DECISION

 

Lilly ICOS LLC v. Andrew Riegel

Claim Number: FA0609000788279

 

PARTIES

Complainant is Lilly ICOS LLC, Wilmington, DE (“Complainant”) represented by Stephanie A. Hale, of Baker & Daniels LLP.  Respondent is Andrew Riegel (“Respondent”) P.O. Box 828, Clearlake Park, CA 95424.

 

REGISTRAR AND DISPUTED DOMAIN NAME 

The domain name at issue is <buycialis.us>, registered with Schlund + Partner Ag.

 

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.

 

Tyrus R. Atkinson, Jr., as Panelist.

 

PROCEDURAL HISTORY

Complainant submitted a Complaint to the National Arbitration Forum (the “Forum”) electronically on September 5, 2006; the Forum received a hard copy of the Complaint on September 6, 2006.

 

On September 7, 2006, Schlund + Partner Ag confirmed by e-mail to the Forum that the <buycialis.us> domain name is registered with Schlund + Partner Ag and that Respondent is the current registrant of the name.  Schlund + Partner Ag has verified that Respondent is bound by the Schlund + Partner Ag registration agreement and has thereby agreed to resolve domain-name disputes brought by third parties in accordance with the U. S. Department of Commerce’s usTLD Dispute Resolution Policy (the “Policy”).

 

On September 8, 2006, a Notification of Complaint and Commencement of Administrative Proceeding (the “Commencement Notification”), setting a deadline of September 28, 2006 by which Respondent could file a Response to the Complaint, was transmitted to Respondent in compliance with Paragraph 2(a) of the Rules for usTLD Dispute Resolution Policy (the “Rules”).

 

Having received no Response from Respondent, the Forum transmitted to the parties a Notification of Respondent Default.

 

On October 4, 2006, pursuant to Complainant’s request to have the dispute decided by a single-member Panel, the Forum appointed Tyrus R. Atkinson, Jr., 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.  Therefore, the Panel may issue its decision based on the documents submitted and in accordance with the Policy, the 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

 

1.      Respondent’s <buycialis.us> domain name is confusingly similar to Complainant’s CIALIS mark.

 

2.      Respondent does not have any rights or legitimate interests in the <buycialis.us> domain name.

 

3.      Respondent registered and used the <buycialis.us> domain name in bad faith.

 

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

 

 

FINDINGS

Complainant, Lilly ICOS LLC, is pharmaceutical research, development, and distribution company.  Complainant holds numerous registrations for the CIALIS mark, including a registration with the United States Patent and Trademark Office (“USPTO”) (Reg. No. 2,724,589 issued June 10, 2003) and a total of 130 other registrations in 117 countries.  Complainant uses the CIALIS mark in connection with one of its most popular pharmaceutical products.  Complainant has registered the <cialis.com> domain name in order to operate a website bringing information about its pharmaceutical product to Internet users.

 

Respondent registered the <buycialis.us> domain name on April 22, 2005.  Respondent is using the disputed domain name to host a website that includes advertisements for Complainant’s pharmaceutical products sold under the CIALIS mark as well as other competing pharmaceutical products, for example Viagra and Levitra.  Respondent’s website also has links to third-party websites offering pharmaceutical goods in direct competition with Complainant.  In addition, Respondent’s website has a link titled “Click Here to Place Your Order Now!” in connections with advertisements for a generic version of Complainant’s pharmaceutical product sold under the CIALIS mark.  Clicking on this link leads Internet users to commercial website, <xlpharmacy.com>, where Internet users can place orders for generic pharmaceutical products.

 

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 the Complainant's undisputed representations pursuant to Paragraphs 5(f), 14(a) and 15(a) of the Rules and draw such inferences it considers appropriate pursuant to Paragraph 14(b) of the Rules.  The Panel is entitled to accept all reasonable allegations and inferences set forth in the Complaint as true unless the evidence is clearly contradictory.  See Vertical Solutions Mgmt., Inc. v. webnet-marketing, inc., FA 95095 (Nat. Arb. Forum July 31, 2000) (holding that the respondent’s failure to respond allows all reasonable inferences of fact in the allegations of the complaint to be deemed true); see also Talk City, Inc. v. Robertson, D2000-0009 (WIPO Feb. 29, 2000) (“In the absence of a response, it is appropriate to accept as true all allegations of the Complaint.”).

 

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; and

(2) the Respondent has no rights or legitimate interests in respect of the domain name; and

(3) the domain name has been registered or is being used in bad faith.

 

Given the similarity between the Uniform Domain Name Dispute Resolution Policy (“UDRP”) and the usTLD Policy, the Panel will draw upon UDRP precedent as applicable in rendering its decision.

 

Identical and/or Confusingly Similar

 

Complainant’s USPTO registration of the CIALIS mark predates Respondent’s registration of the <buycialis.us> domain name.  The Panel finds that Complainant’s registration with the USPTO established Complainant’s rights in the CIALIS mark pursuant to Policy ¶ 4(a)(i).  See Men’s Wearhouse, Inc. v. Wick, FA 117861 (Nat. Arb. Forum Sept. 16, 2002) (“Under U.S. trademark law, registered marks hold a presumption that they are inherently distinctive [or] have acquired secondary meaning.”); see also Innomed Techs., Inc. v. DRP Servs., FA 221171 (Nat. Arb. Forum Feb. 18, 2004) (“Registration of the NASAL-AIRE mark with the USPTO establishes Complainant's rights in the mark.”).

 

Respondent’s <buycialis.us> domain name is confusingly similar to Complainant’s CIALIS mark.  The disputed domain name includes Complainant’s mark in its entirety, merely adding the term “buy.”  The term “buy” is a generic term that describes Complainant’s business suggesting that Respondent’s website is a place where consumers can purchase the pharmaceutical product marketed under the CIALIS mark.  The addition of a term descriptive of Complainant’s business to Complainant’s CIALIS mark does not overcome the confusing similarity between the disputed domain name and Complainant’s mark.  The Panel finds that the disputed domain name is confusingly similar to Complainant’s mark pursuant to Policy ¶ 4(a)(i).  See Oki Data Ams., Inc. v. ASD, Inc., D2001-0903 (WIPO Nov. 6, 2001) (“[T]he fact that a domain name wholly incorporates a Complainant’s registered mark is sufficient to establish identity [sic] or confusing similarity for purposes of the Policy despite the addition of other words to such marks.”); see also L.L. Bean, Inc. v. ShopStarNetwork, FA 95404 (Nat. Arb. Forum Sept. 14, 2000) (finding that combining the generic word “shop” with the complainant’s registered mark “llbean” does not circumvent the complainant’s rights in the mark nor avoid the confusing similarity aspect of the UDRP).     

 

The Panel finds that Policy ¶ 4(a)(i) has been satisfied.

 

Rights or Legitimate Interests

 

Complainant’s assertion that Respondent lacks rights or legitimate interests in the disputed domain name constitutes a prima facie case for purposes of the Policy.  Complainant having established a prima facie, the burden shifts to Respondent to demonstrate that it does have rights or legitimate interests pursuant to Policy ¶ 4(a)(ii).

Respondent failed to respond to Complainant’s Complaint, thus, depriving the Panel of the opportunity to review arguments and evidence that might demonstrate Respondent’s rights and legitimate interests.  Based on Respondent’s failure to submit a Response, the Panel presumes that Respondent lacks rights or legitimate interests in the disputed domain name.  However, the Panel will proceed to examine the available evidence to determine whether Respondent has rights or legitimate interests in the disputed domain name pursuant to Policy ¶ 4(c).  See G.D. Searle v. Martin Mktg., FA 118277 (Nat. Arb. Forum Oct. 1, 2002) (“Because Complainant’s Submission constitutes a prima facie case under the Policy, the burden effectively shifts to Respondent. Respondent’s failure to respond means that Respondent has not presented any circumstances that would promote its rights or legitimate interests in the subject domain name under Policy ¶ 4(a)(ii).”); see also Bank of Am. Corp. v. McCall, FA 135012 (Nat. Arb. Forum Dec. 31, 2002) (“Respondent's failure to respond not only results in its failure to meet its burden, but also will be viewed as evidence itself that Respondent lacks rights and legitimate interests in the disputed domain name.”).

 

Complainant has established its rights to the CIALIS mark, and asserts without contradiction that Respondent is in no way affiliated with the CIALIS mark.  The Panel finds that there is no available evidence that Respondent is the owner or beneficiary of a trade or service mark that is identical to the <buycialis.us> domain name as required by Policy ¶ 4(c)(i).  See Meow Media Inc. v. John Basil a/k/a American Software Factory Corp., Inc., FA 113280 (Nat. Arb. Forum Aug. 20, 2002) (finding that there was no evidence that Respondent was the owner or beneficiary of a mark that is identical to the <persiankitty.com> domain name); see also Pepsico, Inc. v. Becky a/k/a Joe Cutroni, FA 117014 (Nat. Arb. Forum Sept. 3, 2002) (holding that because Respondent did not own any trademarks or service marks reflecting the <pepsicola.us> domain name, it had no rights or legitimate interests pursuant to UDRP ¶ 4(c)(i)). 

 

Respondent is not using the <buycialis.us> domain name in connection with a bona fide offering of goods or services or a legitimate noncommercial or fair use as required by Policy ¶¶ 4(c)(ii) and (iv).  Respondent is using the disputed domain name to redirect Internet users to its website which features links to commercial websites offering pharmaceutical products in direct competition with Complainant.  Presumably, Respondent receives pay-per-click referral fees from those links.  The Panel finds that such use is not within the scope contemplated by Policy ¶¶ 4(c)(ii) and (iv), and thus, does not indicate that Respondent has rights or legitimate interests in the disputed domain name.  See TM Acquisition Corp. v. Sign Guards, FA 132439 (Nat. Arb. Forum Dec. 31, 2002) (finding that the respondent’s diversionary use of the complainant’s marks to send Internet users to a website which displayed a series of links, some of which linked to the complainant’s competitors, was not a bona fide offering of goods or services); see also 24 Hour Fitness USA, Inc. v. 24HourNames.com-Quality Domains For Sale, FA 187429 (Nat. Arb. Forum Sep. 26, 2003) (holding that the respondent’s use of the <24hrsfitness.com>, <24-hourfitness.com> and <24hoursfitness.com> domain names to redirect Internet users to a website featuring advertisements and links to the complainant’s competitors could not be considered a bona fide offering of goods or services or a legitimate noncommercial or fair use).

 

Additionally, there is no available evidence that Respondent is commonly known by the <buycialis.us> domain name.  Respondent’s WHOIS information identifies Respondent as “Andrew Riegel,” a name with no apparent relationship to the disputed domain name.  Thus, the Panel finds that there is no evidence that Respondent is commonly known by the disputed domain name as contemplated by Policy ¶ 4(c)(iii).  See Tercent Inc. v. Lee Yi, FA 139720 (Nat. Arb. Forum Feb. 10, 2003) (stating “nothing in Respondent’s WHOIS information implies that Respondent is ‘commonly known by’ the disputed domain name” as one factor in determining that UDRP ¶ 4(c)(ii) does not apply); see also Am. W. Airlines, Inc. v. Paik, FA 206396 (Nat. Arb. Forum Dec. 22, 2003) (“Respondent has registered the domain name under the name ‘Ilyoup Paik a/k/a David Sanders.’  Given the WHOIS domain name registration information, Respondent is not commonly known by the [<awvacations.com>] domain name.”).

 

The Panel finds that Policy ¶ 4(a)(ii) has been satisfied.

 

Registration and Use in Bad Faith

 

Respondent is using the <buycialis.us> domain name to redirect Internet users to Respondent’s website featuring links to commercial third-party websites in competition with Complainant.  At least one of the links, “Click Here to Place Your Order Now!,” redirects Internet users to a different website purporting to sell generic pharmaceuticals in competition with Complainant.  Other links appear to redirect Internet users to Complainant’s competing products, such as Viagra and Levitra.  Internet users seeking Complainant’s genuine website at <cialis.com> may find themselves redirected to Respondent’s website, and once there may follow one of the links to third-party websites and purchase products in competition with Complainant, thus, depriving Complainant of that business.  The Panel finds that such use disrupts Complainant’s business and is evidence of bad faith pursuant to Policy ¶ 4(b)(iii).  See S. Exposure v. S. Exposure, Inc., FA 94864 (Nat. Arb. Forum July 18, 2000) (finding the respondent acted in bad faith by attracting Internet users to a website that competes with the complainant’s business); see also Puckett, Individually v. Miller, D2000-0297 (WIPO June 12, 2000) (finding that the respondent has diverted business from the complainant to a competitor’s website in violation of UDRP ¶ 4(b)(iii)).

 

Respondent’s <buycialis.us> domain name is confusingly similar to Complainant’s CIALIS mark.  Internet users seeking Complainant’s genuine website at <cialis.com> may mistakenly combine the term “buy” with Complainant’s mark in an Internet browser or search engine and find themselves at Respondent’s website.  Because of the confusing similarity between the disputed domain name and Complainant’s mark, combined with the content of Respondent’s website, which includes references to generic versions of Complainant’s product as well as other similar pharmaceutical products, Internet users may mistakenly believe that Respondent’s website is affiliated with or sponsored by Complainant.  Respondent is capitalizing on this confusion, presumably collecting pay-per-click referral fees from misdirected Internet users.  The Panel finds that such use is evidence of bad faith registration and use pursuant to Policy ¶ 4(b)(iv).  See TM Acquisition Corp. v. Warren, FA 204147 (Nat. Arb. Forum Dec. 8, 2003) (“Although Complainant’s principal website is <century21.com>, many Internet users are likely to use search engines to find Complainant’s website, only to be mislead to Respondent’s website at the <century21realty.biz> domain name, which features links for competing real estate websites.  Therefore, it is likely that Internet users seeking Complainant’s website, but who end up at Respondent’s website, will be confused as to the source, sponsorship, affiliation or endorsement of Respondent’s website.”); see also Associated Newspapers Ltd. v. Domain Manager, FA 201976 (Nat. Arb. Forum Nov. 19, 2003) (“Respondent's prior use of the <mailonsunday.com> domain name is evidence of bad faith pursuant to Policy ¶ 4(b)(iv) because the domain name provided links to Complainant's competitors and Respondent presumably commercially benefited from the misleading domain name by receiving ‘click-through-fees.’”).  

 

The Panel finds that Policy ¶ 4(a)(iii) has been satisfied.

 

DECISION

Complainant having established all three elements required under the usTLD Policy, the Panel concludes that relief shall be GRANTED.

 

Accordingly, it is Ordered that the <buycialis.us> domain name to TRANSFERRED from Respondent to Complainant.

 

 

 

Tyrus R. Atkinson, Jr., Panelist

Dated: October 18, 2006

 

 

 

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