Yesterday we wrote about a UDRP being filed by the owner eLeader.eu against eLeader.com.
However the case was actually decided yesterday by the Czech Arbitration Court (CAC) who awarded the domain name to the owner of eLeader.eu which is a company out of Poland.
Its another decision in my opinion one in which the panel decided it was going to give the domain to the TM holder and then found a way to hand it over saying that:
“”” The fact that the registration of this trademark was granted after the disputed domain name was registered does not prevent a finding of identity or confusing similarity.”””
Right like someone in the US in going to be held to a standard of not only knowing every registered trademark somewhere in the world but domain holders apparently must also know every unregistered common law trademark as well, even if the company and common law trademark is in Poland.
Here are the relevant facts and findings by the panel:
The company name ‘eLeader’ (Full name ‘eLeader Sp. z o.o.’ equivalent of ‘eLeader Ltd.’), was registered in the year 2000.
“Although the mark eLeader was not registered until later, it has been a distinctive identifier of all eLeader’s products and services, internationally, since the inception of the company (year 2000), and as such eLeader asserts that, before the date of Domain Name registration, eLeader had established common law rights to the mark and that the mark had acquired secondary meaning.”
“The Trademark ‘eLeader’ Registered in Poland in 2004.”
eLeader owns the following ‘eLeader’ domains:
eleader.pl (since 2000)
eleader.com.pl (since 2000)
eleader.biz (since 2005)
eleader.eu (since 2006)
eleader.us (since 2011)
“The Respondent has never made any use of and has not demonstrated preparations to use the domain name or a name corresponding to the disputed domain name in connection with a bona fide offering of goods or services.
“This domain name has only ever contained a message regarding the domain being for sale and some unrelated advertising.”
“The Respondent is not making a legitimate non-commercial or fair use of the domain name. The domain has only ever contained a message regarding the domain being for sale and some unrelated advertising.”
i. The page shown on the Domain Name has listed this domain name as ‘For Sale’ at all times since its initial registration.
ii. Other than the ‘for sale’ message, and unrelated advertising, the domain has been parked and held passively for the duration of the registration. It has never contained any real content.
iii. In November 2005, Respondent demanded 75.000,00 EUR for the domain.
“”The above clearly shows that the intention of the Respondent has been to sell the Domain Name, and not use it in any bona fide way. It has been established in previous UDRP decisions that registering a domain name for the primary purpose of offering to sell, rent, or otherwise transfer the domain name for an amount in excess of the registration cost is evidence that a domain name was registered and is being used in bad faith.””
“According to a reverse WHOIS search using the Respondent’s email address (hostmaster@newmall.com), the Respondent has registered 516 other domains, almost all of which seem to have been registered speculatively, are not used for any legitimate purpose, and are ‘for sale’ in the same way (examples: ibmco.com, porncable.com, dvdsky.com, savestore.com, amcom.com, cinemaya.com, ibiskm.com, sex161.com, eserv.com, accessoires.com)””
“Respondent has a history of registering domains containing, or similar to, established trade marks of third parties. Examples : ibmco.com [IBM], amcom.com [Amcom/Amcom Software], cinemaya.com [Cinemaya – popular international film magazine http://en.wikipedia.org/ dvdsky.com [Sky Tv] , eserv.com [Dell engineering services, formerly eServe]).””
“”As stated in paragraph 4(b)(ii) of the URDP, a ‘pattern of such conduct’ can be considered evidence of bad faith registration and use.”
“”As further evidence of Respondent’s pattern of bad faith conduct, Respondent has repeatedly been challenged via the URDP and lost.””
“Examples:
i. dadanet.com (see DADA S.p.A vs. Hyunjong Lee, 2007, WIPO Case No. D2007-1663).
ii. julbo.com (See Julbo vs. Hyunjong Lee, 2008, WIPO Case No. D2008-0525).”
“”Complainant has also proved to have used the <eleader> trademark since the year 2000 in such a way to acquire common law rights on the name since the very beginning of its use, namely (at least) since the year 2001 when eLeader won the Microsoft ‘Most interesting application for Mobile Devices – 2001’ award.””
“”The Policy makes no specific reference to the date on which the holder of the trademark or service mark acquired rights, for this reason the registration of a domain name before a complainant acquires trademark rights in a name does not prevent a finding of identity or confusing similarity under the UDRP.””
“The Panel is therefore satisfied that the Complainant has established that it has rights in a registered trademark which is identical to the disputed domain name. The fact that the registration of this trademark was granted after the disputed domain name was registered does not prevent a finding of identity or confusing similarity.””
“”Respondent has no connection or affiliation with Complainant, which has not licensed or otherwise authorised Respondent to use or apply for any domain name incorporating Complainant’s trademark. Respondent does not appear to make any legitimate use of the domain name for non-commercial activities.””
“”On the contrary, it appears that Respondent used the disputed domain name to direct consumers to a presumed Pay Per Click (PPC) parking page suggesting general links to websites that offered goods and/or services of different nature. Respondent does not appear to have been commonly known by the domain name.””
“”Panels have generally recognized that use of a domain name to post parking and landing pages or PPC links may be permissible in some circumstances, but would not of itself confer rights or legitimate interests arising from a “bona fide offering of goods or services” or from “legitimate non commercial or fair use” of the domain name, especially where resulting in a connection to goods or services competitive with those of the rights holder””
“””In addition, Respondent’s argument that the links related to “leadership or leader” that have appeared on Respondent’s web site do not make its interest illegitimate due to the fact that they were auto-generated by the technology of the Domain Parking Sites, is not sufficient to escape Respondent’s responsibilities for the contents displayed on the web site.””
“”It is in fact true the opposite, namely in the case of advertising links appearing on an “automatically” generated basis, Panels have generally found that a domain name registrant is normally deemed responsible for the content appearing on its website, even if it is not exercising direct control over such content.
Thus the claim of the Respondent that the content is auto generated reinforces Complainant’s thesis that Respondent is passively holding the disputed domain name and that it has been registered speculatively, with the primary purpose being the sale of the domain for an amount far in excess of out-of-pocket expenses””
.
“”Therefore, Respondent has not shown any facts or elements to justify prior rights and/or legitimate interests in the disputed domain name in accordance with the UDRP Policy . Respondent did not provide any elements to demonstrate, as requested by the Policy, that he used or made preparations to use the disputed domain name or a name corresponding to it in connection with a bona fide offering of goods or services.””
“”In fact the Policy requires the Respondent to show, before any notice to him of the dispute, his use of, or demonstrable preparations to use, the domain name or a name corresponding to the domain name in connection with a bona fide offering of goods or services.””
“”It is the Panel’s view that the mere detention of the disputed domain name does not demonstrate any preparations to use the domain name or a name corresponding to the domain name in connection with a bona fide offering of goods or services.””
Scott says
I can’t say I disagree with some of their points, but I find this blurb troubling.
“”The above clearly shows that the intention of the Respondent has been to sell the Domain Name, and not use it in any bona fide way. It has been established in previous UDRP decisions that registering a domain name for the primary purpose of offering to sell, rent, or otherwise transfer the domain name for an amount in excess of the registration cost is evidence that a domain name was registered and is being used in bad faith.””
Wouldn’t that put the entire domain resale industry in “bad faith”? Also, hasn’t the exact opposite “been established” in previous UDRP decisions? It’s seriously a crap shoot with the UDRP process.
.com says
That’s an absolutely embarrassing decision. I hope the respondent files a case in court.
UDRP reform is a must. Hopefully as bigger domain holders are increasingly subjected in misguided UDRP decisions, they will step up to defend their rights and others’ rights will also be strengthened in the process.
Hyper Funding says
And the moneyline is…”“The Respondent has never made any use of and has not demonstrated preparations to use the domain name or a name corresponding to the disputed domain name in connection with a bona fide offering of goods or services.”
The flood gates are about to open…
Lionel says
IBMco? Amcom?
Guess this guy can’t go after any new tlds!
Its getting clearer all the time that the panelists are dead tired of seeing the same clown respondents time after time after time. Looks like they have found a way to put an end to the shananigans. While some would argue that the other domains and udrp losses should not be considered in realtion to a case being decided it makes good sense for them to do just that. When a judge considers a sentence he or she does consider the history of the defendant and looks like that is going on at wipo now too. Pretty obvious what was going on in the mind of the registrant….the same thing that has been going on in the minds of most domainers for the last 10 years….make money from confusion.
Brad says
“It has been established in previous UDRP decisions that registering a domain name for the primary purpose of offering to sell, rent, or otherwise transfer the domain name for an amount in excess of the registration cost is evidence that a domain name was registered and is being used in bad faith.”
I can find countless UDRP decisions that also say that offering domains for sale is legitimate and not bad faith.
These decisions are just getting out of hand.
Unlike real courts, precedent means nothing in this kangaroo court.
UDRP needs to be better defined. Many of these cases belong in actual court.
Brad
G Ariyas says
Another bad decision by the panelists.
Brad says
EA just lost a dispute a few days ago for SSX.com –
”The panel concluded that the buying and selling of generic domain names constituted “a bona fide offering of goods”
Here is another finding in a dispute vs Frank Schilling in the past that basically says PPC ads is a legitimate business as well –
“Respondent has been using the disputed domain name in connection with a bona fide offering of services since it acquired the domain name in a domain name auction in 2005. Respondent holds a large number of domain name registrations for the purpose of generating advertising and pay-per-click revenue. The Panel finds that this is bona fide offering of services under Policy ¶ 4(c)(i). ”
The fact that there is no consistency is a major issue.
Brad
BrianWick says
does not say alot about .eu or non.coms in general
Philip says
The CAC cannot have any background experience or knowledge to have made this decision. I hope there is an appeal procedure. It is ridiculous, but if I received a UDRP I would immediately apply for a TM in some silly category in my defence. How many people keep up with the Trademark Journal listings to appose an application that could be in any country, USPTO, Canada, UK, Australia. FS selling domains is not a business, that crass ignorance on the part of the CAC
Robert Cline says
I am now going to go after all the
LLL.com
for which I own
LLL.Co’s
Aggro says
@ Philip, you schmuck
Applying for the TM after notification of the UDRP is already too late.
This would be prima facie “bad faith”.
I’ve said it before & will say it again:
Listening to most domainers about domain law, finance etc is like listening to a blind man give instructions:
almost certainly wrong, misinformed, totally worthless & will cost you – if not your life – an arm & leg.
Dave Zan says
The decision:
http://www.adr.eu/adr/decisions/decision.php?dispute_id=100364
Not necessarily, Scott. Probably some keywords in that paragraph you quoted are “primary purpose” and “an amount in excess of the registration cost”.
Besides, the panelist also acknowledged:
Keywords there also are “may be” and some”.
Note also that the respondent in this dispute has a history of registering domains bearing TMs of other parties. Obviously not looking good if that’s the case.
Even court decisions tend not to be consistent, either. That’s one reason why some (if not many) lawyers say these things are fact-intensive, meaning these things are nonetheless examined for whatever facts are found.
It may seem unfair. Yet, reading these as a whole can sometimes (sometimes, anyway) arguably make sense or form some degree of understanding after, although it’s understandable some folks tend to look only at one or so item rather than the entire picture.
If anything, this decision can teach you what to do to avoid a possibly similar fate. Not that this is really any unique decision, though.
BrianWick says
The CAC is not UDRP to the best of my knowledge – so the lawful owner of eLeader.com should just file a UDRP and get 3 panelists
Michael H. Berkens says
Brian
‘Sorry to say that the decision of the CAC is a UDRP
its under WIPO
krishna says
If domain investors do not unite and fight for their rights, things may soon go out of hand especially for .com owners (going by recent news).
Lack of proper lobby that represents doamin investors is the major concern.
Philip says
DaveZan@ Thank you for the clearly defined information.
aggro@ I cannot understand why you choose to this forum to make comments about my German Jewish ancestry, I would also point out that being blind does not effect ones capacity to give instructions.