475 MRO Software UK Ltd -v- Commerce Internet Ltd [2002] DRS 475 (9 October 2002)


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Nominet UK Dispute Resolution Service


You are here: BAILII >> Databases >> Nominet UK Dispute Resolution Service >> MRO Software UK Ltd -v- Commerce Internet Ltd [2002] DRS 475 (9 October 2002)
URL: http://www.bailii.org/uk/cases/DRS/2002/475.html
Cite as: [2002] DRS 475

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Nominet UK Dispute Resolution Service

DRS 00475

MRO Software UK Ltd v Commerce Internet Ltd

Decision of Independent Expert

Parties:
Complainant: MRO Software UK Ltd
Country: GB
 
Respondent: Commerce Internet Ltd
Country: GB

Domain Name:

MRO.co.uk ("the Domain Name")

  1. Procedural Background:

    The Complaint was lodged with Nominet on 3 July 2002. Nominet validated the Complaint and notified the Respondent of the Complaint on 8 July 2002 and informed the Respondent that it had 15 days within which to lodge a Response. Because of special circumstances Nominet on 31 July 2002 extended the date for lodging a Response to 9 August 2002. The Respondent lodged a non-standard Response on 9 August 2002 (The Respondent completed the Reply form on the Nominet website rather than the Response form). The Response was forwarded to the Complainant on 12 August 2002 and Nominet advised the Complainant it had 5 working days within which to lodge a Reply. The Complainant lodged a non-standard Reply by sending an e-mail on 20 August 2002. The Informal Mediation stage of the Dispute Resolution service started on 23 August 2002 and finished on 9 September 2002. Informal Mediation was not successful and the Complainant was informed accordingly on 10 September 2002 and invited to pay the fee to obtain an Expert Decision pursuant to paragraph 6 of the Nominet UK Dispute Resolution Service Policy ("the Policy"). The fee was duly paid on 17 September 2002. On 19 September 2002, Nominet invited me to provide a decision on this case and on 20 September 2002 I confirmed that I was not aware of any reason why I could not act as Independent Expert in this case nor of any matters which ought to be drawn to the attention of the parties which might appear to call my independence or impartiality into question. Nominet duly appointed me as Expert.

    On 20 September 2002 I requested further statement from the parties in answer to the following questions:
    1. How I should deal with the fact that Registered Trade Mark 2200521B includes ".COM", while the Domain Name does not.
    2. Do the parties accept that MRO Software UK Limited and MRO.com, Inc are the same company, namely the Complainant? If not, how should I deal with this issue.
    The Complainant and the Respondent respectively filed further statements on 25 and 27 September 2002.

  2. Outstanding Formal/Procedural Issues (if any):

    The Respondent completed its response on the Nominet web site using the electronic form intended for the Complainant's reply. This means that the electronic form generated by the Nominet web site, for example, referred in places to the Complainant where it was clearly intended to refer to the Respondent. It is very clear where this happened and this was corrected on the hardcopy Response. I have decided to ignore any minor defects in the electronic version of the Response.

  3. The Facts:

    The limited matters I can find as facts in this decision are the following:

    1. The Domain Name was registered for the Respondent on 24 April 2002

    2. The Domain Name is not currently being used but is intended to be offered for sale at auction.

    3. The domain name "MRO.COM" and the registered UK trade mark "MRO.COM" (No. 2200521B) are registered to MRO.COM, Inc

  4. The Parties' Contentions:

    Complaint:

    In summary the Complainant made the following submissions:

    1. The Complainant was created in January 2001 as a result of the merger of MRO.COM and PSDI (UK) Limited and a name change.

    2. The Complainant trades in asset management software, infrastructure provision for supply chain and electronic catalogue management.

    3. The Complainant owns the domain name MRO.COM and has MRO.COM registered as a trade mark in the UK (2200521B) and twelve other countries with some 23 pending applications worldwide.

    4. The Complainant has also applied for a community trade mark for "MRO Software".

    5. The Complainant had the Domain Name registered with Nominet but lost it as a result of the renewal and deactivation notices being sent to the incorrect address.

    6. A Google search for "Commerce Internet" revealed a further 54 names including such examples as "bma.co.uk" and "rig.co.uk" which are similarly up for sale or auction by the Respondent.

    7. The Complainant submits that the Respondent has abusively registered the Domain Name under clause 3(a)(i)(A)and 3(a)(iii)of the Nominet DRS policy.

    Response:

    In summary the Respondent made the following submissions:

    1. The Complainant had allowed the domain name in question to lapse by failing to ensure that its details were up to date and accurate.

    2. The Complainant has no excuse for failing to note this and take appropriate action.

    3. Prior to the Respondent's registration of the Domain Name, the Respondent had never heard of or had any dealings with the Complainant

    4. The Respondent has registered a number of three-letter domain names, many of which will be offered for sale at public auction.

    5. The Respondent intends to send an information pack to a number of companies which might have an interest in the Domain Name. (These are all companies whose names can be abbreviated to MRO or whose names start with MRO and include the Complainant)

    6. Selling domain names by auction is just and impartial.

    7. The Respondent has a legitimate business model.

    8. An inherent problem with three-letter abbreviations is that they have a multitude of completely separate meanings.

    9. The Complainant has no more right to use this abbreviation than any other company listed by the Respondent.

    10. There are several trade marks for the word "MRO" only, none of which are owned by the Complainant.

    11. Since the word "MRO" is not exclusive to the Complainant, there is no reason to suggest that the general public associates the Domain Name with the business of the Complainant.

    12. The domain name system is designed to allow multiple similarly named people, companies and organisations to co-exist peacefully on the Internet.

    13. There is no common field of activity between the Complainant and the Respondent and the general public will not confuse the Respondent's business activities with those of the Complainant.

    14. The Domain Name is not confusingly similar to the Complainant's mark, and it is not sufficiently similar for the Complainant to assert rights over the Domain Name under paragraph 3(b)(iv) of the Procedure.

    15. The Complaint has been presented in bad faith and the Complainant is trying to reverse hijack the Domain Name.

    16. The Respondent has made demonstrable preparations to use the Domain Name in connection with a genuine offering of services

    17. The Respondent has not passed itself off as being the Complainant or tried to extort money from it.

    18. The Respondent is not infringing the Complainant's rights in the mark "MRO.COM".

    Reply

    In summary the Complainant makes the following submissions:

    1. The registration is an Abusive Registration as the Domain name was acquired purely for the purpose of reselling it at auction for profit.

    2. The list of similar registrations supplied by the Respondent indicates that "the Respondent is engaged in a pattern of making Abusive Registrations".

    3. It accepted that there may be other organisations also with an interest in the Domain Name

    4. It accepted that the term "MRO" can have several meanings.

    5. The Respondent cannot claim to be preparing to "use the domain name in connection with a genuine offering of services", if its sole purpose in registering the domain is to resell the name.

    6. Prior to the registration of the Domain Name by the Respondent, the Complainant was genuinely offering services in the UK section of its web site (also available at WWW.MRO.COM) through the Domain Name.

    Further Statements

    In Response to the Request for Further Statements, the Complainant made the following submissions:

    1. The Trade Mark "MRO.COM" is owned by MRO Software Inc. which is the parent company of the Complainant

    2. MRO Software Inc. was previously known as MRO.COM, Inc

    3. MRO is an unregistered trade mark well recognised within the Complainant's industry of maintenance, repair and operation.

    4. The corporate decision was to acquire MRO.COM rather than MRO.COM.com and to regionalise this at country level with MRO.CO.UK.

    In Response to the Request for Further Statements, the Respondent made the following submissions:

    1. Ownership of the registered trade mark "MRO.COM" does not give the Complainant legal rights over the Domain Name, "MRO.CO.UK", because:

      1. The registered trade mark is not identical to the Domain Name.

      2. The registered trade mark contains elements not contained in the domain name, i.e. the suffix ".COM".

    2. A registered trade mark only gives rights over similar names if there is evidence of confusion. There is no claim or evidence that the public has been confused.

    3. The abbreviation "MRO" is generic and not exclusive to the Complainant.

  5. Discussion and Findings:

    General

    The Complainant has to establish under paragraph 2 of the Policy that it has Rights as defined in paragraph 1 of the Policy in respect of a name or mark 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. Rights, as defined, "includes but is not limited to rights enforceable under English Law". The Complainant has the burden to prove on the balance of probabilities both that it has the Rights and also that the Domain Name, in the hands of the Respondent, is an Abusive Registration.

    Complainant's Rights

    While Paragraph 2 (a) of the Policy requires a Respondent to submit to the DRS if the Complainant asserts to Nominet that it has Rights, Paragraph 2 (b) of the Policy requires the Complainant to prove to me that it has Rights "on a balance of probabilities". The burden on proving this is therefore clearly on the Complainant. Obviously where ownership of a relevant UK or Community registered trade mark asserted, it is easy for an expert to conclude that there is a right enforceable under English Law however, where an unregistered right is or a right not enforceable under English Law is asserted, the Complainant must not only assert that right but produce evidence to prove it. The burden on proving this is clearly on the Complainant.

    In this case the Complainant has asserted the following "rights":

    1. Ownership of the domain name MRO.COM

    2. Ownership of UK Registered Trade Mark "MRO.COM" in the UK (2200521B) and twelve other countries

    3. Ownership of 23 pending applications worldwide for the Trade Mark "MRO.COM".

    4. Application for a community trade mark for "MRO Software".

    5. Previous ownership of the Domain Name which was lost as a result of failure to renew.

    Rather belatedly, following my request for further statements, the Complainant has confirmed that the domain name and trade marks "MRO.COM" do not in fact belong to it but to its parent company MRO Software Inc (previously known as MRO.COM, Inc). In addition, purportedly in response to my request for further statements the Complainant has also asserted that ""MRO" is also an unregistered trade mark well recognised within the Complainant's industry of maintenance, repair and operation".

    The questions that I feel need to be answered to determine whether the Complainant has Rights are:

    1. Do trade mark applications establish any Rights under the Policy?

      The Complainant has not provided any evidence to explain the relevance of the trade mark applications. I can only assume that it intended to suggest that there might be a right enforceable under English Law in respect of such applications but it is trite law that the mere application for a trade mark is not a right which is enforceable under English Law.
    2. Does the ownership by the Complainant's parent company in the "domain name "MRO.COM" and the trade mark "MRO.COM", give the Complainant any Rights.

      In my view, they do not. The Complainant has not sought to give any explanation of how Rights might arise in these circumstances and absent any such evidence, I find that the Complainant has not discharged the onus of proving that it has Rights under this head.

    3. Has the Complainant's established a Rights in the name "MRO"?

      The Complainant has asserted that prior to the deactivation the Domain Name and its subsequent registration by the Respondent, the Complainant offered services through a website using the Domain Name. These same services were also offered through WWW.MRO.COM. This is the only evidence of use by the Complainant of the Domain Name prior to it being deactivated. There is no evidence of any promotion of the domain name MRO.CO.UK or that significant numbers of people, or indeed any people, associated the Domain Name with the Complainant. There is also no evidence of the numbers of people who accessed WWW.MRO.COM but it seems apparent that web site WWW.MRO.COM was drawn to customers' attention but any reputation in WWW.MRO.COM vests in the parent company.

      As indicated above, the Complainant has suggested in its further statement that it is well known as "MRO" but it has adduced no evidence to support this statement. In any event, as this evidence was not filed in the Complaint or the Reply and was not in response to any issue I had raised in my request for a further statement, I determine that this evidence is not admissible. In view of the fact that there is no evidence to support this statement by the Complainant, had I admitted this assertion, it would not have affected my decision. However, parties should not use a request for a further statement by an expert as an opportunity to file fresh evidence unrelated to the request.

      To succeed in establishing that it has a Right based on passing off, the Complainant must prove that it had a reputation, and therefore goodwill, in the marketplace by demonstrating that it uses a name which the relevant market recognise relates to the Complainant's goods and/or services to the extent that, if someone else were to use that name, they would be confused as to the origin of those goods and/or services.

      The Complainant has asserted that it adopted the name MRO Software UK Limited for just under two years. No evidence has been adduced as to its trading style but, even assuming that it does trade as MRO Software UK Limited I cannot make assumptions about how well it is known under that name and I certainly am not able to form a view as to whether it has any reputation or goodwill in the name MRO. Reputation is not something which I can infer. The existence of the Rights relied on have to be proved by the Complainant.

      By failing to prove its reputation and goodwill (which requires evidence such as details of its advertising and PR spend promoting the name together with press clippings showing that it is referred to as MRO), the Complainant has failed to prove on a balance of probabilities that the relevant market associated the "MRO" name with services provided by the Complainant.

    In summary, therefore, in respect of the rights claimed by the Complainant, I find that:

    1. The domain name MRO.COM does not belong to the Complainant and, therefore, does not assist its case.

    2. Registered Trade Mark "MRO.COM" does not belong to the Complainant and, therefore, does not assist its case.

    3. It is not clear whether the 23 pending applications worldwide for the Trade Mark "MRO.COM" belong to the Complainant but, in any event, the Complainant has not established that these pending applications confer any Right whether enforceable under English Law or otherwise.

    4. With regard to community trade mark application for "MRO Software", the Complainant has not established that this pending application confers any Right whether enforceable under English Law or otherwise.

    5. Absent evidence establishing that by its use of the domain name MRO.CO.UK the Complainant acquired a reputation and goodwill in the name MRO.CO.UK, the mere fact that the Complainant previously owned the Domain Name does not assist the Complainant.

    6. Absent evidence establishing that the Complainant acquired a reputation and goodwill in the name MRO Software UK Limited, the mere fact that the Complainant two years ago changed its name to MRO Software UK Limited does not assist the Complainant.

    For the reasons given above, I find that the Complainant has not proven, on a 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

    As the Complainant has not proven that it has Rights in respect of a name or mark, which is identical to the Domain Name, it is unnecessary to decide whether the Domain Name in the hands of the Respondent is an Abusive Registration.

    Reverse Domain Name Hijacking

    The Respondent has suggested that the Complainant is attempting to reverse hijack the Domain Name. According to Paragraph 16(d) of the Procedure:

    "If the Expert concludes that the dispute is not within the scope of paragraph 2 of the Policy, he or she shall state that this is the case. If, after considering the submissions, the Expert finds that the complaint was brought in bad faith, for example in an attempt at Reverse Domain Name Hijacking, the Expert shall state this finding in the Decision. If the Complainant is found on three separate occasions within a 2 year period to have brought a complaint in bad faith, Nominet will not accept any further complaints from that Complainant for a period of 2 years."

    The term "Reverse Domain Name Hijacking" is defined in paragraph 1 of the Procedure as: "using the Policy in bad faith in an attempt to deprive a registered Domain Name holder of a Domain Name".

    I find that the dispute is not within paragraph 2 of the Policy but, as this was a domain name apparently previously owned by the Complainant, that this complaint was not brought in bad faith. It was, however, badly framed.

  6. Decision:

    In light of the foregoing finding, namely that the Complainant has not proven on a balance of probabilities that it has Rights in respect of a name or marks which is identical to the Domain Name, I direct that the Complaint in respect of the Domain Name MRO.CO.UK be refused.

Niel Ackermann

Date: 9 October 2002


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