National Arbitration Forum

 

DECISION

 

Starwood Hotels & Resorts Worldwide, Inc. v. Out in Style, Inc.

Claim Number: FA0410000339598

 

PARTIES

Complainant is Starwood Hotels & Resorts Worldwide, Inc. (“Complainant”), represented by Teresa C. Tucker of Grossman, Tucker, Perreault & Pfleger PLLC, 55 S. Commercial Street, Manchester, NH 03101.  Respondent is Out in Style, Inc.  (“Respondent”), represented by Stephen H. Sturgeon of Law Offices of Steven H. Sturgeon & Assoc. of Washington, D.C., 1116 Hurdle Hill Drive, Potomac, MD 20854.

 

REGISTRAR AND DISPUTED DOMAIN NAME 

The domain name at issue is <shereton.com>, registered with Intercosmos Media Group, Inc. d/b/a Directnic.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.

 

Alan L. Limbury as Panelist.

 

PROCEDURAL HISTORY

Complainant submitted a Complaint to the National Arbitration Forum electronically on October 7, 2004; the National Arbitration Forum received a hard copy of the Complaint on October 12, 2004.

 

On October 8, 2004, Intercosmos Media Group, Inc. d/b/a Directnic.com confirmed by e-mail to the National Arbitration Forum that the domain name <shereton.com> is registered with Intercosmos Media Group, Inc. d/b/a Directnic.com and that the Respondent is the current registrant of the name.  Intercosmos Media Group, Inc. d/b/a Directnic.com has verified that Respondent is bound by the Intercosmos Media Group, Inc. d/b/a Directnic.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 October 13, 2004, a Notification of Complaint and Commencement of Administrative Proceeding (the “Commencement Notification”), setting a deadline of November 2, 2004 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@shereton.com by e-mail.

 

A timely Response was received and determined to be complete on November 2, 2004.

 

On November 17, 2004, pursuant to Complainant’s request to have the dispute decided by a single-member Panel, the National Arbitration Forum appointed Alan L. Limbury as Panelist.

 

RELIEF SOUGHT

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

 

PARTIES’ CONTENTIONS

A. Complainant

The Complainant holds United States registered service marks for SHERATON, a mark which it contends is famous and which it has used continuously in association with hotel, motel and restaurant services, among others, since 1928.  These include Nos. 1,784,580 (registered July 27, 1993) in respect of hotel, motel, motor inn, restaurant and lounge services; 679,027 (registered May 19, 1959) in respect of motel or roadside hotel and restaurant services; 1,884,365 (registered March 14, 1995) in respect of casino and gaming services; 954,454 (registered March 6, 1973) in respect of a periodic publication. Complainant also relies on its U.S. registered service mark 2,297,362 VACATIONS BY SHERATON (registered December 7, 1999) in respect of motel and hotel services.

 

The disputed domain name <shereton.com> is a misspelling of and is essentially identical to Complainant’s mark. The disputed domain name links to a website having links to a variety of hotel and travel-related websites.  Complainant offers the same services under its marks and at its web site <sheraton.com>. It is likely consumers would mistakenly type <shereton.com> intending to reach Complainant’s website and thus be misled into a hotel reservations site that is not Complainant’s site.

 

Respondent is using the disputed domain name to attract internet users to its site for commercial gain. This is not a bona fide offering of goods or services within the Policy ¶4(c)(i). Respondent owns no rights in and has no licence from Complainant to use SHERATON or SHERETON and has never been known by either term.  Its use of the domain name is commercial and not fair use.

 

The disputed domain name was registered and is being used in bad faith.

B. Respondent

The Policy was established to permit the expedited disposition of clear abuses. A clear abuse is certainly not present in the instant case, nor is the instant case a clear case of cybersquatting and cyber piracy.

 

Complainant must prove each element. Complainant does not have solid trademark rights in the mark “RAPID SETTLEMENT” [sic]. Respondent has a legitimate interest in the disputed domain name, which was not registered and has not been used in bad faith.

 

Respondent has made a bona fide offering of goods and services on its website for individuals who are seeking the many different types of goods and services that are offered on the website at the domain in question. It is inconceivable that anyone arriving on the page would believe that it is the website of Complainant and Complainant’s Sheraton Hotels.  If a website visitor were seeking the website of Complainant and Complainant’s Sheraton hotels, it would be abundantly clear that the intended website had not been found.  A simple back-click or correction of the visitor’s typing could return the visitor to the intended website.

 

Complainant must prove the domain name was registered and is being used in bad faith. These requirements are conjunctive: Registration in bad faith is insufficient if one does not use the domain name in bad faith, and use in bad faith is insufficient unless the domain name was originally registered in bad faith. Viz Communications, Inc. v. Redsun, D2000-0905 (WIPO Dec. 22, 2000); Shirmax Retail Ltd. v, CES Marketing Group, AF-0104 (eResolution Mar. 20, 2000). In the case at hand, Complainant has neither proven bad faith registration nor bad faith use.  There is absolutely no evidence that Respondent registered or used the domain name in bad faith.

 

Furthermore, Respondent purchased the domain name in September of 1998 – long before cybersquatting laws became effective.  .

 

Additionally, Complainant has not introduced any evidence indicating that Respondent has offered to sell the domain name to Complainant.  Respondent has, in fact, never offered to sell the domain name to Complainant.

 

Accordingly, for all the above reasons, since Complainant has failed to meet its burden of proving bad faith registration and use of the domain name, the Complaint must, therefore, be dismissed.

 

 

FINDINGS

The disputed domain name was registered on 24 September 1998. It is essentially identical and confusingly similar to the mark SHERATON, in which Complainant has rights. Respondent has no rights or legitimate interests in the disputed domain name, which it registered and is using 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, Starwood Hotels & Resorts Worldwide, Inc., of White Plains, New York, must prove it has rights in the marks on which it relies. As in the case of Starwood Hotels & Resorts Worldwide, Inc. v. 613 181 BC Ltd, FA 117051 (Nat. Arb. Forum September 26, 2002), Complainant sought to demonstrate its trademark rights by submitting TARR search results, none of which refer to Complainant as registrant or otherwise.

 

Those TARR search results show that the mark SHERATON, Reg. No. 679,027 is registered in the name of Sheraton Corporation of America of Boston, Massachusetts.  All the other marks on which Complainant relies are shown as registered in the name of ITT Sheraton Corporation of Boston, Massachusetts.

 

This failure to prove Complainant’s asserted rights would normally justify dismissal of the Complaint.  Respondent has not challenged Complainant’s asserted ownership but this alone would not justify a finding that Complainant has rights in the marks. 

 

However, the Panel takes notice of other, recent  cases under the Policy in which Complainant’s ownership of the very same marks has been established: Starwood Hotels & Resorts Worldwide, Inc. v. Hotel Partners, FA 157308 (Nat. Arb. Forum June 24, 2003); Starwood Hotels & Resorts Worldwide, Inc. v. Andrey Michailov, FA 216801 (Nat. Arb. Forum January 19, 2004); Starwood Hotels & Resorts Worldwide, Inc. v. Shasliva Pty Ltd. , FA 216872 (Nat. Arb. Forum January 26, 2004); Starwood Hotels & Resorts Worldwide, Inc. v. Billy Boy&apos;s, FA 243496 (Nat. Arb. Forum April 14, 2004) and Starwood Hotels & Resorts Worldwide, Inc. v. Hotel Partners, FA 248943 (Nat. Arb. Forum May 13, 2004). Under these circumstances it would unnecessarily prolong this administrative proceeding if the Panel were to ask Complainant to provide formal proof of its rights.

 

The Panel finds that Complainant has rights in the SHERATON mark. It is unnecessary to decide this case by reference to the mark VACATIONS BY SHERATON.

 

The disputed domain name is identical, but for the letter ‘e’ in place of the letter ‘a’ (which makes no difference to the phonetic similarity) to the mark SHERATON. For the reasons given in Starwood Hotels & Resorts Worldwide, Inc. v. Andrey Michailov, FA 216801 (Nat. Arb. Forum January 19, 2004) (<sheratin.com>), the Panel finds the disputed domain name <shereton.com> to be essentially identical and confusingly similar to Complainant’s SHERATON mark.

 

Complainant has established this element of its case.

 

Rights or Legitimate Interests

 

Complainant’s mark has been used since 1928 and is famous: Rolls-Royce plc v. Internet Billions Domains Inc., D2003-0270 (WIPO June 25, 2003).

In the absence of any licence from Complainant, Respondent is using the disputed domain name, which is confusingly similar to Complainant’s famous SHERATON mark, to advertise ‘Sheraton’ hotels (thereby proving that Respondent knows of the SHERATON mark) and services that directly compete with those offered by Complainant under that mark. Thus, Respondent is not using the disputed domain name in connection with 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 Starwood Hotels & Resorts Worldwide, Inc. v. 613 181 BC Ltd, FA117051 (Nat. Arb. Forum September 26, 2002) and the cases there cited; see also Six Continents Hotels, Inc. v. Patrick Ory, D2003-0098 (WIPO March 26, 2003).

Respondent has no rights or legitimate interests in the disputed domain name.  Complainant has established this element of its case.

 

Registration and Use in Bad Faith

 

Amongst the places advertised on Respondent’s website are several ‘Sheraton’ hotels, as well as other hotels that do not appear to be Sheraton hotels. Respondent, knowing of Complainant’s mark, is therefore using the disputed domain name, for commercial gain, to attract Internet users to its website by creating a likelihood of confusion with Complainant’s mark as to the source of Respondent’s website and as to the affiliation of the services on Respondent’s web site.

 

Far from immediately alerting Internet users who misspell the word Sheraton to the fact that they have not arrived at their intended destination, the presence of the names of several ‘Sheraton’ hotels on the website home page serves to confirm in their minds the false impression that they have indeed reached Complainant’s site as expected. Such use of the domain name constitutes evidence of both bad faith registration and bad faith use: Policy ¶4(b)(iv).

 

Respondent correctly states that use in bad faith is insufficient unless the domain name was originally registered in bad faith, citing Viz Communications v. Redsun, D2000-0905 (WIPO December 22, 2000) and Shirmax Retail Ltd. v. CES Marketing Group, AF-0104 (eResolution March 20, 2000). However, this overlooks that bad faith use under ¶4(b)(iv) is evidence of both bad faith registration and bad faith use.  It also overlooks the passage cited in Viz Communications from Passion Group Inc. v. Usearch Inc., AF-0250 (e-resolution) as follows:

 

The panel is assisted in forming a view as to how to interpret paragraphs 4(a)(iii) and 4(b)(iv) by the contrast between the introductory words of paragraph 4(c): “any of the following circumstances …shall demonstrate your rights or legitimate interests” and the introductory words of paragraph 4(b): “the following circumstances…shall be evidence of the registration and use of a domain name in bad faith”.

 

This contrasting language indicates that use of the kind described in 4(b)(iv) is to be taken as evidence of bad faith registration as well as evidence of bad faith use. But this evidence is not necessarily conclusive.  Furthermore, the panel is not required to assign substantial weight to evidence of constructive bad faith registration furnished by paragraph 4(b)(iv), and the panel may have regard to other evidence in determining whether the requirements of 4(a)(iii) have been proved.

 

This approach accords with the Policy by enabling a finding of bad faith registration to be made where bad faith use within 4(b)(iv) is the only evidence tending to show the purpose for which the domain name was registered. Where, however, there is other relevant evidence, such as evidence that the domain name was registered for a permissible purpose, it must be weighed against any evidence of bad faith registration constituted by evidence of bad faith use within 4(b)(iv).  It is difficult to imagine circumstances in which, under this approach, subsequent bad faith use within 4(b)(iv) would suffice to prove that a domain name was originally registered in bad faith.

Passion Group Inc. v. Usearch Inc., AF-0250 (e-resolution) (emphasis added).

 

Here bad faith use within 4(b)(iv) is the only evidence tending to show the purpose for which the domain name was registered. Accordingly the Panel finds the disputed domain name was registered and is being used in bad faith.  Complainant has established this element of its case.

 

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

 

 

 

 

Alan L. Limbury, Panelist
Dated: December 1, 2004

 

 

 

 

 

 

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