WIPO Arbitration and Mediation Center

ADMINISTRATIVE PANEL DECISION

REWE Zentral AG v. Rewe Discount Ltd.

Case No. D2014-0769

1. The Parties

The Complainant is REWE Zentral AG, of Cologne, North Rhine-Westphalia, Germany, represented by Freshfields Bruckhaus Deringer, Germany.

The Respondent is Rewe Discount Ltd., of London, United Kingdom of Great Britain and Northern Ireland (“UK”).

2. The Domain Name and Registrar

The disputed domain name <rewe-discount.com> is registered with Ascio Technologies Inc. (the “Registrar”).

3. Procedural History

The Complaint was filed with the WIPO Arbitration and Mediation Center (the “Center”) on May 9, 2014. On May 9, 2014, the Center transmitted by email to the Registrar a request for registrar verification in connection with the disputed domain name. On May 14, 2014, the Registrar transmitted by email to the Center its verification response confirming that the Respondent is listed as the registrant and providing the contact details. In response to a notification by the Center that the Complaint was administratively deficient, the Complainant filed an amendment to the Complaint on May 15, 2014.

The Center verified that the Complaint together with the amended Complaint satisfied the formal requirements of the Uniform Domain Name Dispute Resolution Policy (the “Policy” or “UDRP”), the Rules for Uniform Domain Name Dispute Resolution Policy (the “Rules”), and the WIPO Supplemental Rules for Uniform Domain Name Dispute Resolution Policy (the “Supplemental Rules”).

In accordance with the Rules, paragraphs 2(a) and 4(a), the Center formally notified the Respondent of the Complaint, and the proceedings commenced on May 20, 2014. In accordance with the Rules, paragraph 5(a), the due date for Response was June 9, 2014. The Respondent did not submit any response. Accordingly, the Center notified the Respondent’s default on June 10, 2014.

The Center appointed Louis-Bernard Buchman as the sole panelist in this matter on June 12, 2014. The Panel finds that it was properly constituted. The Panel has submitted the Statement of Acceptance and Declaration of Impartiality and Independence, as required by the Center to ensure compliance with the Rules, paragraph 7.

The Panel determines that, pursuant to paragraph 11(a) of the Rules, the language of the proceeding is English, i.e., the language of the Registration Agreement, which the Registrar confirmed to be English.

4. Factual Background

The Complainant founded its business in 1927. It operates supermarkets offering retail services relating to foodstuffs, alcoholic and non-alcoholic beverages, and other household goods.

The Complainant is the owner of several community trademark registrations covering all European Union member states, including the UK, starting with the CTM REWE, registered under number 41632 on April 1,1996 (“the Mark”).

The disputed domain name was registered on October 28, 2013.

5. Parties’ Contentions

A. Complainant

(i) The Complainant submits that the disputed domain name is confusingly similar to the Mark.

(ii) The Complainant contends that the Respondent has no rights or legitimate interests in respect of the disputed domain name. The Complainant asserts that the Respondent is not commonly known by the disputed domain name, and is not making a legitimate noncommercial or fair use of the disputed domain name, but is using it for commercial gain and to tarnish the Mark.

(iii) The Complainant submits that by registering the disputed domain name, the Respondent acted in bad faith because it should have known about the Complainants’ rights in and to the Mark. The Respondent is also using it in bad faith, insofar as the disputed domain name does not resolve into an online store or into a website offering delivery services, but only resolves to a website which merely consists of some pictures and meaningless commonplace information and intentionally attempts to attract for commercial gain the attention of potential customers.

(iv) The Complainant requests that the disputed domain name be transferred to the Complainant.

B. Respondent

The Respondent did not reply to the Complainant’s contentions.

6. Discussion and Findings

A. Procedural Aspects

The Respondent is formally in default pursuant to paragraphs 5(e) and 14(a) of the Rules and paragraph 8(c) of the Supplemental Rules, because no Response was received from the Respondent within the time limit set by the Policy and the Rules.

Under paragraphs 5(e) and 14(a) of the Rules, the effect of a default by a respondent is that, in the absence of exceptional circumstances, the Panel shall proceed to a decision on the basis of the Complaint.

Under paragraph 4(a) of the Policy, it is the Complainant’s burden to establish that all three of the required criteria for a transfer of the disputed domain name or other remedy have been met.

Under paragraph 14(b) of the Rules, the Panel is empowered to draw such inferences from the Respondent’s default as it considers appropriate under the circumstances.

In this case, the Panel finds that as a result of the default, the Respondent failed to rebut any of the reasonable factual assertions that are made and supported by evidence submitted by the Complainant. In particular, by defaulting and failing to respond, the Respondent failed to offer the Panel any of the types of evidence set forth in paragraph 4(c) of the Policy from which the Panel might conclude that the Respondent has any rights or legitimate interests in the disputed domain name, such as making legitimate noncommercial or fair use of the disputed domain name.

Moreover, as discussed below, the Respondent has failed to provide any exculpatory information or reasoning that might have led the Panel to question the Complainant’s arguments that the Respondent has acted in bad faith.

B. Requirements of paragraph 4(a) of the Policy

(i) Identical or Confusingly Similar

In comparing the Mark with the disputed domain name <rewe-discount.com>, it is evident that the latter consists solely of the Mark, followed by the generic word “discount”.

The addition of generic or descriptive terms does not normally serve to distinguish a domain name from registered marks. See Banconsumer Service, Inc. v. Mary Langthorne, Financial Advisor, WIPO Case No. D2001-1367; Royal Bank of Canada v. Rouslan Tambiev, WIPO Case No. D2002-0672; and Allianz AG v. Marian Dinu, WIPO Case No. D2006-0318.

It is also well-established that the specific generic Top-Level Domain name such as “.com”, may not affect the domain name for the purpose of determining whether it is identical or confusingly similar.

The Panel finds that the disputed domain name <rewe-discount.com> is confusingly similar to the Mark, which it incorporates in its entirety.

Thus, the Complainant has satisfied the requirement of paragraph 4(a)(i) of the Policy.

(ii) Rights or Legitimate Interests

Although a complainant bears the ultimate burden of establishing all three elements of paragraph 4(a) of the Policy, previous UDRP panels have recognized that this could result in the often impossible task of proving a negative proposition, requiring information that is primarily if not exclusively within the knowledge of a respondent.

Thus, the consensus view of previous UDRP panels is that paragraph 4(c) of the Policy shifts the burden of production of evidence to the respondent to come forward with evidence of a right or legitimate interest in a domain name, once the complainant has made a prima facie showing, as the Panel believes the Complainant has made in this case. See Document Technologies, Inc. v. International Electronic Communications Inc., WIPO Case No. D2000-0270.

As previously noted, the Respondent offered no reason for selecting the disputed domain name. There is no evidence that the Respondent is commonly known by the disputed domain name or a corresponding name or uses a corresponding name in a business.

To counter any notion that the Respondent has such rights or legitimate interests, the Complainant has argued that the Respondent: (i) has no rights or legitimate interests in the disputed domain name; and (ii) is not commonly known by the disputed domain name.

In the circumstances, the Panel concludes that the Complainant has established the requirement of paragraph 4(a)(ii) of the Policy with respect to the disputed domain name.

(iii) Registered and Used in Bad Faith

As noted above, the Respondent failed to provide any exculpatory information or persuasive reasoning that might have led the Panel to question the Complainant’s arguments that the Respondent acted with bad faith by creating confusion to the detriment of the Complainant by registering the disputed domain name confusingly similar to the Mark.

Taking into account the fact that the Complainant uses the Mark for supermarket services, it is highly unlikely that the Respondent chose to register the disputed domain name randomly with no knowledge of the Mark. See Barney’s Inc. v. BNY Bulletin Board, WIPO Case No. D2000-0059; Kate Spade, L.L.C. v. Darmstadter Designs, WIPO Case No. D2001-1384 citing Cellular One Group v. PaulBrien, WIPO Case No. D2000-0028; and SembCorp Industries Limited v. Hu Huan Xin,WIPO Case No. D2001-1092. Actually, the Panel considers it most likely that the Respondent had the Mark in mind when it registered the disputed domain name.

Where the Respondent knew or should have known of a trademark prior to registering the disputed domain name, such conduct may also demonstrate bad faith. See Weetabix Limited v. Mr. J. Clarke, WIPO Case No. D2001-0775.

The Panel notes that from the record on file it would appear that the disputed domain name does not resolve to an online store or to a website offering delivery services, but only resolves to a website which consists of some pictures and, according to the Complainant, meaningless commonplace information.

The Panel finds that this type of use would amount to passive holding.

It is well established that the mere passive holding of a domain name may in appropriate circumstances be evidence not only of bad faith registration, but also of bad faith use. See Telstra Corporation Limited v. Nuclear Marshmallow,WIPO Case No. D2000-0003; DCI S.A. v. Link Commercial Corporation, WIPO Case No. D2000-1232; and Mary-Lynn Mondich and American Vintage Wine Biscuits, Inc. v. Shane Brown, doing business as Big Daddy’s Antiques, WIPO Case No. D2000-0004; Alitalia–Linee Aeree Italiane S.p.A v. Colour Digital, WIPO Case No. D2000-1260.

The Complainant has also argued that the Respondent is not making a bona fide use of the disputed domain name, and that the disputed domain name is used to divert Internet users for commercial gain.

The Panel notes that many UDRP panels have held that bad faith use of a domain name by a respondent may also result from the fact its good faith use is in no way plausible (see Audi AG v. Hans Wolf, WIPO Case No. D2001-0148), considering the specificity of the activity.

Finally, some UDRP panels have held that in certain circumstances, registrants of domain names have an affirmative duty to abstain from registering and using a domain name which is either identical or confusingly similar to a prior trademark held by others and that contravening that duty may constitute bad faith. See Policy, paragraph 2(b); Nike, Inc v. B.B. de Boer, WIPO Case No. D2000-1397; Nuplex Industries Limited v. Nuplex, WIPO Case No. D2007-0078; Mobile Communication Service Inc. v. WebReg, RN, WIPO Case No. D2005-1304; BOUYGUES v. Chengzhang, Lu Ciagao, WIPO Case No. D2007-1325; Media General Communications, Inc. v. Rarenames, WebReg,WIPO Case No. D2006-0964; and mVisible Technologies, Inc. v. Navigation Catalyst Systems, Inc.,WIPO Case No. D2007-1141.

The Panel concludes in these circumstances that the Respondent’s registration and use of the disputed domain name constitute bad faith, and that the requirement of paragraph 4(a)(iii) of the Policy is satisfied in this case.

7. Decision

For the foregoing reasons, in accordance with paragraphs 4(i) of the Policy and 15 of the Rules, the Panel orders that the disputed domain name <rewe-discount.com> be transferred to the Complainant.

Louis-Bernard Buchman
Sole Panelist
Date: June 26, 2014