National Arbitration Forum

 

DECISION

 

Bag Boy LLC v. Chad Wright and WebQuest.com, Inc.

Claim Number: FA0508000530334

 

PARTIES

Complainant is Bag Boy LLC (“Complainant”), represented by Marshall J. Nelson, of Davis Wright Tremaine LLP, 1501 Fourth Avenue, Suite 2600, Seattle, WA 98101.  Respondent is Chad Wright and WebQuest.com, Inc. (“Respondent”), represented by David M. Dingeman, 550 Trees Drive, Cedar Hill, TX 75104.

 

REGISTRAR AND DISPUTED DOMAIN NAME 

The domain name at issue is <bagboy.com>, registered with Moniker Online Services, 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.

 

Richard Hill as Panelist.

 

PROCEDURAL HISTORY

Complainant submitted a Complaint to the National Arbitration Forum electronically on August 2, 2005; the National Arbitration Forum received a hard copy of the Complaint on August 4, 2005.

 

On August 3, 2005, Moniker Online Services, Inc. confirmed by e-mail to the National Arbitration Forum that the <bagboy.com> domain name is registered with Moniker Online Services, Inc. and that the Respondent is the current registrant of the name.  Moniker Online Services, Inc. has verified that Respondent is bound by the Moniker Online Services, 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 August 5, 2005, a Notification of Complaint and Commencement of Administrative Proceeding (the “Commencement Notification”), setting a deadline of August 25, 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@bagboy.com by e-mail.

 

A timely Response was received and determined to be complete on August 25, 2005.

 

An Additional Submission from Complainant was received on August 30, 2005.  The Additional Submission complied with Supplemental Rule 7.

 

On September 1, 2005, pursuant to Complainant’s request to have the dispute decided by a single-member Panel, the National Arbitration Forum appointed Richard Hill as Panelist.

 

RELIEF SOUGHT

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

 

PARTIES’ CONTENTIONS

A. Complainant

Complainant contends that it holds exclusive rights to the U.S. registered trademark, BAG BOY, for collapsible carts for carrying golf bags on golf courses, first registered in 1947, whereas the contested domain name was registered in 2002.  Complainant also contends that it has common law rights in the BAG BOY mark.  Additionally, it alleges that “through long, continuous and wide-spread use, the trademark has become famous by any measure.”

 

Complainant alleges that the contested domain name, <bagboy.com>, is confusingly similar to its BAG BOY mark and that “consumers encountering <bagboy.com> in the course of searching for BAG BOY golf equipment will naturally assume that the website associated with this domain name is operated by or affiliated with Complainant.”

 

According to Complainant, Respondent does not have rights or legitimate interest in the contested domain name because (1) Respondent has never made any use of the contested domain name prior to receiving a letter from Complainant and has subsequently used the contested domain name to create a site featuring advertisements and links to other sites, including those of retailers selling Complainant’s products; (2) Respondent is not known as “bagboy;” and (3) neither non-use of a domain name, nor use of the contested domain name for “the posting of advertising links for others constitutes a legitimate, noncommercial fair use.”

 

Complainant alleges that the contested domain name was registered and is being used in bad faith because Respondent must have known of Complainant’s famous BAG BOY mark when it registered the contested domain name.  “Even if Respondent did not have actual knowledge of Complainant’s mark (which is unlikely), it has constructive knowledge of the BAG BOY mark by virtue of Complainant’s trademark registration. . . .  The Registration of the <bagboy.com> domain name with actual or constructive knowledge of Complainant’s rights in the BAG BOY trademark demonstrates bad faith registration and use.”  In support, Complainant cites Paisley Park Enters. v. Lawson, FA 384834 (Nat. Arb. Forum Feb. 1, 2005) and Wells Fargo & Co. v. Cayman Trademark Trust, FA 396377 (Nat. Arb. Forum Feb. 14, 2005).

 

According to Complainant, Respondent’s failure to make bona fide use of the contested domain name is further evidence of its bad faith, and the posting of advertising links on the website is also evidence of Respondent’s bad faith use of the contested domain name.  “By participating in Google’s ‘AdSense’ program or a similar service, Respondent received money each time someone clicks on one of the posted links. … Using Complainant’s well-known, incontestable trademark for Respondent’s commercial gain constitutes bad faith.”

 

B. Respondent

Respondent alleges that it is in the business of providing search engines pertinent to generic domain names such as <automakers.com>, <automotivetires.com>, <dentalproblems.com>, <weddingplaces.com>, <cheapweddings.com> and <bagboy.com> in addition to generic three-letter domain names.

 

Respondent further contends that it has legitimate common law service mark rights in BAGBOY.COM in international class 042 for “providing specific information as requested by customers via the Internet for customized searching in the field of personal finance, financial planning mortgages, tax preparation, student loans, real estate investing, stocks and bankruptcy” since as early as July 24, 2002.

 

Respondent states that it was not aware of Complainant’s registered mark until receiving an inquiry letter regarding the purchase of the contested domain name from Complainant in March 2004, and that it did not create or control the content of the contested domain name, as the content was “created by Overture based on their premium, highest bid search terms … sponsors bid for searches ranging from $0.23 to $0.10 and pay this amount directly to Overture.”

 

According to Respondent, Complainant does not have exclusive rights to the term BAG BOY, and it registered the contested domain name “simply because it was an available generic domain name that it believed no party had exclusive rights to nor a US trademark registration.”

 

Respondent alleges that its legitimate interests in a domain name composed of common words, such as the contested domain name, is established, per se, at the time of registration.  In support, it cites RMT, Inc. v. Domain Fin. Ltd., FA 313843 (Nat. Arb. Forum Nov. 3, 2004), Tenenhaus v. Telepathy, Inc., FA 94355 (Nat. Arb. Forum May 17, 2000) and Trans Cont’l Records, Inc. v. Compana, LLC, D2002-0105 (WIPO Apr. 30, 2002).

 

Respondent distinguishes the case law cited by Complainant from the present case on the grounds that Complainant’s BAG BOY mark “is not famous nor exclusive and is descriptive at best;” and on the grounds that “Respondent does not list any of Complainant’s competitors nor competitor products anywhere on its website;” and on the grounds that in the cited cases there was no Response, whereas there is a Response in the present case.

 

Respondent denies that it acted in bad faith, stating that:

1.    “Respondent provides a search engine for financial related businesses;”

2.    Respondent “did not and does not attempt to profit from the ‘fame’ of Complainant’s BagBoy golf bags;”

3.    Respondent “never diverted customers from Complainant;”

4.    “[T]here are no circumstances indicating that Respondent registered or acquired the domain name primarily for the purpose of selling, renting, or otherwise transferring the domain name registration to Complainant;”

5.    Respondent “did not register the <bagboy.com> in order to prevent the owner of the trademark from reflecting the name in a corresponding domain name.  On the contrary, Complainant already has a registered domain name and website;”

6.    Respondent “has not registered the domain name primarily for the purpose of disrupting the business of a competitor; Respondent is not in the business of golf bags;” and

7.    Respondent “as shown by the <bagboy.com> is not attempting to create a likelihood of confusion with Complainant’s mark as to the source, sponsorship, affiliation, or endorsement of your web site or location of a product or service on your web site or location.  Respondent’s website is clearly a search engine.  Complainant’s website clearly sells golf bags.”

 

C. Additional Submissions

According to Complainant, a simple comparison of the contested domain name with the other domain names mentioned by Respondent highlights the fact that <bagboy.com> is not a generic domain name.

 

Complainant additionally alleges that it “strains credulity to claim that Respondent is in the search engine business using a term like <bagboy.com>” because (1) “in contrast to a legitimate search engine site like Google or Yahoo!, Respondent’s site does not offer the capability of searching the web but merely provides links through Overture, which links Respondent admits are based on whether and how much advertisers have to bid to have links to their sited provided;” and (2) “customers arriving at <bagboy.com> will wrongly assume that they have found a web site offered by, or at least endorsed by, Complainant.  This misleading connection is further emphasized because ‘Bagboy’ is listed as the first category of subjects for which consumers may obtain Overture-provided links, and … Complainant’s trademark is the only non-generic term in this list of subjects.”

 

Complainant further states that “the implausibility of Respondent’s claim that has ‘legitimate interests’ in using <bagboy.com> to identify ‘customized searching in the field of personal finance, …’ is evident from even a cursory glance at what has been posted (by Overture) on the <bagboy.com> site.”

 

According to Complainant, “using Complainant’s well-known, incontestable mark for Respondent’s commercial gain constitutes bad faith” and “the record shows the registrants Chad Wright and WebQuest.com, Inc. are in the business of buying, selling, and exploiting domain names, including, in this case, a domain name consisting of Complainant’s registered and well-known trademark.”

 

FINDINGS

Complainant has rights in the registered BAG BOY trademark since at least 1947.

 

Respondent registered the contested domain name in 2002 and did not use it until it received an inquiry letter regarding the purchase of the contested domain name from Complainant in March 2004.

 

Respondent subsequently used the contested domain name to create a site hosting advertisements and links to other sites, including those of retailers selling Complainant’s products.  The content for the contested domain name was created by Overture based on their premium, highest bid search terms and Overture derives revenue from this activity.

 

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

 

The contested domain name is clearly identical to Respondent’s BAG BOY mark.  See Nev. State Bank v. Modern Ltd. – Cayman Web Dev., FA 204063 (Nat. Arb. Forum Dec. 6, 2003) (“It has been established that the addition of a generic top-level domain is irrelevant when considering whether a domain name is identical or confusingly similar under the Policy.”); see also Hannover Ruckversicherungs-AG v. Ryu, FA 102724 (Nat. Arb. Forum Jan. 7, 2001) (finding <hannoverre.com> to be identical to HANNOVER RE, “as spaces are impermissible in domain names and a generic top-level domain such as ‘.com’ or ‘.net’ is required in domain names”).

 

Rights or Legitimate Interests

 

Complainant bases much of its argument on the allegation that, because the BAG BOY mark is famous, any use of that mark by Respondent cannot be legitimate, and, furthermore, the specific use by Respondent is not legitimate because it is in bad faith.

 

The Panel will address the bad faith issue in the next section.  Regarding the allegation that the BAG BOY mark is famous, Complainant has not provided any evidence to that effect and, thus, it has failed to satisfy its burden of proving the allegation.  Thus, the present case is distinguished from Paisley Park Enters. v. Lawson, FA 384834 (Nat. Arb. Forum Feb. 1, 2005) and Wells Fargo & Co. v. Cayman Trademark Trust, FA 396377 (Nat. Arb. Forum Feb. 14, 2005) because, in those cases, the Panel established that the mark was famous.  (Furthermore, there was no Response in Wells Fargo & Co. v. Cayman Trademark Trust, FA 396377 (Nat. Arb. Forum Feb. 14, 2005), which further distinguishes it from the present case.)

 

But, if the mark is not famous, then surely its use by others may be legitimate, provided of course that such use does not involve the same type of products or services, and that such use is in good faith. See, e.g., Broadcom Corp. v. Becker, FA 98819 (Nat. Arb. Forum Oct. 22, 2001).

 

Furthermore, in the present case, as Respondent correctly notes, Complainant’s mark is made up of generic words.  We cite, in this context, the decision in Car Toys, Inc. v. Informa Unlimited, Inc., FA 93682 (Nat. Arb. Forum Mar. 20, 2000), in which the Panel stated:

 

Car Toys, Inc. has not proven that Informa has no legitimate interests in respect of the domain name cartoys.net. The CAR TOYS trademark is not fanciful or arbitrary, and Car Toys has submitted no evidence to establish either fame or strong secondary meaning in its mark such that consumers are likely to associate cartoys.net with CAR TOYS. Informa has demonstrated that the name is in use elsewhere. The arbitrator finds, therefore, that Informa has rebutted Car Toys’ arguments and has shown that it is in the business of selling descriptive domain names such as cartoys.net. As a result, Informa does have a legitimate interest in the domain name. That Informa has offered to sell this domain name to Complainant after inquiry by Complainant does not make its interest illegitimate.

Id.

 

Similar conclusions are reached in the Forum’s case CRS Tech. Corp. v. Condenet, Inc., FA 93547  (Nat. Arb. Forum Mar. 28, 2000).

 

Therefore, the present case rests on the question of whether or not Respondent registered and is using the contested domain name in bad faith.

 

Registration and Use in Bad Faith

 

The Panel agrees with Complainant’s contention that Respondent’s claim that it is using the contested domain name to provide customized searching in the field of personal finance is not plausible.

 

The Panel also agrees with Complainant’s allegation that Respondent is using the contested domain name for commercial gain.  While it may be the case, as Complainant alleges, that Respondent “is in the business of buying, selling, and exploiting domain names,” Complainant has not provided sufficient evidence to prove that allegation, and, in any case, the question is moot, as explained below.

 

Complainant seems to believe that only the owner of a registered trademark can use that mark within a domain name.  This is of course not the case.  Ownership of a trademark does not confer the exclusive right to all domain names containing the mark.  And using a domain name for commercial gain is not, per se, a bad faith activity prohibited under the Policy.  As the Panel stated in Manchester Airport PLC v. Club Club Ltd., D2000-0638 (WIPO Aug. 21, 2000):

 

[S]elling a domain name is not per se prohibited by the ICANN Policy (nor is it illegal or even, in a capitalist system, ethically reprehensible).  Selling of domain names is prohibited by the ICANN Policy only if the other elements of the ICANN Policy are also violated, namely trademark infringement and lack of legitimate interest.

 

Id.

 

Complainant seems to believe that the mere fact that its mark is registered implies bad faith on the part of Respondent when Respondent registered the contested domain name.  But, under the Policy, a domain name registrant has no obligation to perform a trademark search.  Indeed, it is clear from the travaux preparatoires of the Policy that mere failure to conduct a trademark search does not constitute bad faith behavior.  The closest equivalent to a legislative history for the Policy can be found in the April 30, 1999 Final Report of the WIPO Internet Domain Name Process, which formed the basis for the ICANN Policy (available online at: http://wipo2.wipo.int/process1/report/doc/report.doc).  This report states at paragraph 103:

 

[T]he performance of a prior search for potentially conflicting trademarks should not be a condition for obtaining a domain name registration. … Particularly in an international context, the requirement of searches prior to the registration of a domain name was generally considered to be unrealistic and conducive to unnecessary delays in the registration process.

 

And the report states at paragraph 105:

 

It is not recommended that domain name registrations be made conditional upon a prior search of potentially conflicting trademarks but it is recommended that the domain name application contain appropriate language encouraging the applicant to undertake voluntarily such a search.

 

In accordance with 4(a) of the Policy, the Complainant must prove that Respondent registered and is using the disputed domain name in bad faith.  Complainant has not satisfied its burden of proof in that respect.

 

On the contrary, Complainant alleges that Respondent is using the contested domain name for commercial purposes, which is, in a capitalist system, clearly a bona fide use, unless, of course, such use violates the law, for example trademark law.

 

But Complainant has not established either that its mark is famous or that Respondent’s commercial activities infringe its mark or are otherwise illegal or reprehensible.  Contrary to Complainant’s allegation, the evidence provided by both parties indicates that a user visiting the <bagboy.com> web site would not assume that the web site is associated with Complainant and there is nothing to indicate that users would somehow be confused or misled.

 

The evidence presented leads this Panel to conclude that Respondent is currently using the contested domain name to carry out legitimate commercial activities, namely providing links to other web sites.

 

The Panel holds that Complainant has failed to prove that Respondent is using the contested domain name in bad faith.

 

DECISION

For the reasons given above, the Panel concludes that relief shall be DENIED.

 

 

 

 

Richard Hill, Panelist
Dated: September 15, 2005

 

 

 

 

 

 

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