Background

In January of this year, the domain ForSale.ca dropped.  After it was caught, it was purchased by Bonfire Development for $29,000 CDN.

Trademark

The plaintiff had a trademark on the domain For-Sale.ca.  Although one might ask how they managed to trademark that term, the CDRP does not allow the panel to go behind the trademark.  In the circumstances, the panel found that the domain was confusingly similar to the trademark.

Bad Faith

Next, the panel analysed whether the domain was registered in bad faith.  They found that it was not, and made some statements that I consider very positive.  They state:  “the disputed domain is a generic term over which the Complainant in this particular case cannot claim exclusivity.  This is so despite being the owner of a trade-mark that is confusing with the domain name.  The term “for sale” is clearly and obviously a commonly used term by businesses and members of the public to say the least, and is one over which the Complainant would be hard pressed to assert a monopoly.”

It’s clear that the Panel understands what a generic domain is and the importance of a generic name being avaialable to all members of the public.  Kudos to them for this.

The Panel further stated:  “There is no question that the Respondent, or related parties, have been found in the past to have engaged in the practice of cyber-squatting.  In particular, Shaun Pilford, who appears to be related to the Respondent, is known to domain name panels.  However, this is not relevant to this particular case… While the Panel does not endorse the Respondent’s unauthorized domain name registrations, it needs to be proven that the Respondent was cyber-squatting in this case.”

That’s good news too.  Too often in UDRP decisions, if you lose one, you’re at high risk of losing all future cases because you’ve been branded a cybersquatter.  The Panel is correct just to look at the case before it, not the reputation of the parties.

Reverse Domain Name Hijacking

The Complainant had previously tried to get this domain before it dropped via the CDRP and failed.  Now it failed a second time and the Respondent asked for a finding of reverse domain name hijacking.

The Panel found that the Complainant has a history of registering trademarks for .ca domains of well known brands.  The Complainant had registered Versace.ca, Mentos.ca, Zantac.ca, Smirnoff.ca and also filed trademark applications for Versace.ca, Mentos.ca, Zantac.ca and Smirnoff.ca.  The Panel found that the Complainant had an extensive history of abusing trademarks to try to give it rights to domains it should not have, including in this case.

Adding all of this to the fact that the domain is generic, the Panel found that this was Reverse Domain Name Hijacking and in fact stated that the Complainant appears to have engaged in filching.

Costs have yet to be decided, but the CDRP allows cost awards of up to $5,000.

Congrats to lawyer for the respondent Zak Muscovitch for obtaining this finding!

PornCzars.com -$1.00
ChicBars.com - $50.00
HispanicPornos.com - $75.00
HispanicCouples.com - $100.00
boned.com - $4,750.00
hornychicks.co.uk - $350.00
BigDickPornos.com - $175.00
transsexualpornos.com - $150.00
MatrixContent.com Video Package 1 - $200.00
Hispaniccoeds.com - $100.00
Offshoring Package 1 - $200.00
Boys247.com - $50.00
SinglesListings.com - $125.00
MatrixContent.com Video Package 2 - $2,300.00
RackCo.com Hosting Package 1 - $300.00
Lot of 25 Adult Domains - $200.00
GroupOrgies.net - $10.00
LiveVoyeur.net - $20.00
P2PAds.com Website Traffic Package 1 - $2,800.00
X2KMedia.com Video Package 1 - $300.00
RackCo.com Hosting Package 2 - $1,000.00
RackCo.com Hosting Package 3 - $1,500.00
StripClubs.com - $101,000.00
Offshoring Package 2 - $400.00
SwingerHouseWives.com - $30.00
nudiebars.com - $500.00
BigCockPornos.com - $80.00
tubegratis.com - $125.00
Offshoring Package 3 - $1,100.00
P2PAds.com Website Traffic Package 2 - $1,400.00
adultwebsites.co.uk - $275.00
voyeurcams.net - $75.00
RibbedDildo(s).com and RibbedVibrator(s).com - $150.00
NaughtyHusband(s).com - $75.00
FirstPornoMovie.com - $30.00

Total - $117,926.00

As you can see, except for the sale of StripClubs.com, there were no major sales.  Interestingly enough, the non-domain items seemed to sell much better than the domains.

Analysis

I’ve thought this for a long time, but now we’ve finally have proof of it - domain auctions are purely wholesale events.  If an end user gets involved, it’s fortunate, but a rare occurrence.

After practically every live auction event, the domainersphere and the forums buzz about how the auction results would have been much better if only the auction house had spent a lot of time and money marketing the domains to end users.  That has never made sense to me - the chance of an enduser wanting and a needing a particular domain at the precise moment the auction is held is very low.  Add in the unfamiliar and somewhat intimidating auction environment, and you can see why not many endusers get involved.

For this auction, Rick pulled out all the stops.  He put together a great lineup of domains with good (and often no) reserves.  The list of domains was announced well in advance, instead of the last minute announcement we normally see for live auction events.  He made sure that the domains were targeted at a particular industry, and held the auction at that industry’s main conference, when all the players were in one spot.  He heavily marketed the auction to these endusers.

In short, Rick basically did everything right (although there were some technical difficulties on the day of the auction).  Despite this, the auction results were disappointing.

On a personal note, I admire Rick for having the guts to do something different.  The most successful people are the ones who fail the most, as they are the ones who are constantly trying new things.  As well, Rick owned up to what happened instead of playing the politician.  Plus, he’s got some brand new strategies for selling to endusers based on what he’s learned from this experience - and I think these will work well.

Opportunity

Rick’s loss is your gain.  The names that didn’t sell, as well as a whole host of other quality names, are now available in an online extended auction.  You can see what is available here.  Highlights of the auction include:

XXX.com
WebCam.com
CamGirls.com
BangedUp.com
Porno.co.uk
GirlonGirl.com
Novelties.com
Sadistic.com
SexShows.com
Skimpy.com
Shocker.com
Nudist.net
CyberPorn.com
NiceLegs.com
Wet.co.uk
Womanizer.com
Whoppers.com
FirstDates.com
NicheTube.com
StudFinder.com
Posing.com

The auction run until 2.00 p.m. Sunday EDT. Get your bids in now.

Problems.com
Mistake.com
Enroll.com
Damaged.com
Statement.com
Evaluate.com
UnClear.com
Upset.com
Shetty.com
Pleased.com
Returns.com
Suggestion.com
Suggestions.com
Replacement.com
Explanation.com
Explanations.com
Failures.com
Inquiries.com
Apologize.com
Volunteer.com
WebsiteFinder.com
Confusing.com
Witnessed.com
Concerns.com
Changed.com
Credit-Application.com
CreditApplication.com
Credit-Report.com
Interview.net
MortgageLoan.net
Notions.net
ProductSupport.com
Recommendations.com
Registration-Card.com
RegistrationCard.com
Technical-Support.com
ServeAuction.com
Shopping-Info.com
Service-Info.com
Service-Information.com
UserFeedback.com
Flaws.com
Free-Catalog.com
Free-Product.com
Free-Service.com
HouseAdditions.com
Howdoi.com
Improvements.com
Inefficient.com
Users-Guide.com
Internet-Info.com
Legal-Advice.com
Message-Center.com
ControlYourCredit.com
Cords.com
Product-Info.com
Product-Information.com
Product-Support.com
Criticisms.com
Customer-Complaint.com
Customer-Feedback.com
Customer-Satisfaction.com
Customer-Survey.com
DisAgree.com
DisLike.com
E-Message.com
E-Messages.com
Electronic-Message.com
ElectronicMessage.com
Airport-Info.com
UsersGuide.com
Business-Info.com
Service-Support.com
Computer-Info.com
WarrantyManagement.com
Consumer-Comments.com
Consumer-Feedback.com
Consumer-Help.com
Consumer-Ideas.com
Consumer-Info.com
Consumer-Poll.com
Consumer-Problems.com
Consumer-Product.com
Consumer-Products.com
Consumer-Questions.com
Consumer-Survey.com
Owners-Manual.com

Messages.net
Payment.net
Jennifer.net
Sensitivity.net
Unclear.net
Upset.net
UserFeedback.net
Organization.net
Suggestion.net
Suggestions.net
Payments.net
Pleased.net
Reactions.net
Replacement.net
Requests.net
Replace.net
Return.net
Rules.net
Opinions.net
Evaluate.net
Twenty.net
Experiences.net
Explanation.net
Explanations.net
Failures.net
Feelings.net
Flaws.net
Improvements.net
Product.org
Products.org
Programs.org
Credit-Application.net
CreditcardApplication.net
CreditApplication.net
Criticisms.net
Directions.net
Electronic-Banking.net
ElectronicBanking.net
Emessage.net
Additions.net
Advise.net
Advisory.net
Cadillacs.net
Checking.net
Concerns.net
Consumer-Product.net
Consumer-Questions.net
Consumer-Support.net
CustomerFeedback.net
Comments.net
Cconfusing.net

Pay.org
Register.org
Copy.org
Organization.org
Samples.org
Schedule.org
Sensitivity.org
Services.org
Statement.org
Suggestions.org
Technical.org
TechnicalSupport.org
Theft.org
Unclear.org
Upset.org
UserFeedback.org
Visit.org
Visitor.org
Worship.org
Opinions.org
Organizations.org
Ownersmanual.org
Payment.org
Payments.org
Pleased.org
Postage.org
Problems.org
Product-Information.org

Recipes.org
Redemption.org
Refund.org
Refunds.org
Religion.org
Repair.org
Replace.org
Replacement.org
Report.org
Request.org
Requests.org
Return.org
Reviews.org
Opinion.org
Evaluate.org
Evaluation.org
Experiences.org
Explanations.org
Exploitation.org
FeedBack.org
Feelings.org
FileShare.org
Flaws.org
Grammar.org
Gro.org
GuestBook.org
HelpDesk.org
Helpful.org
HouseBuilders.org
HouseLoan.org
Impressions.org
Improvements.org
Ingredients.org
Inquiries.org
Interview.org
JunkYard.org
Markets.org
MessageBoard.org
Metals.org
Military.org
Mistakes.org
Conversions.org
Covers.org
Credit-Aplication.org
Credit-Reports.org
CreditApplication.org
Criticisms.org
Customer-Support.org
Customer.org
CustomerFeedback.org
Defective.org
Delivery.org
Directions.org
Distance.org
Electronic-Mail.org
ElectronicMail.org
Electronics.org
Additions.org
Advertisement.org
Advertisements.org
Advise.org
Analysis.org
Answer.org
Application.org
Assistance.org
Cables.org
Cadillacs.org
Comments.org
Commercial.org
Concerns.org
Confessions.org
Consumer-Comments.org
Consumer-Feedback.org
Consumer-Product.org
Consumer-Products.org
Easy.org

OwnersManual.info
Explanations.info
Failures.info
Inefficient.info
Emessages.info
Comments.info
Concerns.info

Suggestions.us
Questions.us
Improvements.us
Comments.us

DO NOT PURCHASE ANY OF THESE DOMAINS FROM HIM! You’ll only lose the domain afterwards.  The whois email on many of the stolen domains is imenhost@gmail.com.  Most of the domains are at 1and1.com and some are at Name.com.  You can learn more here about how to protect yourself from domain fraud.

The case was brought by a company in Uruguay, which owns a trademark for “CHILLI BEANS” for eyewear and watches.

The panel found that the domain ChilliBeans.com was identical or confusingly similar to the trademark CHILLI BEANS and that the design elements of the trademark didn’t matter.  No big surprise here.

In the second stage of the UDRP analysis, the panel looks at the parties’ rights and legitimate interests in the domain.  The panel found that the Complainant had such rights and interests. Schilling argued that he was using the domain in a legitimate way - to display ads linking to goods and services relating to food and beverages, which is consistent with the meaning of “Chilli Beans.”  However, the panel found that there was no evidence that Schilling explored the possibility of third-party trademarks before registering the disputed domain name.  The panel further found that there was evidence of (a very small amount of) pay-per-click advertising links on the ChilliBeans.com, related to the trademark.

The Panel decided to make up its own law and stated:

Moreover, this Panel cannot ignore the implications of publicly available traffic rankings generated by Alexa – and unchallenged by the Respondent – reflecting that in August 2008 some seventy-five percent (75%) of the traffic to the Respondent’s website originated in Brazil. This is significant given that the CHILLI BEANS mark has been used in Brazil since as early as 2000 and is more widely known there than in other areas of the world. While the Panel has no effective means of discovering traffic data at earlier dates, this certainly cautions against the Panel blindly accepting the Respondent’s contention that the sheer numerical preponderance of links keyed to the generic or descriptive meaning of the domain name renders the presence of paid advertisements related to a trademark insignificant or inconsequential, at least insofar as it concerns the pay-per-click revenue generated as a result of these links.

What??  The panel is looking at Alexa data and domain owners are expected to do so too??  And Alexa can’t be easily gamed?

The ultimate issue in these sorts of cases is whether the domain owner registered the domain in bad faith.  Apparently, not knowing about a trademark, plus intending to use a domain only for its generic use, and targeting ads for the generic meaning are not sufficient.  The panel concludes that Schilling registered and used the domain in bad faith, as he failed to explore the possibility of third-party rights and his parking software was incapable of distinguishing between dictionary meaning and trademark meaning of a term.

The panel completely ignored the fact that Schilling went out of the way to target food products in his ads.

The panel ordered Schilling to transfer the domain.

My guess is that Frank will be taking this to court soon.  If something as generic as ChilliBeans.com is in danger of an UDRP loss, almost every domain is too.

The auction results (unofficial) are:

games.mobi - 44,000
xxx.mobi - 10,099 - reserve not met
software.mobi - 9,500 - reserve not met
bank.mobi - 11,500
blackjack.mobi - 9,700
media.mobi - 5,099
dvd.mobi - 4,875 - reserve not met
sexe.mobi - 9,523
funds.mobi - 4,800 - reserve not met
lawyers.mobi - 4,800 - reserve not met
vip.mobi - 10,099
meteo.mobi - 4,200
computer.mobi - 4,000 - reserve not met
shoes.mobi - 4,600
auto.mobi - 3,900
internet.mobi - 9,901
discount.mobi - 2,050
silver.mobi - 1,723 - reserve not met
lawyer.mobi - 1,650
mobilephones.com - 1,600 - reserve not met
law.mobi - 2,850
store.mobi - 2,650
homeloans.mobi - 1,557
school.mobi - 1,502 - reserve not met
any.mobi - 1,500 - reserve not met
online.mobi - 1,550
she.mobi - 1,600
cellphones.mobi - 1,549
cruise.mobi - 2,680
accountants.mobi - 1,300 - reserve not met
baptism.mobi - 1,300 - reserve not meti
chocolate.mobi - 1,350
house.mobi - 1,300
man.mobi - 1,300 - reserve not met
model.mobi - 1,300 - reserve not met
movieclips.mobi - 1,300 - reserve not met
spam.mobi - 1,300 - reserve not met
psychology.mobi - 1,290 - reserve not met
carpenters.mobi - 1,270 - reserve not met
divorce.mobi - 1,320
doctors.mobi - 1,318
downloadmovies.mobi - 1,259 - reserve not met
downloadmusic.mobi - 1,259 - reserve not met 
boys.mobi - 1,253
consulting.mobi - 1,250 - reserve not met
grants.mobi - 1,250 - reserve not met
industry.mobi - 1,300 
international.mobi - 1,250 - reserve not met 
medical.mobi - 1,250 - reserve not met
sexstories.mobi - 1,250
math.mobi - 1,750
quiz.mobi - 1,257
account.mobi - 1,250
babyshower.mobi - 1,200 - reserve not met
bus.mobi - 1,200 - reserve not met
expert.mobi - 1,250
anime.mobi - 1,150
interviews.mobi - 1,100 - reserve not met
quotes.mobi - 5,333
room.mobi - 1,051 - reserve not met
sad.mobi - 1,001 - reserve not met
schule.mobi - 1,001 - reserve not met
screw.mobi - 1,001 - reserve not met
steel.mobi - 1,001 - reserve not met
kamera.mobi - 1,000 - reserve not met
publicidad.mobi - 1,050
research.mobi - 1,000 - reserve not met
special.mobi - 1,000 - reserve not met
suche.mobi - 1,000 - reserve not met
guy.mobi - 999 - reserve not met
recht.mobi - 1,010
support.mobi - 1,010
air.mobi - 1,050
reise.mobi - 950 - reserve not met
sound.mobi - 950 - reserve not met
anwalt.mobi - 1,352
science.mobi - 1,100
jobsuche.mobi - 889 - reserve not met
message.mobi - 930
stars.mobi - 1,050
racing.mobi - 850
sea.mobi - 800
send.mobi - 790 - reserve not met
shock.mobi - 778
sol.mobi - 750 - reserve not met
how.mobi - 3,050
bands.mobi - 800
real.mobi - 666
see.mobi - 3,900
put.mobi - 651 - reserve not met
refinance.mobi - 951
sell.mobi - 2,300
service.mobi - 601
cats.mobi - 600
screen.mobi - 570
run.mobi - 950
sem.mobi - 600
booty.mobi - 510
rock.mobi - 610
used.mobi - 750
road.mobi - 509
rims.mobi - 501 - reserve not met
shit.mobi - 500 - reserve not met
south.mobi - 500 - reserve not met
say.mobi - 480
allergies.mobi - 432 - reserve not met
question.mobi - 510
kinky.mobi - 366 - reserve not met
actors.mobi - 410
memory.mobi - 460
dvr.mobi - 320
robot.mobi - 310
smallbusiness.mobi - 560
may.mobi - 300 - reserve not met
bild.mobi - 900
punk.mobi - 260
quick.mobi - 260
rail.mobi - 411
stamps.mobi - 510
ride.mobi - 260
farm.mobi - 251
public.mobi - 231
retro.mobi - 210
saturday.mobi - 210
searchengines.mobi - 210 
son.mobi - 283
after.mobi - 200 - reserve not met
rpg.mobi - 680
side.mobi - 200 reserve not met
taxes.mobi - 800
rate.mobi - 1,060
sleep.mobi - 560
shirt.mobi - 260
system.mobi - 421
cheese.mobi - 230
fruit.mobi - 755
icon.mobi - 260
raw.mobi - 750
seguridad.mobi - 211
ship.mobi - 800
smoke.mobi - 180
smoking.mobi - 420
spider.mobi - 260
stadt.mobi - 1,050
telefonino.mobi - 300
purple.mobi - 140
sportinggoods.mobi - 300 
scanner.mobi - 250
transportation.mobi - 335
libre.mobi - 310
moviedownloads.mobi - 300 
revolution.mobi - 385
society.mobi - 220
tempo.mobi - 500 - reserve not met
medien.mobi - 211
minutes.mobi - 270
pull.mobi - 100
rule.mobi - 121 - reserve not met
running.mobi - 260 - reserve not met
sicherheit.mobi - 80
sister.mobi - 420
statement.mobi - 120
fertile.mobi - 100
ricerca.mobi - 160
right.mobi - 260
sand.mobi - 370
shower.mobi - 236