COMBINED

RESTRICTIONS DISPUTE RESOLUTION POLICY

UNIFORM DOMAIN NAME DISPUTE RESOLUTION POLICY

DECISION

 

CEC Entertainment Concepts, L.P., a wholly owned subsidiary of CEC Entertainment, Inc. v. Andrew Boston a/k/a e element

Claim Number: FA0503000441941

 

PARTIES

Complainant is CEC Entertainment Concepts, L.P., a wholly owned subsidiary of CEC Entertainment, Inc. (“Complainant”), represented by Kimberly F. Rich, of Baker & McKenzie LLP, 2001 Ross Avenue, 2300 Trammell Crow Center, Dallas, TX 75201.  Respondent is Andrew Boston a/k/a e element (“Respondent”), 1040 West Granville Avenue, Suite 830, Chicago, IL 60660.

 

REGISTRAR AND DISPUTED DOMAIN NAME 

The domain name at issue is <chuckycheese.biz>, registered with Network Solutions 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.

 

Paul M. DeCicco, as Panelist.

 

PROCEDURAL HISTORY

Complainant submitted a Complaint to the National Arbitration Forum electronically on March 16, 2005; the National Arbitration Forum received a hard copy of the Complaint on March 18, 2005.

 

On March 18, 2005, Network Solutions Inc. confirmed by e-mail to the National Arbitration Forum that the domain name <chuckycheese.biz> is registered with Network Solutions Inc. and that 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 Restrictions Dispute Resolution Policy (the “RDRP”) and the Uniform Domain Name Dispute Resolution Policy (the “UDRP”).

 

On March 30, 2005, a Notification of Complaint and Commencement of Administrative Proceeding (the “Commencement Notification”), setting a deadline of April 19, 2005 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@chuckycheese.biz by e-mail.

 

A timely Response was received and determined to be complete on April 19, 2005.

 

On April 26, 2005, pursuant to Complainant’s request to have the dispute decided by a single-member Panel, the National Arbitration Forum appointed Paul M. DeCicco as Panelist.

 

Although a Response was received from Respondent, Respondent did not submit an electronic copy of the Response in accordance with ICANN Rule 5(a). Therefore, the Panel has discretion to give appropriate weight to the contents of the deficient Response in consideration of the deficiency. See Strum v. Nordic Net Exch. AB, FA 102843 (Nat. Arb. Forum Feb. 21, 2002; see also Schott Glas & Nec/Schott Components Corp. v. Necschott, D2001-0127 (WIPO Mar. 14, 2001).  In the instant case, the Panel considers the Response notwithstanding the formal defect.

 

RELIEF SOUGHT

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

 

PARTIES’ CONTENTIONS

A.     Complainant

 

Complainant contends the following:

 

The Complainant is the owner of numerous trademarks for and including the word mark CHUCK E. CHEESE. Respondent breached his agreement with registrar Network Solutions. Respondent has registered the domain name set out in this Complaint, knowing that the registration and the manner of intended use directly or indirectly infringed the legal rights of a third party. Also, Respondent did not and does not intend to use the domain name primarily for a bona fide purpose.

 

Identical Confusingly Similar. The domain name is identical or confusingly similar to a trademark or service mark in which the complainant has rights. Complainant’s trademarks and service marks consist of the words “Chuck E. Cheese” and “Chuck E. Cheese’s.” Respondent’s domain name is “chuckycheese.biz.” Respondent’s domain name is virtually identical and certainly confusingly similar to Complainant’s trademarks and service marks. Both Complainant’s marks and Respondent’s domain name show a matching visual appearance to a remarkable extent. Also, both signs are identically pronounced. Being merely of descriptive character, the top-level domain is not of any relevance in this regard. Finally, both signs are congruent in meaning, being suggestive of food, more specifically, cheese and/or related services. 

 

The Respondent has no rights or legitimate interests in respect of the domain name.

The WHOIS Record for the domain name at issue reflects that Respondent registered the infringing domain name on April 15, 2004. There is no evidence of Respondent’s 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. Respondent was not authorized to use Complainant’s marks for any of the period during which he has registered the domain name at issue. Respondent (as an individual, business, or other organization) has never been commonly known by the domain name at issue and has no legitimate noncommercial or fair use of the domain name. The at-issue domain name is not the nickname of Respondent or other member of his family, or in any other way identified with or related to a legitimate interest of Respondent.

 

The domain name was registered and is being used in bad faith. The domain name was registered or acquired for a primary purpose of intentionally attempting to attract for commercial gain, Internet users to Respondent’s website or other on-line locations, 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. When an Internet user accesses Respondent’s website, the user is taken to a website unrelated to the Complainant and the goods and services covered by Complainant’s rights. In fact, the website is the registrar’s default website announcing that an Internet presence is currently being built. The website, however, contains sponsored links to commercial offerings of cheese-related products. Clearly, Respondent acquired the domain name to profit from a user who may unintentionally misspell Complainant’s trademarks when attempting to access Complainant’s website.

 

On September 22, 2004, the Complainant notified the Respondent, that Respondent was infringing Complainant’s trademarks and requesting that the domain name be transferred to the Complainant. On October 12, 2004, after receiving Respondent’s voice mail, Complainant notified Respondent, that Respondent should cease and desist from any use of the domain name and transfer the domain name to the Complainant. On October 15, 2004, Respondent sent an e-mail message announcing his willingness to transfer the domain name for $150.00 in registration costs plus reimbursement for alleged “out-of-pocket expenses.”

 

The rate charged by registrar for a three-year registration of a domain name being $24.99 per year, thus, the costs for the overall period not being in excess of $75.00. Furthermore, in order to drive up the Complainant’s willingness to make this payment Respondent indicated that an additional charge of $300.00 per hour for his personal time would apply.

 

On October 18, 2004, Complainant’s counsel sent a follow-up letter to Respondent advising him that the Complainant had retained legal counsel in that dispute. On October 22, 2004 Respondent replied that no funds were available and requested the Complainant to set up the electronic equipment required to effectuate the transfer due to an alleged dissolution of Respondent’s business.

 

Respondent’s continuing conduct demonstrates bad faith intent to trade on the value of, and to interfere with, Complainant’s rights to use its marks in commerce. Respondent’s offer to sell the domain name for the price mentioned plus “out-of-pocket” expenses shows that Respondent’s only interest was to convert the domain name into money. Respondent did not contend that the domain name had been acquired for bona fide business and commercial purposes other than the sale.

 

The domain name is not being used primarily for a bona fide business or commercial purpose. Respondent has registered the domain solely for the purpose of selling it to an interested acquirer, most likely the Complainant. There is no other explanation why Respondent would have chosen a domain name virtually identical to Complainant’s famous marks. When contacted by the Complainant, Respondent never alleged a business-related objective pursued by the registration of the domain name but instantaneously offered the domain name for sale. Since the domain name’s registration Respondent has not loaded any business-related content onto the website connected to the domain name. In fact, prior to Complainant’s request to surrender the domain name, the domain name remained idle and connected only to the registrar’s default website for more than six months.  In view of the visual similarity of the domain name and Complainant’s trademarks, there was no intent to use the domain name for the purposes set forth above.

 

The domain name must be considered as registered and used solely for the purposes of selling the domain name for compensation. In absence of any bona fide business and/or commercial relation and/or intent of the Respondent to do so, and in view of the fact that Respondent offered to sell the domain name to the Complainant for an amount that appears to be in excess of the costs of registering the domain name, the domain name was registered and used in bad faith.

 

B. Respondent

 

The Response fails, in great part, to substantively address the particular claims made in the Complaint. Instead, Respondent, in a maniacal informal letter response to the arbitrating body, rants that he is now, and was always, willing to give up the domain name for his costs of  $150. The Respondent further claims that the domain name was to be used to reference a government surplus cheese site, and that the project was scrapped for financial reasons.

 

FINDINGS

Complainant has trademark rights in “Chuck E. Cheese.” The registered mark is well known and was known to the Respondent at the time of registration.

 

The Respondent agrees that the domain name may be transferred.

 

The Respondent’s request for compensation of out his out of pocket expenses is beyond the authority of the Panel to grant.

 

Respondent has no current bona fide plans to use the domain name for any commercial purpose.

 

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 UDRP, these Rules and any rules and principles of law that it deems applicable.”

 

Paragraph 4(a) of the UDRP 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;

(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.

 

As an alternative ground for relief in this proceeding, Complainant has alleged that Respondent has violated its obligations under the RDRP. Paragraph 4(a) of the RDRP requires complainants to prove that the “domain name is not being or will not be used primarily for a bona fide business or commercial purpose.” Paragraph 4(b) of the RDRP defines “bona fide business or commercial use” as the bona fide use or bona fide intent to use the domain name or any content software, materials, graphics or other information thereon, to permit Internet users to access one or more host computers through the DNS:

 

(1)    to exchange goods, services, or property of any kind; or

(2)    in the ordinary course of trade or business; or

(3)    to facilitate the exchange of goods, services, information, or property of any kind or the ordinary course of trade or business.

 

Bona Fide Business or Commercial Use

 

Complainant alleges that the Respondent did not register the domain name for a bona fide commercial purpose. Respondent offers that the domain name was registered for the purpose of establishing a surplus government cheese related site. At present, the site located at <chuckycheese.biz>, while not referencing government surplus cheese, does reference a webpage displaying links to cheese related businesses.  However, even if we take Respondent’s claim of intended use as true, such use and the present use, does not constitute a “bona fide business or commercial use.” As elaborated below, Respondent has no right to use Complainant’s registered trademark in such a manner. Additionally, the fact that the Respondent agreed to transfer the domain name supports an inference that Respondent had no serious commercial purpose for the domain name.

 

Therefore the Panel agrees with Complainant. Respondent has violated the RDRP.  While Respondent’s violation of the RDRP is sufficient to allow the Panel to find for Complainant, the Panel nevertheless feels compelled to discuss the domain name in light of the UDRP.

 

Identical and/or Confusingly Similar

 

Complainant has established rights in the CHUCK E. CHEESE mark through registration with the United States Patent and Trademark Office (Reg. No. 1,203,974 issued Aug. 3, 1982) and through continued use of the mark in commerce since at least October 1977. See Men’s Wearhouse, Inc. v. Wick, FA 117861 (Nat. Arb. Forum Sept. 16, 2002), see also Janus Int’l Holding Co. v. Rademacher, D2002-0201 (WIPO Mar. 5, 2002). The domain name is symbolically identical to Complainant’s mark except for one letter. The mere alteration or exchanging of a letter and adding a gTLD are insufficient to distinguish the domain name form Complainant’s mark. See Reuters Ltd. v. Global Net 2000, Inc., D2000-0441 (WIPO July 13, 2000). The single letter difference between Complainant’s trademark and the second level domain name in the instant case does not distinguish the two. Furthermore, the domain name is phonetically identical to the Complainant’s trademark.  Phonetic identity alone is sufficient to allow a finding the trademark and the domain name is identical. See generally, Am. Online, Inc. v. Peppler, FA 103437 (Nat. Arb. Forum Feb. 22, 2002).

 

Rights or Legitimate Interests

 

Complainant has not licensed its mark to Respondent for any purpose, e.g. to be used in a domain name. Additionally, Respondent is not commonly known as “Chucky Cheese” or any close variation thereof.  See Compagnie de Saint Gobain v. Com-Union Corp., D2000-0020 (WIPO Mar. 14, 2000). Respondent fails to credibly assert that it used the domain name, or intends to use the domain name for a bona fide offering of goods or services, or to demonstrate the applicability any other defense under the Policy that shows that the Respondent has legitimate rights or interests in the at-issue mark. In fact, aside from a nearly unintelligible and unsupported comment by Respondent that the domain name was acquired to reference a government surplus cheese website, there is no indication as to why the domain name was registered or why the particular name was selected.

 

Finally, Respondent’s willingness to sell the rights to the disputed domain name demonstrates Respondent’s lack of rights and legitimate interests in the disputed domain name pursuant to UDRP ¶ 4(a)(ii). See Mothers Against Drunk Driving v. Shin, FA 154098 (Nat. Arb. Forum May 27, 2003); see also Wal-Mart Stores, Inc. v. Stork, D2000-0628 (WIPO Aug. 11, 2000.

 

Registration and Use in Bad Faith

 

Although Complainant bares the initial burden to show Respondent’s bad faith regarding the registration and the use of the disputed domain name, once a prima facie case of bad faith has been made by Complainant, as the Panel finds in the present case, it is up to Respondent to either justify its business conduct, explain it, or demonstrate satisfactorily the contrary. See Royal Bank of Scotland Group v. Lopez, D2002-0823 (WIPO Dec. 3, 2003); see also AT&T Corp. v. Linux Security Sys., DRO2002-0002 (WIPO Oct. 11, 2002). Here Respondent merely states, without presenting any corroborating evidence, that he has registered the domain name for a government surplus cheese business.

 

Respondent’s registration of the disputed domain name, which is identical to Complainant’s mark, suggests that Respondent knew of Complainant’s rights in the CHUCK E. CHEESE mark. Complainant’s trademark registration for the CHUCK E. CHEESE mark on the Principal Register of the United States Patent and Trademark Office gave Respondent constructive notice of the mark. Respondent also appears to have had actual knowledge that Complainant had rights in the CHUCK E. CHEESE mark. Complainant’s mark is very well known in the field; the mark is fanciful and not likely to be picked as a domain name absent some awareness of the mark. Therefore, it is nearly undeniable that the Respondent registered ChuckyCheese  precisely because of the distinctive and well-known qualities of the Complainant’s identical trademark thereby intending to trade on the Complainant’s mark. Such conduct evidences bad faith registration and use under the Policy ¶ 4(a)(iii). See Sony Kabushiki Kaisha v. Inja, Kil, D2000-1409 (WIPO Dec. 9, 2000); see also Samsonite Corp. v. Colony Holding, FA 94313 (Nat. Arb. Forum Apr. 17, 2000). Where, as here, a Respondent chooses a domain name with knowledge that it is similar to another’s mark, intent to confuse might be inferred. Entrepreneur Media, Inc. v. Smith, 279 F.3d 1135, 1148 (9th Cir. 2002). Such intent evidences bad faith.

 

While each of the four circumstances listed under Policy ¶ 4(b), if proven, evidences bad faith use and registration of the domain name, additional factors, can also be used to support findings of bad faith. See Twentieth Century Fox Film Corp. v. Risser, FA 93761 (Nat. Arb. Forum May 18, 2000); see also Do The Hustle, LLC v. Tropic Web, D2000-0624 (WIPO Aug. 21, 2000).  The record shows Respondent’s frequent use of belittling and gratuitous foul language in dealing the Complainant, and in communicating with the arbitrating body and its staff.  Respondent’s disgraceful prose does nothing to enlighten the Panel as to the relevant facts in this case. Instead it indicates that Respondent has no respect for the Complainant, Complainant’s rights, the people charged with enabling this arbitration, or the sanctity of these proceedings. The Panel finds such abhorrent conduct to be compelling evidence of Respondent’s bad-faith in registering and using the domain name.

 

DECISION

Having established all elements required under the UDRP, the Respondent having agreed to a transfer of the domain name, and having found the Respondent to be in violation of the RDRP, the Panel concludes that relief shall be GRANTED.

 

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

 

 

                                         

 

Paul M. DeCicco, Panelist
Dated: May 10, 2005

 

 

 

 

 

 

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