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You are here: BAILII >> Databases >> Nominet UK Dispute Resolution Service >> Abscissa.com Ltd v Edwards [2007] DRS 05054 (1 December 2007) URL: http://www.bailii.org/uk/cases/DRS/2007/5054.html Cite as: [2007] DRS 05054, [2007] DRS 5054 |
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Nominet UK Dispute Resolution
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DRS 05054
Abscissa.com Limited v Colin Edwards
Decision of Independent Expert
1. Parties |
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2. Domain Name
jokers.co.uk (“the Domain Name”)
3. Procedural Background
The complaint was entered into
Nominet’s system on 12th September 2007. Nominet validated the complaint
and informed the Respondent by email and letter dated 13th
September 2007, noting that the Dispute Resolution Service had been
invoked and that the Respondent had until 5th October 2007 to submit a
Response. A Response was received on 5th October 2007; and a Reply from
the Complainant was submitted and received on 8th October
2007.
During mid and late October 2007
it seems that the parties participated in a confidential mediation
process, but in accordance with Nominet’s practice I have not seen any of
the mediation materials and do not know what went on, save that it did not
result in a mediated settlement of the Complaint.
On 1st November 2007 the
Complainant was invited to pay the fee to obtain an Expert Decision
pursuant to paragraph 7 of the Nominet UK Dispute Resolution Service
Policy Version 2 (“the Policy”). The fee was duly paid on 12th November
2007. |
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A “non-standard submission”, that
is to say a document supplemental to the Complaint and Reply, was
submitted by the Complainant on 12th November 2007.
On 13th November 2007 Nominet
invited me to provide a decision in this case and, following confirmation
to Nominet that I knew of no reason why I could not properly accept the
invitation to act in this case and of no matters which ought to be drawn
to the attention of the parties which might appear to call into question
my independence and/or impartiality, Nominet duly appointed me as Expert
with effect from 19th November 2007. |
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4. Outstanding Formal/Procedural Issues
As recited above, a non-standard
submission was submitted by the Complainant on 12th November 2007. This is
governed by paragraph 13b of the Nominet DRS Procedure Version 2 ('The
Procedure'), which provides as follows:
"Any communication with us
intended to be passed to the Expert which is not part of the standard
process (e.g. other than a complaint, response, reply, submissions
requested by the Expert, appeal notice or appeal notice response) is a
'non-standard submission'. Any non-standard submission must contain as a
separate, first paragraph, a brief explanation of why there is an
exceptional need for the non-standard submission. We will pass this
explanation to the Expert, and the remainder will only be passed to the
Expert at his or her sole discretion. If there is no explanation, we may
not pass on the document or information."
Having considered the paragraph
submitted by the Complainant I requested to be sent the rest of the
statement. It was sent to me promptly by Nominet on 20th November
2007. |
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5. The Facts
The Nominet WHOIS search with
which I have been provided shows that the Domain Name, jokers.co.uk, was
registered on 13th April 2004. From the Response I note that the
Respondent, 'trading as FC Domains', acquired the Domain Name later on
that year, on 5th November 2004.
The Complainant is a private
limited company incorporated on 25 September 2001. Since 2002 it has
carried on business in the UK as an online retailer of fancy dress and
Halloween costumes. The Complainant's business uses the trading name
"Jokers' Masquerade" and the URL http://www.joke.co.uk. Its
projected turnover for 2007 is £6.5m. It operates an affiliate program
through which affiliates can earn themselves commission by encouraging
people to purchase from the joke.co.uk site.
The Complainant owns three UK
registered trade marks for JOKE.CO.UK, JOKERS' MASQUERADE and a composite
word/device mark including a picture of a stylised jester
figure.
The print out of the site
accessible under the URL http://www.jokers.co.uk with
which I have been provided by Nominet essentially depicts cartoonish
picture of a jester, the statement "Sorry Jokers is undergoing site
maintenance' - In a hurry? Please order from Fancydress.com" and a
hyperlink to fancydress.com which is one of the Complainant's competitors;
although the parties are agreed that the use of the URL has evolved in
recent weeks and months. |
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6. The Parties’
Contentions
Complaint
In summary the Complainant makes
the following submissions in its Complaint: |
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6.1. The Complainant has a
well-established business in the UK as an online retailer of fancy dress
and Halloween costumes. It commenced in summer 2002 and is projected to
turn over £6.5m in 2007.
6.2. The Complainant's
business uses the trading name "Jokers' Masquerade" and the URL http://www.joke.co.uk.
6.3. The Complainant employs
various devices for driving traffic to the site, including the operation
of an affiliate program through a third party called Affiliate
Window.
6.4. On 3 September 2007 the
Complainant's Managing Director was concerned to discover that significant
revenues were being generated on the joke.co.uk site through an affiliate
called 'Jokers', which simply used the Domain Name to forward anyone
visiting the URL www.jokers.co.uk automatically
to the joke.co.uk site through and via the Affiliate Window
system.
6.5. Contact between the
Complainant and Respondent was made and negotiations commenced concerning
use and control of the Domain Name. The Complainant did not like what it
regarded as the disingenuity of the bare forwarding arrangement. The
Respondent did not like the proposed alternative of an explanatory page
with a manual link to joke.co.uk.
6.6 The Complainant considers
that a price of £2000 was agreed for the purchase of the Domain Name, but
was reneged upon and a new price of £5000 demanded (the email from the
Respondent suggests that sales to the value of £1350 were generated
through the Domain Name in 2-3 weeks and therefore the price should be
negotiated upwards). I should make clear that I am not concerned with the
question of whether or not this formally amounted to a breach of
contract.
6.7. The Respondent then
disabled the forwarding and used the Domain Name instead to point to the
jester / site maintenance page referred to in section 5 above. The
Complainant considered this damaging for two reasons: firstly on the basis
that it suggested that the Complainant's business had been suspended and
secondly on the basis that it directed visitors to the Complainant's
competitor.
6.8. When a dispute about
unpaid affiliate commission arose (which again, I am not concerned with
resolving), an employee of Affiliate Window wrote to the Respondent
opining that "Essentially you have been passing off the domain www.jokers.co.uk as
the Jokers Masquerade site." This is an assessment with which the
Complainant concurs.
6.9. At around the same time
the Respondent notified the Complainant that the Domain Name had been
independently valued at £17,000.
6.10. The Complainant was
thereafter asked by the Respondent to elect whether to buy the Domain Name
for £5000, or to revert to the original webserver redirect
arrangement.
6.11. The Complainant does
not regard the mere existence of the Domain Name as inherently abusive,
but considers that the use of the Domain Name made by the Respondent has
been deceptive, unethical and abusive.
Response
In summary the Respondent makes the following submissions in
its Response.
6.12. The name Jokers is
generic and commonplace in the fancy dress industry. It appears frequently
in the Yellow Pages and in websites. |
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6.13. The Respondent has never intended to profit from the
Jokers Masquerade name. |
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6.14. The Respondent had no
reason to believe that simple webserver redirect arrangements were
prohibited or frowned upon by Affiliate Window.
6.15. The Respondent felt he
was being blackmailed into either changing the webserver redirect or not
being paid his affiliate commission.
6.16. The Respondent intends
to build a substantive Jokers site in the future but has suspended
development and optimisation work pending the result of the DRS Complaint.
In the meantime he is not getting commission from the Complainant and
therefore chose to use a royalty-free jester image and replace the Jokers
Masquerade link with a link to FancyDress.com.
6.17. The Domain Name
changed hands a number of times before 5th November 2004 when the
Respondent bought it from Colin Edwards; and the Complainant was aware of
this.
6.18. The reason the
Respondent increased the price was because he reconsidered its true value
as a generic domain name.
6.19. The Respondent
considers that the Complaint is motivated by the Complainant's regret at
not having bought the Domain Name earlier in
2000-2004. |
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The Complainant’s Reply
In summary the Complainant makes the following submissions in
its Reply:
6.20. While the word
'jokers' might be considered generic, the Complainant owns three UK
registered trade marks for JOKE.CO.UK, JOKERS' MASQUERADE and a composite
word/device mark including a picture of a stylised jester
figure.
6.21. The Respondent's use
of the name and the jester is too similar with the Complainant's use and
is leading to customer confusion and actual damage to the business
(including two customers who telephoned having believed the Respondent's
web site to be the Complainant's).
6.22. Mrs Caroline Creasy of
Silly Jokes Limited got in touch with the Complainant because she was
unhappy about letting the Respondent join her company's affiliate scheme
due to the use of the Domain Name and the jester and its 'haunting
familiarity'.
6.23. The Complainant
considers that the conditions of Affiliate Window effectively prohibit
deceptive practices with which traders such as the Complainant are
unhappy.
6.24. The fact that the
Complainant has taken no action in relation to the Domain Name in the past
does not mean that the Respondent's recent use of the Domain Name is not
abusive.
The Complainant's non-standard submission
In its non-standard submission
the Complainant represented that the Respondent's use of the Domain Name
after commencement of the DRS procedure once again changed: (a) on 12th
October 2007 the Domain Name forwarded to an offensive website with an
expletive in the title; and (b) around Halloween (a busy period for the
Complainant) the Respondent's site featured a picture of a witch, while
still linking to fancydress.com. |
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7. Discussion and Findings: |
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General
Paragraph 2 of the Policy
requires that, in order for the Complainant to succeed, it must prove to
the Expert, on the balance of probabilities, both that it has Rights in
respect of a name or mark which is identical or similar to the Domain
Name; and that the Domain Name, in the hands of the Respondent, is an
Abusive Registration as defined in Paragraph 1 of the Policy.
Complainant’s Rights
The Complainant must prove on the
balance of probabilities that it has Rights in respect of a name or mark
which is identical or similar to the Domain Name.
Under paragraph 1 of the Policy,
“Rights includes, but is not limited to, rights enforceable under English
law. However, a Complainant will be unable to rely on rights in a name or
term which is wholly descriptive of the Complainant's
business”
Disregarding the .co.uk suffix,
the question is therefore whether the Complainant has proven that it has
Rights in the word JOKERS.
Despite the lack of any evidence
demonstrating how commonly the word JOKERS is used in relation the retail
sale of fancy dress costumes and accessories in the UK, I am prepared to
accept - as the Complainant does - that this designation has some
descriptive connotations in that connection (as well as other connotations
e.g. in relation to playing cards). However I am unable to accept the
suggestion that it is 'wholly descriptive of the Complainant's business.'
Indeed a convenient counter-example is provided in the evidence in this
case: the Complainant's competitor FancyDress.com.
The Complainant supports its case
with evidence: (i) that through its substantial UK trade it has acquired a
degree of distinctiveness in the word such that it is perceived by
consumers in the UK as an indication of origin; (ii) that it owns 3 UK
registered trade marks, one for JOKE.CO.UK and two of which contain the
phrase JOKERS' MASQUERADE; (iii) that the Complainant's customers tend to
abbreviate the name of its business to JOKERS; and (iv) a small but
significant proportion of website hits originate from searches for
'JOKERS' without reference to 'masquerade'.
In the face of this largely
uncontradicted evidence I consider that the Complainant has succeeded in
proving on the balance of probabilities that it has Rights in respect of a
name or mark which is identical or similar to the Domain
Name.
Abusive Registration
Paragraph 1 of the Policy defines “Abusive Registration” as a
Domain Name which either:
i.
was registered or otherwise acquired in a manner, which at
the time when the
registration or acquisition took
place, took unfair advantage of or was unfairly detrimental to the
Complainant’s Rights; OR
ii.
has been used in a manner, which took unfair advantage of or was
unfairly
detrimental to the Complainant’s
Rights.
The Complainant candidly accepts
that it is not overly concerned by the registration or acquisition of the
Domain Name per se – its concern is over the way in which the
Respondent has used the Domain Name. Accordingly the Complaint stands or
falls on limb (ii) of 'Abusive Registration' namely the alleged
abusiveness of the use made of the Domain Name made in the latter part of
2007.
A non-exhaustive list of factors, which may be evidence that
the Domain Name is an Abusive |
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Registration are set out under
paragraph 3(a) of the Policy. The key sub-paragraph engaged by this
Complaint is paragraphs 3(a)(ii) which provides as follows:
“3(a)(ii) Circumstances
indicating that the Respondent is using the Domain Name in a way which has
confused people or businesses into believing that the Domain Name is
registered to, operated or authorised by, or otherwise connected with the
Complainant”
A non-exhaustive list of
countervailing factors are set out under paragraph 4(a) of the Policy. It
seems to me that the sub-paragraphs most likely to be relevant to this
Complaint are paragraphs 4(a)(i)(A) and 4(a)(ii). They provide as
follows:
“4(a)(i)(A) Before being aware
of the Complainant's cause for complaint (not necessarily the 'complaint'
under the DRS), the Respondent has used or made demonstrable preparations
to use the Domain Name or a Domain Name which is similar to the Domain
Name in connection with a genuine offering of goods or
services"
“4(a)(ii) The Domain Name is
generic or descriptive and the Respondent is making fair use of
it”
I am satisfied that the Respondent has made use of the Domain
Name in at least two ways:
(a) as an automatic webserver redirect to the
Complainant's site via Affiliate Window;
(b) as a 'site maintenance' page with a link to the
Complainant's competitor.
I regard both of these modes of
use as indicative of Abusive Registration, for the following
reasons.
The first mode of use is regarded
as dubious and/or unethical by the Complainant; that was the genesis of
this dispute. However the Complainant is not alone in this view. It was
also deprecated by Affiliate Window (who regarded it, no doubt from a
layman’s perspective, as 'passing off') and even the Complainant's
competitor Mrs Caroline Creasy of Silly Jokes Limited felt distinctly
uneasy about it. But it doesn't stop there. On analogous facts, the
English High Court has also concluded that this conduct is unacceptable.
In Tesco Stores Limited -v- Elogicom Limited and Robert Ray [2006] EWHC 403 (Ch); [2007] F.S.R. 4. In that case, which also involved domains
used as automatic affiliate redirects, the Deputy Judge held
that:
"33 ... the use of internet
domain names is itself a service offered to the public, whereby the entry
of such a name in the address bar of the computer of an individual
browsing the internet will take them to a website. In my view, by
registering and making its "tesco" related domain names available as
pathways on the internet to Tesco websites with a view to generating
income for itself in the form of commission, Elogicom did use in the
course of trade a series of signs (those domain names) which were each
similar to the trade marks registered by Tesco and were each used in
relation to services (the provision of internet access to Tesco websites)
identical with or similar to those for which the trade marks were
registered, and in circumstances where there existed a likelihood of
confusion on the part of the public, including the likelihood of
association of Elogicom's service (the provision of internet access to
Tesco websites) with the trade marks. ...
38. ... in my judgment, the use
by Elogicom of the "tesco" related domain names was not in accordance with
honest practices in commercial matters and (as set out in the context of
section 10(3) above) without due cause took unfair advantage of the
distinctive character or repute of Tesco's trade marks."
The Defendants in that case were
held to have no arguable defence to the claim for trade mark infringement
and passing off; and summary judgment was awarded against
them. |
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While the Nominet DRS is not concerned directly with questions
of trade mark infringement or |
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passing off, and the decisions of
the Courts in such cases are not formally binding in DRS Decisions, the
reasoning in High Court judgments are often drawn upon because of the
obvious consonance between the language of the Trade Marks Act 1994 and
paragraph 1 of the Policy, which defines “Abusive Registration” in terms
of "unfair advantage" and "unfair detriment" to the Complainant’s Rights.
In this case I am entitled to draw support from the Deputy Judge's
conclusion that the use of similar domain names for automatic affiliate
redirection takes unfair advantage of traders' Rights. I would not go so
far as to say that this will be an absolute rule in all factual
situations, but in my view the manner in which it was done in the present
case took unfair advantage of the Complainant's Rights.
Moving on to the second way in
which the Respondent used the Domain Name, I need hardly cite precedent
for my conclusion that the second mode of use is abusive. The combination
of textual and pictorial mimicry, the suggestion of cessation of trading,
and linking through to the Complainant's competitor are each classic
unfairly detrimental practices. I am not surprised that two of the
Respondent's customers were moved to telephone the Complainant in a state
of confusion; and I regard as eminently credible the Complainant's fears
that its business is being damaged as a result. In this connection it is
pertinent to note the Respondent’s claim in his email dated 4 September
2007: “Within 2-3 weeks £1350 worth of [joke.co.uk] sales have
been generated [through jokers.co.uk]”. This level of throughput seems
to have surprised even the Respondent and is in my view attributable to a
significant level of confusion.
For completeness I should note
that the Complainant's non-standard submission refers to a third mode of
use - namely redirecting to offensive material - but in the light of my
findings above I do not need to consider it and in any event I would not
have placed any great reliance on it in circumstances where I have not
heard the Respondent's side of the story.
As against this, there is little
to be weighed in the balance under paragraph 4 of the Policy. Had the
Respondent been operating a wholly independent site containing an archive
of jokes, or jocular e-cards, or even physical playing cards; the
situation might have been quite different. But as matters stand, all of
the use which he has made has all been inextricably linked, whether
positively or negatively, with the Complainant.
I bear in mind that the
considerations in paragraphs 3 and 4 of the Policy are illustrative and
non-exhaustive. The ultimate question for my consideration is whether, on
the evidence as a whole, the Complainant has discharged the burden of
proving that the Domain Name has since around August 2007 been used in a
manner which takes unfair advantage of or is unfairly detrimental to the
Complainant's Rights. For the reasons I have set out above, I am satisfied
that the Complainant has discharged that burden and I have concluded on
the evidence before me that the Domain Name, in the hands of the
Respondent, is an Abusive Registration. |
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8. Decision
Having concluded that the Domain
Name is an Abusive Registration, the Expert determines that the Domain
Name, jokers.co.uk should be transferred to the
Complainant. |
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December 1st 2007 |
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Philip Roberts |
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