Samson Paper Holdings Limited v. Kannet Limited
WIPO Case No. D2001-0345
- Outcome
- Transfer
- Domain names
- samsonpaper.com
- Complainant
- Samson Paper Holdings Limited
- Respondent
- Kannet Limited
- Panelist
- Xue Hong
- Decided
- 17 May 2001
- Language
- English
Source: WIPO Arbitration and Mediation Center. Official copy: https://www.wipo.int/amc/en/domains/decisions/html/2001/d2001-0345.html
WIPO Arbitration
and Mediation Center
ADMINISTRATIVE
PANEL DECISION
Samson Paper
Holdings Limited v. Kannet Limited
Case No.
D2001-0345
1. The Parties
Complainant is Samson
Paper Holdings Limited, a limited liability company incorporated under the
laws of Bermuda. The Complainant is a listed public company in Hong Kong,
whose principal place of business is 3/F Seapower Industrial Centre, 177 Hoi
Bun Road, Kwun Tong, Kowloon, Hong Kong, SAR of China.
Respondent is Kannet Limited,
a limited liability company incorporated under the laws of Hong Kong, whose
principle place of business is Kantone Centre, 1 Ning Foo Street, Chai Wan,
Hong Kong, SAR of China.
2. The Domain Name
and Registrar
The domain name under
dispute is <samsonpaper.com> (the "Disputed Domain Name").
The registrar of the
domain name under dispute is Network Solutions, Inc. ("NSI" or the Registrar),
with business address in Herndon, Virginia, United States of America.
3. Procedural History
On March 8, 2001, and
March 12, 2001, Complainant submitted its Complaint through e-mail and hardcopy,
respectively, with the required filing fee for a single-member panel, to
the World Intellectual Property Organization Arbitration and Mediation Center
(the "WIPO Center"), in accordance with the Uniform Domain Name Dispute
Resolution Policy (the "Policy") adopted by the Internet Corporation for
Assigned Names and Numbers (ICANN) on August 26, 1999, the Rules
for Uniform Domain Name Dispute Resolution Policy (the " Rules"), and WIPO
Supplemental Rules for Uniform Domain Name Dispute Resolution Policy ("WIPO
Supplemental Rules).
On March 13, 2001,
WIPO sent via email to Complainant an "Acknowledgement of Receipt of Complaint".
On March 19, 2001,
WIPO sent a "Request for Registrar Verification" via email to the Registrar
requesting, confirmation that the Registrar had received a copy of the complaint;
that the domain name under dispute is registered with it; that Respondent
is the current registrant of such Domain Name; and full contacts details
available under the WHOIS database; that the Uniform Domain Name Dispute
Resolution Policy applies to the Domain Name; and, the current status of
the Domain Name.
On March 20, 2001,
WIPO received via e-mail from NSI "Network Solutions Verification Response"
confirming that the Domain Name is currently registered with NSI; that Respondent
is the registrant as well as its administrative, technical and billing contacts;
that <samsonpaper.com> Domain Name is in "active" status.
On March 21, 2001,
WIPO sent the "Notification of Complaint and Commencement of Administrative
Proceedings", together with a copy of the complaint via e-mail and facsimile
and by courier to Respondent, and therefore to the administrative, technical
and billing contacts. A copy has also been communicated to ICANN and to
the Registrar, via e-mail. The Notification indicated that April 9, 2001,
was the deadline to submit a Response to Complaint according to the requirements
described in Paragraph 5(a) of the Rules.
On March 21, 2001,
WIPO completed a "Formal Requirements Compliance Checklist".
On March 21, 2001,
WIPO sent the request for "Amendment to Complaint" regarding mutual
jurisdiction. On March 22, 2001, Complainant submitted its Amendment to
Complaint through e-mail and on March 26, 2001 in hardcopy.
On April 9, 2001, Respondent
submitted its Response to the complaint through e-mail. The hardcopy of
the Response was received by WIPO on April 24, 2001.
On April 17, 2001,
WIPO sent via email to Respondent and to Complainant an "Acknowledgement
of Receipt of Response" confirming that the Response was received via e-mail.
On May 1, 2001, WIPO
sent to Complainant and Respondent a "Notification of Appointment of Administrative
Panel and Projected Decision Date", appointing Xue Hong as Single Panelist,
who submitted a Statement of Acceptance and Declaration of Impartiality
and Independence, and scheduling May 14, 2001, as the date for issuance
of the Panel decision, notifying the above pursuant to Paragraphs 6(f) and
15(b) of the Rules. On the same date, WIPO transferred the case file to
the Administrative Panel, with copy of the file transmission letter being
sent to Complainant and Respondent.
This Panel agrees with
WIPO assessment and considers that the Complaint was properly notified to
the registered domain-name holder, the technical contact, and the administrative
contact as provided for in Paragraph 2(a) of the Rules and that formal compliance
within the requirements of the Policy, the Rules, and Supplemental Rules
was met.
The Panel has not received
any further requests from Complainant or Respondent regarding other submissions,
waivers or extensions of deadlines, and the Panel has not found it necessary
to request any further information, statements or documents from the parties.
As for the information and documentation received, no explanation or confirmation
from either party allegations is required, nor is there a need as an exceptional
matter, to hold any in-person hearings as necessary for deciding the complaint,
as provided for in Paragraphs 12 and 13 of the Rules. Therefore, the Panel
has decided to proceed under the customary expedited nature contemplated
for this type of domain name dispute proceeding.
The language of the
proceeding is English, as being the language of the domain registration
and Service Agreement, pursuant to Paragraph 11(a) of the Rules, and also
in consideration of the circumstances of this administrative proceeding
and to the fact that there is no express agreement to the contrary by the
parties.
4. Factual Background
A. Complainant
and the Trademarks
Complainant is a listed
public company in Hong Kong trading under the name Samson Paper Holdings
Limited. Complainant sources and supplies paper products for book printing,
packaging and office use (e.g. copying paper and computer forms) under and
by reference to the brand names, "Samson", "Samson Paper" and "Samson Paper
Holdings Limited". Complainant commenced trading in Hong Kong under the
name Samson Company in 1965. In 1981, Samson Paper Company Limited was incorporated
to take over Samson Company's trading operations. Complainant has a wide
customer base, primarily in Hong Kong and PRC.
The Complaint registered
the trademark "SAMSON" in Hong Kong under TM registration No.B06489
of 1998 (A-D) dated August 15, 1995 in Class 16 in respect of "paper, adhesive
labels, carbonless paper, copying paper, computer forms, duplex boxboards,
coated and uncoated woodfree paper, art boards, artist's materials, paint
brushes, albums, drawing paper, wrapping paper and paper boxes, writing
pads, writing cases, files, folders, calendars, jackets for paper, note
books, table linen of paper, napkins of paper, bond paper, carbon paper,
writing paper and printing paper, cardboards, cardboard cartons, cardboard
containers and other cardboard packaging materials, brochures, pamphlets,
manuals, booklets, newspaper and periodicals, books and magazines, stationery,
photographs, card indexes, index cards, record cards and cards".
B. Respondent
and the Disputed Domain Name
Respondent is incorporated
in Hong Kong under the Companies Ordinance on August 24, 1995. Respondent
is a licensed ISP under Hong Kong Telecommunication Ordinance from September
3, 1999. Respondent is also a web-hosting company and in the business of
registering domain names for its clients.
Respondent registered
the Disputed Domain Name <samsonpaper.com> through NSI on September
17, 1999. In NSI WHOIS Database, the initial address of the registrant was
"c/o Offshore Chambers PO Box 217, APIA, WS". Then, the address
was changed to be "Kantone Centre, 1 Ning Foo Street, Chai Wan, Hong
Kong".
C. Negotiation
in Relation to the Disputed Domain Name
On November 2, 1999,
Respondent sent a letter to Chairman of Complainant by fax. The letter included
the following contents:
"Being the Chairman
of a listed company on the Stock Exchange of Hong Kong you must have heard
that the Exchange is proposing to require that all listed issuers have
their own web sites. Your Company has been selected as one of the few
to enjoy our free web-site services. We have already taken the first step
in establishing a free web - site for your company: A unique and representative
domain name, www.SamsonPaper.com, has been reserved for your company."
"Besides, we will
offer a TOTALLY FREE OF CHARGE Web Design and Hosting Service* for you……"
"As I recognize
the unprecedented business opportunity in e-Commerce in the new millennium,
I am inviting the major enterprises in Hong Kong like your Company to
support the development of e-Commerce by setting up their own web sites.
A publicly traded company properly positioned with an effective Internet
marketing strategy can definitely generate tremendous exposure for its
products and services."
"I guarantee
that no add-on costs will be charged to your Company for this Free Package.
Just fill in the reply slip below and return to us by fax at 2558 3111
and we will do the rest for you."
"*This web-hosting
service is free for the first 6 months and after that, we will charge
you a rate that is the lowest in Hong Kong."
In the Reply Slip attached
with the letter, Respondent asked Complainant to agree that "We (Complainant)
are interested in enjoying the above free web-site package. Please set up
the web-site "www.SamsonPaper.com" for us. We hereby authorize
Kannet Limited (Respondent) to host the web-site on our behalf and we will
pay the initial registration fee for the domain name on presentation of
invoice."
On May 30, 2000, Complainant's
solicitors wrote to Respondent asking it to transfer the domain name to
Complainant. Respondent's solicitors responded on June 29, 2000, and correspondence
ensued between both parties' solicitors.
Although the parties
tried at that stage to settle the matter amicably they failed to do so.
On November 21, 2000, Complainant’s solicitors informed Respondent’s solicitors
that "due to your failure to respond to us in August after our numerous
attempts to settle this matter amicably, our client instructed us to commerce
proceedings against your client.……Our client therefore requires your client
to contribute to the costs it has incurred." In this letter, Complainant’s
solicitors demanded the sum of HK$10,000 being the cost of transfer of the
Disputed Domain Name and a contribution to the costs incurred by Complainant
as the result of Respondent’s actions.
The negotiation between
the parties broke down in late November and early December 2000.
D. Re-design
of the Website Established at "WWW.SAMSONPAPER.COM"
The original website
established at <www.samsonpaper.com> by Respondent, as it informed
Complainant on November 4, 1999, had the front page with <www.samsonpaper.com>
in large letters, a dialogue box for logging in the account name and password,
and several buttons of products, services, etc.
Both
Complainant and Respondent acknowledged that the website was re-designed
after the negotiations between the parties broke down. The website is now
titled with "Save As Much Save Our Nature: Paper" (S.A.M.S.O.N.PAPER). The
website claims to be one which has been set up to appeal to everyone to
"Save our Nature".
5. Parties’ Contentions
A. Complainant
Complainant
alleges that:
a) The Disputed
Domain Name is identical or confusingly similar to the "Samson", "Samson
Paper" and "Samson Paper Holdings Limited" trade and service marks in
which Complainant has rights. The Complaint is based, on one hand, on
the common law trademark rights in the marks "Samson", "Samson Paper"
and "Samson Paper Holdings Limited", which enjoy the substantial goodwill
and reputation in Hong Kong, the PRC and abroad in relation to services
and goods Complainant provides; on the other hand, on the trademark registration
for "SAMSON" dated August 15, 1995, in Class 16 in Hong Kong.
b)
Respondent has no rights or legitimate interests in respect of the
Disputed Domain Name.
Respondent has no
rights, either registered or unregistered in respect of the mark "Samson
Paper". Respondent trades under the name Kannet Limited. Respondent is
not a licensee of Complainant nor is it authorized to use the latter's
name or marks.
The website established
at <www.samsonpaper.com> by Respondent, was re-designed to be an
environmental protection site soon after the negotiations between Complainant
and Respondent with regard to transferring the Disputed Domain Name to
Complainant broke down. Respondent is clearly in an attempt to circumvent
a finding in Complainant's favor in these proceedings by showing that
it is making legitimate non-commercial or fair use of the Disputed Domain
Name.
c)
Respondent registered and is using the Disputed Domain Name in bad
faith.
Respondent has registered
the Disputed Domain Name with the intent to rent or sell the domain name
to Complainant as can be seen by its offer to be a web-host in its fax
of November 4, 1999. Although Respondent claims in that fax that the web-design
and web hosting services will be provided free of charge, the small print
on the second page states that it will charge for web-hosting after the
first 6 months. It would be reasonable to conclude that the rental fees
would be in access of the out- of-pocket costs by Respondent.
Respondent has registered
the Disputed Domain Name in order to prevent Complainant from reflecting
its mark "samsonpaper" in a corresponding domain name with the ".com"
top level domain. Since Respondent registered 432 domain names including
the company names of many blue chip listed companies in Hong Kong, well-known
personalities and place names, Respondent has engaged in a pattern of
the conduct of cybersquatting.
In a search of WHOIS
database conducted on February 9, 2001, Respondent was to be contacted through
a P.O. Box in Samoa. This means that a party who has never had prior dealings
with Respondent would not know from the WHOIS search that the registrant
is in fact a Hong Kong company and may have difficulty in tracing and communicating
with Respondent. Complainant contends that this is yet another device by
Respondent intended to make Complainant's task more difficult in recovering
the Disputed Domain Name.
B. Respondent
a) Respondent
does not dispute the ownership of the trade and service marks claimed
by Complainant.
b) Respondent
disputes Complainant's statement that Respondent has no other right
or interest in respect of the Disputed Domain Name, because Respondent
has no intention to pass off the Disputed Domain Name as its own or
in competition with the business of Sampson Paper.
c) Respondent
disputes that the use of the domain name by Respondent’s clients is
in bad faith. Respondent emphasizes that there has been no passing
off or extortion on its part. Even if names are trademarked, they
have not been necessarily treated as such in cyberspace and extra
care needs to be taken.
d) Respondent
states that the current complaint appears to be an effort to gain
advantage from Respondent. In the Letter dated November 21, 2000,
Complainant has tried to obtain compensation in the form of costs
of HK$10,000 from Respondent. Should Complainant’s proposition be
approved, no one would be able to make use of the approximately 250
top-level domains which may be attached to create domain names including
"samsonpaper" without having to pay the amount named by
the entity (in this case, HK$10,000).
By using the
search result of "samsonpaper" at one domain registration
service, Respondent states that the large number of second-level domains
containing "samsonpaper" are available just on this one
service, which shows Complainant has not taken the initiative to register
the domain names, and thus appears to be attempting to gain profit
from those who wish, without ulterior motive, to do so.
e) Respondent
states that if Complainant were really serious about retaining the
domain name, they would not have rejected Respondent’s offer in 1999,
resulting space on the Internet being given to those who wish to save
resources, namely trees and paper.
f) Respondent
also states that its contact details of the domain name registration
do not make Complainant's tracing and communicating with it difficult.
6. Discussion and
Findings
A. Elements to
be proven
Paragraph 4(a) of the
Policy envisages that for Complaint to succeed, Complainant must prove that
each of the following elements is present:
(i) Respondent’s
Domain Name is identical or confusingly similar to a trademark in which
Complainant has right; and
(ii) Respondent
has no right or legitimate interest in respect of the Domain Name; and
(iii) Respondent’s
Domain Name has been registered and is being used in bad faith.
B. Identical
or Confusingly Similar
Under the Policy, Complainant
is required to establish that it has right in the trademark. Complainant
has trademark registration for "SAMSON" dated August 15, 1995
in Class 16 in Hong Kong. Complainant also claims the common law trademark
rights in the marks "Samson", "Samson Paper" and "Samson Paper Holdings
Limited", which enjoy the substantial goodwill and reputation in Hong Kong,
the PRC and abroad in relation to services and goods Complainant provides.
Since Respondent does
not dispute the ownership of the trade and service marks claimed by Complainant,
the Panel recognizes the subsistence of Complainant’s trademark rights in
"Samson", "Samson Paper" and "Samson Paper Holdings Limited".
The Panel compared
the Disputed Domain Name with Complainant’s common law trade and service
mark "Samson Paper" and finds that the second level domain thereof
is substantially identical to the Complainant’s mark. The Panel finds that
the similarities in sound, appearance, and connotation between the mark
and the Disputed Domain Name is sufficient to render the Disputed Domain
Name confusingly similar to Complainant’s mark.
Also, the Panel finds
that the Disputed Domain Name is confusingly similar to Complainant’s registered
trademark "SAMSON". Although "samsonpaper" is not identical
to "SAMSON", when "samson" is used combined with "paper",
the domain name obviously refers to the "Samson" in paper industry,
which makes it confusingly similar to Complainant’s trademark.
C. Respondent’s
Right or Legitimate Interest
Under paragraph 4(c)
of the Policy, Respondent may demonstrate its right and interest in the
Disputed Domain Name by showing:
(i) Its use of,
or demonstrable preparations to use, the Disputed Domain Name or a name
corresponding to the Disputed Domain Name in connection with a bona fide
offering of goods or services before any notice to him of the dispute;
or
(ii) He (as an
individual, business, or other organization) has been commonly known by
the Disputed Domain Name, even if he has acquired no trademark or service
mark rights; or
(iii) He is making
a legitimate noncommercial or fair use of the Disputed Domain Name, without
intent for commercial gain to misleadingly divert consumers or to tarnish
the trademark or service mark at issue.
In the Response, Respondent
disputes Complainant's statement that Respondent has no right or legitimate
interest in respect of the Disputed Domain Name, because Respondent has
no intention to pass off the Disputed Domain Name as its own or in competition
with the business of Sampson Paper.
The Panel, however,
finds that Respondent’s above statement cannot demonstrate that Respondent
has right or legitimate interest in the Disputed Domain Name.
When the Panel evaluates
Respondent’s conducts according to Paragraph 4(c) of the Policy, the Panel
finds that there is no evidence in demonstrating the first two factors under
Paragraph 4(c)(i) and Paragraph 4(c)(ii) of the Policy.
In respect of Paragraph
4(c) (iii) of the Policy, the Panel finds that it is particularly worth
noting. Presently, Respondent is operating a website at the address <www.samsonpaper.com>,
which is a website appealing to all of us to save Paper, Trees and the Nature.
Respondent stated that
the present website was created by its client. The Panel finds even if website
was created by Respondent’s client, the use of the Disputed Domain Name
should be attributed to Respondent, because Respondent is the registrant
of the Disputed Domain Name and has the ability to control of the use of
the Disputed Domain Name.
As an environment protection
site, it seems that Respondent is making a legitimate noncommercial or fair
use of the Disputed Domain Name. However, the Panel believes that Paragraph
4(c) (iii) of the Policy should not be used as a shelter for Respondent’s
improper actions. If Respondent deliberately manipulates the website to
be a noncommercial site for the purpose of circumventing any finding in
favor of Complainant, Respondent’s manipulative action should not be regarded
as the demonstration of its right and interest in the Disputed Domain Name.
The Panel finds that
Respondent is not making a legitimate noncommercial or fair use of the Disputed
Domain Name, based on the following reasoning:
a) Respondent
took Complainant as the target of registering the Disputed Domain Name.
In Respondent’s letter
to Complainant dated November 2, 1999, Respondent stated that "[A]
unique and representative domain name, <www.SamsonPaper.com>, has
been reserved* for your Company".
b) Respondent
registered and used the Disputed Domain Name for commercial purpose.
Respondent’s letter
to Complainant dated November 2, 1999 clearly indicated that Respondent’s
registration of the Disputed Domain Name and establishment of the website
at the address of <www.samsonpaper.com> were the measures to promote
Respondent’s web design and hosting services. Respondent not only looked
forward to recouping the initial registration fee for the domain name
(see the Reply Slip attached with the letter), but also wanted to charge
Complainant a rate for hosting the web site after the first 6 months (see
the Letter).
The initial website
established at <www.samsonpaper.com> by Respondent was a typical
commercial website, on which there were the buttons of "Products,
Solutions, Company, Services, etc." and a dialogue box for logging
in the account name and password.
In the Response,
Respondent also acknowledged, "Kannet Limited is a licensed ISP and
web-hosting company; we have long been in the business of registering
domain names for our clients".
Thus, registration
and use of the Disputed Domain Name were the services that Respondent
intentionally provided to Complainant for commercial purpose.
c) Respondent
purposed to circumvent Complainant’s action of recovering the Disputed
Domain Name by re-designing the website after break down of the negotiation
between the parties.
When was the website
changed into a noncommercial one?
Complainant alleged
that Respondent re-designed the website soon after the negotiation between
the parties broke down.
In the Response,
Respondent actually acknowledged, "if the complainant were really
serious about retaining the complete name, they would not have rejected
our offer in 1999, resulting space on the Internet being given to those
who wish to save resources, namely trees and paper." Such statement
means that re-designing of the website happened after Complainant’s rejection
to Respondent’s offer in 1999.
More precisely, re-designing
of the website happened after Respondent was informed that Complainant
was to commence proceedings against it in a letter sent by Complainant’s
solicitors to Respondent’s solicitors dated November 21, 2000.
Respondent provided
the letter dated November 21, 2000, as the evidence to prove that Complainant
had tried to obtain compensation in the form of costs of HK$10,000. Respondent
then stated in the Response, "we refused to do so, our client put
up the present site, so the case has been sent to the WIPO."
Under current discussion,
Complainant’s payment demand is largely irrelevant (which will be discussed
at the part of "Other Allegations"). What’s important is Respondent’s
statement that the present website was put up after receipt of the letter
dated November 21, 2000.
So, why did Respondent
re-design the website?
The primary reason
is that Complainant rejected Respondent’s web hosting service offer, which
frustrated Respondent’s commercial purpose of registration and use of
the Disputed Domain Name.
Furthermore, the
direct reason is that Respondent learned that Complainant was to commence
proceedings against it. Therefore, Respondent made quick response by re-designing
the website, and now the website appeals to everyone to protect the environment.
After discussing
the time and the reasons of Respondent’s re-designing of the website,
the Panel finds that Respondent is not genuinely making a legitimate noncommercial
or fair use of the Disputed Domain Name, and re-designing of the website
was to cover up its previous commercial actions and circumvent Complainant’s
action of recovering the Disputed Domain Name. Although Paragraph 4(c)
(iii) of the Policy covers the circumstances of non-commercial use of
the Disputed Domain Name, Respondent’s sham noncommercial use is not accepted.
D. Evidence of
Registration and Use in Bad Faith
A non-exhaustive list
of what constitutes bad faith registration and use is set out in Paragraph
4(b) of the Policy. The Complainant basically relies upon 4(b)(i) and (ii),
which read as follows:
For the purposes of
Paragraph 4(a)(iii), the following circumstances, in particular, but without
limitation, if found by the Panel to be present, shall be evidence of the
registration and use of a domain name in bad faith:
(i) circumstances
indicating that the respondent has registered or the respondent has acquired
the domain name primarily for the purpose of selling, renting, or otherwise
transferring the domain name registration to the complainant who is the
owner of the trademark or service mark or to a competitor of that complainant,
for valuable consideration in excess of the respondent’s documented out-of-pocket
costs directly related to the domain name; or
(ii) the respondent
has registered the domain name in order to prevent the owner of the trademark
or service mark from reflecting the mark in a corresponding domain name,
provided that the respondent has engaged in a pattern of such conduct.
The Panel finds that
Respondent has bad faith in both registration and use of the Disputed Domain
Name.
a) Respondent
has the bad faith under Paragraph 4(b)(i) of the Policy.
In Respondent’s letter
dated November 2, 1999, to Chairman of Complainant, Respondent stated, "we
have already taken the first step in establishing a free web - site for
your company: A unique and representative domain name, <www.samsonpaper.com>,
has been reserved for your company"; "this web-hosting service
is free for the first 6 months and after that, we will charge you a rate
that is the lowest in Hong Kong".
In the Reply Slip attached
with the letter, Respondent asked Complainant to agree that "We are
interested in enjoying the above free web-site package. Please set up the
web-site "www.samsonpaper.com" for us. We hereby authorize Kannet
Limited (Respondent) to host the web-site on our behalf and we will pay
the initial registration fee for the domain name on presentation of invoice."
Even though Respondent
insisted that it would provide a TOTALLY FREE OF CHARGE web design and hosting
service, the Panel encounters no difficulty in finding that such statement
is only promotional measures. Respondent is a web-hosting company and in
the business of registering domain name for its clients. Thus, Respondent
not only wanted to recoup the initial registration fee for the Disputed
Domain Name, but also intended to charge Complainant a rate for web-hosting
service after the first 6 months. In this regard, Respondent’s action satisfied
one of the requirements under Paragraph 4(b)(i) of the Policy, i.e. to seek
"valuable consideration in excess of your documented out-of-pocket
costs directly related to the domain name".
However, Respondent’s
action is a little different from another requirement under Paragraph 4(b)(i)
of the Policy, because Respondent did not intend to sell, rent, or otherwise
transfer the Disputed Domain Name’s registration to the complainant. Rather,
Respondent preferred to control the Disputed Domain Name while profiting
from providing web-hosting service to Complainant.
The Panel believes
that Respondent’s action is a new form of domain name trading, which is
even worse than the attempts of selling, renting, or otherwise transferring
the domain name registration to the complainant. Knowing the importance
of the Disputed Domain Name to Complainant (Respondent stated in the letter
dated November 2, 1999, "a publicly traded company properly positioned
with an effective Internet marketing strategy can definitely generate tremendous
exposure for its products and services"), Respondent primarily attempted
to force Complainant into no choice but to accept Respondent’s service in
return for Respondent’s commitment to "reserve" the Disputed Domain
Name for Complainant.
Since the effect of
Respondent’s new form of domain name trading is equivalent to those of traditional
forms of domain name trading such as selling, renting or otherwise transferring
the domain name’s registration to complainant, the Panel finds that Paragraph
4(b)(i) of the Policy is applicable to Respondent’s action.
b) Respondent
has the bad faith under Paragraph 4(b)(ii) of the Policy.
Complainant alleged
that Respondent registered 432 domain names including the company names
of many blue chip listed companies in Hong Kong, which proved by the evidence
provided by Complainant of the List of domain names registered by Respondent
and the List of Hong Kong Stocks.
In Respondent’s letter
dated November 2, 1999, to Complainant, Respondent stated, "your Company
has been selected as one of the few to enjoy our free web-site services";
"I am inviting the major enterprises in Hong Kong like your Company
to support the development of e-Commerce by setting up their own web sites".
Respondent’s letter
proves that Respondent’s targets must not be limited to Complainant, but
extend to other "major enterprises in Hong Kong", namely those
listed companies on Hong Kong Stock Exchange.
Therefore, Respondent
had engaged in a pattern of the conduct of registering the domain names
in order to prevent the owners of the trademarks or service marks from reflecting
the marks in corresponding domain names.
c) Does Respondent
have other element of bad faith?
Complainant also claimed
other grounds for justifying the assumption of Respondent’s "bad faith".
The provision of Paragraph 4(b) of the Policy only contains a non-exclusive
list of circumstances of bad faith. Several WIPO domain name panels have extended
the scope of the term "bad faith" (cf. Telstra Corporation Ltd. v. Nuclear
Marshmallows, Case no. D2000-0003;
Stralfors AB v. PDS AB, Case No. D2000-0112;
McNeil Consumer Brands Inc. v. Mirweb Solutions, Case
No. D2000-0612).
The Panel believes
that such extensive interpretation should be cautious, and in this case,
since Respondent’s bad faith has been established base upon Paragraph 4(b)
of the Policy, there is no need to discuss other circumstances of bad faith
beyond those listed in that Paragraph.
E. Other Allegations
In the Complaint, Complainant
alleged that Respondent had used a P.O. Box in Samoa for domain name registration
contacts, which was yet another device by Respondent who intended to make
Complainant's task more difficult in recovering the Disputed Domain Name.
Respondent denied such
allegation in the Response.
The Panel is reluctant
to support such allegation, because Complainant has always been able to
effectively communicate with Respondent.
In the Response, Respondent
states that the current complaint appears to be an effort to gain advantage
from Respondent, stating Complainant has tried to obtain compensation in
the form of costs of HK$10,000 from Respondent.
The Panel finds that
Respondent’s such statement is irrelevant to the procedure of UDRP. If Complainant
honestly believed that costs were incurred by Respondent’s action, why shouldn’t
Complainant demand for that. Of course, the Panel is not in a position to
consider about that.
Respondent states that
if Complainant’s proposition were approved, no one would be able to make
use of the approximately 250 top-level domains that may be attached to create
domain names including "samsonpaper" without having to pay the
amount named by the entity (in this case, HK$10,000).
The Panel finds that
Respondent’s hypothetical claim is both groundless and irrelevant to the
procedure of UDRP.
Respondent stated that
there were a large number of second-level domains containing "samsonpaper"
available (such as <samsonpaper.tv>), which shows Complainant had
not taken the initiative to register the domain names, and thus appeared
to be attempting to gain profit from those who wish, without ulterior motive,
to do so.
The Panel holds that
a large number of second-level domains containing "samsonpaper"
available do not make Respondent’s action excusable.
7. Decision
For all the foregoing
reasons and pursuant to Paragraph 15 of the ICANN Rules, the Panel finds
that the Complainant has proved each of the three elements of Paragraph
4(a) of the Policy. The Panel requires that the said Disputed Domain Name,
namely, <samsonpaper.com> be transferred to the Complainant pursuant
to Paragraph 4(i) of the Policy.
Xue Hong
Sole Panelist
Dated: May
12, 2001