
Matchmaker International Development
Corporation v. Matchmaker International, Lou Paravate and Denise Paravate
Claim Number: FA0309000198893
PARTIES
Complainant
is Matchmaker International Development Corporation ("MIDC"),
Rocky River, OH (“Complainant”) represented by Philip I. Frankel, of
Bond, Schoeneck & King, PLLC, One Lincoln Center, Syracuse, NY
13202-1355. Respondent is Matchmaker International, Lou Paravate and
Denise Paravate, Pensacola, FL (“Respondent”) represented by Ari
Goldberger, of ESQwire.com Law Firm, 35 Cameo Drive, Cherry Hill, NJ
08003.
REGISTRAR AND
DISPUTED DOMAIN NAMES
The
domain names at issue are <matchmakerinternational.cc> registered
with TLDs, Inc. d/b/a SRSplus and <matchmakerinternational.net>
registered with Go Daddy Software, Inc.
PANEL
Each
of 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.
Honorable
Robert T. Pfeuffer (Ret.) as Panel Chairperson, and Houston Putnam Lowry
(Chartered Arbitrator) and Rodney C. Kyle as Co-Panelists.
PROCEDURAL
HISTORY
Complainant
submitted a Complaint to the National Arbitration Forum (the “Forum”)
electronically on September 30, 2003; the Forum received a hard copy of the
Complaint on October 6, 2003.
As
of October 3, 2003, both TLDs Inc. d/b/a SRSplus and Go Daddy Software, Inc.
have confirmed by e-mail to the Forum that the domain names <matchmakerinternational.cc>
and <matchmakerinternational.net> are registered with TLDs
Inc. d/b/a SRSplus and Go Daddy Software, Inc. respectively and that the
Respondent is the current registrant of the names. TLDs Inc. d/b/a
SRSplus and Go Daddy Software, Inc. have verified that Respondent is bound by
the TLDs Inc. d/b/a SRSplus and Go Daddy Software, Inc. registration agreements
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
October 14, 2003, a Notification of Complaint and Commencement of
Administrative Proceeding (the “Commencement Notification”), setting a deadline
of November 3, 2003 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@matchmakerinternational.cc and
postmaster@matchmakerinternational.net by e-mail.
A
timely Response was received and determined to be complete on November 3, 2003.
A
timely Additional Submission from Complainant was received and determined to be
complete on November 10, 2003.
A
timely Additional Submission from Respondent was received and determined to be
complete on November 17, 2003.
On
November 19, 2003, pursuant to Respondent’s request to have the dispute decided
by a three-member Panel, the Forum appointed Honorable Robert T. Pfeuffer
(Ret.) as Panel Chairperson, and Houston Putnam Lowry (Chartered Arbitrator)
and Rodney C. Kyle as Co-Panelists. Panelist Rodney C. Kyle authored the
majority decision.
RELIEF SOUGHT
Complainant
requests that the registrations of the domain names at issue be transferred
from Respondent to Complainant.
PARTIES’
CONTENTIONS
A.
Complainant
Basically,
in the Complaint, Complainant makes three main sets of contentions, including
to submit evidence contended to support aspects of them.
FIRST
MAIN SET
In
the first main set of contentions, Complainant basically makes contentions by
way of four points.
The
first point is that Complainant is a New York corporation, operating since
1983, that provides personal dating services through its licensed and
franchised facilities located in various states across the United States.
The
second point has three sub-points and is that the mark MATCHMAKER INTERNATIONAL
(with a heart shaped “a” design as part of the words “MatchMaker
International”) is a service mark (i) registered by the U.S. Patent &
Trademark Office (“PTO”) on July 25, 1989 under Registration No. 1,549,618 for
personal dating services (i.e. arranging dates for others) and by the Canadian
Intellectual Property Office on May 24, 1996 under Registration No. TMA457626—
all of which is evidenced by Complaint Exhibit 1; (ii) used in conjunction with
a franchise program that utilizes the mark as part, and indeed as a
foundational and integral part, of its franchise system; (iii) as to which, on
April 13, 1995, Respondent’s Lanham Act, 15 U.S.C., Section 15 Affidavit was
accepted by the PTO, acknowledging Respondent’s uncontestable right to the use
of that mark for those services.
The
third point has two sub-points, each sub-point being to the effect that a
respective one of the domain names at issue is registered to Respondent: (i)
the domain <matchmakerinternational.cc> has, as the Registrant and
Administrative Contact, Lou Paravate of “Matchmaker International” (as
evidenced by the copies of the domain name registration records that are
Complaint Exhibit 4) and, although the full name of the latter entity is not
specified, it can be inferred to be “Matchmaker International of Florida, Inc.”
of principal address 5700 N. Davis Hwy., Pensacola, Florida 32503 and having
Mr. Paravate is an owner and principal (as evidenced by the copies of the
Florida Secretary of State, Division of Corporations, records of incorporation
that are Complaint Exhibit 2); and (ii) the domain <matchmakerinternational.net>
has, as the Registrant, “Matchmaker International” and, as the Administrative
Contact, Denise Paravate, and, on the same basis as set out in point “(i)” of
this paragraph and because of the domain’s filing address and direct link to
the domain <matchmakerinternational.cc>, the owner of the domain <matchmakerinternational.net>
can be inferred to be “Matchmaker International of Florida, Inc.”
The
fourth point is that each of the domain names at issue is identical to
Complainant’s MATCHMAKER INTERNATIONAL mark, as per MatchMaker Int’l Dev.
Corp. v. Kaiser Dev. Corp. Inc., FA 146933 (Nat. Arb. Forum May 9, 2003)
and cases cited therein on that point.
SECOND
MAIN SET
In
the second main set of contentions, Complainant basically contends by way of
two points that Respondent has no “rights or legitimate interests” in respect
of each of the domain names at issue.
The
first point has seven sub-points and is to the effect that Respondent Lou
Paravate and Respondent Matchmaker International of Florida, Inc. have a
limited license from Complainant, to use of the mark MATCHMAKER INTERNATIONAL,
pursuant only to a Stipulation of Settlement dated October 6, 1994 (the
“Settlement”), evidenced by the copy of the Settlement document that is
Complaint Exhibit 3. The sub-points are as follows: Respondent Lou Paravate and
Respondent Matchmaker International of Florida, Inc. (i) rights and privileges
as to using the mark MATCHMAKER INTERNATIONAL are limited by, and derive only
from, the Settlement (which is mute as to the use of the Internet and domain
name rights because the web was not contemplated at the time of the Settlement)
and there has never been any specific authorization for them to use the mark as
a domain name so they do not have a right or privilege to register either of
the domain names at issue; (ii) in Section 1 of the Settlement, agree and
acknowledge that Complainant is the sole and absolute owner of the MATCHMAKER
INTERNATIONAL mark, that they have no right, title or interest in the
MATCHMAKER INTERNATIONAL mark, and that they do not own, directly or
indirectly, any or all of the legal interests in and to the MATCHMAKER
INTERNATIONAL mark; (iii) use of the mark does not inure to their benefit and
they have no right to the mark except in the sense of having the privilege to
use the mark as provided in the Settlement— as per MatchMaker Int’l
Dev. Corp. v. Kaiser Dev. Corp., citing Nikon, Inc. v. Technilab, Inc., D2000-1774
(WIPO Feb. 26, 2001) and 2 T.J. McCarthy on Trademarks and Unfair Competition,
§ 18:52 (4th Ed. 2000); (iv) by Section 20 of the Settlement, are
limited in their privilege of use of the mark to the A.D.I. Territories (i.e.
“Area of Dominant Influence” territories, which refers to the area covered by a
television broadcast signal) of Chattanooga, Mobile, Pensacola, and Savannah,
subject to other non-related terms contained in the Settlement, whereas their
use of the mark on the web effectively establishes a world wide use and
therefore exceeds the geographical scope provided in the Settlement and
violates the Settlement; (v) by Section 31 of the Settlement, have the
understanding (and as per Complainant’s intent) that Complainant has no plans
to sell or otherwise divest itself of its mark and maintains its exclusive
ownership in the mark; (vi) do not own a state or U.S. trademark registration
in the words “Matchmaker International”; and (vii) have steadfastly been
objected to by Complainant as to their use of the domain <matchmakerinternational.cc>,
so Complainant never would have granted its consent for such use of either of
the domain names at issue.
The
second point is that Respondent filed for the domain name registration of each
of the domain names at issue, as evidenced by the copies of the domain name
registration records that are Complaint Exhibit 4, and that Respondent’s
registration and use of each of the domain names at issue was without authorization
and contrary to the Settlement.
THIRD
MAIN SET
In
the third main set of contentions, Complainant basically contends by way of
four points that Respondent registered, and is using, each of the domain names
at issue in bad faith.
The
first point has two sub-points and is that Respondent, by disrupting and, more
particularly (as per the second through fourth points), by intentionally
interfering with, Complainant’s business practices, is guilty of bad faith: (i)
Complainant’s licensees and franchisees exist throughout the United States, and
as a result Complainant seeks to have one central location to market the
franchise and to direct customers’ inquiries to their local franchise
operation; and (ii) Respondent’s registration of the domain names at issue has
prevented Complainant from using its registered mark in those domains to
provide information about its company, its services, and its franchisees, and
therefore disrupts Complainant’s business practices.
The
second point is that Respondent has hijacked Complainant’s mark and franchise
marketing system: each of the domain names at issue establish a link to the <matchmakertinternational.cc>
home page outlining its five franchise locations and are used only for the
benefit of Respondent and not for other licensees, franchisees or the franchise
system as a whole (e.g. if a customer in Florida logs on to the site and sees
that the five locations are not nearby, the customer may assume that it is only
linked to those offices and that there are no other offices in Florida, Alabama
or Tennessee, which would be untrue and is an attack on the entire franchise as
a whole since it prevents Complainant from directing inquiries to all its local
franchisees).
The
third point is that, as set forth above regarding absence of Respondent “rights
or legitimate interests” in respect of each of the domain names at issue,
whether by contract or otherwise Respondent has no right or privilege to
register or use either of the domain names at issue, and includes the following
four sub-points: (i) Respondent never sought prior approval for the use of the
MATCHMAKER INTERNATIONAL mark as a domain name, nor was such permission ever
granted by Complainant; (ii) it is obvious that Respondent’s use of the domain
names at issue to advertise its services virtually everywhere in the world is a
breach of the territorial limitations that are set forth in the Settlement;
(iii) Respondent’s use of the mark to promote Respondent’s locations and
foreclose Complainant’s ability to market itself to the public at large and to
advertise and promote all its locations as a franchise was done intentionally;
and (iv) such use and hijacking by Respondent is evidence of bad faith, because
Respondent knew it had a limited privilege to use the mark MATCHMAKER
INTERNATIONAL and ignored the limitations on that privilege when it registered
each of the domain names at issue.
The
fourth point has three sub-points, and is to the effect that Respondent’s
refusal to relinquish the domain names at issue is also evidence of bad faith,
in that (i) Respondent Lou Paravate and Respondent Matchmaker International of
Florida, Inc. were demanded of by Complainant, through Complainant’s attorneys,
to transfer the registration of the domain name <matchmakerinternational.cc>
to Complainant, as evidenced by a copy of a letter dated August 14, 2003 that
is Complaint Exhibit 5; (ii) Respondent Lou Paravate and Respondent Matchmaker
International of Florida, Inc. refused to transfer the registration of that
domain name to Complainant; (iii) it is clear that Respondent registration of
each of the domain names at issue was primarily for the purpose of disrupting
the business of Complainant and to attempt to attract customers to Respondent
in contravention of the Settlement.
B.
Respondent
Basically,
in the Response, Respondent makes three main sets of contentions, including to
submit evidence contended to support aspects of them.
FIRST
MAIN SET
In
response to Complainant’s first main set of contentions, Respondent does not
dispute this element of the Complaint.
SECOND
MAIN SET
In
response to Complainant’s second main set of contentions, Respondent contends
that, in respect of each domain name, Respondent has a legitimate interest
based on paragraphs 4(c)(i) and 4(c)(ii) of the Policy.
As for
Policy ¶ 4(c)(i), Respondent contends by the way of four points.
The
first point has four sub-points and is that (i) Respondent is authorized by the
Settlement to engage in operating five businesses in four states; (ii)
Respondent engages in operating those business in those states; (iii) such
operation includes the registration, and use, by Respondent, of the domain
names at issue; and (iv) such registration and use is authorized by the
Settlement’s paragraph 20 and results, as per Mark Travel Corp. v. ATHS,
FA 154644 (Nat. Arb. Forum May 29, 2003) and like cases on that point, in a
legitimate interest within Policy ¶ 4(c)(i).
The
second point has two sub-points and is that (i) Complainant contends that the Settlement
does not provide for Respondent’s use of the domain names at issue; and (ii)
Complainant’s contention in that regard is wrong in that, (a) for the purposes
of this proceeding, a registrant’s right to use a domain name arises not from
contractual rights with another party but, rather, under the Policy, and that,
in this case the Policy permits use of a domain name for the bona fide offering
of services and (b) the Settlement does not prohibit use of the MATCHMAKER
INTERNATIONAL mark in a domain name and instead broadly states that Respondent
“will be permitted the use of the [MATCHMAKER INTERNATIONAL] Service Mark.”
The
third point has two sub-points and is that (i) Complainant contends that
Respondent’s Internet use of each of the domain names at issue establishes a
worldwide usage of each of the domain names at issue and therefore violates the
Settlement by exceeding the geographic scope of the Settlement; and (ii)
Complainant’s contention in that regard is wrong in that, (a) accessibility of
a website to users located all over the world does not mean that a website
publisher is promoting the site to the entire world, any more than a business
that can receive phone calls or mail from the rest of world is promoting its
business outside of its local markets, (b) if it is true that the fact that a
domain name can be accessed from a geographic region means the publisher is
doing business there, then Complainant, too, would be violating the Settlement,
since Complainant is prohibited thereunder from operating Matchmaker
International businesses “in competition with any MatchMaker International
facility operated by Mr. Paravate,” as evidenced by Settlement paragraph 16 and
(c) taking Complainant’s argument to the extreme, Complainant would be
prohibited from marketing a dating service on the Internet under any name, as
it would compete with Respondent’s business, since any website operated by
Complainant could be accessed from within Mr. Paravate’s protected territories.
The
fourth point has two sub-points and is that (i) Complainant contends that Matchmaker
Int’l Dev. Corp. v. Kaiser Dev. Corp., FA 146933 (Nat. Arb. Forum May 9,
2003) stands for the proposition that Respondent has no right or privilege to
the mark other than the privilege to use the mark as provided in the
Settlement; and (ii) Complainant’s contention in that regard is wrong in that
the decision dealt with a franchise agreement rather than a settlement
agreement and so has no relevance.
As
for Policy ¶ 4(c)(ii), Respondent contends by way of three points that
Respondent has been commonly known by its corporate name: (i) as evidenced by
Complaint Exhibit 2 as well as the affidavit of Louis A. Paravate that is
Response Exhibit 1, a USA Today article dated October 25, 1988 that is Response
Exhibit 2, a U.S. registered trademark for the term MATCHMAKER INTERNATIONAL
filed June 9, 1983 (U.S. Registration No. 1304462) but which is no longer
active and of which Louis A. Paravate was the first owner as evidenced by a
U.S. Patent and Trademark Office (“PTO”) Trademark Electronic Search System
report that is Response Exhibit 3; (ii) the domain names at issue are both
registered to Respondent; and (iii) Complaint’s naming of Respondent in the
style of cause of this proceeding.
THIRD
MAIN SET
In
response to Complainant’s third main set of contentions, Respondent contends by
way of four points that, in respect of each domain name, Respondent did not
register, and is not using, the domain name at issue in bad faith.
The
first point has two sub-points and is that (i) Complainant contends that
Complainant has been prevented from using its registered mark as a domain to
provide information about its company; and (ii) Complainant’s contention in
that regard is wrong in that, (a) Complainant owns <matchmakerinternational.com>,
so it may not avail itself of this argument, as per Mark Travel Corp., supra
to the effect that “Complainant is not being blocked from using its trademarks
as a domain name because it has eight domain names incorporating its marks”
including the .com version and (b) even if Complainant were prevented from
using its mark, that is irrelevant since it is Respondent’s intent to prevent
Complainant from using its trademark, along with evidence of a pattern of such
activity, that establishes bad faith under paragraph 4 (b)(ii) of the Policy
and, as per Mark Travel Corp., supra, there is no evidence of an intent
or pattern here on the part of Respondent.
The
second point has two sub-points and is that (i) Complainant contends that
Respondent’s website is used solely for Respondent’s benefit; and (ii)
Complainant’s contention in that regard is wrong in that, it is irrelevant
since (a) there is no obligation on Respondent’s part to promote other
franchises owned by Complainant, (b) Respondent is not required, as suggested
in the Complaint, to seek Complainant’s approval to use domain names
incorporating Respondent’s own business name, so (c) neither does Respondent’s
failure to seek such approval, nor does Respondent’s failure to surrender the
domain names at issue to Complainant, constitute bad faith.
The
third point is that there is no evidence that Respondent registered each of the
domain names at issue to disrupt Complainant’s business.
The
fourth point is that there is no evidence that Respondent has intentionally
attempted to attract users to its website by creating a likelihood of confusion
with Complainant’s mark, the Respondent clearly identifies each of its own
offices on its web page designated “Locations,” and the page has a prominent statement
instructing users to “please visit www.matchmakerinternational.com for other
locations” as evidenced by the web page print-out that is Response Exhibit 5.
C.
Additional Submissions
Neither Party’s Additional Submission
appears to permissibly provide anything
pertinent that, in view of the Complaint
and the Response, was not already apparent to
the Panel as being at issue in this
proceeding or as being the responsibility of the Panel.
FINDINGS
The
majority of the Panel (hereinafter “the majority”) finds
(i)
each of the domain names at issue is registered to Respondent, there are U.S.
uncontestable service mark registration 1,549,618 and Canadian trademark
registration TMA457626 each as to MATCHMAKER INTERNATIONAL with a design, and
in which Complainant has rights, and each of the domain names at issue is
identical thereto;
Respondent has no rights or legitimate
interests in respect of either of the domain names at issue; and
each of the domain names at issue has
been registered and is being used in bad faith.
As
to points “(ii)” and “(iii)” of the immediately preceding paragraph,
Co-Panelist Lowry dissents (hereinafter “the dissent”).
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 and 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:
the domain name registered by the
Respondent is identical or confusingly similar to a trademark or service mark
in which the Complainant has rights;
the Respondent has no rights or
legitimate interests in respect of the domain name; and
the domain name has been registered and
is being used in bad faith.
In
view especially of Rule 15(a), the Panel notes four rules and principles of law
that it especially deems applicable to ascertaining whether each of those three
elements has been proven. First, that
Both
[dispositive] and evidential facts must, under the law, be ascertained
in some one or more of four possible modes: 1. By judicial admission (what is
not disputed); 2. By judicial notice, or knowledge (what is known or easily
knowable); 3. By judicial perception (what is ascertained directly through the
senses; cf. “real evidence”); 4. By judicial inference (what is ascertained by
reasoning from facts already ascertained by one or more of the four methods
here outlined).
Second,
especially as to mode “3”, that Rule 10(d) provides that “The Panel shall
determine the admissibility, relevance, materiality and weight of the
evidence.” Third, as to construing and applying Rule 10(d), especially as to
whether mode “1” rather than mode “3” applies: a complainant's pleading of fact
that is not disputed (or, phrased differently, not “put in issue”) by a
respondent against whom it is contended, is an admission by that respondent, so evidence tendered as being rationally probative of (i.e.
as being “relevant to”) establishing that fact becomes immaterial, and hence
inadmissible, as to establishing that fact. Fourth,
as to whether mode “2” rather than either of mode “1” or mode “3” applies, a
canvassing of law and commentary shows that
It
was not desirable, nor indeed possible, to foreclose the trier’s use of
background information but should the matter noticed be in the forefront of the
controversy, should the fact be determinative, the law protected the adversary
by insisting that the matter be so commonly known, and hence indisputable, that
its notice could not prejudice the opponent.
and
that “The party who has the burden of proof on the issue may have to call on
the trier to judicially notice the fact when it comes time to analyze the
question.”
The
third of the four rules and principles of law set out in the immediately
preceding paragraph hereof is applicable to the Parties’ contentions on this
topic: the Panel finds that Respondent admits Complainant’s first main set of
contentions.
In
view of the immediately preceding paragraph, the Panel finds that on this topic
Complaint Exhibits 1, 2, and 4 are immaterial and that Policy ¶ 4(a)(i) is
proven: each of the domain names at issue is registered to Respondent, there
are U.S. uncontestable service mark registration 1,549,618 and Canadian
trademark registration TMA457626 each as to MATCHMAKER INTERNATIONAL with a
design, and in which Complainant has rights, and each of said domain names is
identical thereto.
This
part of this discussion is basically as to Policy ¶ 4(c)(i) and 4(c)(ii), and
the context in which this part of this discussion occurs includes Policy ¶ 4(c)
and decisions such as Do The Hustle, LLC v. Tropic Web,
D2000-0624 (WIPO Aug. 21, 2000).
Policy
¶ 4(c) is basically directed from a domain name registrar to a domain name
registrant and prospective mandatory administrative proceeding respondent, and
includes that
When
you receive a complaint, you should refer to [Rule 5] in determining how your
response should be prepared. Any of the following circumstances, in particular
but without limitation, if found by the Panel to be proved based on its
evaluation of all evidence presented, shall demonstrate your rights or
legitimate interests to the domain name for purposes of [Policy paragraph]
4(a)(ii):
(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 or service
mark 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.
(See
footnote 2 hereof for some provisions of Rule 5.)
Policy
¶ 4(c)(iii) is not contended for in this proceeding.
As
for Policy ¶¶ 4(c)(i) and (ii), they are contended for by Respondent as part of
Respondent contending against, and therefore putting in issue, Complainant’s
second main set of contentions. Respondent does so through Respondent’s second
main set of contentions. However, as the Panel finds in the following
paragraphs, neither Policy ¶ 4(c)(i) nor Policy ¶ 4(c)(ii) avails Respondent.
The
fourth of Respondent’s points as to Policy ¶ 4(c)(i) basically takes issue with
Complainant’s contention that Matchmaker Int’l Dev. Corp. v. Kaiser Dev.
Corp., FA 146933 (Nat. Arb. Forum May 9, 2003) is relevant to this case,
and does so by contending this case deals with a settlement agreement whereas
that decision dealt with a franchise agreement. Respondent’s contention is
therefore to the effect that what is dispositive of the applicability or
inapplicability of that decision is the merely formal difference between the
titles that appear on or are applied to such types of agreement documents, i.e.
“franchise” versus “settlement”. In accordance with the Policy and the Rules,
and with potentially applicable principles from or in Matchmaker Int’l Dev.
Corp. v. Kaiser Dev. Corp., that contention will not dissuade this Panel
from dealing with the substance of the Settlement.
The
second of Respondent’s points as to Policy ¶ 4(c)(i) basically takes issue with
Complainant’s contention that the Settlement evidences Respondent’s duties to
not register and not use each of the domain names at issue. Said contended
duties are contended against by Respondent, alternatively, as being absent
either in principle (i.e. that the Settlement is a contract and Respondent’s
duties arise not by contract between Respondent and Complainant but instead
arise under the Policy, and in turn that Respondent’s registration and use of
each of the domain names at issue is part of bona fide offering of services
under the Policy and so are therefore within the scope of privileges conferred
by or under the Policy) or as being absent in this particular case (i.e. that
the Settlement does not create Respondent duties to not register and not use
each of the domain names at issue and instead, from the Settlement, Respondent
has privileges to use Complainant’s mark, including to use that mark in
registering each domain name and using each domain name). Each Respondent
contention, i.e. the contention on the basis of principle and the contention on
the basis of particulars, is wrong, each for its own reasons.
As
for the contention on the basis of principle, Respondent, and the dissent,
basically do not indicate from whence this Panel is to attribute “rights or
legitimate interests” within the meaning of Policy ¶ 4(a)(ii). A factor in
their approach may well be to apply a widely disseminated, incorrectly quoted,
version of Rules paragraph 15(a), in which, unlike the correctly quoted passage
set out above, the second of the four occurrences therein of the word “and” is
missing. In any event, this Panel is basically a law-applying body rather than
a law-making body and it is from applying law to facts ascertained in accordance
with law that this Panel discerns first what Respondent legal interests exist
in this case and then which if any of them are within the scope of Policy ¶
4(c). Two points are associated therewith.
First,
other than Complainant, persons in at least the U.S. (such as Respondent) have
duties from U.S. trademark law that include but are not limited to duties to
(i) not register a domain name that includes the text of the mark covered by
Complainant’s U.S. registered trademark; and (ii) not use that domain name in
association with services specified in the trademark registration. (See e.g.
PACCAR Inc. v. TeleScan Technologies, L.L.C., 319 F.3d 243 (6th Cir.
2003) available at
<http://pacer.ca6.uscourts.gov/cgi-bin/getopn.pl?OPINION=03a0040p.06>.)
Those duties are confirmed by, and are part of the context of, the Policy, in
at least two ways. First, Policy ¶ 2 for the “.net” domain name at issue is
directed from a domain name registrar to a prospective domain name
registrant-respondent and is as follows:
By applying to register a domain name, or by asking us to
maintain or renew a domain name registration, you hereby represent and warrant
to us that (a) the statements that you made in your Registration Agreement are
complete and accurate; (b) to your knowledge, the registration of the domain
name will not infringe upon or otherwise violate the rights of any third party;
(c) you are not registering the domain name for an unlawful purpose; and (d) you
will not knowingly use the domain name in violation of any applicable laws or
regulations. It is your responsibility to determine whether your domain name
registration infringes or violates someone else’s rights.
(Emphasis
added; Policy ¶ 4.1 for the “.cc” domain name at issue is basically to the same
effect.) Second, the Policy “is less about legislation than about the efficient
application of existing law in a multijurisdictional and cross-territorial
space.” (Emphasis added; Second WIPO Report, “The Recognition Of Rights And
The Use Of Names In The Internet Domain Name System -- Report of the Second
WIPO Internet Domain Name Process”, 3 September 2001, and available on-line at
<http://wipo2.wipo.int/process2/report/html/report.html#1>, paragraph 66,
as to the First WIPO Report process of proposing the Policy.)
Second,
MatchMaker Int’l Dev. Corp. v. Kaiser Dev. Corp., supra, includes
the above-cited summaries of law from Nikon, Inc. v. Technilab, Inc.,
D2000-1774 (WIPO Feb. 26, 2001) and 2 T.J. McCarthy, McCarthy on Trademarks and
Unfair Competition, § 18:52 (4th Ed. 2000):
[T]here
are administrative panel decisions under the Policy that are opposite in effect
to the apparently over-generalized propositions contended for by Respondent.
For example, Allen-Edmonds Shoe Corp. v. Takin’ Care of Business,
D2002-0799 (WIPO Oct. 10, 2002), includes, with underlining added herein, that
even
where a reseller is an authorized reseller, without a specific agreement
between the parties, the reseller does not have the right to use the licensor’s
trademark as a domain name. Nikon, Inc. v. Technilab, Inc., D2000-1774
(WIPO Feb. 26, 2001); 2 T.J. McCarthy, McCarthy on Trademarks and Unfair
Competition, § 18:52 (4th Ed. 2000) (“licensee’s use [of a mark] inures to the
benefit of the licensor-owner of the mark and the licensee acquires no
ownership rights in the mark itself.”). Thus, even if Respondent is acting on
behalf of an “authorized” dealer (indeed, even if Respondent were itself an
authorized dealer), its use of Complainant’s mark would not be legitimate absent
a specific agreement between Complainant and Respondent to the contrary.
There is no evidence of such an agreement here. The Panel finds that
Complainant has shown that Respondent has no legitimate interest in the domain
name.
Similarly,
see Heel Quik! Inc. v. Goldman, FA 92527 (Nat. Arb. Forum March 1, 2000)
holding that use of a domain name was subject to the terms of a license
agreement and that any use in violation of the agreement would not be bona fide
use within the meaning of the Policy.
As for
the contention on the basis of particulars, this Panel turns initially to the
first and third of Respondent’s points as to Policy ¶ 4(c)(i) and to the
particular provisions of the Settlement, to discern what if any privileges the
Settlement defines (i.e. what is their scope as to territory and activity) and
whether Respondent’s registration and use of each of the domain names at issue
within the scope of those privileges.
To
a limited extent, Respondent’s trademark law duties have been overcome by the
Settlement’s including a license from Complainant (i.e. permission from
Complainant to Respondent for Respondent to do what it would otherwise be
unlawful for Respondent to do); the license is to the corporate Respondent and
to Mr. Paravate, and, as far as this case is concerned, only to them. The
result is that Respondent’s legal interests regarding Complainant’s mark
includes privileges (sometimes referred to in some legal discourse as
liberties) although not Respondent’s rights per se. Outside the scope of those
privileges, or otherwise in the absence of those privileges (such as in the
case of Ms. Paravate who has no license from Complainant whatsoever),
Respondent still has those duties from trademark law and that are confirmed by,
and are part of the context of, the Policy.
The
first and third of Respondent’s points as to Policy ¶ 4(c)(i) are wrong because
they confuse transmission with reception, and more particularly confuse actual
transmission with mere reception capability, and also because they confuse
having facilities at particular geographic locations (and merely advertising
within the particular A.D.I.s) with doing business on the Internet. (For
example, if the Panel were to take the approach of pointing to the
impossibility of Respondent preventing Internet users from outside Respondent’s
license area from accessing a Respondent website then the Panel would basically
be blaming Complainant for Respondent’s unlawful behavior of registering and
using the domain names at issue. For the Panel to do so would conflict with
rather than accord with applicable law and with the Policy.) Respondent’s
privileges conferred by the Settlement are instead exactly as contended for
above in the first point of Complainant’s second main set of contentions, i.e.
sub-point “ii” (regarding section 1), sub-point “iv” (regarding section 20,
which section provides that Respondent has a geographically limited privilege
to use materials currently in use, but of course neither of the domain names at
issue was currently in use), and sub-point “v” (regarding section 31).
More
particularly, Respondent’s behavior is not within Policy ¶ 4(c)(i). To the
extent of behaving outside the restrictions, and therefore outside the scope of
the license, Respondent is offering unlicensed services, and therefore other
than “bona fide” services, so Respondent’s behavior is not within and
does not confer “rights or legitimate interests” as that expression is used in
Policy ¶ 4(a)(ii); see e.g. Heel Quik!, Inc. v. Goldman, supra.
Also
more particularly, Respondent’s behavior is not within Policy ¶ 4(c)(ii). By
way of four steps it is clear that via Policy ¶ 4(c)(ii) Respondent’s behavior
is also not within and does not confer “rights or legitimate interests” as that
expression is used in Policy ¶ 4(a)(ii). First, the expression “domain name” is
used in Policy ¶ 4(c)(ii) and is to be contrasted with and is narrower than the
Policy ¶ 4(c)(i) expression “domain name or a name corresponding to the domain
name”. Second, it is already clear from the above that Respondent’s behavior of
registering and using of each of the domain names at issue is unlawful. Third,
Policy ¶ 4(c)(ii) is to be construed as being to the effect that neither a
respondent licensee’s lawful local use of a complainant’s mark nor a respondent
licensee’s unlawful registration and unlawful use of contested domain names
results in that respondent being “commonly known” by the contested domain
names; see e.g. Heel Quik!, Inc. v. Goldman, supra. In any event, in this proceeding, there is not even any
evidence of Respondent being known by either “domain name” at issue, on either
basis. Instead, as is more fully described in Appendix “A” hereof, (i) the
evidence shows that Respondent has merely obtained a Florida corporate name and
obtained a Florida occupational license; and (ii) when it comes to proving that
Respondent is commonly known by either of the domain names at issue,
the corporate name and the occupational license are each as readily
obtainable as domain name registrations (e.g. by a simple form and,
at least for renewals, on-line) and as irrelevant as domain name
registrations are per se (i.e. not only is lawful use in trade not
required or conferred, but not even any use is required or conferred). Fourth,
as a result, Respondent’s behavior of registering each of the domain names at
issue and using each of the domain names at issue, and of having a corporate
name and an occupational license, does not, and indeed cannot, result in
Respondent having “been commonly known by the domain name” at issue within the
meaning of that expression in Policy ¶ 4(c)(ii).
The
Panel also notes decisions such as Do The Hustle, LLC v. Tropic Web,
D2000-0624 (WIPO Aug. 21, 2000) which includes that when, as in this case, “the
complainant has made a prima facie showing, the burden of production
shifts to the respondent to show by providing concrete evidence that it has
rights to or legitimate interests in the domain name at issue” (emphasis in
original). To similar effect see e.g. Gene Logic Inc. v. Bock, FA
103042 (Nat. Arb. Forum Mar. 4, 2002) and Twentieth Century Fox Film Corp.
v. Benstein, FA 102962 (Nat. Arb. Forum Feb. 27, 2002). Benstein is
especially of note for it includes, as in this case, that a respondent’s
“unsupported, self-serving allegations alone are insufficient to establish that
Respondent has rights or legitimate interests in respect to the domain name at
issue”.
Specifically,
on Policy ¶ 4(c)(i), Mr. Paravate’s affidavit that is Response Exhibit 1
appears, at most, to merely contend that Respondent has privileges to register
and use each of the domain names at issue and has behaved within the scope of
those privileges. His affidavit therefore does not appear to even be relevant
on that aspect of this topic, for how can such declarations by him be
rationally probative of the presence of such privileges and of such behavior,
rather than merely being rationally probative of, for example, his view that
such privileges exist and his view that Respondent’s behavior was within the
scope of those privileges? His evidence would at best be subjective evidence of
what the parties to that agreement agreed. The Panel is willing, however, to
consider his affidavit as relevant on this topic. Similar considerations apply
to the letter (from Complainant’s counsel to Respondent) that is Complaint
Exhibit 5 as they do to the declaration, and the Panel is, likewise, willing to
consider the letter as relevant on this topic. As is inferable from the above,
the Panel finds the affidavit and the letter of far less weight than the
Settlement.
As
for Policy ¶ 4(c)(ii), especially in view of the Settlement (e.g. sections 1,
20 and 31) and the effect of the Settlement, neither the affidavit nor Response
Exhibit 2 (i.e. a USA Today article dated October 25, 1988) or Response Exhibit
3 (i.e. U.S. registered trademark 1304462 for MATCHMAKER INTERNATIONAL filed
June 9, 1983 but which is no longer active and of which Louis A. Paravate was
the first owner) or Response Exhibit 4 (i.e. Respondent’s corporate documents,
as contrasted with documents as to e.g. present lawful use in trade) is even
relevant. Similarly, as to Respondent’s contentions regarding each of the
domain names at issue being registered to Respondent and regarding Complaint’s
naming of Respondent in the style of cause of this proceeding, each contention
is irrelevant: domain name registrations that are the very subject-matter of
the dispute do not confer Policy ¶ 4(c) “rights or legitimate interests”, and
Complainant’s naming of Respondent basically had to account for at least the
Forum’s view of the interaction between how domain name registrars keep records
and the style of cause requirements of the Policy.
In
view of all of the above, the Panel finds that the burden of production shifted
to Respondent but that on this topic Respondent has not met it. Accordingly,
the Panel finds Respondent has “no rights or legitimate interests in respect of
the domain name” within the meaning of that expression as it occurs in Policy ¶
4(a)(ii).
In
view of the immediately preceding paragraph hereof, the Panel finds that Policy
¶ 4(a)(ii) is proven regarding each domain name at issue.
The
majority should add four further sets of comments.
First,
the minority characterizes the above resolution of this aspect of this dispute
(between a complainant owner of, inter alia, a U.S. trademark
registration, and respondent in the U.S.) as being to the effect that ownership
of a trademark anywhere provides sufficient basis for prevailing under the
Policy. However, that is neither the purpose nor the effect of the majority’s
decision or reasons. Instead, neither expressly nor implicitly does the Policy require
a complainant to have trademark rights corresponding to more than one
geographical area in order for that complainant’s complaint to succeed. Indeed,
to require a global or otherwise multi-area scope of complainant
trademark rights (as contrasted with complainant rights under the Policy) would
be contrary to the Policy, since the Second WIPO Report, supra, instead
is “about the efficient application of existing law in a multijurisdictional
and cross-territorial space.”
Second,
though the minority characterizes the above as being other than good public
policy and as not required by the Policy, the majority considers such
characterizations as mistaken, basically in three respects. First, as mentioned
above, this Panel is basically a law-applying body rather than a law-making
body, and good public policy is already expressed by the court in PACCAR
Inc. v. TeleScan Techs., L.L.C., supra; for the Panel to rule
otherwise than it has would basically be making law rather than applying law,
and the Panel’s decision would conflict with rather than accord with applicable
law and with the Policy. Second, the characterizations beg the question by assuming,
contrary to PACCAR Inc. v. TeleScan Techs., L.L.C., supra, that
Respondent had and has authority to (i) register a domain name that includes
the text of the mark covered by Complainant’s U.S. registered trademark; and
(ii) use that domain name in association with services specified in the
trademark registration. Third, the characterizations’ assumptions are also
contrary to the facts of this case, including the Settlement and that the
Settlement exists in the context of trademark law which (as referred to in 2
T.J. McCarthy, McCarthy on Trademarks and Unfair Competition, § 18:52 (4th Ed.
2000) supra) includes that a trademark “licensee’s use [of a mark]
inures to the benefit of the licensor-owner of the mark.” The pre-existing rule
that the benefit inures to Complainant still exists, and does not have to be
expressed or repeated or elaborated upon in the Settlement in order to still
exist and apply to the Parties. To instead read in an implied provision to the
effect that the rule does not exist or does not apply to the Parties (as the
minority would do), and that instead Complainant authorized Respondent in the
way contended for by the minority, would be to read into the Settlement a
provision which is contrary to that rule of law and which is not indicated as
being implied by the Settlement.
Third,
the minority characterizes the time between Respondent registration of the
domain names at issue and the commencement of this proceeding as warranting a
delay-based defense such as estoppel. However, this being an adversarial rather
than inquisitorial proceeding, it is not open to the Panel to make what amounts
to a Respondent contention of such as defense, especially without Complainant
having an opportunity to respond thereto. Moreover, there appear to be
conflicting views, expressed in and applied by administrative panel decisions under
the Policy, as to whether various doctrines, such as the doctrine of estoppel,
or such as general or other doctrines from the law of equity, can be applied in
administrative panel decision-making under the Policy. In any event, a doctrine
such as estoppel is unavailable in this case because there appears to be no
evidence that Complainant was engaged in any conduct inducing or allowing
Respondent to proceed such as would warrant the Panel to apply the doctrine to
Complainant.
Fourth,
though the minority characterizes the registration and use of the domain names
at issue as not causing confusion (and instead as accurately disclosing the
relationship between Complainant and Respondent) and as in fact driving traffic
to Complainant’s website, such considerations are more appropriately dealt with
in connection with bad-faith use and bad-faith registration, and that is where
the majority deals with them.
The
context in which this part of this discussion occurs includes Policy ¶ 4(b).
Policy
¶ 4(b) is basically directed from a domain name registrar to a domain name
registrant and prospective mandatory administrative proceeding respondent, and
includes that
For
the purposes of [Policy paragraph] 4(a)(iii), 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 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; or
(ii)
you have 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 you have engaged in a pattern of such conduct; or
(iii)
you have registered the domain name primarily for the purpose of disrupting the
business of a competitor; or
(iv)
by using the domain name, you have intentionally attempted to attract, for
commercial gain, Internet users to your web site or other on-line location, by
creating a likelihood of confusion with the complainant's mark as to the
source, sponsorship, affiliation, or endorsement of your web site or location
or of a product or service on your web site or location.
As
for each of Policy ¶¶ 4(b)(i), (ii) and (iii), they basically define respective
types of bad-faith registration and provide that if any one of such types of
registration has been ascertained by a panel then bad-faith use is in turn
evidenced via application of the respective one of those three provisions.
As
for Policy ¶ 4(b)(iv), it basically defines a type of bad-faith use and
provides that if such type of use is ascertained by a panel then bad-faith
registration is in turn evidenced via application of that provision.
In
this proceeding, Policy ¶ 4(b)(i) appears to not be contended for but Policy ¶¶
4(b)(ii), (iii) and (iv) do appear to be contended for by Complainant; in view
of the Panel’s disposition of ¶¶ 4(b)(iii) and (iv) issues, the Panel need not
address ¶ 4(b)(ii) issues.
As for Policy ¶ 4(b)(iii), the above discussion of the
Settlement indicates the circumstances cannot be other than within that
provision: the Settlement is so clear and Respondent’s behavior so clearly
outside of the privileges conferred by it and so clearly within the duties
imposed by it, and by trademark law, that Respondent must have known that
Respondent’s registration and use of each of the domain names at issue would
disrupt competitor business, and indeed must have been done primarily for that
purpose. Similarly, see Heel Quik! Inc. v. Goldman, supra
(holding that the registration of a domain name in violation of a license
agreement is evidence that the domain name was registered and used in bad
faith); and Gorstew Ltd. v. Carribean Tours & Cruises, FA 94927
(Nat. Arb. Forum July 28, 2000) (finding that Respondent’s use of the disputed
domain name to sell the services of Complainant or to attract customers to
Complainant, presumably for which Respondents would be paid a fee, is classic
trademark infringement, even if the result of same is that some revenue flows
to Complainant, the owner of the marks).
Furthermore,
as to Policy ¶ 4(b)(iv), in Response Exhibit 5 in what appears to be a copy of
the <matchmakerinternational.cc> website there is high-lighted a
direction that Respondent apparently makes to Complainant’s
<matchmakerinternational.com> website. That direction appears to
basically be contended by Respondent to be a disclaimer. If it is a disclaimer,
it is not very clear and is instead quite susceptible of being ignored or
misunderstood, and, in any event, there is the matter of initial interest
confusion. Specifically, entry of Complainant's mark will result in visits not
only to Complainant's website but also to Respondent's website which resolves
through the domain names at issue. See e.g. Ciccone v. Parisi,
D2000-0847 (WIPO Oct. 12, 2000), which is extensively cited and applied for the
proposition that even
Respondent's
use of a disclaimer on its web site is insufficient to avoid a finding of bad
faith. First, the disclaimer may be ignored or misunderstood by Internet
users. Second, a disclaimer does nothing to dispel initial interest
confusion that is inevitable from Respondent's actions. Such confusion is
a basis for finding a violation of Complainant's rights.
Similarly
see e.g. Prudential Ins. Co. v. Prudential Mortgage Loans,
FA 103880, (Nat. Arb. Forum Mar. 20, 2002), which includes that the “fact that
the Internet user ultimately discovers that a site is not that of Complainant,
or that Respondent disclaims any association with Complainant, does not cure
the fault”.
In
view of the immediately preceding seven paragraphs hereof, the Panel finds that
Policy ¶ 4(a)(iii) is proven as to each domain name at issue.
DECISION
Complainant
having established all three elements required under the ICANN Policy, the
Panel concludes that relief shall be GRANTED.
Accordingly,
it is Ordered that the <matchmakerinternational.cc> and
<matchmakerinternational.net> domain names be TRANSFERRED from
Respondent to Complainant.
Honorable Robert T. Pfeuffer, (Ret.), Panel Chairperson
Dated: 12 December 2003
Rodney C. Kyle, Panelist
Dated: 12 December 2003
I must respectfully dissent from the
majority's decision.
Rights or Legitimate Interests
Under ICANN Dispute Resolution Policy §4(c), the following is a partial list of
how one might prove rights to a domain name:
(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 or service mark 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.
There is some confusion about who
registered what domain name in this case. Matchmaker International (presumably
of Florida) registered MatchmakerInternational.net according to the whois print
out provided to the Panel. Since this is a documents only proceeding, that
information should be authoritative and controlling. Administrative and
technical contacts do not show ownership of the domain name.
The majority's contention there was no proof Matchmaker International of
Florida, Inc. is commonly known to the public by its corporate name does not
withstand scrutiny. Merely having a corporate name suggests the corporation is
known by that name (or some diminutive thereof). It should be noted Respondents'
original response said "…Respondent [sic] has been commonly known by its
corporate name Matchmaker International of Florida, Inc. and Matchmaker
International of Pensacola, Inc." Complainant failed to rebut this sworn
evidence. Similar evidence was submitted in Respondents' additional submission
on page 2.
There is no doubt Matchmaker International of Florida, Inc. is commonly known by
"Matchmaker International." There was no contrary evidence submitted to the
Panel. At that point, the inquiry should stop and Complainant must lose (at
least regarding the MatchmakerInternational.net domain name).
Instead, the majority makes an inquiry into whether or not Matchmaker
International of Florida, Inc. has rights to use its own name (called "trade
name rights"), despite the fact the UDRP 4(c)(ii) specifically provides
even if a Respondent has acquired no trademark or service mark rights,
the Respondent has a right to use the domain name when it includes its name.
While a court may certainly undertake such an inquiry and will give the matter a
full evidentiary hearing applying the proper law (which would include trademark
law), that is far beyond the "quick and dirty" purview of a UDRP documents only
proceeding. The majority confuses a UDRP proceeding with trademark litigation.
This is the first error made by the majority.
Lou Paravate personally registered MatchmakerInternational.cc. The "settlement
agreement" that gave Matchmaker International of Florida rights also gave rights
to Lou Paravate personally. This settlement document is very interesting for
several reasons:
1. There is no limitation (other than a geographical limitation) on how Respondents may use the MatchMaker servicemark. It presumably can be applied to any good or service.
2. Respondents have no continuing financial obligation to Complainant regarding the servicemark (meaning Respondents do not have to pay a periodic licensing fee).
3. No procedure is made for canceling Respondents' rights to use the servicemark.
4. The right to use the servicemark was granted indefinitely.
5. The right to use the servicemark as a domain name is not discussed, even though the document was executed in 1994.
Needless to say, this is an extraordinary
document that only exists because it was in settlement of prior litigation
between the parties. It was undoubtedly heavily negotiated.
Respondents have rights and legitimate interests in the domain name because they
are authorized to use Complainant's marks within certain geographical areas. The
Internet is particularly noteworthy because it does not have geographical
boundaries as it is commonly implemented.
The question is whether or not a geographical limitation in an authorization to
use a servicemark can be used to prevent an otherwise authorized user
of a registered servicemark from registering a domain name incorporating those
marks. If so, Complainant must win. If not, Respondents must prevail. The
majority appears to believe once a servicemark (even if in only one country) is
registered it should be enough to allow the owner (assuming no conflicting
registrations, of course) the right to recover any domain name registered in the
nearly 300 top level domains. With all due respect, such a result is not good
public policy and is not required by the UDRP. This is the majority's second
error.
It should be noted the oldest domain name, MatchMakerInternational.cc, was
registered April 3, 2000 and has been used since that date (some
1,275 days before the complaint was filed). Lou Paravate did not receive any
notice for more than three years that his MatchMakerInternational.cc web site
was infringing on Complainant's servicemark. Complainant finally gave notice on
August 14, 2003 that it objected to the registration of the
MatchMakerInternational.cc domain name (1,228 days after the domain was
registered).
The web site had a link to Complainant's web site indicating additional
locations were available there. How does this cause confusion? In fact, it
drives traffic to Complainant's web site. This meets, in the minority's view,
the requirements of UDRP §4(c)(i) that before any notice to Respondent owner of
MatchMakerInternational.cc of the dispute, its 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. The services in
question were bona fide in the sense they were really delivered and were even
within the scope of what was allowed under the settlement agreement.
As an authorized user of the servicemark, Respondent uses the domain name in
connection with a bona fide offering of goods and services. See Oki Data
Americas, Inc. v. ASD Inc., D2001-0903 (WIPO Nov. 6, 2001). According to the
authorization in question in this case, Respondents may use Complainant's
trademark in its domain name if Respondent is
1) actually selling goods or services (but need not be the same goods or services Complainant sells because that requirement does not appear in the authorization);
2) selling only the goods and services authorized on the web site in question (there was no limitation in the authorization in this regard);
3) accurately disclosing the relationship between Complainant and Respondent (meaning Respondent is not causing confusion by suggesting Respondent is the owner of the trademark); and
4) not attempting to corner the market in all domain names incorporating Complainant's mark and thereby prevent Complainant from reflecting its mark in its own domain name); see also Weber-Stephen Prod. Co. v. Armitage Hardware, D2000-0187 (WIPO May 11, 2000) (finding that Respondent, as an authorized dealer of Complainant's WEBER GRILL products, had rights and legitimate interests in <webergrills.com>, <webergrill.com>, <weber-grills.com>, <webergrillsource.com>, <webergrillstore.com>, <webergrillshowroom.com>, <webergrills-ah.com> and <webgrills.com> because it was using the domain names in order to make a bona fide offering of Complainant's goods and services).
Respondents meet all of these
requirements. Respondents have registered only two domain names, which has not
prevented Complainant from registering the MatchMakerInternational.com domain
name. Respondents have not prevented Complainant from registering and using its
own servicemark as a domain name.
While it is uncontested Complainant owns the servicemark at issue, ownership of
a mark is not a mechanical test under the UDRP to determine who prevails. A
respondent need only show some rights, not that ownership of the
mark is contested. While Respondents have some rights, it is
conceded they do not have any ownership interest in the registered servicemark
(although Complainant gave away so many rights in the settlement agreement
Respondents may well be unregistered co-owners in the servicemark, but that is a
for a court to determine).
Registration and Use in Bad Faith
Under ICANN Uniform Domain Name Dispute Resolution Policy Paragraph
4(b), the following non-exclusive factors indicate registration and use of a
domain name in bad faith:
(i) circumstances indicating that respondent has registered or 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 respondent's documented out-of-pocket costs
directly related to the domain name; or
(ii) 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 engaged in a pattern of such conduct; or
(iii) respondent has registered the domain name primarily for the purpose of
disrupting the business of a competitor; or
(iv) by using the domain name, respondent has intentionally attempted to
attract, for commercial gain, Internet users to respondent's web site or other
on-line location, by creating a likelihood of confusion with the complainant's
mark as to the source, sponsorship, affiliation, or endorsement of respondent's
web site or location or of a product or service on respondent's web site or
location.
"Bad faith" is defined in Black's Law Dictionary 7th edition at page 134 as: "1.
Dishonesty of belief or purpose..". In Halsey v. Brotherhood (1881), 19 Ch. D.
386 Lord Coleridge L.C.J. in determining whether there was evidence of mala
fides stated that the task of the Court was to consider "whether there is
anything to show that what the defendant stated was stated without reasonable
and probable cause".
It is very difficult to prove a negative. It is also difficult to prove a
party's intention in a document-only proceeding. Respondents did not register or
use the domain names in bad faith because they have used them for legitimate
business purposes. The advertised services were rendered. Respondents have
enough business to support five physical locations.
Respondents' domain names will not cause Internet users to mistakenly believe
that the Matchmaker International services generally are limited to Respondents'
territory because the attached website states, "for other locations please visit
<matchmakerinternational.com>." Further, use of the websites does not violate
the geographic limitation of the settlement agreement because the domain names,
like phone numbers, are accessible to the international community but do not
constitute world-wide promotion. See Mule Lighting, Inc. v. CPA, FA 95558 (Nat.
Arb. Forum Oct. 17, 2000) (finding no bad faith where Respondent has an active
website that has been in use for two years and where there was no intent to
cause confusion with Complainant's website and business); see also DJF Assocs.,
Inc. v. AIB Communications, FA 95612 (Nat. Arb. Forum Nov. 1, 2000) (finding
Respondent has shown that it has a legitimate interest in the domain name
because Respondent selected the name in good faith for its website, and was
offering services under the domain name prior to the initiation of the dispute);
see also Chestnutt v. Tumminelli, D2000-1758 (WIPO Feb. 2, 2001) (finding no bad
faith registration or use of the domain name <racegirl.com> where no evidence
was presented that Respondent intended to divert business from Complainant or
for any other purpose prohibited by UDRP Rules); see also Anticybersquatting
Consumer Protection Act, 15 U.S.C. §1125(d)(1)(B)(ii): "[b]ad faith intent …
shall not be found in any case in which the court determines that the person
believed and had reasonable grounds to believe that the use of the domain name
was a fair use or otherwise lawful."
For all of the foregoing reasons, I would have found in favor of Respondents.
Houston Putnam Lowry, Chartered Arbitrator
and Panelist
Dated: 12 December 2003
There is a world of difference between, on the one hand, merely having a corporate name (which basically is a matter between a corporation and the state agency that incorporated it) or having an occupational license document or domain name registration record (which basically is a matter between the recipient of that license or of that registrant, and the entity that confers the license or keeps the registry), and, on the other hand, being commonly known by a domain name (e.g. being known to the public at large by that domain name, or e.g. having trade name rights enforceable against the public at large); and in this case there is no evidence of Respondent being commonly known by either of the domain names at issue and there is not even evidence of Respondent being commonly known to the public by its corporate name.
As for the corporation database record copy that is Complaint Exhibit 2, at <sunbiz.org>, under “Legal Opinions,” and in turn under “Florida Statutes”, there is Title XXXVI, chapter 607, section 607.0202 , subsection (1), clause (a). That clause is as to the corporate name of a corporation incorporated in Florida, such as the corporate Respondent. The clause is that “(1) The articles of incorporation must set forth (a) A corporate name for the corporation that satisfies the requirements of s. 607.0401”. Section 607.0401 includes subsection (5) which is as follows (with emphasis added): “The name of the corporation as filed with the Department of State shall be for public notice only and shall not alone create any presumption of ownership beyond that which is created under the common law.” (There is no evidence in this proceeding that when dealing with a prospective Florida corporation name the Florida Department of State, Division of Corporations, officials engage in more or other than the common practice of merely checking the name against only that state’s corporations names and only for identicality rather than similarity.) For similar law, practice, and effect as to business name registrations, and therefore as to such registrations per se not conferring or evidencing Policy ¶ 4(c) “rights or legitimate interests”, see. e.g. Gavagai Tech. Inc. v. Gavagai, FA 135611 (Nat. Arb. Forum February 3, 2003) (in and associated with endnote 12 thereof).
Occupational License
As for the occupational license document that is part of Response Exhibit 4, it indicates that the Escambia County Tax Collector mailed to “Matchmaker International of Florida” a “Specialized Services” occupational license for 2003-2004 and designating the owner of that license as “Matchmaker Intl of Florida”. It cannot, per se, avail Respondent. (Moreover, the Escambia County Tax Collector has records available on-line at <http://ectc.co.escambia.fl.us> indicating, via “Occupational Licenses” and a form “TC Form 2001 (Rev 7/01),” that the requirement for obtaining that license was “to fill out a simple application” and that renewals of the license can be done on-line, but the license evidenced by Response Exhibit 4 appears to have been issued contrary to the requirements of the “TC Form 2001 (Rev 7/01)” form and Florida law. Specifically, the license was issued in other than the legal name of any of the Respondents, and if a person carrying on business in Florida uses any name for their business other than their legal name then Florida Statutes 865.09 requires them to file a fictitious name with the Florida Department of State, Fictitious Name Filing System, available on-line through <sunvbiz.org>. There is no evidence in this proceeding of records under that filing system indicating any fictitious name in any way corresponding to the corporate Respondent or to either of the individual Respondents.) For similar law, practice, and effect as to business licenses and tax registration certificates, and therefore as to neither such licenses nor such certificates per se conferring or evidencing Policy ¶ 4(c) “rights or legitimate interests”, see. e.g. Thrifty, Inc. v. FrugalAutoSales.com, Inc., FA 190516 (Nat. Arb. Forum October 13, 2003).
ENDNOTES
[i] W.N. Hohfeld, "Some Fundamental Legal Conceptions as Applied in Judicial Reasoning", (1913-14) 23 Yale L. J. 16, at 27, footnote 23. Emphasis in original.
[ii] See e.g. Rules 5(b)(i), 5(b)(ix), and 14(b). Rule 5(b)(i) includes that "The response shall … [r]espond specifically to the statements and allegations contained in the complaint and include any and all bases for the Respondent (domain-name holder) to retain registration and use of the disputed domain name", Rule 5(b)(ix) includes that "The response shall … [a]nnex any documentary or other evidence upon which the Respondent relies" , and Rule 14(b) includes that "If a Party, in the absence of exceptional circumstances, does not comply with any provision of, or requirement under, these Rules … the Panel shall draw such inferences therefrom as it considers appropriate." Rule 5(b)(i) and Rule 5(b)(ix) are each clearly a "provision of, or requirement under, these Rules" within the meaning of that expression as it appears in Rule 14(b).
[iii] The mode "1" referred to in the passage cited in endnote 1 above, together with Delisle, Evidence Principles and Problems, (1984), Carswell, Toronto, at 5:
The concept of relevancy is simply dictated by our own present insistence on a rational method of fact-finding.
However, not only must the evidence tendered be rationally probative of the fact
sought to be established; the fact sought to be established must concern a matter in issue between the parties, i.e. it must be material. …
The law of evidence then principally consists of the study of canons of exclusion, rules regarding admissibility, which deny receipt into evidence of information which is rationally probative of a matter in issue between the parties.