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PARTIES
The Complainant is Diamond Shamrock Refining and Marketing Company,
San Antonio, TX, USA (“Complainant”) represented by Jill M. Pietrini, of
Manatt, Phelps, & Phillips LLP. The Respondent is CES Marketing
Group Inc., Vancouver, BC, CANADA (“Respondent”) represented by Ari Goldberger,
of ESQwire Law Firm.
REGISTRAR AND DISPUTED DOMAIN NAME
The domain name at issue is "cornerstore.com" registered with Register.com.
PANEL
The undersigned certifies that they have acted independently and impartially
and to the best of their knowledge and have no known conflict in serving
as panelists in this proceeding.
Ms. Diane Cabell, Mr. Richard Page, and the Honorable Charles K. McCotter,
Jr. as Panelists.
PROCEDURAL HISTORY
The Complainant submitted a Complaint to the National Arbitration Forum
(“the Forum”) electronically on February 26, 2001; the Forum received a
hard copy of the Complaint on February 26, 2001.
On March 2, 2001, Register.com confirmed by e-mail to the Forum that
the domain name cornerstore.com is registered with Register.com and that
the Respondent is the current registrant of the name. Register.com
has verified that the Respondent is bound by the Register.com 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 March 2, 2001, a Notification of Complaint and Commencement of Administrative
Proceeding (the “Commencement Notification”), setting a deadline of March
22, 2001 by which the Respondent could file a Response to the Complaint,
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@cornerstore.com by e-mail.
A timely response was received and determined to be complete on March
22, 2001. An additional submission was submitted by the Complainant
on March 29, 2001 and was considered by the Panel.
On April 5, 2001, pursuant to the Respondent’s request to have the dispute
decided by a three member Panel, the Forum appointed Ms. Diane Cabell,
Mr. Richard Page, and the Honorable Charles K. McCotter, Jr. as Panelists.
RELIEF SOUGHT
The Complainant requests that the domain name be transferred from the
Respondent to the Complainant.
PARTIES’ CONTENTIONS
A. The Complainant
The Complainant, Diamond Shamrock Refining and Marketing Company, contends
the Respondent’s domain name, cornerstore.com is identical to the Complainant’s
federally registered and common law trademark, CORNER STORE, and was registered
by the Respondent in bad faith. The Respondent has made no legitimate
use of the domain name and is now holding it in bad faith. The Respondent
is a domain name broker in the business of selling domain names for a profit.
The Complainant contends that the Respondent is a “cybersquatter”.
B. The Respondent
The Respondent, CES Marketing Group Inc., contends that the domain
name cornerstore.com is comprised of generic terms (meaning small store)
to which the Complainant cannot maintain exclusive rights. The Respondent
has a legitimate interest in cornerstore.com because it registered it to
use for an online specialty food store and is in the business of registering
generic words that are suitable for web site development. The Respondent
denies it is a “cybersquatter”.
The Respondent also alleges it is a victim of “reverse domain name hijacking”
contending that the Complainant’s actions constitute an abuse of the administrative
proceeding.
FINDINGS
The Complainant is the owner of the trademark CORNER STORE which it
has used in connection with retail gasoline and convenience store services
since March of 1986. The Complaint’s business includes over 800 CORNER
STORE locations in the United States and Mexico. Complainant’s CORNER
STORE (Stylized) trademark was federally registered on January 14, 1998,
based on an application filed on July 28, 1995. The Complainant continues
to promote and derive substantial revenues from its CORNER STORE retail
stores.
The Respondent is the owner of the cornerstore.com domain name.
The Respondent is in the business of registering domain names that contain
common generic and descriptive words that are suitable for developing into
web sites related to those words.
The Respondent registered cornerstore.com in the fall of 1997 with
Network Solutions, and transferred it to Register.com in 1998. The
Respondent registered cornerstore.com because it is a descriptive term
which the Respondent intended to use to develop an online virtual “corner
store” to enable online customers to purchase specialty food items.
The Respondent says that cornerstore.com has not yet been fully developed
and launched. The Respondent plans to launch cornerstore.com in the
near future.
The Respondent does not appear to use the domain name except to direct
Internet users to its website where they can contact the Respondent to
purchase the domain name.
The term “Corner Store” is a term that is commonly used to refer to
a small store.
The Respondent’s search on the Internet search engine AltaVista for
the term “corner store” yielded over 33,000 third party uses of the term
on the Internet. In addition, there are numerous businesses throughout
the United States that operate under the name Corner Store, which are not
affiliated with the Complainant.
Using an independent consultant, on January 24, 2000, the Complainant
contacted the Respondent via e-mail regarding purchasing the cornerstore.com
domain name. The Respondent responded by inviting the Complainant’s representative
to “make me an offer I cannot refuse.”
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.
Because we find that the Complainant has failed to prove registration
in bad faith, the Panel finds it unnecessary to discuss the first two elements.
Registration and Use in Bad Faith
The bad faith element is actually two elements, requiring the Complainant
to show both bad faith registration and bad faith use. World Wrestling
Federation Entertainment, Inc. v. Brosman, Case No. D99-0001 (WIPO Jan.
14, 2000) (“the name must not only be registered in bad faith, but it must
also be used in bad faith”). The record in this case fails to establish
actual or constructive knowledge of the Complainant’s trademark by the
Respondent when registering the domain name. The critical fact is
that Complainant’s trademark registration issued after the disputed domain
name was registered. Therefore, the element of registration in bad
faith is missing.
The Respondent registered the domain name cornerstore.com in the fall
of 1997, prior to the issuance of the Complainant’s registered trademark.
There is no evidence that the Respondent had any knowledge of the Complainant
when it registered the domain name. Moreover, there is no evidence
that the Complainant registered cornerstore.com with the intent to sell
it to the Complainant, to disrupt its business, to prevent it from registering
its trademark, or to confuse consumers.
Reverse Domain Name Hijacking
The Respondent contends that this is a case of “reverse domain name
hijacking” and, pursuant to Paragraph 15(e) of the Rules, this Panel should
declare that the complaint was brought in bad faith and constitutes an
abuse of the administrative proceeding. The Respondent’s arguments
that the Complainant brought this action in bad faith are without merit.
The Complainant is the owner of the registered trademark CORNER STORE,
and is simply attempting to recover a domain name identical to its mark.
Further, the Complainant would have no knowledge of the fact that the Respondent
had an earlier domain registration that predated the current one.
The publicly accessible Whois database of domain registrations does not
include a history of ownership or information about prior transfers.
It only records the date that the domain was registered with the current
registrar. Therefore, the Complainant had a reasonable, if not accurate,
ground for thinking that the domain registration occurred after its trademark
was registered.
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 the domain name "cornerstore.com" to
the Complainant.
Charles K. McCotter, Jr.,
Panelist
Dated: April 20, 2001
Hon. Sir Ian Barker QC
Sole Panelist
Dated: August 3, 2001
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