national arbitration forum

 

DECISION

 

TD AMERITRADE IP Company Inc. v. The Domain Holding Trust Inc.

Claim Number: FA0705000989375

 

PARTIES

Complainant is TD AMERITRADE IP Company Inc. (“Complainant”), represented by Julia A Matheson, of Finnegan, Henderson, Farabow, Garrett & Dunner L.L.P., 901 New York Avenue NW, Washington, DC 20001.  Respondent is The Domain Holding Trust Inc. (“Respondent”), 63 East 11400 South, Suite 221, Sandy, UT 84070.

 

REGISTRAR AND DISPUTED DOMAIN NAMES

The domain names at issue are <tdameritradedirect.com>, <tdameritradeonline.com>, <tdameritradeuniversity.com>, and <mytdameritrade.com>, registered with Wild West Domains, 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.

 

Honorable Paul A. Dorf (Ret.) as Panelist.

 

PROCEDURAL HISTORY

Complainant submitted a Complaint to the National Arbitration Forum electronically on May 16, 2007; the National Arbitration Forum received a hard copy of the Complaint on May 17, 2007.

 

On May 16, 2007, Wild West Domains, Inc. confirmed by e-mail to the National Arbitration Forum that the <tdameritradedirect.com>, <tdameritradeonline.com>, <tdameritradeuniversity.com>, and <mytdameritrade.com> domain names are registered with Wild West Domains, Inc. and that Respondent is the current registrant of the names.  Wild West Domains, Inc. has verified that Respondent is bound by the Wild West Domains, 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 May 18, 2007, a Notification of Complaint and Commencement of Administrative Proceeding (the "Commencement Notification"), setting a deadline of June 7, 2007 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@tdameritradedirect.com, postmaster@tdameritradeonline.com, postmaster@tdameritradeuniversity.com and postmaster@mytdameritrade.com by e-mail.

 

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

 

On June 13, 2007, pursuant to Complainant's request to have the dispute decided by a single-member Panel, the National Arbitration Forum appointed Honorable Paul A. Dorf (Ret.) as Panelist.

 

Having reviewed the communications records, the Administrative Panel (the "Panel") finds that the National Arbitration Forum has discharged its responsibility under Paragraph 2(a) of the Rules for Uniform Domain Name Dispute Resolution Policy (the "Rules") "to employ reasonably available means calculated to achieve actual notice to Respondent."  Therefore, the Panel may issue its decision based on the documents submitted and in accordance with the ICANN Policy, ICANN Rules, the National Arbitration 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 names be transferred from Respondent to Complainant.

 

PARTIES' CONTENTIONS

A.  Complainant makes the following assertions:

 

1.      Respondent’s <tdameritradedirect.com>, <tdameritradeonline.com>, <tdameritradeuniversity.com>, and <mytdameritrade.com> domain names are confusingly similar to Complainant’s AMERITRADE mark.

 

2.      Respondent does not have any rights or legitimate interests in the <tdameritradedirect.com>, <tdameritradeonline.com>, <tdameritradeuniversity.com>, and <mytdameritrade.com> domain names.

 

3.      Respondent registered and used the <tdameritradedirect.com>, <tdameritradeonline.com>, <tdameritradeuniversity.com>, and <mytdameritrade.com> domain names in bad faith.

 

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

 

FINDINGS

Complainant, TD AMERITRADE IP Company Inc., is a financial services company that offers securities brokerage and technology-based products and services to retail investors and institutional clients around the world.  Complainant was formerly known as Ameritrade Holding Corporation before its acquisition of TD Waterhouse Group, Inc. in January 2006.  Through its predecessors-in-interest, Complainant has continuously and extensively used the AMERITRADE mark since March 1981 and the TD AMERITRADE mark since June 22, 2005, when it announced its acquisition of TD Waterhouse Group, Inc.  Complainant maintains an Internet presence via websites located at the <tdameritrade.com> and <ameritrade.com> domain names.  Approximately 6,118,000 clients of Complainant have accounts online and make an estimated 280,000 trades per day.

 

Complainant’s trademark registrations with the United States Patent and Trademark Office (“USPTO”) for the AMERITRADE mark include Reg. No. 2,032,385 issued January 21, 1997; Reg. No. 2,411,005 issued December 5, 2000; and Reg. No. 2,701,664 issued April 1, 2003.

 

Respondent registered the <tdameritradedirect.com>, <tdameritradeonline.com>, and

<mytdameritrade.com> domain names on May 2, 2006, and the <tdameritradeuniversity.com> domain name on May 4, 2006.  All four domain names resolve to pay-per-click websites that display links to competing financial services websites.

 

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 Complainant's undisputed representations pursuant to paragraphs 5(e), 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 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 Respondent is identical or confusingly similar to a trademark or service mark in which Complainant has rights; and

(2)   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’s federal USPTO trademark registrations for the AMERITRADE mark sufficiently establish its rights in the mark pursuant to Policy ¶ 4(a)(i).  See Morgan Stanley v. Fitz-James (CT2341-RSC) Cititrust Group Ltd., FA 571918 (Nat. Arb. Forum Nov. 29, 2005) (“The Panel finds from a preponderance of the evidence that Complainant has registered its mark with national trademark authorities.  The Panel has determined that such registrations present a prima facie case of Complainant’s rights in the mark for purposes of Policy ¶ 4(a)(i).”); see also Paisley Park Enters. v. Lawson, FA 384834 (Nat. Arb. Forum Feb. 1, 2005) (finding that the complainant had established rights in the PAISLEY PARK mark under Policy ¶ 4(a)(i) through registration of the mark with the USPTO).

 

The <tdameritradedirect.com>, <tdameritradeonline.com>, <tdameritradeuniversity.com>, and <mytdameritrade.com> domain names all fully incorporate Complainant’s registered AMERITRADE mark in combination with terms directly relating to Complainant’s business and the generic top-level domain (“gTLD”) “.com.”  In Vance Int’l, Inc. v. Abend, FA 970871 (Nat. Arb. Forum June 7, 2007), the panel found that by adding the term “security” to the complainant’s VANCE mark in several domain names, a term which described the complainant’s business, the respondent “very significantly increased” the likelihood of confusion with the complainant’s mark.  Similarly, the panel in SDC Media, Inc. v. SCMedia, FA 960250 (Nat. Arb. Forum June 8, 2007) also concluded that the addition of a term describing the complainant’s business to the complainant’s mark in a domain name made the disputed domain name more confusing, not less confusing, as the respondent claimed.  In this case, because each disputed domain name contains Complainant’s mark in its entirety, Respondent has not sufficiently distinguished the disputed domain names from the mark.  Accordingly, the Panel holds that the disputed domain names are confusingly similar to the mark under Policy ¶ 4(a)(i).

 

The Panel concludes that Complainant has satisfied Policy ¶ 4(a)(i).

 

Rights or Legitimate Interests

 

Under Policy ¶ 4(a)(ii), Complainant bears the initial burden of proof of establishing that Respondent does not have rights or legitimate interests in the disputed domain names.  Once Complainant makes a prima facie case, the burden shifts to Respondent to demonstrate that it does, in fact, have rights or legitimate interests in the domain names in dispute.  In this case, the Panel finds that Complainant has made a prima facie case pursuant to Policy ¶ 4(a)(ii).  See SEMCO Prods., LLC v. dmg world media (uk) ltd, FA 913881 (Nat. Arb. Forum Apr. 9, 2007) (concluding that under Policy ¶ 4(a)(ii) and the factors listed in Policy ¶ 4(c), a complainant must first make a prima facie case that the respondent has not used or made demonstrable preparations to use the disputed domain name in connection with a bona fide offering of goods or services, that the respondent is not commonly known by the disputed domain name, and that the respondent is not making a legitimate noncommercial or fair use of the disputed domain name before the burden shifts to the respondent to show otherwise); see also Swedish Match UK Ltd. v. Admin, Domain, FA 873137 (Nat. Arb. Forum Feb. 13, 2007) (finding that once a prima facie case has been established by the complainant under Policy ¶ 4(c), the burden then shifts to the respondent to demonstrate its rights or legitimate interests in the disputed domain name).

 

Respondent has failed to submit a Response.  Therefore, the Panel will presume that Respondent has no rights or legitimate interests in the disputed domain names.  See Broadcom Corp. v. Ibecom PLC, FA 361190 (Nat. Arb. Forum Dec. 22, 2004) (“Respondent’s failure to respond to the Complaint functions as an implicit admission that [Respondent] lacks rights and legitimate interests in the disputed domain name.  It also allows the Panel to accept all reasonable allegations set forth…as true.”); see also  Eroski, So. Coop. v. Getdomains Ishowflat Ltd., D2003-0209 (WIPO July 28, 2003) (“It can be inferred that by defaulting Respondent showed nothing else but an absolute lack of interest on the domain name.”).  Nevertheless, the Panel will still consider the evidence on record and the elements of Policy ¶ 4(c).

 

Respondent is listed as “The Domain Holding Trust Inc.” in the WHOIS information for the disputed domain names.  There does not appear to be any other evidence in the record suggesting that Respondent is commonly known by any of the domain names in dispute.  Consequently, the Panel concludes that Respondent has not established rights or legitimate interests pursuant to Policy ¶ 4(c)(ii).  See Coppertown Drive-Thru Sys., LLC v. Snowden, FA 715089 (Nat. Arb. Forum July 17, 2006) (concluding that the respondent was not commonly known by the <coppertown.com> domain name where there was no evidence in the record, including the WHOIS information, suggesting that the respondent was commonly known by the disputed domain name); see also St. Lawrence Univ. v. Nextnet Tech, FA 881234 (Nat. Arb. Forum Feb. 21, 2007) (concluding a respondent has no rights or legitimate interests in a disputed domain name where there is no evidence in the record indicating that the respondent is commonly known by the disputed domain name).

 

Moreover, Respondent’s use of the disputed domain names to maintain pay-per-click websites indicates that it is probably profiting from referral fees it earns each time an unsuspecting Internet user clicks on one of the links that resolves to a competing financial services website.  The panel in Persohn v. Lim, FA 874447 (Nat. Arb. Forum Feb. 19, 2007) found that such a use did not constitute a bona fide offering of goods or services, or a legitimate noncommercial or fair use because the respondent was redirecting Internet users to a commercial search engine website with links to multiple websites that may be of interest to the complainant’s customers and presumably earning “click-through fees” in the process.  In Tesco Pers. Fin. Ltd. v. Domain Mgmt. Servs., FA 877982 (Nat. Arb. Forum Feb. 13, 2007), the panel also found that a respondent maintaining a pay-per-click website with links to competing financial services websites was not a use in connection with a bona fide offering of goods or services, or a legitimate noncommercial or fair use.  In this case, then, the Panel finds that Respondent has not used the disputed domain names in connection with 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) by maintaining pay-per-click websites.

 

The Panel concludes that Complainant has satisfied Policy ¶ 4(a)(ii).

 

Registration and Use in Bad Faith

 

Respondent’s pay-per-click websites at the disputed domain names display links to the websites of Complainant’s competitors in the financial services industry.  The Panel thus finds that Respondent has registered and is using the disputed domain names in order to disrupt Complainant’s business under the AMERITRADE and TD AMERITRADE marks, which represents bad faith according to Policy ¶ 4(b)(iii).  See SDC Media, Inc. v. SCMedia, FA 960250 (Nat. Arb. Forum June 8, 2007) (“Respondent’s use of the Domain Name to divert Internet users to its competing business suggests that Respondent registered the disputed domain name in order to disrupt Complainant’s business, which constitutes bad faith registration and use under Policy ¶ 4(b)(iii).”); see also St. Lawrence Univ. v. Nextnet Tech, FA 881234 (Nat. Arb. Forum Feb. 21, 2007) (“This Panel concludes that by redirecting Internet users seeking information on Complainant’s educational institution to competing websites, Respondent has engaged in bad faith registration and use pursuant to Policy ¶ 4(b)(iii).”).

 

Furthermore, Respondent is taking advantage of the confusing similarity between Complainant’s AMERITRADE and TD AMERITRADE marks and the four domain names in dispute and likely profiting from the goodwill associated with the marks in the form of click-through fees.  Respondent’s diversion of Internet users to competing websites thus constitutes bad faith registration and use under Policy ¶ 4(b)(iv).  See Allianz of Am. Corp. v. Bond, FA 680624 (Nat. Arb. Forum June 2, 2006) (finding bad faith registration and use under Policy ¶ 4(b)(iv) where the respondent was diverting Internet users searching for the complainant to its own website and likely profiting from click-through fees); see also 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)(iv) 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).

 

The Panel concludes that Complainant has satisfied 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 <tdameritradedirect.com>, <tdameritradeonline.com>, <tdameritradeuniversity.com>, and <mytdameritrade.com> domain names be TRANSFERRED from Respondent to Complainant.

 

 

Honorable Paul A. Dorf (Ret.), Panelist

Dated:  June 22, 2007

 

 

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