DECISION

 

U.S. Franchise Systems, Inc. v. Albert Jackson

Claim Number:  FA0306000162769

 

PARTIES

Complainant is U.S. Franchise Systems, Inc., Atlanta, GA (“Complainant”) represented by Susan M. Daly, of Greenberg Traurig LLP.  Respondent is Albert Jackson, George Town, Grand Cayman (“Respondent”).

 

REGISTRAR AND DISPUTED DOMAIN NAME

The domain name at issue is <microtelmotels.com>, registered with Iholdings.Com, Inc. d/b/a Dotregistrar.Com.

 

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.

 

James A. Crary as Panelist.

 

PROCEDURAL HISTORY

Complainant submitted a Complaint to the National Arbitration Forum (the "Forum") electronically on June 13, 2003; the Forum received a hard copy of the Complaint on June 13, 2003.

 

On June 13, 2003, Iholdings.Com, Inc. d/b/a Dotregistrar.Com confirmed by e-mail to the Forum that the domain name <microtelmotels.com> is registered with Iholdings.Com, Inc. d/b/a Dotregistrar.Com and that Respondent is the current registrant of the name. Iholdings.Com, Inc. d/b/a Dotregistrar.Com has verified that Respondent is bound by the Iholdings.Com, Inc. d/b/a Dotregistrar.Com 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 June 18, 2003, a Notification of Complaint and Commencement of Administrative Proceeding (the "Commencement Notification"), setting a deadline of July 8, 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@microtelmotels.com by e-mail.

 

Having received no Response from Respondent, using the same contact details and methods as were used for the Commencement Notification, the Forum transmitted to the parties a Notification of Respondent Default.

 

On July 11, 2003, pursuant to Complainant's request to have the dispute decided by a single-member Panel, the Forum appointed James A. Crary as Panelist.

 

Having reviewed the communications records, the Administrative Panel (the "Panel") finds that the Forum has discharged its responsibility under Paragraph 2(a) of the Rules for Uniform Domain Name Dispute Resolution Policy (the "Rules") "to employ reasonably available means calculated to achieve actual notice to Respondent."  Therefore, the Panel may issue its decision based on the documents submitted and in accordance with the ICANN Policy, ICANN Rules, the Forum's Supplemental Rules and any rules and principles of law that the Panel deems applicable, without the benefit of any Response from Respondent.

 

RELIEF SOUGHT

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

 

PARTIES' CONTENTIONS

A.  Complainant makes the following assertions:

 

1.      Respondent’s <microtelmotels.com> domain name is confusingly similar to Complainant’s MICROTEL mark.

 

2.      Respondent does not have any rights or legitimate interests in the <microtelmotels.com> domain name.

 

3.      Respondent registered and used the <microtelmotels.com> domain name in bad faith.

 

B.  Respondent failed to submit a Response in this proceeding.

 

FINDINGS

 

Complainant is a guest lodging franchising company formed in 1995.  Complainant is the nation’s ninth (9th) largest hotel company in terms of number of rooms.  Complainant owns the MICROTEL mark, which is registered with the U.S. Patent and Trademark Office (Reg. No. 1,670,688 – registered December 31, 1991).  Complainant has applied and/or obtained trademark registrations for the MICROTEL mark in Israel, Mexico, and Puerto Rico.

 

In addition, the Complainant holds registrations of the following domain names that incorporate the MICROTEL mark: <microtel-inns.biz>, <microtelinn.com>, <microtelsuites.com>, <microtelinn.net>, <microtelinns.net>, <microtelsuites.net>, <microtel-inns.com>, <microtel-suites.com>, <microtel-inn.biz>, <microtelinn.biz>, <microtelinns.biz>, <microtelsuites.biz>, <microtel-innsandsuites.biz>, <microtel-innsandsuites.com>, <microtelinnsandsuites.biz>, and <microtelinnsandsuites.com>.  The domain names were registered between April 15, 2002 and October 14, 2002.

 

Respondent registered the <microtelmotels.com> domain name on April 21, 2003.  The disputed domain name is linked to an untitled search engine located at the <landing.domainsponsor.com> URL, which provides links to various commercial websites.

 

DISCUSSION

Paragraph 15(a) of 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."

 

In view of Respondent's failure to submit a Response, the Panel shall decide this administrative proceeding on the basis of Complainant's undisputed representations pursuant to paragraphs 5(e), 14(a) and 15(a) of the Rules and draw such inferences it considers appropriate pursuant to paragraph 14(b) of the Rules.

 

Paragraph 4(a) of the Policy requires that Complainant must prove each of the following three elements to obtain an order that a domain name should be cancelled or transferred:

 

(1)    the domain name registered by Respondent is identical or confusingly similar to a trademark or service mark in which Complainant has rights; and

(2)    Respondent has no rights or legitimate interests in respect of the domain name; and

(3)    the domain name has been registered and is being used in bad faith.

 

Identical and/or Confusingly Similar

 

Complainant has established rights in the MICROTEL mark through registration with the U.S. Patent and Trademark Office, other recognized registration authorities, and through use in commerce.

 

Respondent’s <microtelmotels.com> domain name is confusingly similar to Complainant’s MICROTEL mark because the disputed domain name fully incorporates Complainant’s mark and adds the descriptive word “motels.”  It is likely that Internet users that access Respondent’s disputed domain name mistakenly associate it with Complainant because the <microtelmotels.com> domain name fully incorporates the MICROTEL mark and adds the term “motels,” which is a word that is closely associated to the products and services Complainant provides.  Respondent’s disputed domain name cannot circumvent Complainant’s rights in the MICROTEL mark nor avoid the confusing similarity element of Policy ¶ 4(a)(i).  See Space Imaging LLC v. Brownwell, AF-0298 (eResolution Sept. 22, 2000) (finding confusing similarity where Respondent’s domain name combines Complainant’s mark with a generic term that has an obvious relationship to Complainant’s business); see also Marriott Int’l v. Café au lait, FA 93670, (Nat. Arb. Forum Mar. 13, 2000) (finding that Respondent’s domain name <marriott-hotel.com> is confusingly similar to Complainant’s MARRIOTT mark).

 

The Panel finds that Policy ¶ 4(a)(i) has been satisfied.

 

Rights or Legitimate Interests

 

Due to Respondent’s failure to respond to the allegations in the Complaint, the Panel presumes that Respondent lacks rights or legitimate interests in the disputed domain name pursuant to Policy ¶ 4(a)(ii).  See Canadian Imperial Bank of Commerce v. D3M Virtual Reality Inc., AF-0336 (eResolution Sept. 23, 2000) (finding no rights or legitimate interests where no such right or interest was immediately apparent to the Panel and Respondent did not come forward to suggest any right or interest it may have possessed); see also Pavillion Agency, Inc. v. Greenhouse Agency Ltd., D2000-1221 (WIPO Dec. 4, 2000) (finding that Respondents’ failure to respond can be construed as an admission that they have no legitimate interest in the domain names).

 

Furthermore, Respondent is not affiliated with Complainant and the record fails to establish that Respondent is authorized or licensed to register or use domain names or marks that incorporate the MICROTEL mark.  In addition, the WHOIS information for the disputed domain name lists Respondent, Albert Jackson, as the registrant; however, it fails to establish Respondent as an “individual, business, or other organization” commonly known by the <microtelmotels.com> domain name.  Therefore, Respondent does not have rights or legitimate interests in the disputed domain name pursuant to Policy ¶ 4(c)(ii).  See Charles Jourdan Holding AG v. AAIM, D2000-0403 (WIPO June 27, 2000) (finding no rights or legitimate interests where (1) Respondent is not a licensee of Complainant; (2) Complainant’s prior rights in the domain name precede Respondent’s registration; (3) Respondent is not commonly known by the domain name in question); see also Tercent Inc. v. Lee Yi, FA 139720 (Nat. Arb. Forum Feb. 10, 2003) (stating “nothing in Respondent’s WHOIS information implies that Respondent is ‘commonly known by’ the disputed domain name” as one factor in determining that Policy ¶ 4(c)(ii) does not apply).

 

The Panel presumes that Respondent incorporated the MICROTEL mark into the disputed domain name with the intent to commercially benefit from the goodwill associated with Complainant’s mark.  Also, the Panel presumes that Respondent has attempted to commercially benefit from the disputed domain name by receiving “kick-backs” from website vendors who receive visitors via Respondent’s <microtelmotels.com> domain name.  Respondent’s opportunistic use of the goodwill associated with Complainant’s mark is neither a bona fide offering of goods or services pursuant to Policy ¶ 4(c)(i) nor a legitimate noncommercial or fair use pursuant to Policy ¶ 4(c)(iii).  See Big Dog Holdings, Inc. v. Day, FA 93554 (Nat. Arb. Forum Mar. 9, 2000) (finding no legitimate use when Respondent was diverting consumers to its own website by using Complainant’s trademarks); see also MSNBC Cable, LLC v. Tysys.com, D2000-1204 (WIPO Dec. 8, 2000) (finding no rights or legitimate interests in the famous MSNBC mark where Respondent attempted to profit using the Complainant’s mark by redirecting Internet traffic to its own website).

 

The Panel finds that Policy ¶ 4(a)(ii) has been satisfied.

 

Registration and Use in Bad Faith

 

It can be inferred that Respondent knew of or should have known about Complainant’s MICROTEL mark because the mark was registered with the U.S. Patent and Trademark Office, registered with other recognized authorities, used in commerce, and was fully incorporated into Respondent’s domain name along with the word “motels,” which is a word commonly associated with Complainant.  Registration of a domain name, despite knowledge of Complainant’s rights, is evidence of bad faith registration pursuant to Policy ¶ 4(a)(iii).  See Orange Glo Int’l v. Blume, FA 118313 (Nat. Arb. Forum Oct. 4, 2002) (“Complainant’s OXICLEAN mark is listed on the Principal Register of the USPTO, a status that confers constructive notice on those seeking to register or use the mark or any confusingly similar variation thereof”); see also Digi Int’l v. DDI Sys., FA 124506 (Nat. Arb. Forum Oct. 24, 2002) (holding that “there is a legal presumption of bad faith, when Respondent reasonably should have been aware of Complainant’s trademarks, actually or constructively”).

 

Furthermore, Respondent registered the disputed domain name and incorporated the MICROTEL mark with the intent to commercially benefit from the goodwill associated with Complainant’s mark.  The Panel presumes that Respondent attempted to commercially benefit from the disputed domain name by receiving “kick-backs” from website vendors who received visitors via Respondent’s <microtelmotels.com> domain name. Respondent’s opportunistic use of the goodwill associated with Complainant’s mark constitutes bad faith pursuant to Policy ¶ 4(b)(iv).  See Kmart v. Kahn, FA 127708 (Nat. Arb. Forum Nov. 22, 2002) (finding that if Respondent profits from its diversionary use of Complainant's mark when the domain name resolves to commercial websites and Respondent fails to contest the Complaint, it may be concluded that Respondent is using the domain name in bad faith pursuant to Policy ¶ 4(b)(iv)); see also Sony Kabushiki Kaisha v. Inja, Kil, D2000-1409 (WIPO Dec. 9, 2000) (finding bad faith registration and use where it is “inconceivable that the respondent could make any active use of the disputed domain names without creating a false impression of association with the Complainant”).

 

The Panel finds that Policy ¶ 4(a)(iii) has been satisfied.

 

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

 

 

 

 

James A. Crary, Panelist

Dated:  July 17, 2003

 

 

 

 

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