National Arbitration Forum

 

DECISION

 

Hallelujah Acres, Inc. v. Manila Industries, Inc.

Claim Number: FA0609000805029

 

PARTIES

Complainant is Hallelujah Acres, Inc. (“Complainant”), represented by Neil M. Batavia, of Dority & Manning Attorneys at Law, P.A., Post Office Box 1449, Greenville, SC 29602-1449.  Respondent is Manila Industries, Inc. (“Respondent”), represented by Daniel G. Altman, of Shrull Altman LLP, 1701 River Run, Suite 1116, Fort Worth, TX 76107.

 

REGISTRAR AND DISPUTED DOMAIN NAME 

The domain name at issue is <hacrs.com>, registered with Compana, Llc.

 

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.

 

Beatrice Onica Jarka as Panelist.

 

PROCEDURAL HISTORY

Complainant submitted a Complaint to the National Arbitration Forum electronically on September 26, 2006; the National Arbitration Forum received a hard copy of the Complaint on September 29, 2006.

 

On October 1, 2006, Compana, Llc confirmed by e-mail to the National Arbitration Forum that the <hacrs.com> domain name is registered with Compana, Llc and that the Respondent is the current registrant of the name.  Compana, Llc has verified that Respondent is bound by the Compana, Llc 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 2, 2006, a Notification of Complaint and Commencement of Administrative Proceeding (the “Commencement Notification”), setting a deadline of October 23, 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@hacrs.com by e-mail.

 

An electronic copy of the Response was received by October 23, 2006.  However, the National Arbitration Forum did not receive a hard copy of the Response.  Thus, the National Arbitration Forum does not consider this Response to be in compliance with ICANN Rule #5(a). 

 

Additional Submission was received on October 30, 2006 and it was timely.

 

On November 1, 2006, pursuant to Complainant’s request to have the dispute decided by a single-member Panel, the National Arbitration Forum appointed Beatrice Onica Jarka as Panelist.

 

RELIEF SOUGHT

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

 

PARTIES’ CONTENTIONS

 

A. Complainant

 

Complainant asserts that:

§         the Respondent’s <hacrs.com> domain name is confusingly similar to Complainant’s HALLELUJAH ACRES and HACRES trademarks as well as to the Complainant’s domain name <hacres.com>, because it is a misspelling of the HACRES mark;

§         the Respondent does not have any rights or legitimate interests in the <hacrs.com> domain name, since use of the domain name is merely to direct Internet users to a website that features links to a variety of websites, including websites that offer the same or similar types of goods and services that Complainant offers. In addition, the Respondent is not commonly known by the <hacrs.com> domain name;

§         the Respondent registered and used the <hacrs.com> domain name in bad faith, as it can be inferred that Respondent had actual or constructive knowledge of Complainant’s rights in the HALLELUJAH ACRES trademark because the mark is recognized worldwide and has been registered with the USPTO; and

§         the Respondent is unfairly and opportunistically benefiting from the goodwill associated with Complainant’s HALLELUJAH ACRES and HACRES marks, as it is using the <hacrs.com> domain name to direct Internet users to links for nutritional products on the Internet, which is among other things, the Complainant’s business.

 

B. Respondent

 

As described in the Procedural History, National Arbitration Forum did not receive a hard copy of the Response.  Thus, the National Arbitration Forum does not consider this Response to be in compliance with ICANN Rule # 5(a).  The Panel cannot decide a complaint on the basis of the statements filed contrary to the Policy ICANN Rule # 15(a). Nevertheless,  in this particular case the Panel shall refer indirectly to the contentions in the Response as the Additional submission filed by the Complainant in time refers to them. In addition, by doing so, the Panel is giving due consideration to ICANN Rule # 10(b). For this reason, the Panel shall summarize these contentious below, as follows:

 

The Respondent contends by the written Response that:

§        the Complaint’s has no established rights in the word “hacres” and in any event the two words “hacres” and “hacrs” are not identical or confusingly similar. On December 17, 2004 when Respondent registered the <hacrs.com> domain name there was no federally registered trademark for “hacres” or “hacres.com” and no application for registration has been filed. In addition, the alleged typo of deleting “e” from the domain name <hacres.com>, does not create an unknown term, but a commonly used acronym for “Heating, Air Conditioning and Refrigeration” and in the credit industry for “Honor All Cards Rules” fact which can be demonstrated by a simple Google search;

§         it has rights and legitimate interests in the disputed domain name as the Respondent uses it as an advertising portal that provides access to a broad range of services. In addition, the fact that advertising revenues may be generated by Respondent’s activity demonstrates a legitimate interest;

§         it registered the disputed domain because it believed it was an acronym to which no party had established secondary meaning. It is a practice of the Respondent to register thousands of names, looking for commonly used, generic, descriptive terms to which no party had exclusive rights, including acronyms in common industry usage  a practice which  evidences Respondent’s good faith intent to register non-protected words;

§         Complainant has not demonstrated that the domain name was registered and is being used in bad faith.

 

C. Additional Submissions

 

By additional submission, the Complainant further asserts:

 

 

FINDINGS

The Complainant has rights in both HALLELUJAH ACRES and HACRES trademarks. There is a similarity between the HALLELUJAH ACRES and the disputed domain name and a striking similarity between HACRES and the disputed domain name.

 

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

 

a. Complainant has rights in the HACRES mark

 

Complainant has submitted evidence of federal trademark registrations for the HALLELUJAH ACRES mark with the United States Patent and Trademark Office (“USPTO”) (Reg. No. 2,101,432  issued September 30, 1997; Reg. No. 2,077,460 issued July 8, 1997).  The Panel finds that Complainant’s trademark registrations for the HALLELUJAH ACRES mark with the USPTO sufficiently demonstrate Complainant’s rights in the mark under Policy ¶ 4(a)(i). See Mothers Against Drunk Driving v. phix, FA 174052 (Nat. Arb. Forum Sept. 25, 2003) (the panel found that the complainant’s registration of the MADD mark with the United States Patent and Trademark Office established the complainant’s rights in the mark for purposes of Policy ¶ 4(a)(i)).

 

Also, Complainant has held the registration for the <hacres.com> domain name since June 11, 1997.  As a result of this registration and use of the <hacres.com> domain name in directing Internet users to Complainant’s website,  it is the opinion of the Panel that the Complainant has established common law rights in the HACRES mark pursuant to Policy ¶ 4(a)(i), as the Complainant’s evidenced use of the HACRES mark sufficiently demonstrates continuous and substantial use and that such use has established sufficient secondary meaning in the mark. See Winterson v. Hogarth, D2000-0235 (WIPO May 22, 2000) (finding that the Policy does not require that a complainant’s trademark be registered by a government authority or agency in order for the complainant to establish rights in the mark); see also Keppel TatLee Bank v. Taylor, D2001-0168 (WIPO Mar. 28, 2001) (“[O]n account of long and substantial use of [KEPPEL BANK] in connection with its banking business, it has acquired rights under the common law.”).  Prior panels have recognized “common law” trademark rights as appropriate for protection under the Policy if the complainant can establish that it has done business using the name in question in a sufficient manner to cause a secondary meaning identifiable to Complainant’s goods or services.  See Molecular Nutrition, Inc. v. Network News & Publ'ns, FA 156715 (Nat. Arb. Forum June 24, 2003) (finding that mere assertions of such rights are insufficient without accompanying evidence to demonstrate that the public identifies the complainant’s mark exclusively or primarily with the Complainant’s products).

 

b. The Respondent’s <hacrs.com> domain name is confusingly similar to Complainant’s HACRES mark

 

The Panel considers that Respondent’s <hacrs.com> domain name is confusingly similar to Complainant’s HACRES mark,  as the disputed domain name omits the letter “e” to Complainant’s HACRES mark, and adds the generic top-level domain “.com.”

 

The Panel also finds that the disputed domain name is similar to the  HALLELUJAH ACRES mark  as it comprises the first letter of the first word of the mark and a misspelling of the last word of the mark. Is is the opinion of the Panel that due to the similarity between the HALLELUJAH ACRES and the disputed domain name, any of Complainant’s current and potential customers who have never visited Complainant’s web site could mistype the domain name and arrive at <hacrs.com> and may reasonably but erroneously believe that they have reached Complainant’s true website.

 

In addition, despite the fact that the disputed domain name may stand as an acronym for different issues, it is the opinion of the Panel that as such does not convey a distinct and new meaning from Complainant’s purported common law mark.

 

Rights or Legitimate Interests

 

It is the Panel’s opinion that the Complainant established a prima facie case that Respondent lacks rights or legitimate interests in connection with the disputed domain name pursuant to Policy ¶ 4(a)(ii), as:

§         the Respondent is not commonly known by the <hacrs.com> domain name pursuant to Policy ¶ 4(c)(ii).  See M. Shanken Commc’ns, Inc. v. WORLDTRAVELERSONLINE.COM, FA 740335 (Nat. Arb. Forum Aug. 3, 2006) (finding that the respondent is not commonly known by the <cigaraficionada.com> domain name because the WHOIS information lists the registrant of the domain name as as “WORLDTRAVELERSONLINE.COM,” and no other evidence exists in the record indicating that the respondent is known by the domain name); see also Compagnie de Saint Gobain v. Com-Union Corp., D2000-0020 (WIPO Mar. 14, 2000) (finding no rights or legitimate interest where the respondent was not commonly known by the mark and never applied for a license or permission from the complainant to use the trademarked name).

§         the Respondent has not used the <hacrs.com> domain name in connection with either a bona fide offering of goods or services in accord with Policy ¶ 4(c)(i), or a legitimate noncommercial or fair use pursuant to Policy ¶ 4(c)(iii), because the disputed domain name resolves to a website that provides links to third-party websites that directly compete with Complainant’s business.  See TM Acquisition Corp. v. Sign Guards, FA 132439 (Nat. Arb. Forum Dec. 31, 2002) (the panel found 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).  Moreover, in Ticketmaster Corp. v. DiscoverNet, Inc., D2001-0252 (WIPO Apr. 9, 2001), the panel did not find rights or legitimate interests where the respondent generated commercial gain by intentionally and misleadingly diverting users away from the complainant’s website to a competing website).   

 

Registration and Use in Bad Faith

 

The Panel considers that the Respondent registered and is using the <hacrs.com> domain name for the purpose of diverting Internet users to Respondent’s website for Respondent’s commercial gain.  Furthermore,  The Panel agrees to the Complainant’s allegations that the  Respondent is using the <hacrs.com> domain name to direct Internet users to links for nutritional products similar to those offered by Complainant’s business, and by this is disrupting Complainant’s business.  See Red Hat, Inc. v. Haecke, FA 726010 (Nat. Arb. Forum July 24, 2006) (finding that the respondent engaged in bad faith registration and use pursuant to Policy ¶ 4(b)(iii) by using the disputed domain names to operate a commercial search engine with links to the products of the complainant and to complainant’s competitors, as well as by diverting Internet users to several other domain names); see also Disney Enters., Inc. v. Noel, FA 198805 (Nat. Arb. Forum Nov. 11, 2003) (“Respondent registered a domain name confusingly similar to Complainant's mark to divert Internet users to a competitor's website. It is a reasonable inference that Respondent's purpose of registration and use was to either disrupt or create confusion for Complainant's business in bad faith pursuant to Policy ¶¶ 4(b)(iii) [and] (iv).”).     

 

In addition the many decisions of WIPO and NAF under the Policy that found Respondent to have registered and used domain names in bad faith is further indication of bad faith registration and use in this case  which establishes in the opinion of the Panel a pattern of cybersquatting. (See Sony Kabushiki Kaisha v. Anderson, FA 198809 (Nat. Arb. Forum Nov. 20, 2003) (finding a pattern of registering domain names in bad faith pursuant to Policy ¶ 4(b)(ii) when the respondent previously registered domain names incorporating well-known third party trademarks); see also Nat’l Abortion Fed’n v. Dom 4 Sale, Inc., FA 170643 (Nat. Arb. Forum Sept. 9, 2003) (finding bad faith pursuant to Policy ¶ 4(b)(ii) because the domain name prevented the complainant from reflecting its mark in a domain name and the respondent had several adverse decisions against it in previous UDRP proceedings, which established a pattern of cybersquatting).

 

 

 

 

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

 

 

 

Beatrice Onica Jarka Panelist
Dated: November 15, 2006

 

 

 

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