National Arbitration Forum

 

DECISION

 

Borsig Process Heat Exchanger GmbH f/k/a Borsig GmbH v. David Webb

Claim Number: FA0608000766319

 

PARTIES

Complainant is Borsig Process Heat Exchanger GmbH f/k/a Borsig GmbH (“Complainant”), represented by William P. Glenn, Jr., of Royston Rayzor Vickery & Williams L.L.P., 2102 Mechanic Street, Suite 205, Galveston, TX 77550.  Respondent is David Webb (“Respondent”), represented by David M. Dingeman, 2907 Emerald Sound Drive, Cedar Hill, TX 75104.

 

 

REGISTRAR AND DISPUTED DOMAIN NAME 

The domain name at issue is <borsig.com>, registered with Enom, 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.

 

Hugues G. Richard as Panelist.

 

PROCEDURAL HISTORY

Complainant submitted a Complaint to the National Arbitration Forum electronically on July 31, 2006; the National Arbitration Forum received a hard copy of the Complaint on August 4, 2006.

 

On August 1, 2006, Enom, Inc. confirmed by e-mail to the National Arbitration Forum that the <borsig.com> domain name is registered with Enom, Inc. and that the Respondent is the current registrant of the name. Enom, Inc. has verified that Respondent is bound by the Enom, 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 9, 2006, a Notification of Complaint and Commencement of Administrative Proceeding (the “Commencement Notification”), setting a deadline of August 29, 2006 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@borsig.com by e-mail.

 

A timely Response was received and determined to be complete on August 28, 2006.

 

On September 5, 2006, an Additional Submission from Complainant was received in a timely manner according to The Forum’s Supplemental Rule 7.

 

On September 6, 2006, pursuant to Complainant’s request to have the dispute decided by a single-member Panel, the National Arbitration Forum appointed Hugues G. Richard as Panelist.

 

On September 11, 2006, Respondent’s Response to Complainant’s Additional Submission was received.

 

RELIEF SOUGHT

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

 

PARTIES’ CONTENTIONS

A.     Complainant

 

Complainant is a manufacturer and seller of pressure vessels and heat exchangers. Complainant asserts it has been using the mark “BORSIG” since 1950 throughout the world and since 1972 in the United States and that it is commonly known by its customers under the said mark.  Complainant also contends it has established rights in the BORSIG mark through registration in Germany, Austria, Benelux, France, Greece, Italy, Spain and Switzerland and through acquiring common law rights by its continuous use and marketing under the name “BORSIG” in the United States.

 

Complainant alleges that sales of his products related to pressure vessels and heat exchangers in the United States amounted to approximately $40,000,000 in 2005 alone. Complainant also states that it spent $7,000 in U.S advertising last year, as well as $55,000 in advertising throughout the world in the same period of time.

 

Furthermore, Complainant’s states it adopted and continuously used the mark “BORSIG” to identify its wares and services and to distinguish them from its competitors’ services.

 

Complainant also contends that Respondent’s <borsig.com> domain name is identical to the “BORSIG” mark within the meaning of Policy ¶ 4(a)(i) because the disputed domain name encompasses the mark in its entirety and merely adds the generic top-level domain “.com.”

 

In addition, Complainant alleges that Respondent is not commonly known by the <borsig.com> domain name and that there have been no links between the domain name <borsig.com> and any content since Mr. Webb’s registration on May 7, 2005. Complainant claims that, even if the domain name had been used as a search engine as Respondent asserts, Respondent would use the domain name to redirect internet users to Complainant’s competitors or unrelated web sites.  In this manner, according to Complainant, Respondent is capitalizing on consumer confusion to obtain “click-through” fees for its own profits.

 

Complainant also alleges Mr. Webb’s nonuse is not a bona fide offering of goods or services pursuant to Policy ¶ 4(c)(i) or a legitimate noncommercial or fair use pursuant to Policy ¶ 4(c)(iii).

 

In addition, Complainant states that Mr. Webb’s registration and passive holding of the domain name <borsig.com>, as well as the absence of any notice of intended use on the web site, is evidence of bad faith registration and use.

 

B.     Respondent

 

Respondent contends he had never heard of Complainant’s registered trademark for “BORSIG” and alleged use in the United States prior to receiving this complaint. He disputes the claim that “BORSIG” has acquired common-law trademark rights in the United States and maintains no evidence to this effect was provided by the Complainant except for the claim $7,000 was spent in U.S advertising.

 

Respondent also states Complainant does not provide any notice of trademark registration such as the recognized registration symbol “®” when using the mark “BORSIG” in commerce.

 

Furthermore, Respondent claims that Complainant abandoned his U.S trademark registration and rights for “GHH BORSIG” on April 18, 2001.

 

Respondent asserts that, even though <borsig.com> is identical to the Complainant’s German trademark registration for the “BORSIG” mark, Complainant lacks sufficient rights in the said mark to meet the requirements of Policy ¶ 4(a)(i).  Respondent also states that Complainant failed to establish common law rights in the mark.

 

In addition, Respondent contends he registered <borsig.com> on May 7, 2005 because it was an available generic domain name or common surname domain name that he believed no party had exclusive rights to.  Respondent says he uses a generic surname to profit from the intrinsic value of the word without the intent to take advantage of Complainant’s rights in those words.  He further asserts he only owns mainly surname domain names and generic domain names of which none have any live U.S. trademark registrations.

 

Furthermore, he contends that Policy ¶ 4(c)(ii) “has been interpreted to require a showing that one has been commonly known by the domain name prior to registration of the domain name” in cases only when Respondent failed to respond.

 

Respondent asserts he has been using <borsig.com> as a pay-per-click search engine until receiving the cease and desist letters whereby he removed all contents until resolution is achieved.

 

Respondent contends his legitimate interest in the domain name <borsig.com> is established per se at the point of registration.

 

Respondent also asserts Complainant does not show that Respondent should have been aware of Complainant’s German or WIPO trademarks.

 

Moreover, Respondent contends that Complainant has failed to establish a prima facie case to support its allegations that Respondent lacks rights and legitimate interest pursuant to Policy ¶ 4(a)(ii).  Respondent contends that Complainant has not shown Respondent acted in bad faith within the meaning of Policy ¶ 4(a)(iii).

 

Respondent contends that he registered the domain name in good faith over one year ago as well as many other generic domain names all used as search engines. He also contends he never diverted customers from Complainant nor is there any evidence to support this. Furthermore, Respondent states he is not in the business of selling domain names and that there are no circumstances indicating that Respondent registered or acquired the domain name primarily for the purpose of selling, renting or transferring the domain name registration to Complainant.

 

Respondent asserts he did not register the domain name in order to prevent the owner of the trademark from reflecting the mark in a corresponding domain name, in this case <borsig.de>. He also contends Complainant failed to register <borsig.com> when it was available.

 

Furthermore, Respondent contends he did not register the domain name to disrupt the business of a competitor.  He highlights that he is not in the business of selling heat exchange equipment.

 

C.     Additional Submissions

 

In his Additional Submission, Complainant asserts he is not required to demonstrate registrations in the country in which Respondent operates.  It is sufficient that Complainant can demonstrate a mark in some jurisdiction.

 

Complainant states that the affidavits under Exhibits B and G serve as evidence of use of the mark “BORSIG” in the United States and that it establishes Borsig’s common law trademark rights in the mark.

 

Complainant also alleges the production of advertisement is not required to show use of the mark.  Acquisition of common law trademark occurs with an account of long and substantial use of the name in connection with its business.

 

Furthermore, Complainant contends that Respondent erred in assessing that Borsig abandoned its U.S. trademark registration because the said mark, “GHH BORSIG,” is a design mark intended to be used in connection with goods identified as compressors, turbines and the controls and instrumentation thereof.  The Complainant also alleges he is not the owner of the intent to use application relied upon by Respondent.

 

As to Respondent’s legitimate interest, Complainant contends that the term “BORSIG” is a word and not a short, generic letter combination or acronymic term as suggests Respondent.  Complainant also asserts the word “BORSIG” has no common meaning other than what Borsig’s customers have come to recognize as a mark associated with its pressure vessels and heat exchangers.  Complainant asserts that “BORSIG” is too unusual as a surname to be considered a generic surname.

 

Furthermore, Complainant contends that Respondent is not known by the name “Borsig” but rather by the names: David Webb, Bestinfo and Goldmark-CDWebb.

 

Complainant also asserts Respondent did not provide any evidence that the domain name <borsig.com> was used as a pay-per-click search engine business model.  He also contends he did not find any linking of content to that domain name since May 7, 2005. Complainant reasserts that Respondent did not use the domain name and therefore has no bona fide offering of goods and services pursuant to Policy ¶ 4(c)(i) or a legitimate noncommercial or fair use pursuant to Policy ¶ 4(c)(iii).

 

Complainant also contends that, if the website was ever used as a search engine, Respondent’s “business model” diverts Internet users seeking information about Borsig and its products to Respondent’s website, which contains a series of hyperlinks to unrelated websites.

 

Complainant also reasserts that Respondent’s registration and passive holding of the domain name <borsig.com> for at least a year is evidence of bad faith registration and use.  He also alleges that the failure to place any notice of intended use of the domain name amounts to bad faith registration and use.

 

D. Response to Complainant’s Additional Submission

 

Respondent reasserts Complainant did not provide concrete evidence as to why he deserves world-wide exclusive rights in the domain name <borsig.com> except for the affidavits provided in his Amended Complaint.  He also maintains there is no evidence showing the word “BORSIG” has acquired distinctiveness or secondary meaning.

 

Moreover, Respondent maintains that the domain name was used as a pay-per-click search engine until the cease and desist letters were received and that it would be used in the same way as the business model examples submitted in Exhibits C and D.

 

Respondent also reasserts “BORSIG” is viewed primarily as a surname.

 

He also contends that Complainant did not show any evidence that Respondent’s “business model” diverts Internet users seeking information about Complainant and its products to other web sites, and that he never provided content associated with heat exchangers or other heavy equipment on his web sites.

 

Furthermore, Respondent states Complainant did not provide any evidence that Respondent knew or should have known of Borsig’s trade name use or trademark registrations at the time of the domain name registration.

 

FINDINGS

Rule 15 of the Rules for Uniform Domain Dispute Resolution Policy states that “a Panel shall decide a complaint on the basis of the statements and documents submitted and in accordance with the Policy, these Rules and any rules and principles of law that it deems applicable.”  Furthermore, Rule 10 requires the Panel shall ensure that the Parties are treated with equality.  The Panel recognizes that the parties went to great lengths to submit additional materials and will consider the additional documents as a matter of fairness for both parties.

 

Complainant has continuously used the mark “BORSIG” in the manufacturing and advertising of heat exchangers and pressure vessels since 1950 throughout the world and since 1972 in the United States.  Moreover, Complainant is the registered owner of the trademark “BORSIG” in Germany and of the mark “BORSIG” in Germany, Austria, Benelux, France, Greece, Italy, Spain and Switzerland.  He also spent $7,000 in U.S. advertising in 2005 and generated more than $40,000,000 in profits last year in the United States.  Complainant also owns and uses the domain name <borsig.de>.

 

Respondent however, does not use the mark.  The record shows that Respondent is not commonly know by the <borsig.com> domain name or by the “BORSIG mark.”  On May 7, 2005, Respondent registered the domain name <borsig.com> without the permission or authorization of Complainant.  Furthermore, Respondent is not using the domain name in connection with a bona fide offering of goods or services given the domain name <borsig.com> is not linked to any content.  Respondent also does not make legitimate noncommercial or fair use of the domain name.  Finally, Respondent registered and used the disputed domain name 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 must first establish rights in the mark “BORSIG” before it can proceed. Complainant does establish its rights in the mark by showing registrations in Germany, Austria, Benelux, France, Greece, Italy, Spain and Switzerland and through acquiring common-law rights by its continuous use and marketing under the name “BORSIG” in the United States, as shown in the affidavits of Mr. Nassauer and Mr. Richey.  A common law trademark constitutes a valid trademark under Policy ¶ 4(a)(i) and the Panel is convinced the Complainant continuously used the mark “BORSIG” in relation to its products.  See Keppel Tatlee Bank v. Taylor, D2001-0168 (WIPO March 28,2001). Furthermore, the Policy does not require that a mark be registered in the country in which the respondent operates.  See Choice Hotels International, Inc. v. Anna Valdieri, FA 758830 (Nat. Arb. Forum August 23, 2006) (citing Koninklijke KPN N.V. v. Telepathy Inc., D2001-0217 (WIPO May 7, 2001)).

 

In addition, Respondent’s domain name <borsig.com> is identical to the “BORSIG” mark. Respondent also admits that the disputed domain name is identical to Complainant’s mark.  The presence of the “.com” suffix does not affect the domain name for the purpose of comparison with the Complainant’s “BORSIG” mark.  See Rollerblade Inc. v. McCrady, D2000-0429 (WIPO June 25, 2000).

 

Complainant prevails under Policy ¶ 4(a)(i).

 

Rights or Legitimate Interests

 

Once Complainant makes a prima facie case that Respondent lacks rights and legitimate interests in the disputed domain name under Policy ¶ 4(a)(ii), the burden shifts to Respondent to show his rights or legitimate interests in the domain name <borsig.com>. See Do the Hustle, L.L.C. v. Tropic Web, D2000-0624 (WIPO Aug. 21, 2000).

 

Complainant showed Respondent is not commonly known by the name “BORSIG” and that no authorization was given to Respondent to use that name.  See Gallup Inc. v. Amish Country Store, FA96209 (Nat. Arb. Forum, January 23, 2001) (finding that a respondent does not have rights in a domain name when he is not known by the mark).  Under the facts and circumstances of the case, the Panel finds that Complainant proved enough to shift the burden of proof on Respondent.

 

Respondents asserts the domain name <borsig.com> was an available generic name or generic surname that he believes no one should have exclusive rights to and that was available at the time of registration.  Furthermore, Respondent did not provide any evidence of use of the domain name <borsig.com> related to any wares or services.  The Panel accepts the Complainant’s evidence that it was not used in connection with a bona fide offering of goods or services pursuant to Policy ¶ 4(c)(ii).  In addition, Respondent does not make a noncommercial or fair use of the domain name.

 

Complainant prevails under Policy ¶ 4(a)(ii).

 

Registration and Use in Bad Faith

 

Complainant contends that Respondent’s <borsig.com> domain name has been inactive since at least a year and possibly longer.  Respondent maintains that all content was removed from the domain name since the start of the proceedings until the issue is resolved and that the domain name was used as a pay-per click search engine.  However, Respondent did not provide any evidence of use of the domain name while Complainant’s evidence shows no content is, or was ever linked to the <borsig.com> domain name.  The other “business model” domain names belonging to Respondent do not provide evidence as to the use made of the <borsig.com> domain name.

 

Complainant asserts that, even in the event the domain name <borsig.com> was used as a search engine, the Respondent is diverting BORSIG’s customers to competitor’s web sites or to other web sites, taking advantage of the goodwill associated with the mark. The Panel finds, under the facts and circumstances of the case, that it is very unlikely that there was ever any content linked to the <borsig.com> domain name.  Respondent’s registration and passive holding of the domain name <borsig.com> for at least a year is evidence of bad faith registration and use pursuant to Policy ¶ 4(a)(iii).  See Clerical Med. Inv. Group Ltd. v. Clericalmedical.com D2000-1228 (WIPO Nov. 28, 2000).

 

Complainant prevails under Policy ¶ 4(a)(iii).

 

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

 

 

Hugues G. Richard, Panelist

Dated: September 19, 2006

 

 

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