DECISION

 

Accu-Sort Systems, Inc. v. Accu-Sort.inc

Claim Number:  FA0306000164568

 

PARTIES

Complainant is Accu-Sort Systems, Inc., Hatfield, PA (“Complainant”) represented by John O'Malley, of Volpe & Koenig, P.C.  Respondent is Accu-Sort.inc, Lackawanna, NY (“Respondent”).

 

REGISTRAR AND DISPUTED DOMAIN NAME

The domain name at issue is <accu-sort.com>, registered with Tucows, Inc.

 

PANEL

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.

 

Hon. Ralph Yachnin as Panelist.

 

PROCEDURAL HISTORY

Complainant submitted a Complaint to the National Arbitration Forum (the "Forum") electronically on June 19, 2003; the Forum received a hard copy of the Complaint on June 24, 2003.

 

On June 20, 2003, Tucows, Inc. confirmed by e-mail to the Forum that the domain name <accu-sort.com> is registered with Tucows, Inc. and that Respondent is the current registrant of the name. Tucows, Inc. has verified that Respondent is bound by the Tucows, 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 June 26, 2003, a Notification of Complaint and Commencement of Administrative Proceeding (the "Commencement Notification"), setting a deadline of July 16, 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@accu-sort.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 24, 2003, pursuant to Complainant's request to have the dispute decided by a single-member Panel, the Forum appointed Hon. Ralph Yachnin 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 <accu-sort.com> domain name is identical to Complainant’s ACCU-SORT mark.

 

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

 

3.      Respondent registered and used the <accu-sort.com> domain name in bad faith.

 

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

 

FINDINGS

Complainant, Accu-Sort Systems, Inc., holds the registration for the ACCU-SORT mark (U.S. Reg. No. 1,029,942, registered on the Principal Register of the U.S Patent and Trademark Office on January 13, 1976). Complainant registered this mark for use with “electo-optical bar code scanners, and systems utilizing such scanners for conveyor control, computerized inventory control, automatic order assembling, and the like.” Since its registration of the ACCU-SORT mark, Complainant has continuously used the mark in commerce to denote its fixed-position laser and CCD scanners, including through the registration and use of the <accusort.com> domain name. Currently, over eighty percent of all parcels shipped in the U.S. pass through Complainant’s products.

 

Respondent, Accu-Sort.inc, registered the <accu-sort.com> domain name on March 19, 2003, and is not licensed or authorized to use Complainant’s ACCU-SORT mark for any purpose. Respondent initially used the disputed domain name to host a website purporting to offer “precision sorting and supplier representation” under the ACCU-SORT mark (which was prominently displayed at the top of the website). Subsequent to the receipt of a cease-and-desist letter by Complainant’s counsel, Respondent removed all content from the disputed domain name, leaving a blank website.

 

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 ACCU-SORT mark through registration of the mark on the Principal Register of the U.S. Patent and Trademark Office, as well as through widespread and continuous use of the mark in commerce since as early as 1976.

 

Respondent’s <accu-sort.com> domain name is identical to Complainant’s ACCU-SORT mark. Respondent’s forced addition of the top level domain “.com” does nothing to distinguish the domain name from Complainant’s mark for the purposes of Policy ¶ 4(a)(i). Interestingly, Respondent’s domain name is closer in appearance to Complainant’s ACCU-SORT mark than Complainant’s own domain name. See Pomellato S.p.A v. Tonetti, D2000-0493 (WIPO July 7, 2000) (finding <pomellato.com> identical to Complainant’s mark because the generic top-level domain (gTLD) “.com” after the name POMELLATO is not relevant); see also Entrepreneur Media, Inc. v. Smith, 279 F.3d 1135, 1146 (9th Cir. Feb. 11, 2002) (“Internet users searching for a company’s [w]ebsite . . . assume, as a rule of thumb, that the domain name of a particular company will be the company name [or trademark] followed by ‘.com.’”).

 

Accordingly, the Panel finds that the <accu-sort.com> domain name is identical to Complainant’s ACCU-SORT mark under Policy ¶ 4(a)(i).

 

Rights or Legitimate Interests

Respondent initially used the <accu-sort.com> domain name to host a website that claimed to provide services identical to Complainant’s. Both the content of this website and the disputed domain name itself utilized Complainant’s ACCU-SORT mark for this purpose. Such unauthorized use of Complainant’s mark at the disputed domain name does not evidence a bona fide offering of goods or services pursuant to Policy ¶ 4(c)(i), and it cannot be considered a legitimate noncommercial or fair use of the domain name pursuant to Policy ¶ 4(c)(iii). See Computerized Sec. Sys., Inc. d/b/a SAFLOK v. Hu, FA 157321 (Nat. Arb. Forum June 23, 2003) (holding that Respondent’s appropriation of Complainant’s mark to market products that compete with Complainant’s goods does not constitute a bona fide offering of goods and services); see also Avery Dennison Corp. v. Ray Steele d/b/a Mercian Labels Ltd., FA 133626 (Nat. Arb. Forum Jan 10, 2003) (finding that Respondent had no rights or legitimate interests in the disputed domain name where it used Complainant’s mark, without authorization, to attract Internet users to its business, which competed with Complainant).

 

Furthermore, Respondent’s subsequent use (or lack thereof) of the disputed domain name stands as further evidence that it lacks rights or legitimate interests in the disputed domain name. After receiving Complainant’s cease-and-desist letter, Respondent removed all content from its website, and has not posted any new content since that time. In light of Respondent’s previous, unauthorized use of Complainant’s mark and Respondent’s implicit admission via its failure to respond to the Complaint that it lacks rights or legitimate interests in the disputed domain name, the Panel finds that Respondent’s passive holding of its domain name registration also fails to evidence rights or legitimate interests in the domain name pursuant to Policy ¶¶ 4(c)(i) and (iii). See Boeing Co. v. Bressi, D2000-1164 (WIPO Oct. 23, 2000) (finding no rights or legitimate interests where Respondent has advanced no basis on which the Panel could conclude that it has a right or legitimate interest in the domain names, and no use of the domain names has been established); see also Vestel Elektronik Sanayi ve Ticaret AS v. Kahveci, D2000-1244 (WIPO Nov. 11, 2000) (finding that “merely registering the domain name is not sufficient to establish rights or legitimate interests for purposes of paragraph 4(a)(ii) of the Policy”).

 

Respondent’s self-serving method of naming itself as “Accu-Sort.inc” is insufficient to support a finding that Respondent was “commonly known by” the <accu-sort.com> domain name prior to its registration of the disputed domain name. Barring any affirmative evidence to the contrary, the Panel finds that Policy ¶ 4(c)(ii) does not apply to Respondent. See Yoga Works, Inc. v. Jenna Arpita d/b/a Shanti Yoga Works, FA 155461 (Nat. Arb. Forum June 17, 2003) (finding that Respondent was not “commonly known by” the <shantiyogaworks.com> domain name despite listing its name as “Shanti Yoga Works” in its WHOIS contact information because there was “no affirmative evidence before the Panel that Respondent was ever ‘commonly known by’ the disputed domain name prior to its registration of the disputed domain name”); see also RMO, Inc. v. Burbridge, FA 96949 (Nat. Arb. Forum May 16, 2001) (interpreting Policy ¶ 4(c)(ii) "to require a showing that one has been commonly known by the domain name prior to registration of the domain name to prevail").

 

Accordingly, the Panel finds that Respondent does not have rights or legitimate interests in the <accu-sort.com> domain name under Policy ¶ 4(a)(ii).

 

Registration and Use in Bad Faith

Respondent registered and used the <accu-sort.com> domain name in bad faith. By appropriating Complainant’s ACCU-SORT mark for use on its website and incorporating the mark in its domain name, and subsequently attempting to enter into a line of business that would compete with Complainant, Respondent created a likelihood of confusion in the minds of Internet users as to the source or sponsorship of its domain name. The evidence indicates that Respondent intended to commercially benefit from this scheme. The Panel therefore finds that Respondent’s activities evidence bad faith use and registration of the disputed domain name pursuant to Policy ¶ 4(b)(iv). See Computerized Sec. Sys., Inc. d/b/a SAFLOK v. Hu, FA 157321 (Nat. Arb. Forum June 23, 2003) (finding that Respondent’s use of the <saflock.com> domain name to offer goods competing with Complainant’s illustrates Respondent’s bad faith registration and use of the domain name, evidence of bad faith registration and use pursuant to Policy 4(b)(iv)); see also Busy Body, Inc. v. Fitness Outlet, Inc., D2000-0127 WIPO Apr. 22, 2000) (finding bad faith where Respondent attempted to attract customers to its website, <efitnesswholesale.com>, and created confusion by offering similar products for sale as Complainant).

 

Further evidence of Respondent’s bad faith can be inferred from Respondent’s passive holding of the disputed domain name. To date, Respondent’s only actual use of its domain name was an infringing one. Despite the relatively brief span of time that has elapsed since Respondent ceased using its domain name, the Panel notes there is sufficient indication that Respondent had actual knowledge of Complainant’s rights in the ACCU-SORT mark when it registered the disputed domain name. Considering that Respondent attempted to operate a business that would have competed with Complainant in Complainant’s field (where Complainant is the established leader), all under the guise of Complainant’s registered mark, the Panel finds that Respondent’s current failure to use its domain name registration does not remedy its previous bad faith use of the disputed domain name. See Phat Fashions v. Kruger, FA 96193 (Nat. Arb. Forum Dec. 29, 2000) (finding bad faith under Policy ¶ 4(b)(iv) even though Respondent has not used the domain name because “[i]t makes no sense whatever to wait until it actually ‘uses’ the name, when inevitably, when there is such use, it will create the confusion described in the Policy”); see also Compagnie Generale des Matieres Nucleaires v. Greenpeace Int’l, D2001-0376 (WIPO May 14, 2001) (holding that, despite Respondent’s decision to passively hold the disputed domain name, “[r]espondent has made its intention clear and the continuing threat hanging over the Complainant’s head constitutes bad faith use”).

 

The Panel thus finds that Respondent registered and used the <accu-sort.com> domain name in bad faith, and that Policy ¶ 4(a)(iii) is satisfied.

 

DECISION

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

 

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

 

 

 

 

Hon. Ralph Yachnin, Panelist

Justice, Supreme Court, NY (Ret.)

 

Dated: August 7, 2003

 

 

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