National Arbitration Forum

 

DECISION

 

Montres Charmex S.A. v. Montague USA Corporation

Claim Number: FA0707001049282

 

PARTIES

Complainant is Montres Charmex S.A. (“Complainant”), represented by Harry Jacobs, of DomainStatute.com, 4142 Hayvenhurst Dr, Encino, CA 91436.  Respondent is Montague USA Corporation (“Respondent”), represented by Cynthia Clarke Weber, of Sughrue Mion, PLLC, 2100 Pennsylvania Avenue, N.W., Washington, DC 20037.

 

 

REGISTRAR AND DISPUTED DOMAIN NAME 

The domain name at issue is <swissmilitary.com>, registered with Network Solutions, Inc. (“Respondent’s Domain Name”).

 

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.

 

Kendall C. Reed as Panelist.

 

PROCEDURAL HISTORY

Complainant submitted a Complaint to the National Arbitration Forum electronically on July 31, 2007; the National Arbitration Forum received a hard copy of the Complaint on July 31, 2007.

 

On July 31, 2007, Network Solutions, Inc. confirmed by e-mail to the National Arbitration Forum that the <swissmilitary.com> domain name is registered with Network Solutions, Inc. and that the Respondent is the current registrant of the name.  Network Solutions, Inc. has verified that Respondent is bound by the Network Solutions, 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 August 7, 2007, a Notification of Complaint and Commencement of Administrative Proceeding (the “Commencement Notification”), setting a deadline of August 27, 2007 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@swissmilitary.com by e-mail.

 

A timely Response was received and determined to be complete on August 24, 2007.

 

A timely Additional Submission was received from Complainant on August 29, 2007.

 

A timely Additional Submission was received from Respondent on September 5, 2007.

 

A further Additional Submission was submitted by Complainant on September 6, 2007, and was determined to be deficient.  The Panel has chosen not to consider this Additional Submission in its Decision. 

 

On August 31, 2007, pursuant to Complainant’s request to have the dispute decided by a single-member Panel, the National Arbitration Forum appointed Kendall C. Reed as Panelist.

 

RELIEF SOUGHT

Complainant requests that the <swissmilitary.com> domain name (the “Diputed Domain Name”) be transferred from Respondent to Complainant.

 

PARTIES’ CONTENTIONS

A. Complainant

 

Complainant is the owner of the following Swiss trademark registrations: SWISS MILITARY (Swiss Reg. No. P-426567 issued July 6, 1996, “…based on its common law rights dating back to July 17, 1992…”), CHARMEX SWISS MILITARY (Swiss Reg. No. P-425789 issued May 22, 1996 and WIPO International Reg. No. 701,717 dated October 7, 1998), SWISS MILITARY FORCES (Swiss Reg. No. 459,800 issued March 24, 1999, WIPO International Reg. No. 710,892 dated April 7, 1999), and SWISS MILITARY WATCH (Swiss Reg. No. 466,851 issued November 2, 1999, WIPO International Reg. No. 714,891 dated November 22, 1999) (collectively “Complainant’s Trademarks”).

 

The Disputed Domain Name is identical or confusingly similar to Complainant’s SWISS MILITARY trademark because it differs only with respect to the addition of “.com,” which addition is irrelevant for purposes of the Policy.

 

Respondent has no rights or legitimate interest in respect of the Disputed Domain Name for a number of reasons: 

1. Complainant has never authorized Respondent to use any of Complainant’s Trademarks;

 

2.  Respondent is not a distributor or licensee of Complainant;

 

3.  Respondent is using the Disputed Domain Name as an identical mirror for another domain name (<swissbike.com>) to catch type-in traffic – “the traffic of people looking for Complainant”;

 

4.  Respondent is intentionally attempting to capitalize on the good will of Complainant and divert Complainant’s customers because it is using the Disputed Domain Name, which is identical to Complainant’s SWISS MILITARY trademark, in connection with words contained on its website describing its bicycles as having “the shifting precision of a swiss [sic] watch”;

 

5.  Respondent is using the Disputed Domain Name in connection with words on its website describing its bicycles as having “the shifting precision of a swiss [sic] watch” and thereby is using the Disputed Domain Name in a trademark sense in direct violation of Complainant’s trademark rights, and such a use cannot constitute use in connection with a bona fide offering of goods;

 

6.  Respondent’s use of the Disputed Domain Name in connection with the words on its website describing its bicycles as having “the shifting precision of a swiss [sic] watch” is causing dilution of Complainant’s SWISS MILITARY trademark through blurring, and such a use cannot constitute a use in connection with a bona fide offering of goods; and

 

7.  Respondent has not been commonly known by the Disputed Domain Name.

 

Respondent’s use of the Disputed Domain Name is in bad faith.  Firstly, Respondent’s use of the Disputed Domain Name in connection with the statement that Respondent’s bicycles have “the shifting precision of a swiss [sic] watch” is an intentional attempting to have a free-ride on the goodwill of Complainant’s famous marks.  Secondly, Respondent’s unauthorized use of Complainant’s marks, originally associated with watches, to sell Respondent’s bicycles, is causing dilution of Complainant’s marks.  Thirdly, Respondent registered Respondent’s Domain Name for the purpose of preventing Complainant from reflecting its mark in a corresponding domain name, and further, Respondent has engaged in a pattern of such conduct as demonstrated by its use of the domain name <swissbike.com>, which is the subject of a certain rights of a third party. And Fourthly, by registering a domain name incorporating Complainant’s entire mark, and using it to sell Respondent’s own product while including a specific reference to Swiss watches, Respondent has intentionally attempted to attract, for commercial gain, Internet users to Respondent’s web site by creating a likelihood of confusion with the Complainant’s mark as to the source, sponsorship, affiliation or endorsement of Respondent’s website or location or of a product on Respondent’s web site or location. 


B. Respondent

 

Respondent registered the Disputed Domain Name on June 20, 1996, with the intention of using it in connection with the marketing and sale of its bicycles.  Respondent has used the Disputed Domain Name in connection with the marketing and sale of its bicycles.

 

The Disputed Domain Name is not confusingly similar to Complainant’s alleged trademarks because Complainant has failed to establish that it has trademark rights for purposes of the Policy.  Firstly, Complainant has not attached evidence that its trademark rights date back to 1992.  Secondly, Complainant has not provided evidence of any use of its mark anywhere in the world.  Thirdly, Complainant provides evidence that it holds a Swiss trademark registration and International Trademark Registrations, and the International Trademark Registrations have not been extended to the United States; as such, Complainant has no trademark rights in the United States.  And Fourthly, Complainant disclaimed, in the context of an abandoned trademark application filed with the United States Patent and Trademark Office (“USPTO”), the words in dispute, namely, SWISS MILITARY WATCH.

 

Respondent has rights or legitimate interests in respect to the Disputed Domain Name.  Firstly, Respondent uses the Disputed Domain Name to market and sell its bicycle.  Secondly, at the time Respondent registered the Disputed Domain Name, it also applied for the SWISS MILITARY mark in the United States.  And thirdly, at the time Respondent registered the Disputed Domain name and filed for the noted trademark, Complainant had not filed for trademark application in the United States and did not own any domain names. 

 

Respondent registered the Disputed Domain Name in good faith.  Firstly, the Respondent did not register or acquire the Disputed Domain Name with the purpose of selling or transferring it to the Complainant for any price.  Secondly, Respondent did not register the Disputed Domain Name to prevent Complainant from reflecting the mark in a corresponding domain name; rather, Respondent registered the Disputed Domain Name to market and sell bicycles and in fact did use it in that way. 

 

Respondent’s use of the Disputed Domain Name is in good faith.  Firstly, Respondent is using it in connection with its specialized bicycles, and has done so for over ten years.  Secondly, Respondent is not using it to attract Complainant’s customers; the parties respective customer pools are completely separate – those for watches and those for bicycles. 

 

Complainant’s claim that Respondent was on actual and constructive notice of Complainant’s SWILSS MILTARY trademark is not supported by any evidentiary showing. 

 

Complainant’s focus on Respondent’s assertion that the gears of its bicycles are as precise as a Swiss watch is misplaced, as nothing in this statement suggests a connection to Complainant or Complainant’s alleged trademarks.

 

Complainant’s reference to the <swissbike> domain name and its assertion that a third party possesses certain rights therein is not correct.  The referenced third party trademark could not apply to Respondent’s <swissbike> domain name. 

 

C. Complainant’s Additional Submission

 

First UDRP Element:

 

Respondent’s argument that Complainant waited too long to bring this action is incorrect.  The right to bring this action arose when Respondent began to use the Disputed Domain Name in a trademark sense to promote its bicycles, and this began in 2005 when Respondent began to make the connection between watches and its bicycles.  This connection was accomplished by way of Respondent’s use on Respondent’s website of the expression “the shifting precision of a swiss [sic] watch.”

 

Respondent is incorrect to assert that Complainant’s Trademarks do not confer trademark rights on Complainant.  The geographic location of Complainant’s Trademarks and the scope of goods and/or services for which they are registered are irrelevant for purposes of the Policy. 

 

Respondent is incorrect that Complainant has disclaimed the words in issue here.  Complainant’s disclaimer in a United States trademark application is irrelevant.  The trademark rights at issue are valid Swiss registrations, and no disclaimers where made there.

 

Respondent is not correct that Complainant must show evidence of its common law rights to support its claimed Date of First Use of July 17, 1992.  Complainant did support this date before the Swiss Trademark Office with a sworn declaration, specimens, and subsequent examination by said Office. 

 

Second UDRP Element:

 

Respondent is incorrect that it has rights and legitimate interest in the SWISS MILITARY mark in the United States because it filed a United States Trademark application.  Firstly, the trademark application was filed on an intent to use basis, and it was not issued.  Such an application confers no rights for purposes of the Policy.  Secondly,  even if Respondent were correct that a strictly United States use of a domain name created a basis for a claim for rights and legitimate interests, Respondent’s own submission to the USPTO states that it intended to use the mark in Switzerland, where Complainant’s Swiss trademarks would be highly relevant. 

 

Complainant did not grant Respondent rights to use Complainant’s Trademarks.  Intending to use Complainant’s registered marks, in Complainant’s country, without obtaining license from Complainant, is not a bona fide offering.

 

Respondent’s assertion that its use is a noncommercial or fair use is incorrect.  Respondent is a for profit enterprise.  Secondly, the words of the Disputed Domain Name are not in any way descriptive.

 

The term “Swiss Military” is used nowhere in the text on Respondent’s website, “…event thought the website pages have been spidered and cached by Google.”

 

Respondent has not provided any evidence that it has used the expression “Swiss Military” as a trademark.  No evidence has been provided that demonstrates that the expression has been used on products.  The advertisement provided by Respondent as an exhibit shows use of the expression on a bicycle, but this advertisement is undated.  Further, the advertisement does not present use of the expression in connection with any claim of trademark rights, such as the “tm” symbol.  This is in contrast to other marks appearing in the same advertisement; these other marks do use either the “tm” or “®” symbols, which demonstrates that Respondent was not using this expression in any branded sense. 

 

The Respondent did attach two of its invoices as exhibits to its response, and these invoices do show use of the expression “Swiss Military” in connection with the sale of bicycles, but these invoices were dated two years after Complainant’s initial date of first use for its SWISS MILITARY registration and further does not support a finding of continuous use since the Complainant’s SWISS MILITARY trademark was issued.

 

Whereas some panels have accepted the concept of common law usage to establish a Respondent’s trademark rights, in this instance Respondent in fact filed an intent to use application and has not to this day filed an amendment of use, which is inconsistent with a finding of prior common law rights. 

 

Respondent did file an intent to use trademark application in the United States for the mark SWISS MILITARY, but this application confers no rights.  One panel has found that a state trademark registration was insufficient to confer rights for purpose of the Policy, and an intent to use application has less weight than a state registration.

 

Arguments as to restrictions on the territorial scope of a complainant’s trademarks are irrelevant given the worldwide coverage of the Internet.

 

Third UDRP Element:

 

“Respondent, who is using the disputed domain name <swissmilitary.com> to promote its ‘Swissbike’ brand, manufactures the bike in Switzerland, sells them in Switzerland, and even when it supposedly came up with the ‘Swiss Military’ term, it primarily had sales to Switzerland-based clients in mind, namely the Swiss army.  Respondent has every intention of using the marks in the Swiss market.  In so doing, he has infringed on Complainant’s registered trademark rights, as well as on a third party’s registered trademark rights, in the term ‘Swissbike.’  Respondent then proceeded to register <swissmilitary.com> and <swissbike.com>.  In so doing, it has demonstrated a pattern of trademark infringements and bad faith registration and use.” 

 

The Respondent uses the Disputed Domain Name to market and sell its “Swissbike.” Respondent uses the Dispute Domain Name to refer to its real website at <swissbike.com>, and as such, the Disputed Domain Name is used for its type-in traffic value, which is a bad faith use.

 

D.     Respondent’s Supplemental Submission

 

Complainant Does not Have Exclusive Rights in SWISS MILITARY for watches

 

Respondent provides printouts as exhibits establishing that third parties use, register and have filed trademark applications incorporating SWISS MILTARY for watches.  This evidence establishes that Complainant does not have exclusive rights in SWISS MILITAY for watches. 

 

Even among watch manufacturers there is a dispute as to who has the right to use the SWISS MILITARY mark on watches.

 

Complainant only uses SWISS MIILTARY in connection with the letters “CX” as part of an entire mark, which letters Respondent does not use.

 

Complainant submits no evidence of continuous use of its alleged marks and certainly no use from 1992. 

 

Respondent attaches information from the Swiss Trademark Office which shows that in order to obtain registration in Switzerland, the mark need not be in use, no specimen need be submitted, and no sworn declaration is required.  Further, the Swiss Trademark Office does not conduct searches for purposes of determining likelihood of confusion; rather, likelihood of confusion is determined at the opposition stage.

 

Respondent attaches a number of copies of full text records demonstrating that the words “swiss military” are used in a number of trademark registrations with the Swiss national authority with respect to watches.  This is evidence that these Swiss watch manufacturers do not believe that the public is confused by these numerous uses for competing goods. 

 

The evidence supplied by Complainant to demonstrate use is defective and therefore does not so demonstrate.

 

Complainant’s rights are undermined by the existence of a number of registered domain names that incorporate SWISS MILITARY.

 

Respondent Has Rights and Legitimate Interests in <swissmiltary.com>

 

Respondent filed a US intent to use trademark application 11 years ago.  Complainant argues that this filing was fraudulent.  This is not correct.  Admittedly, Respondent has not filed an amendment of use for its intent to use application, but Respondent is under no requirement to do so at this time.  This issue as raised by Complainant is not relevant.

 

Respondent’s legitimate interest and rights to <swissmilitary.com> is established by Respondent’s filing, 11 years ago, of a trademark application for the SWISS MILITARY mark for bicycles and Respondent use of this mark on bicycles.

 

Complainant argues that Respondent’s sale of bicycles in Switzerland under the SWISS MILITARY mark will dilute Complainant’s marks for watches through blurring.  However, blurring can only occur when the mark being blurred is famous, which Complainant’s mark is not.  Rather, the SWISS MILITARY mark is weak and dilute with respect to watches, and Respondent’s use of the SWISS MILITARY for bicycles does not dilute any rights Complainant may be found to have in SWISS MILITARY.

 

Respondent Registered the <swissmilitary.com> Domain Name in Good Faith

 

Respondent had never heard of Complainant when Respondent filed its intent to use application for SWISS MILITARY in the United States.

 

Complainant, as of 1996 and still today, does not have rights in SWISS MILITARY for watches in the UNITED STATES or a domain name in its name. 

 

Respondent did not and could not have registered the Disputed Domain Name in bad faith 11 years ago. 

 

The cases that Respondent cites in support of its position are all distinguishable.

 

Respondent uses the <swissmilitary.com> Domain Name in Good faith.

 

Complainant bases its bad faith use argument on Respondent’s use of the wording “Swiss Watch” on its website.  Complainant does not hold any rights in “Swiss watch.”  A search of Google and Thomson Compumark shows a large number of uses for the expression “Swiss watches.”  In Switzerland there are just under 2000 active records with the wording “Swiss watches.”  The use of “Swiss watch” on Respondent’s website creates no association with Complainant because Complainant has no exclusive rights in SWISS MILITARY for watches and many people use the generic wording “swiss watch” to refer to their goods and services. 

           

 

FINDINGS

 

Complainant is the owner of the following trademarks with the following registration dates: 

SWISS MILITARY (Swiss Reg. No. P-426567 issued July 6, 1996, “…based on its common law rights dating back to July 17, 1992…”);

 

CHARMEX SWISS MILITARY (Swiss Reg. No. P-425789 issued May 22, 1996 and WIPO International Reg. No. 701,717 dated October 7, 1998);

 

SWISS MILITARY FORCES (Swiss Reg. No. 459,800 issued March 24, 1999, WIPO International Reg. No. 710,892 dated April 7, 1999); and

 

SWISS MILITARY WATCH (Swiss Reg. No. 466,851 issued November 2, 1999, WIPO International Reg. No. 714,891 dated November 22, 1999).

 

All of these trademark registrations are with the Switzerland Federal Institute of Intellectual Property (“Swiss EGE”) and WIPO, as indicated. 

 

Respondent registered the Disputed Domain Name, <swissmilitary.com>, on June 20, 1996.

 

Respondent uses the Disputed Domain Name in connection with the marketing and sale of its bicycles.

 

The Disputed Domain Name operates to direct Internet traffic to a website owned by Respondent, and this website operates under the <swissbike.com> domain name.

 

On the <swissbike.com> website, Respondent makes a comparison between its Swissbike bicycle and a Swiss watch with the following expression: “The world’s most advanced bicycle folds to fit in a car trunk or closet, yet climbs through the Swiss Alps with the shifting precision of a swiss [sic] watch.”

 

The Disputed Domain Name is identical to Complainant’s SWISS MILITARY trademark.

 

Respondent uses the Disputed Domain Name in connection with a bona fide offering of goods.

 

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

 

Policy ¶ 4(a)(i) requires that the Disputed Domain Name be “identical or confusingly similar to a trademark or service mark in which the complainant has rights.” 

 

For purposes of deciding whether the Disputed Domain Name is identical or confusingly similar to Complainant’s trademark, the top-level domain names (“gTLD”) are removed.  See Nev. State Bank v. Modern Limited-Cayman Web Development , FA 204062 (Nat. Arb. Forum Mar. 22, 2003) (“It has been established that the addition of a generic top-level domain is irrelevant when considering whether a domain name is identical or confusingly similar under the Policy.”); see also Isleworth Land Co., v. Lost in Space, SA, FA 117330 (Nat. Arb. Forum Sept. 27, 2002) (“[i]t is a well established principal that generic top-level domains are irrelevant when conducting a Policy ¶ 4(a)(i) analysis.”)

 

Here, Complainant’s trademark is SWISS MILITARY, pursuant to Swiss registration number P-426567.  The Disputed Domain Name is <swissmilitary.com>, and after stripping off the gTLD, it is “swissmilitary.”  This Panel has no trouble finding that the Disputed Domain Name is identical to Complainant’s trademark SWISS MILITARY. 

 

Respondent argues that Complainant has not demonstrated that it had trademark rights that predated Respondent’s registration of the Disputed Domain Name, and that this precludes a finding of identically or similarity.  See Razorbox, Inc. v. Torben Skjodt, FA 150795 (Nat. Arb. Forum May 9, 2003) (“…Respondent’s registration of the <raxorbox.com> domain name predates Complainants alleged rights.  Complainant admits in this complaint that …Complainant’s trademark application indicates a first use in commerce of January 15, 2002.  However, Respondent registered the disputed domain name on December 10, 1999, more than two years prior to Complainant’s stated first use in commerce.  Under these facts, the Panel must find in favor of Respondent because it would be impossible for Complainant to prove Respondent’s bad faith registration subsequent to Complainants establishing any rights in the RAZORBOX mark.”).  Complainant’s Swiss trademark registration for its SWISS MILITARY mark was issued on June 11, 1996.  Respondent registered the Disputed Domain Name on June 20, 1996, and as such, Complainant has demonstrated that its trademark rights predate Respondent’s registration. 

 

Respondent argues that Complainant has provided no evidence of any use of this mark on any goods or services at all or for any length of time, and therefore Complainant has not established any use of its mark anywhere in the world.  Respondent further argues in its Supplemental Response that Claimant’s mark is defective for a number of reasons, including that the requirements for obtaining a trademark registration are less stringent in the Swiss IGE than under the laws of the United States and the policies and practices of the USPTO.  However, insofar as these arguments are attacks on Complainant’s Swiss registration, they are misplaced. As Complainant correctly points out, this panel is not in a position to examine the propriety of the issuance of a trademark registration by a national trademark authority.  See Gerber Childrenswear v. Webb, D2007-0317 (WIPO April 26, 2007) (“It is simply not within the purview of any UDRP panel to evaluate and review the judgment of the USPTO on such questions. Moreover, even apart from those jurisdictional concerns but clearly in view of the rather summary and abbreviated nature of UDRP proceedings, UDRP panels are here too grossly ill-equipped to deal with an extensive factual inquiry that typically underlies an invalidity determination.”).  

 

Further, insofar as this is an attack on the validity of Complainant asserting its trademark rights in this proceeding because Complainant does not prove use in addition to registration, this argument is misplaced.  The existence of a trademark registration is sufficient to establish trademark rights for purpose of the Policy.  See Vicorp Rests., Inc., v. Trantafillos, FA 485933 (Nat. Arb. Forum July 14, 2005) (“Complainant has established rights in the BAKERS SQUARE mark by registering it with the United States Patent and Trademark Office (“USPTO”).”); see also Miller Brewing Co. v. the Miller Family, FA 104177 (Nat. Arb. Forum Apr. 15, 2002) (finding that the complainant has established rights to the MILLER TIME mark through its federal trademark registrations.

 

Respondent argues that Complainant’s trademark SWISS MILITARY is a Swiss registration and has not been extended to the United States.  “Accordingly, Complainant has no rights in its alleged mark in the United States….”  However, the Policy contains no such territorial restrictions.  A trademark validly issued in any country is valid for purposes of the Policy.  See Wall-Mart Stores, Inc., v. Stork, D2000-0628 (WIPO Aug. 11, 2000) (finding the complainant has rights to the name when the mark is registered in an country even if the complainant has never traded in that country); see also Kaninklije KPN N.V. Telepathy Inc., D2001-0217 (WIPO May 7, 2001) (finding that the Policy does not require that the mark be registered in the country in which the respondent operates; therefore it is sufficient that the complainant can demonstrate a mark in some jurisdiction).  The decision on this point could not be otherwise.  The environment of the Policy is the Internet, which by its nature is borderless.  To inject territoriality as argued by Respondent would be to overlay a national system on an international system, which would not be workable. 

 

Respondent argues in its Supplemental Submission that Complainant’s argument as to dilution does not lie here as Complainant’s SWISS MILITARY mark is already weak and diluted.  However, this argument is off point because the focus under Policy ¶ 4(a)(i) is whether a Complainant has trademark rights, not the strength of those rights in a trademark sense. 

 

Finally, Respondent argues that Complainant has disclaimed in the context of a United States trademark application the words that are in dispute, namely “SWISS MILITARY WATCH.”  However, as Complainant correctly points out, this disclaimer does not obviate its existing SWISS MILITARY registration in Switzerland, and the words are not there disclaimed.  As such, the noted disclaimer is irrelevant for this analysis.

 

Complainant owns other trademark registrations as noted above.  This Panel has not mentioned or analyzed them here because the noted Swiss registration for SWISS MILITARY is identical to the Disputed Domain Name and was registered prior to the Disputed Domain Name.  Complainant’s other trademarks would be, at best, similar to the Disputed Domain Name.  The inclusion of these additional trademarks would not alter any analysis in this decision.

 

As such, Complainant has established this element of the Policy. 

 

Rights or Legitimate Interests

           

Guidance is provided by Policy ¶ 4(c) as to what constitutes “rights or legitimate interests.”  Three non-exclusive examples are given, to wit:

 

(i)  before 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. 

 

This Panel finds that the latter two examples, Policy ¶¶ 4(c)(ii) and (iii) are not at issue in this matter.  It is clear from the evidence provided by both parties that Respondent is using the Disputed Domain Name in connection with the marketing and sale of its bicycles, which is a commercial enterprise and incompatible with a finding of a noncommercial use.  Further, there is no indication in any of the submissions that Respondent has been known by the Disputed Domain Name.

 

The question for this Panel is whether Respondent’s use of the Disputed Domain Name falls within the scope of the first example, Policy ¶ 4(c)(i).  The Complainant asserts that this is not the case, and Respondent asserts that it is. 

 

In analyzing Policy ¶ 4(c)(i), this Panel must examine the factors listed there: whether Respondent used the domain name in connection with a commercial offering of goods and did so before notice of the dispute. 

 

In addition, many panels, including this Panel, have interpreted Policy ¶ 4(c)(i) as including the concept that a respondent may not use a domain name that is identical or similar to a claimant’s trademark if the respondent and the complainant are competitors and the respondent is doing so intentionally to profit from the claimant’s goodwill, including an intentional or reasonably inevitable diversion of the claimant’s actual or potential customers, even when the respondent is otherwise using the domain name in connection with an actual offering of goods and services.  See Am. Online, Inc., v. Fu, D2000-1374 (WIPO Dec. 12, 2000) (“it would be unconscionable to find a bona fide offering of services in a Respondent’s operation of a website using a domain name which is confusingly similar to Complainant’s mark and for the same business.”); see also Pfizer, Inc. v. Internet Gambiano Prods., D2002-0325 (WIPO June 20, 2002) (finding that because the VIAGRA mark was clearly well-known at the time of the Respondent’s registration of the domain name it can be inferred that the Respondent is attempting to capitalize on the confusing created by the domain name’s similarity to the mark);  see also MBS Computers Ltd., v. Workman, FA 96632 (Nat. Arb. Forum Mar. 16, 2001) (finding no rights or legitimate interest when the Respondent is using a domain name identical to the Complainant’s mark and is offering similar services).

 

For purposes of an analysis under Policy ¶ 4(c), the Complainant has the initial burden to make a prima facie case that Respondent does not have rights or legitimate interests, which burden is light, and if the Complainant carries its burden, then the burden shifts to the Respondent to demonstrate that it does have rights or legitimate interests.  See Hanna-Barbara Prod., Inc. v. Entm’t Commentaries, FA 741828 (Nat. Arb. Forum Aug. 18, 2006) (holding that the complainant must first make a prima facie case that the respondent lacks rights and legitimate interest in the disputed domain name under Policy ¶ 4(a)(ii) before the burden shifts to the respondent to show that it does have rights or legitimate interests in a domain name); see also AOL LLC v. Gerberg, FA 780200 (Nat. Arb. Forum Sept. 25, 2006) (“Complainant must first make a prima facie showing that Respondent does not have rights or legitimate interests in the subject domain names, which burden is light.  If Complainant satisfies its burden, then the burden shifts to Respondent to show that it does have rights or legitimate interests in the subject domain names.”).

 

In the instant matter, Complainant argues that Respondent is not using the Disputed Domain Name in connection with a bona fide offering of goods for the following reasons:

 

 

1. Complainant has never authorized Respondent to use any of Complainant’s Trademarks;

 

2.  Respondent is not a distributor or licensee of Complainant;

 

3.  Respondent is using the Disputed Domain Name as an identical mirror for another domain name (<swissbike.com>) to catch type-in traffic – “the traffic of people looking for Complainant”;

 

4.  Respondent is intentionally attempting to capitalize on the good will of Complainant and divert Complainant’s customers because it is using the Disputed Domain Name, which is identical to Complainant’s SWISS MILITARY trademark, in connection with words contained on its website describing its bicycles as having “the shifting precision of a swiss [sic] watch”;

 

5.  Respondent is using the Disputed Domain Name in connection with words on its website describing its bicycles as having “the shifting precision of a swiss [sic] watch” and thereby is using the Disputed Domain Name in a trademark sense in direct violation of Complainant’s trademark rights, and such a use cannot constitute use in connection with a bona fide offering of goods; and

 

6.  Respondent’s use of the Disputed Domain Name in connection with the words on its website describing its bicycles as having “the shifting precision of a swiss [sic] watch” is causing dilution of Complainant’s SWISS MILITARY trademark through blurring, and such a use cannot constitute a use in connection with a bona fide offering of goods.

 

In analyzing whether these arguments and supporting evidence satisfy Complainant’s burden, it is important to first separate out the latter two arguments concerning direct trademark infringement and infringement by way of dilution.  These must be dismissed from further consideration by this Panel because this Panel does not have the authority to decide issues of trademark infringement.  This Panel operates on an expedited basis under the Policy and is not equipped to make the detailed inquires that can be necessary to resolve questions of trademark infringement.  If Complainant wishes to pursue these arguments, it must do so in another forum.  See Auto Nation Holding Corp. V. Rabea Alawneh, D2002-0581 (WIPO May 2, 2002) (“[A]ssertions [of trademark infringement] are entirely misplace and totally inappropriate for resolution through an ICAN proceeding. The scope of an ICANN proceeding is extremely narrow: it only targets abusive cybersquatting, nothing else.”); see also Gerber Childrenswear, Inc., v. Webb, D2007-0317 (WIPO Apr. 24, 2007) (“Issues concerning trademark liability…are clearly not within the purview of any UDRP proceeding and are best left for administrative and/or judicial adjudication.  Not only is doing so outside the very limited and focused jurisdiction afforded to ICANN panels under the Policy but moreover the summary and rather abbreviated nature of UDRP proceedings totally precludes the establishment of a fully developed factual record that underlies such a question.  UDRP panels cannot and hence do not asses the validity for any federally registered trademark”).

 

This Panel may also dismiss the first two noted arguments, that the Complainant did not give authorization to Respondent and that Respondent is not a distributor or licensee.  These arguments may be profitably raised in a complaint in a preemptive sense, but they have no purpose where a respondent does not in fact raise them as a defense. 

 

With respect to Complainant’s argument that Respondent is intentionally attempting to catch type-in traffic intended for Complainant because the Disputed Domain Name is a mere identical mirror for another website under a different domain name (<swissbike.com>), this Panel is not persuaded that this is Respondent’s intention.  This Panel is not persuaded that the use of a domain name to refer to a website that is operated under another domain name is, by itself, evidence that Respondent is attempting to catch Complainant’s type-in traffic.  The use of multiple domain names to cast a wide net is a common and legitimate practice.  Complainant’s argument is not strengthened by Respondent’s statement on its website to the effect that its bicycle can climb through the Swiss Alps with the shifting precision of a Swiss watch.  This expression would necessarily be unknown to an Internet user before he or she arrived at Respondent’s website and for this reason cannot be a factor in any diversion of an Internet user looking for Complainant’s website in the first instance.  To the extent that Complainant’s argument here is to be interpreted that Respondent’s use would cause Respondent’s website to be unfairly identified in an internet search using the key words “swiss watch,” this Panel would still not be persuaded.  As Respondent points out in its Supplemental Response, the expression “swiss watch” is a commonly used expression, and such an effort on the part of Respondent would be so ill conceived as to be very unlikely.   

 

Complainant’s next and remaining argument contains a similar flaw.  As has been stated, it is not the rule that the use of a domain name that is identical to another’s trademark requires, ipso facto, a finding that the domain name is not used in connection with a bona fide offering of goods and services; other factors must be present as noted above.  The only additional evidence added by Complainant to support the requested finding is that Respondent is using on its website the expression that its bicycle climbs through the Swiss Alps with the shifting precision of a Swiss watch.  As has been said, this expression on the website cannot be a reason for Complainant’s actual or potential customers to be diverted.

 

Further, this Panel is not persuaded that this expression (“The world’s most advanced bicycle folds to fit in a car trunk or closet, yet climbs through the Swiss Alps with the shifting precision of a swiss [sic] watch.”) when used in conjunction with the Disputed Domain Name is evidence of an intent on Respondent’s part to create a likelihood of confusion as to the source, sponsorship, affiliation or endorsement of Respondent’s website or goods.  This is a possible explanation for such a concordance, but another explanation is more likely.  The comparison being drawn by Respondent is between two precise mechanical systems, the gears of its bicycle and a Swiss watch.  The idea that a Swiss watch is a precise mechanical device, and indeed a paradigm of a precise mechanical device, is within our common cultural heritage.  As such, Respondent can make this comparison without any intent to invoke Complainant as the source, sponsorship, affiliation or endorsement of Respondent, its website, or its bicycles. 

 

As such, this Panel finds that Complainant has failed in its initial burden to establish a prima facia case that Respondent’s use of the Disputed Domain Name does not constitute a use in connection with a bona fide offering of goods and services.

 

However, even if this Panel found otherwise on this point, it would not change the outcome, as this Panel believes that Respondent has carried its burden of demonstrating that its use of the Disputed Domain Name is in connection with a bona fide offering of goods. 

 

Respondent argues and provides supporting evidence that it is using the Disputed Domain Name to “market, promote and sell its goods.”  Complainant agrees with this.  In its Complaint, Complainant states that Respondent’s website is designed to promote Respondent’s products.  As such, Respondent is using the Disputed Domain Name for its own commercial purpose.

 

Respondent demonstrates through copies of its website content and copies of several invoices, both attached as exhibits to its Response, that its goods are bicycles.  Complainant agrees with this.  In its Complaint, Complainant states that Respondent’s “use of Complaint’s Trademarks” in connection with the sale of bicycles operates to dilute Complainant’s trademarks, which relate to watches.  This Panel finds that for purposes of the Policy, bicycles do not compete with watches, and as such, the parties’ commercial activities do not compete.  See Quest Commc’ns Int’l, Inc., v. QC Publ’g Group, Inc., FA 286032 (Nat. Arb. Forum, July 23, 2004) (Finding rights or legitimate interests on the part of a respondent that used a domain name confusingly similar to the complainant’s trademark and where the complainant’s mark was limited to its application in the telecommunications industry and respondent’s use of the domain name related to respondent’s publishing activities). 

 

With respect to Respondent’s use of the Disputed Domain Name prior to notice of the dispute, the record does not state when Respondent received notice of the dispute.  Absent a showing on this point, the Panel can only infer that notice was given when the Complaint was served, which was very recently and certainly well after Respondent registered the Disputed Domain Name in 1996, and well after 2005, which is when Complainant asserts that Respondent began making the comparison on its websites between bicycles and Swiss watches. 

 

Finally, this Panel believes that Respondent’s use of the Disputed Domain Name was initiated in an effort to market and sell its bicycles and not to reference Complainant, its goods, or trademark, as discussed above. 

 

As such, Respondent has established that it is using the Disputed Domain Name in conjunction with a bona fide sale of goods.

 

As such, Complainant has failed to establish this element under the Policy.

 

As such, Complainant cannot establish that Respondent has violated the Policy because Policy ¶ 4(a) requires that the Complainant establish each of the three elements listed in 4(a). 

 

Registration and Use in Bad Faith

 

The Panel need not analyze this element of the Policy for the reason stated immediately above. 

 

DECISION

Having failed to establish all three elements required under the ICANN Policy, the Panel concludes that relief shall be DENIED.

 

 

 

Kendall C. Reed, Panelist
Dated: September 25, 2007

 

 

 

 

 

 

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