DECISION

CMVY, Inc. v. Offshore Atlantic Yachts, Inc.

Claim Number: FA0105000097308

PARTIES

The Complainant is CMVY, Inc., Gordonville, TX, USA ("Complainant") represented by John G. Fischer, of Strasburger & Price, L.L.P. The Respondent is Off Shore Atlantic Yachts, Inc., Riviera Beach, FL, USA ("Respondent") represented by Scott J. Major, of Cleary & Komen, LLP.

REGISTRAR AND DISPUTED DOMAIN NAMES

The domain names at issue are <valiantyachts.com>, <valiantyachts.net>, and <valiantyachts.org>, registered with Network Solutions.

PANEL

The undersigned certify that they have acted independently, impartially, and to the best of their knowledge, have no known conflict in serving as Panelists in this proceeding.

The Honorable Charles K. McCotter, Jr., the Honorable John J. Upchurch, and James A. Carmody as Panelists.

PROCEDURAL HISTORY

The Complainant submitted a Complaint to the National Arbitration Forum ("the Forum") electronically on May 24, 2001; the Forum received a hard copy of the Complaint on May 24, 2001.

On May 25, 2001, Network Solutions confirmed by e-mail to the Forum that the domain name <valiantyachts.com>, <valiantyachts.net>, and <valiantyachts.org> are registered with Network Solutions and that the Respondent is the current registrant of the name. Network Solutions has verified that the Respondent is bound by the Network Solutions 4.0 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 May 30, 2001, a Notification of the Complaint and Commencement of Administrative Proceeding (the "Commencement Notification"), setting a deadline of June 19, 2001 by which the Respondent could file a Response to the Complainant, was transmitted to the Respondent via e-mail, post and fax, to all entities and persons listed on the Respondent’s registration as technical, administrative and billing contacts, and to postmaster@valiantyachts.com, postmaster@valiantyachts.net, postmaster@valiantyachts.org by e-mail.

A timely response was received on June 19, 2001. After the deadline for submissions, the Complainant filed an Additional Statement; the Respondent filed a Request to Strike the Additional Response of the Complainant; and the Complainant filed a Response to the Complainant and Request to Strike. The Panel in its discretion has considered the late submissions. Since the Panel had already circulated its decision, the Panel considered the Respondent’s Additional Response of July 6, 2001 untimely.

On June 27, 2001, pursuant to the Complainant’s request to have the dispute decided by a three-member Panel, the Forum appointed The Honorable Charles K. McCotter, Jr., The Honorable John J. Upchurch, and James Carmody as Panelists.

RELIEF SOUGHT

The Complainant requests that the domain names be transferred from the Respondent to the Complainant. The Respondent requests a finding that the Complainant has engaged in reverse domain name hijacking.

PARTIES’ CONTENTIONS

    1. The Complainant

The Respondent’s domain names <valiantyachts.com>, <valiantyachts.net>, and <valiantyachts.org> are identical or confusingly similar to the Complainant’s trademark, VALIANT. The Respondent registered the subject domain names after its authorized dealership was terminated by the Complainant. The Respondent was aware of the trademark rights of the Complainant, by virtue of past employment, dealership representation, and by letter. The registration and use of the domain names was knowingly made in bad faith, for commercial gain and disruption of the Complainant’s business. The Respondent has no legitimate use in the Complainant’s registered mark.

    1. Respondent

The Respondent concedes that each of the domain names is confusingly similar to the Valiant registered trademark. The Respondent alleges a legitimate interest in the use of the Complainant’s used yachts, 1) the Respondent operates a boat owner’s association which includes as part of it’s name, the Complainant’s registered trademark, and 2) that by virtue of operation of the boat owner’s association, the Respondent is known by the Complainant’s registered trademark. The Respondent also contends that the Complainant has engaged in reverse domain name hijacking.

The Respondent argues "Complainant has not established rights in the VALIANT mark which predate the Registrations for the domain names."

FINDINGS

The Complainant

    1. The Complainant, CMVY, is the owner of the mark VALIANT (U.S. Trademark Registration No. 2,385,438) registered in connection with boats and yachts in International Class 12. The mark was first used in interstate commerce at least as early as March 1975, with the trademark application being filed on August 30, 1999. The mark for "Valiant" was originally registered on April 8, 1986, Registration No. 1388991. This registration was unintentionally abandoned under Section 8. On August 30, 1999, new applications were filed, and the marks registered on September 12, 2000.
    2. CMVY has invested a substantial effort over a long period of time, including the expenditure of substantial dollars, to develop good will in the mark to cause consumers throughout the United States to recognize the VALIANT mark as distinctly designating CMVY’s boats and yachts.
    3. .

    4. Valiant Yachts was formed in 1974. In 1984 Yachts Unlimited, Inc. purchased Valiant Yachts. The company’s first product, known as the "Valiant 40," became an instant success. The company was changed to CMVY, Inc., in 1989.
    5. The Respondent, Offshore Atlantic Yachts, is the domain name holder for the domain names <valiantyachts.com>, <valiantyachts.net> and <valiantyachts.org>.
    6. The Respondent registered the domain name <valiantyachts.com> on July 25, 1997, the domain name <valiantyachts.net> on November 4, 1998, and the domain name <valiantyachts.org> on January 17, 1999. The domain names were activated immediately upon registration. The sites re-direct users to another of the Respondent’s registered sites, <offshoreyachts.com>. That site promotes, among other things, the Respondent’s used yacht brokerage business and the "Valiant Yachts Owners Association" ("VYOA").
    7. Sylvia Dabney and Stanley Dabney are the sole shareholders and officers of the Respondent. Stanley Dabney, served as the Vice President of the original Valiant Yachts Corporation in 1975.
    8. Since 1978, the Dabneys have spent their time living aboard and cruising in the "Native Sun," chartering boats, brokering the sale of used boats and, periodically, selling new boats. Due in part to their unique connection to the brand in both their professional capacities and personally as owners of "Native Sun," the Dabneys almost immediately enjoyed success as brokers for used VALIANT yachts. In this regard, the Dabneys individually or through the Respondent have brokered the sale of an average of eight-to-ten used VALIANT yachts each year for more than 17 years.
    9. From 1990 through 1994, Stanley Dabney served as the Marketing Manager for the Complainant, with Sylvia Dabney working as its Manager of Customer Services. The Dabneys also served as VALIANT factory dealers in Annapolis, Maryland and in Florida in 1995. On December 29, 1995, the Complainant wrote Mr. Dabney canceling his dealership as an authorized dealer, in part, for co-representation of competing products.
    10. Apart from their business relationship with the brand, the Dabneys have owned and lived aboard their "Native Sun" Valiant 40 for more than 25 years. Sylvia Dabney formed the "Valiant Yachts Owners Association" ("VYOA") in 1976. A non-profit Maryland corporation was formed in the 1990s, and "Valiant Yachts Owners Association" was registered as a trade name for the corporation with the Maryland State Department of Assessments and Taxation in October 1995. The VYOA is a loose-knit, informal association formed primarily to give owners and afficionados of VALIANT yachts a vehicle for exchanging information, opinions and ideas. The Respondent estimates that 60 persons have participated in the VYOA.
    11. The Complainant voiced no objection to the Respondent’s registration and use of the domain names until its counsel sent a letter dated March 6, 2001 to the Dabneys demanding that they relinquish the domain names to the Complainant.

11. In the latter part of 1997, Valiant Yachts discovered that Mr. Dabney had registered <valiantyachts.com>.

12. The Complainant initiated this proceeding on May 24, 2001 and amended its filing on May 30, 2001.

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.

Based upon the evidence put forward, the Complainant has not met its burden of proof and the case may be more appropriately decided in a court of law. However, this is not a case of reverse domain name hijacking.

Identical and/or Confusingly Similar

The domain names <valiantyachts.com>, <valiantyachts.net>, <valiantyachts.org> are confusingly similar to the Complainant’s mark VALIANT, which it has used in connection with yachts since 1975. See Parfums Christian Dior v. 1 Netpower, Inc., D2000-0022 (WIPO Mar. 3, 2000) (finding that four domain names that added the descriptive words "fashion" or "cosmetics" after the trademark were confusingly similar to the trademark). The domain names are merely combinations of the Complainant’s mark, VALIANT, use of the generic term (YACHTS), and common URL suffixes: .com, .net and .org.

The Respondent does not dispute that each of the domain names is confusingly similar to the VALIANT mark registered by the Complainant; however, the Patent and Trademark registration was well subsequent to the Respondent’s registration of the domain names.

Rights or Legitimate Interests

The Respondent has rights and a legitimate interest in respect of the domain names. The Respondent and its principals have employed the domain names in connection with a bona fide offering of, among other things, used VALIANT yachts. Moreover, the Respondent’s principals have used a name, "Valiant Yacht Owners Association", in connection with an organization which has actively promoted the exchange of information and ideas about Valiant Yacht.

The Policy also provides that a right or legitimate interest in a disputed domain name is demonstrated where the registrant has been commonly known by the domain name even if it has acquired no trademark or service mark rights. Policy § 4(c)(ii). The Dabneys have operated the Valiant Yachts Owners Association for years. In addition, the trade name "Valiant Yachts Owners Association" was registered with the State of Maryland in 1995, before the Respondent registered any of the Domain names.

The Respondent has made legitimate noncommercial or fair use of the domain name without intent to divert consumers or to tarnish the trademark. Policy § 4(c)(iii). Applicant has a legitimate interest in using "valiantyachts" in the second-level of its domain names because it is the primary source worldwide for purchasing, selling and obtaining information about used VALIANT Yachts. See The Kittinger Company Inc. v. Kittinger Collector, AF-0107 (e-Resolution May 8, 2000) (complaint dismissed where owner of KITTINGER mark for furniture sought transfer of kittinger.com and kittingercollector.com from respondent which for years had been in the business of acquiring, reconditioning and reselling used KITTINGER furniture).

The Respondent also has a legitimate interest in using "valiantyachts" in the second-level of its domain names because it is the primary source worldwide for purchasing, selling and obtaining information about used VALIANT Yachts. See The New Piper Aircraft, Inc. v. Piper.com, FA 94367 (Nat. Arb. Forum May 2, 2000) (finding that Respondent’s sale of used Piper aircraft at PIPER.COM was deemed a legitimate interest).

REGISTRATION AND USE IN BAD FAITH

The Complainant has not shown that the Respondent has registered and used the domain names in bad faith.

The Respondent is not attracting Internet users to its own website by creating a likelihood of confusion with the Complainant’s mark as to the source, sponsorship, affiliation or endorsement of its website or of a product on its website. At "offshoreyachts.com," the Respondent promotes the sale of used boats other than Valiant boats.

Furthermore, the Complainant voiced no objection to the Respondent’s registration and use of the domain names for almost four years after the registration of the first domain name. See New Piper Aircraft, Inc. v. Piper.com, FA 94367 (Nat. Arb. Forum May 2, 2000) (stating that Complainant’s failure to initiate a suit in over two years indicated that Complainant did not believe that Respondent intended to attract customers through confusion).

DECISION

Based upon the above findings and conclusions, the Panel finds in favor of the Respondent. Therefore, the relief requested by the Complainant pursuant to Paragraph 4(I) of the Policy is Denied. The Respondent shall not be required to transfer to the Complainant the domain names <valiantyachts.com>, <valiantyachts.net>, and <valiantyachts.org>.

 

Charles K. McCotter, Jr., Panel Chair

Dated: July 6, 2001

 

 

Click Here to return to the main Domain Decisions Page.

Click Here to return to our Home Page