National Arbitration Forum

 

DECISION

 

SkinMedica, Inc. v. Alan Darush

Claim Number: FA0711001115189

 

PARTIES

Complainant is SkinMedica, Inc. (“Complainant”), represented by Dave Deonarine, of Wilson Sonsini Goodrich & Rosati, 12235 El Camino Real, Suite 200, San Diego, CA 92130-3002.  Respondent is Alan Darush (“Respondent”), 8540 Reseda Blvd #103, Northridge, CA 91324.

 

 

REGISTRAR AND DISPUTED DOMAIN NAME 

The domain name at issue is <skinmedicatns.com>, registered with Godaddy.com, Inc.

 

PANEL

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

 

Michael A. Albert as Panelist.

 

PROCEDURAL HISTORY

Complainant submitted a Complaint to the National Arbitration Forum electronically on November 28, 2007; the National Arbitration Forum received a hard copy of the Complaint on November 29, 2007.

 

On November 29, 2007, Godaddy.com, Inc. confirmed by e-mail to the National Arbitration Forum that the <skinmedicatns.com> domain name is registered with Godaddy.com, Inc. and that the Respondent is the current registrant of the name.  Godaddy.com, Inc. has verified that Respondent is bound by the Godaddy.com, 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 December 12, 2007, a Notification of Complaint and Commencement of Administrative Proceeding (the “Commencement Notification”), setting a deadline of January 2, 2008 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@skinmedicatns.com by e-mail.

 

A timely Response was received and determined to be complete on January 2, 2008.

 

On January 4, 2008, Complainant submitted a Request to Stay the Proceedings pursuant to Forum Supplemental Rule 6(b)(i), which was granted by the Forum.  On February 13, 2008, Complainant filed a Request to Remove the Stay under Forum Supplemental Rule 6(b)(ii), which was promptly removed.

 

Along with Complainant’s Request to Remove the Stay, Complainant submitted an Additional Submission on February 13, 2008 that was accepted and determined to be complete by the National Arbitration Forum.

 

Respondent submitted an Additional Submission on February 19, 2008 that was accepted and determined to be complete and timely.

 

On February 25, 2008, pursuant to Complainant’s request to have the dispute decided by a single-member Panel, the National Arbitration Forum appointed Michael A. Albert as Panelist.

 

RELIEF SOUGHT

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

 

PARTIES’ CONTENTIONS

A. Complainant

 

Complainant SkinMedica, Inc. is a specialty pharmaceutical company involved in developing, acquiring and commercializing products that treat dermatologic conditions and diseases and improve the appearance of skin. 

 

Complainant asserts that it markets products under the SKINMEDICA and TNS marks in many areas worldwide.  Complainant asserts that it has used the SKINMEDICA mark since at least as early as 1999, and the TNS mark since at least as early as 2001.  Complainant holds U.S. federal trademark registrations for SKINMEDICA (U.S. Reg. Nos. 2,757,644 and 3,188,953, registered August 26, 2003 and December 26, 2006, respectively), and TNS (U.S. Reg. No. 3,198,231, registered January 16, 2007).

 

Complainant asserts that Respondent registered the disputed domain name on November 7, 2006, well after Complainant acquired rights in the SKINMEDICA and TNS marks.  Complainant asserts that Respondent is using the disputed domain name to operate a commercial, pay-per-click website displaying sponsored links to third party websites, including websites offering products that compete with Complainant’s.

 

Complainant asserts that the <skinmedicatns.com> domain name is confusingly similar to its SKINMEDICA and TNS marks, noting that the domain name combines the two marks.

 

Complainant asserts that Respondent has no rights or legitimate interests in respect of the disputed domain name.  Complainant contends that Respondent’s use of the domain name to redirect consumers to a pay-per-click website is neither a use in connection with a bona fide offering of goods and services, nor a legitimate noncommercial or fair use.  Complainant also contends that Respondent is not authorized to use Complainant’s SKINMEDICA or TNS marks (though Complainant amends this assertion in its additional submission, detailed below).

 

Finally, Complainant asserts that Respondent’s registration and use of the disputed domain name to redirect consumers to Respondent’s pay-per-click website constitutes registration and use in bad faith.

 

B. Respondent

 

Respondent asserts that it has been authorized by Complainant to sell SkinMedica brand products since 2005, and notes that it is listed on the SkinMedica website as an authorized physician.  Respondent asserts that it has a legitimate interest in the disputed domain name based on its sale of SkinMedica products.

 

Respondent asserts that it chose to sell SkinMedica products because of those products’ prominence in the U.S. market for skincare.  Respondent contends that it does not use Complainant’s name to promote or sell products manufactured by Complainant’s competitors, and has no intention to divert internet users to Complainant’s competitors.

 

Respondent admits that the SKINMEDICA mark was registered before Respondent registered the disputed domain name, but notes that the TNS mark was registered after the domain name registration.  Respondent contends that combining the two marks in the domain name should not be confusing to the consumer.

 

Respondent asserts that the “intention of the challenged domain name was to increase the sales of SkinMedica Products,” and has submitted a copy of a proposed webpage being developed for use in connection with the disputed domain name.  Respondent admits that in the meantime, “Godaddy has used the domain name to benefit it is [sic] own pay-per-click.  The Respondent would have not allowed pay-per-click by another company.”  Respondent contends that it was making a legitimate noncommercial and fair use of the domain name, without intent for commercial gain to misleadingly divert consumers or to tarnish the trademark at issue.

 

Respondent denies that it registered the disputed domain name in bad faith, and asserts that it believes it was fair for it to presume that Complainant did not want to register the domain name.  Respondent claims that Complainant gave Respondent access to “web art” containing Complainant’s SKINMEDICA mark for use on Respondent’s website.  Respondent believes that neither its contract agreement with Complainant nor Complainant’s web site contains any prohibition on registration of domain names containing Complainant’s marks.

 

Respondent asserts that it did not register the disputed domain name “in an intentional attempt to attract for commercial gain, via pay-per-click”.  Respondent contends that Godaddy parks all domain names it registers with its own pay-per-click site until the domain names become hosted websites, and that Respondent was not previously aware of this practice.

 

Finally, Respondent requests that the Panel make a finding of reverse domain name hijacking by Complainant.

 

C. Additional Submissions

 

1. Complainant’s Reply

 

In its Additional Submission, Complainant admits that Respondent is an authorized provider of SkinMedica products, but asserts that Respondent has never been licensed or otherwise authorized to use Complainant’s SKINMEDICA or TNS marks in or as part of a domain name.

 

Complainant also acknowledges that its TNS mark was registered after Respondent registered the disputed domain name, but asserts that the effective date of Complainant’s rights in the mark is the date it filed the application for trademark, July 25, 2005, which was prior to Respondent’s registration of the domain name.  Complainant thus asserts that its rights in both marks predate Respondent’s registration of the disputed domain name.

 

Complainant contends that Respondent is responsible for the website associated with the disputed domain name and cannot shift blame to the registrar.  In response to Respondent’s assertion that it intends to use a different website in connection with the domain name, Complainant contends that this proposed website does not constitute use of Complainant’s marks in connection with a bona fide offering of goods and services.  Specifically, it asserts that following the links on the proposed website redirects the user to <foreverskin.com>, which offers Complainant’s products, but also offers products that are sold in competition with Complainant’s products.

 

As further evidence that Respondent is not using Complainant’s marks in connection with a bona fide offering of goods, Complainant also asserts that Respondent’s proposed website does not accurately disclose Respondent’s relationship with Complainant, and instead suggests that Respondent is the trademark owner.

 

Complainant contends that it would constitute bad faith registration and use for Respondent to use its proposed webpage in connection with the disputed domain name.  Additionally, Complainant asserts that Respondent, as an authorized provider of Complainant’s goods, had actual knowledge of Complainant’s marks prior to registering the disputed domain name.

 

Finally, Complainant asserts that it initiated this domain name dispute to protect its valuable intellectual property rights, and contends that Respondent has not offered any evidence to support a finding of reverse domain name hijacking.

 

2. Respondent’s Sur-Reply

 

Respondent asserts that it has no knowledge of any restriction on its use of Complainant’s marks in domain name registrations, and contends that it should not be required to anticipate Complainant’s potential objections.

 

Respondent contends that it has made at least perfunctory preparations towards using the domain name in connection with a bona fide offering of goods or services.  It asserts that it began working with a website developer on the proposed website in Spring 2006, but that the site was not completed due to cash flow constraints.

 

Respondent admits that its proposed website redirects to its <foreverskin.com> site.  Respondent asserts that it has not yet developed the landing page for traffic from the proposed website, and claims that it intends for such landing page to only offer Complainant’s products.  Respondent also claims that it intends for the proposed website to include a clear and conspicuous disclaimer indicating that the site operates independently of and is in no way affiliated with Complainant.

 

Respondent asserts that it has no control over the content of advertisements placed on the site currently associated with the disputed domain name, and contends that it should not be held accountable for that content.

 

FINDINGS

            The Panel finds that Complainant has provided sufficient evidence to establish that the    disputed domain name is identical or confusingly similar to Complainant’s registered         marks.

 

            The Panel finds that Respondent has failed to rebut Complainant’s showing that             Respondent lacks rights or a legitimate interest in the disputed domain name.

 

Finally, the Panel finds that Complainant has provided sufficient evidence that Respondent has registered and used the disputed domain name in bad faith.

 

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

 

Complainant asserts rights in the SKINMEDICA and TNS marks by virtue of U.S. registrations of both marks.  The TNS mark was not registered until January 16, 2007, and Respondent’s registration of the disputed domain name on November 7, 2006 thus predates that registration.  However, Complainant first used its TNS mark in commerce at least as early as July 7, 2001.  Because the effective date of Complainant’s rights in the registered mark is the date of its first use of the mark in commerce, Complainant’s rights in both marks predate Respondent’s registration of the disputed domain name.  Accordingly, the Panel finds that Complainant has established rights in both the SKINMEDICA and TNS marks.

 

As to confusing similarity, Complainant points out that the disputed domain name is a combination of both of Complainants marks, with the addition of the generic top-level domain (“gTLD”) “.com.”  It is well established that combining a complainant’s marks does not negate the confusing similarity of a corresponding domain name.  See Nintendo of Am. Inc. v. Pokemon, D2000-1230 (WIPO Nov. 23, 2000).  It is also well established that the addition of a gTLD does not negate the confusingly similar aspects of a disputed domain name.  See Rollerblade, Inc. v. McCrady, D2000-0429 (WIPO June 25, 2000). 

 

Accordingly, the Panel finds that the disputed domain name is confusingly similar to marks in which Complainant owns rights.

 

Rights or Legitimate Interests

 

Complainant contends that Respondent is not commonly known by the <skinmedicatns.com> domain name and is not authorized to register domain names featuring the SKINMEDICA and TNS marks.  Complainant does admit that Respondent is an authorized provider of Complainant’s various skin products; however, Complainant never authorized Respondent to use Complainant’s marks in or as part of a domain name.  Respondent asserts that it has no knowledge of any restriction on its use of Complainant’s marks in domain name registrations, and contends that it should not be required to anticipate Complainant’s potential objections.

 

Prior cases have established that authorization to sell a complainant’s goods does not by itself grant a respondent rights to use the complainant’s registered marks in a domain name.  See Ullfrotté AB v. Bollnas Imp., D2000-1176 (WIPO Oct. 23, 2000) (finding that although the respondent legitimately sells goods originating from the complainant, this does not give him the right to register and the use the mark as a domain name without the consent of the holder of the trademark); see also Toyota Jidosha Kabushiki Kaisha t/a Toyota Motor Corp. v. Double Time Jazz, FA 113316 (Nat. Arb. Forum July 10, 2002) (“Respondent cannot use Complainant’s trademark in a domain name when the Respondent, even though selling Complainant’s goods, has no permission to use the trademark as the domain name”).  Here, Respondent has not obtained permission to use Complainant’s registered marks in the disputed domain name, and has offered no evidence that Respondent is commonly known by the domain name.  The Panel thus finds that Respondent has failed to establish rights or legitimate interests under Policy ¶ 4(c)(ii).

 

Complainant further contends that Respondent is using the disputed domain name to operate a website that contains links to various third party websites, some of which offer products that compete with Complainant’s products.  Prior cases have established that such use is neither a bona fide offering of goods or services under Policy ¶ 4(c)(i) nor a legitimate noncommercial or fair use under Policy ¶ 4(c)(iii).  See Computer Doctor Franchise Sys., Inc. v. Computer Doctor, FA 95396 (Nat. Arb. Forum Sept. 8, 2000) (finding that the respondent’s website, which is blank but for links to other websites, is not a legitimate use of the domain names); see also TM Acquisition Corp. v. Sign Guards, FA 132439 (Nat. Arb. Forum Dec. 31, 2002) (finding that the respondent’s diversionary use of the complainant’s marks to send Internet users to a website which displayed a series of links, some of which linked to the complainant’s competitors, was not a bona fide offering of goods or services). 

 

Accordingly, the Panel finds that Respondent’s current use of the disputed domain name is neither a bona fide offering of goods and services, nor a legitimate noncommercial or fair use.

 

Respondent goes on to contend that the pay-per-click website currently associated with the disputed domain name has been placed there by the registrar of the domain name, Godaddy.com, Inc., until the domain name becomes associated with a hosted website.  Respondent asserts that it was unaware of this practice when it registered the domain name, and has no control over the content of advertisements placed on that site.

 

Respondent further asserts that it intends to create a different website to which the disputed domain name will resolve.  It asserts that it began working with a developer in designing the site, and submitted a printout of the proposed site to the Panel.  Respondent contends that this site has not been completed due to cash flow problems.

 

Complainant contends that even with this proposed different website, Respondent still fails to establish rights or legitimate interests in the domain name because this use is also  neither a bona fide offering of goods or services under Policy ¶ 4(c)(i) nor a legitimate noncommercial or fair use under Policy ¶ 4(c)(iii). 

 

In Oki Data Americas, Inc. v. ASD, Inc., D2001-0903 (WIPO Nov. 6, 2001), a panel suggested a set of minimum requirements for a bona fide offering of goods or services:

 

·        Respondent must actually be offering the goods or services at issue.

·        Respondent must use the site to sell only the trademarked goods; otherwise it could be using the trademark to bait internet users and then switch them to other goods.

·        The site must accurately disclose the registrant’s relationship with the trademark owner; it may not, for example, falsely suggest that it is the trademark owner, or that the website is the official site, if, in fact, it is only one of many sales agents.

·        The Respondent must not try to corner the market in all domain names, thus depriving the trademark owner of reflecting its own mark in a domain name.

 

Oki Data Americas, Inc. v. ASD, Inc., D2001-0903 (WIPO Nov. 6, 2001).  Without expressly adopting the above criteria as a definitive rule, this Panel notes that even assuming that the stated criteria suffice to establish a respondent’s bona fide offering, the Respondent in this case has not met the stated criteria. 

 

Complainant asserts that Respondent’s proposed website would redirect to another site, <foreverskin.com>, and that while the latter site offers Complainant’s products, it also offers products of Complainant’s competitors, thus falling short of the second requirement.  Complainant further asserts that Respondent’s proposed website does not accurately disclose Respondent’s relationship with Complainant, and instead suggests that Respondent is the trademark owner, violating the third requirement.

 

Respondent admits that both of these assertions are true.  It contends that it has not yet developed a landing page for users redirected from <skinmedicatns.com>, but that when it does, it will be designed such that it meets both of those requirements.

 

The Panel finds Respondent’s assertions as to its proposed future use of the disputed domain name unpersuasive.  Respondent has had over a year to develop its own site in connection with the disputed domain name, and yet the registrar’s pay-per-click site still remains parked there.  Why Respondent hasn’t at least redirected the disputed domain name to its <foreverskin.com> site is unclear.  Moreover, even if a respondent’s stated intent to correct prior unauthorized uses were a sufficient basis to overlook such conduct (a notion finding little if any support in the Policy), the proposed site still would not constitute a bona fide offering of goods or services under Policy ¶ 4(c)(i), and would not constitute a legitimate noncommercial or fair use of the domain name under Policy ¶ 4(c)(iii).

 

Accordingly, the Panel finds that Respondent has failed to rebut Complainant’s showing that Respondent lacks rights or a legitimate interest in the disputed domain name.

 

 

Registration and Use in Bad Faith

 

Complainant contends that Respondent is using the confusingly similar <skinmedicatns.com> domain name to provide users with services in direct competition with Complainant’s services – both in the pay-per-click site currently used in connection with the disputed domain name, as well as in Respondent’s proposed alternative website.  Complainant asserts that this use supports a finding of registration and use of the domain name in bad faith under Policy 4(b)(iii).

 

Additionally, Complainant contends that that Respondent’s use of the disputed domain name may cause confusion among Internet users as to Complainant’s sponsorship of or affiliation with Respondent’s website and business.  Such use has been found to be evidence of use and registration in bad faith under Policy 4(b)(iv).  See Identigene, Inc. v. Genetest Labs., D2000-1100 (WIPO Nov. 30, 2000) (finding bad faith where the respondent's use of the domain name at issue to resolve to a website where similar services are offered to Internet users is likely to confuse the user into believing that the complainant is the source of or is sponsoring the services offered at the site).

 

Finally, Complainant notes that Respondent is an authorized provider of Complainant’s goods, and that Respondent stated in its response that he “chose to sell SkinMedica products because of those products’ prominence in the U.S. market for skincare.”  Based on these facts, Complainant contends that Respondent must have had actual knowledge of Complainant’s SKINMEDICA and TNS marks prior to registering the disputed domain name.  Such actual knowledge has been found to support a finding of bad faith.  See Nortel Networks Limited v. Dave Garner d/b/a Certified Computer Service, FA 1105459 (NAF, January 2, 2008).

 

Because the Panel agrees that the above described circumstances all constitute evidence of bad faith registration and use, unrebutted by adequate contrary evidence, it finds that Respondent has registered and used the <skinmedicatns.com> domain name in bad faith.

 

Reverse Domain Name Hijacking

 

Respondent contends that Complainant has engaged in reverse domain name hijacking, defined in the Rules as “using the Policy in bad faith to attempt to deprive a registered domain-name holder of a domain name”.  Because the Panel finds that Complainant has established all of the elements of its claim, a finding of Reverse Domain Name Hijacking is inappropriate.

 

DECISION

Having established all three elements required under the ICANN Policy, the Panel concludes that relief shall be GRANTED.

 

Accordingly, it is Ordered that the <skinmedicatns.com> domain name be TRANSFERRED from Respondent to Complainant.

 

 

 

Michael A. Albert, Panelist
Dated: March 20, 2008

 

 

 

 

 

 

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