. In fact, BowTie grossed $5.7 million in sales alone from its POPULAR PETS publications during 2003, and sold over 2 million copies.

BowTie on the Internet

BowTie has operated and maintained an Internet presence since as early as May of 1996 through its original domain name, <fancypubs.com>. In 1997, BowTie began operating its Animal NetworkTM Internet portal located at <animalnetwork.com>.  From this central website, BowTie actively promotes all of its industry leading pet and animal family of books and magazines, as well as its Internet websites. BowTie’s domain name registrations and corresponding websites are used in promoting BowTie’s famous pet and animal publications and services.  These BowTie websites are extremely popular, drawing a high volume of Internet traffic.  For example, BowTie’s Animal Network portal had XXX visitors during INSERT MONTH/YEAR.  Similarly, BowTie’s Dog Fancy website drew in XXX visitors during INSERT MONTH/YEAR.  BowTie has expended substantial time, effort and resources to develop its websites as a source of information about its products and services, and as an online information and shopping resource for its customers throughout the world.


Conduct on the Part of the Respondent

Without having any legitimate rights to the POPULAR PETS name or marks, Respondent applied for and secured a registration for the <popularpets.com> domain name (the “Infringing Name”).

Thereafter, Respondent placed the name up for sale on an active website in connection with the Infringing Name, entitled “Animal Domain Names for Sale - Hot Website Names for Sale!”. Upon receipt of the demand letter from Complainant’s counsel, asserting BowTie’s exclusive rights in and to its POPULAR PETS Mark, Respondent specifically acknowledged Complainant’s trademark registration, for POPULAR PETS, which specifically includes computer services, namely providing an online magazine and information relating to animals, birds, reptiles, fish and insects, but demanded between fifteen and thirty thousand dollars to sell the Infringing Name to BowTie. Such tactics are both extortion and bad faith under the Policy since it is abundantly clear that Respondent attempts to reap financial gain from selling the Infringing Name to Complainant as the legitimate registered trademark holder for a price well in excess of what it paid.

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

The <popularpets.com> domain name is identical in every way to Complainant’s registered and famous POPULAR PETS Mark.  In reviewing the identical issue, arbitration panels at both WIPO and National Arbitration Forum have reached the same conclusion.  See Am. Express Co. v. Strategic Concepts, FA 96378 (Nat. Arb. Forum Feb. 15, 2001) (finding that the domain name <americanexpress.net> is identical to Complainant’s AMERICAN EXPRESS marks); see also Am. Golf Corp. v. Perfect Web Corp., D2000-0908 (WIPO Oct. 23, 2000) (finding that the domain name <americangolf.net> is identical to Complainant’s AMERICAN GOLF marks); see also Wembley Nat’l Stadium Ltd. v. Thomson, D2000-1233 (WIPO Nov.16, 2000) (finding that the domain name <wembleystadium.net> is identical to the Complainant’s WEMBLEY STADIUM mark). 

The Affidavit of Doug Steil, and BowTie’s current, valid registrations for its POPULAR PETS Marks, conclusively establish Complainant’s rights in the subject trademark, and provide strong evidence that consumers associate the POPULAR PETS Mark solely with the Complainant and its industry leading pet and animal publications.

Accordingly, Complainant has met its burden of proof under Policy 4(a)(i) and the Infringing Name should be rightfully transferred to Complainant. 

Rights or Legitimate Interests

Respondent has no legitimate rights, whatsoever, in the Infringing Name and has made no legitimate use of this domain name.

Paragraph 4(c) of the UDRP provides three specific circumstances that shall be deemed evidence of a domain name registrant’s rights or legitimate interests to a domain name.  These include: 

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

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

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

In this case, Respondent cannot establish any of these circumstances.  In fact, even the simplest evaluation of Respondent’s conduct utilizing the factors set forth in Policy 4(c) precludes any finding that the Respondent has a legitimate interest in these domain names. 

As already noted, Respondent was hosting an active website in connection with the Infringing Name, offering the Infringing Name for sale.  Only after receiving the Complainant’s demand letter did Respondent remove the Hot Web Names For Sale page and replace it with a web page containing hyperlinks to other pet and animal related sites.  On the current page, Respondent even acknowledges Complainant as the rightful owner of the POPULAR PETS Mark as the first thing on the redesigned web page is a disclaimer stating:

Note: This website has no affiliation whatsoever with BowTie, Inc. or Fancy Publications, Inc. You can reach their website by clicking here.

Accordingly, through its own conduct, Respondent admits that it has no rights or legitimate interests in and to the POPULAR PETS name and mark. 

There can be no dispute that Respondent does not, and has never, offered bona fide goods or services under the POPULAR PETS Mark as required by Policy 4(c)(i), but rather, has registered the Infringing Name solely to re-sell it for a profit.  As indicated in the Affidavit of Doug Steil, BowTie has not authorized the use of its marks by Respondent. Since Respondent is not an authorized dealer or distributor of Complainant’s products, Respondent has no basis upon which to use any of the BowTie Marks, including BowTie’s POPULAR PETS Mark.  Accordingly, Respondent cannot and does not meet the first prong of Policy 4(c).

Moreover, Respondent has never been commonly known by the name POPULAR PETS in accordance with Policy 4(c)(ii).  In Victoria’s Secret et al. v. Victoria Summers, FA 96931 (Nat. Arb. Forum May 8, 2001), the arbitration panel addressed this question, finding that Complainant had fulfilled its burden under Policy 4(a)(ii) because Respondent had failed to demonstrate any rights or legitimate interests in the disputed domain name.  The Victoria’s Secret dispute is analogous to the instant matter because in each instance, Respondent registered a domain name or domain names that are either identical or which fully incorporate Complainant’s Mark, Respondent was not commonly known by Complainant’s mark, and had not used the name in connection with any bona fide offering of goods and services prior to the time of dispute, or for any legitimate noncommercial or fair use.  Respondent, therefore, is also unable to fulfill the second prong of the test under Policy 4(c). 

Finally, in evaluating the third prong of the test, Respondent’s conduct cannot constitute “noncommercial or fair use without intent for commercial gain to misleadingly divert customers or to tarnish the trademark or service mark at issue.”  Respondent’s conduct is the antithesis of the 4(c)(iii) criteria since Respondent’s registration of the Infringing Names, and posting an active website placing the Infringing Name up for sale is per se evidence of Respondent’s intent to reap commercial gain from Complainant’s protected and famous POPULAR PETS Mark.   The fact that Respondent removed its Hot WebSite Names for Sale! web page in connection with the Infringing Name after receiving Complainant’s demand letter is evidence that Respondent knows it acted improperly and now tries to cover up its actual intention of trying to sell the domain name to BowTie as the rightful owner of the POPULAR PETS mark for significant profit.

Since Respondent herein cannot meet ­any of the criteria under Policy 4(c) to justify its registration of the Infringing Name, Complainant has satisfied its burden under Policy 4(a)(ii).


Registration and Use in Bad Faith

Having established that Respondent registered a domain name comprised of the identical Mark to that of Complainant, and has no legitimate rights in the Infringing Name, Complainant now demonstrates that Respondent registered these names in bad faith. 

Policy 4(b) sets forth the criteria to be considered in evaluating evidence of registration and use of a domain name in bad faith.  These circumstances include:

(i) circumstances indicating that you have registered or you have acquired the domain name primarily for the purpose of selling, renting, or otherwise transferring the domain name registration to the complainant who is the owner of the trademark or service mark or to a competitor of that complainant, for valuable consideration in excess of your documented out-of-pocket costs directly related to the domain name…

The evidence fully supports a finding that Respondent has acted in bad faith through its pattern of conduct, which specifically includes the activities enumerated in Policy 4(b)(i).  The facts in this matter demonstrate that through registration and use of the Infringing Name, Respondent has tried to sell the Infringing Name to Complainant for a substantial pecuniary gain.   Moreover, the Respondent has deprived Complainant from holding a domain name that is identical to its POPULAR PETS Mark, in which Respondent has acknowledged, per letter of its own counsel, that Complainant owns exclusive rights as evidenced by its U.S. federal trademark registrations. 

A WIPO panel was presented with the identical issue In the Matter of British Sky Broad.Ltd. v. Domain Reservations, D2000-0507 (WIPO July 13, 2000). Ruling in favor of Complainant British Sky Broadcasting, the Panel relied on Respondent’s communication to Complainant, offering to sell the domain names <skymovies.com> and <skyboxoffice.com> to Complainant for £95,000 pounds sterling apiece as evidence that Respondent registered the domain name primarily for the “purpose of selling, renting or otherwise transferring the domain name registration to the Complainant who is the owner of the trade mark or service mark, for valuable consideration in excess of the Respondent’s documented out of pocket costs directly related to the domain name.”  Accordingly, the Panel found bad faith and ordered both domain names transferred.  Likewise, Complainant has documented communication from both Respondent and its counsel attempting to sell for a large sum of money for the Infringing Name.  Accordingly, Complainant asks the Panel to find, as did the WIPO panel in British Sky, that Respondent registered and is using the Infringing Name in bad faith, under Policy 4(b) and order the Infringing Name transferred to Complainant BowTie. 

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

Carlos Rodriguez-Garcia Panelist

Dated: August 30, 2004


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