Fake Turkish #IQOS store leads to another #UDRP win for Philip Morris Products S.A.

It’s already established that Philip Morris, manufacturers of the iqos product, has been setting new UDRP records.

In early June, we observed a total of 197 cases all of which Philip Morris won. It’s the last day in July, and the current total is 235 UDRP cases, with some of them involving more than one domain.

One of the most recent cases is interesting, because it involves the IDN domain ıqos.com which is using a Turkish “i” letter. The real domain is xn--qos-iua.com and the content shared on it proclaims that they are representatives of IQOS products for the Turkish market.

Philip Morris does not offer the IQOS branded products in Turkey, however, so the domain’s owners are involved in fraud as well as cybersquatting.

As expected, the WIPO panelist’s decision was to transfer the domain to the Complainant, and away from the Respondent, Yuksel Kambal.

Full details on the decision for ıqos.com follows:

Philip Morris Products S.A. v. Yuksel Kambal
Case No. D2019-1209

1. The Parties

The Complainant is Philip Morris Products S.A., Switzerland, represented by Boehmert & Boehmert, Germany.

The Respondent is Yuksel Kambal, Turkey.

2. The Domain Name and Registrar

The disputed domain name <ıqos.com> [<xn--qos-iua.com>] is registered with PDR Ltd. d/b/a PublicDomainRegistry.com (the “Registrar”).

3. Procedural History

The Complaint was filed with the WIPO Arbitration and Mediation Center (the “Center”) on May 28, 2019. On May 28, 2019, the Center transmitted by email to the Registrar a request for registrar verification in connection with the disputed domain name. On May 29, 2019, 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.

The Center verified that the 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 and 4, the Center formally notified the Respondent of the Complaint, and the proceedings commenced on June 4, 2019. In accordance with the Rules, paragraph 5, the due date for Response was June 24, 2019. The Respondent did not submit any response. Accordingly, the Center notified the Respondent’s default on June 25, 2019.

The Center appointed Emre Kerim Yardimci as the sole panelist in this matter on July 4, 2019. 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.

4. Factual Background

The Complainant Philip Morris Products S.A. is a company which is part of the group of companies affiliated to Philip Morris International Inc. Philip Morris International Inc. is one of the leading international tobacco companies, with products sold in approximately 180 countries.

The Complainant is selling smoke-free cigarettes under its IQOS brand and owns several international trademark registrations for IQOS including the following:

– International Registration No. 1218246 for the trademark IQOS extended to Turkey, registered July 10, 2014, covering tobacco products and electronic cigarettes, in classes 9, 11 and 34;

– International Registration No. 1329691 for the trademark IQOS logo extended to Turkey, registered August 10, 2016, covering tobacco products and electronic cigarettes, in classes 9, 11 and 34;

The disputed domain name was registered on April 20, 2019, in the name of the Respondent who is a physical person domiciled in Istanbul, Turkey. The disputed domain name resolves to an active website in Turkish offering the Complainant’s products for sale.

5. Parties’ Contentions

A. Complainant

The Complainant asserts that the disputed domain name <ıqos.com> is identical to the Complainant’s trademark IQOS. The ASCII character “ı” – which is used in the Turkish alphabet – is the identical capital letter “I” in latin alphabet.

The Complainant considers that the Respondent has no rights or legitimate interests in respect of the disputed domain name, mainly because the Complainant has neither licensed nor otherwise authorized the Respondent to use its marks or to apply for or use any domain name incorporating the trademark IQOS. The Complainant further asserts that the conditions of Oki Data Americas, Inc. v. ASD, Inc., WIPO Case No. D2001-0903 for a bona fide offering of goods and services by an authorized or non-authorized third party are not satisfied.

Finally, in addressing the question of registration and use of the disputed domain name in bad faith, the Complainant observes that the Respondent is well aware of the Complainant’s trademark considering that the Respondent is using the Complainant’s marketing material and that the Respondent’s website clearly suggests that the website belongs to the Complainant or is an official affiliated dealer endorsed by the Complainant.

The fact that the website does not provide any information on the true identity of the website provider clearly shows that the Respondent intentionally creates the impression that the products offered on the Respondent’s website are provided by the Complainant. It is indicated on the Respondent’s website that the subject website is the “Iqos Turkey original sale site”. Accordingly, the Respondent is blatantly trying to mislead users on the source of the website and thereby attract, for commercial gain, Internet users to the website.

B. Respondent

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

6. Discussion and Findings

Paragraph 4(a) of the Policy sets forth the following three elements which the Complainant must prove, during the administrative proceedings, to merit a finding that the disputed domain name be transferred to the Complainant:

(a) the disputed domain name is identical or confusingly similar to a trademark or service mark in which the Complainant has rights; and

(b) the Respondent has no rights or legitimate interests in respect of the disputed domain name; and

(c) the disputed domain name has been registered and is being used in bad faith.

Pursuant to paragraph 15(a) of the Rules, the Panel shall decide a Complaint on the basis of the statements and documents submitted and in accordance with the Policy, the Rules and any rules and principles of law that it deems applicable.

A. Identical or Confusingly Similar

Paragraph 4(a)(i) of the Policy requires the Complainant to show that the disputed domain name is identical or confusingly similar to a trademark or service mark in which the Complainant has rights. A trademark registration provides a clear indication that the rights in the mark shown on the trademark certificate belong to its respective owner.

As indicated above, the Complainant holds several trademark registrations for the IQOS trademark. The disputed domain name <ıqos.com> is almost identical to the Complainant’s IQOS trademark. As regards the generic Top-Level Domain (“gTLD”) “.com”, it is typically disregarded under the confusing similarity test under the Policy.

Consequently, the Panel finds that the Complainant has shown that the disputed domain name is confusingly similar to a trademark in which the Complainant has rights.

B. Rights or Legitimate Interests

The onus is on the Complainant to make out at least a prima facie case that the Respondent has no rights or legitimate interests in the disputed domain name and it is then for the Respondent to rebut this case.

Although the Respondent did not file a Response, a respondent’s default does not automatically result in a decision in favor of the complainant. See WIPO Overview of WIPO Panel Views on Selected UDRP Questions, Third Edition (“WIPO Overview 3.0”), section 4.3 and the cases cited therein.

However, paragraph 14(b) of the Rules provides that, in the absence of exceptional circumstances, a panel shall draw such inferences as it considers appropriate from a failure of a party to comply with a provision or requirement of the Rules.

As there are no exceptional circumstances for the failure of the Respondent to submit a Response, the Panel infers that the Respondent does not deny the facts asserted and contentions made by the Complainant. Reuters Limited v. Global Net 2000, Inc, WIPO Case No. D2000-0441.

A number of UDRP decisions have addressed the question of when a reseller’s use of a mark constitutes a bona fide offering of goods and services. The general view on this was articulated in Oki Data Americas, Inc. v. ASD, Inc., supra. See WIPO Overview 3.0 at section 2.8. In that case, the authorized reseller’s domain name <okidataparts.com> incorporated the complainant’s OKIDATA trademark in full. The panel in Oki Data Americas, Inc. v. ASD, Inc., supra, concluded that for a respondent to demonstrate that a resale offering was bona fide, the following conditions must be met:

“- the respondent must actually be offering the goods or services at issue;

– the respondent must use the corresponding website to sell only the trademarked goods, otherwise there is the possibility that the respondent is using the trademark in a domain name to bait consumers and then switch them to other goods;

– the site itself must accurately disclose the respondent’s relationship with the trademark owner, i.e., respondent may not falsely suggest that it is the trademark owner, or that the website is the official site, if that is not the case; and

– the respondent must not try to “corner the market” in all relevant domain names, or deprive the trademark owner of reflecting its own mark in a domain name.”

In this case, it appears from the website, the Respondent has been operating its business of selling electronic cigarettes exclusively for the Complainant’s products under the disputed domain name.

That being said, the Respondent is using the stylized version or the logo of the IQOS trademark on the website. Moreover, the website includes the photos of the Complainant’s IQOS branded products and uses the marketing material of the Complainant. All of these circumstances give the impression that the Respondent is affiliated with the Complainant or it is authorized dealer of the Complainant.

More importantly, the Respondent’s website includes no clear information regarding the identity of the provider of the website. Instead, the website provider is indicated as “İqos Türkiye Orjinal Satış Sitesi” (“İqos Turkey Original Sales Site”).

Another point that is very relevant in this case is that the Complainant does not currently offer for sale its IQOS branded products in Turkey.

Lastly, there is no disclaimer on the webpage connected to the disputed domain regarding the relationship or lack thereof between the Complainant and the Respondent. In addition, the Panel notes, the nature of the disputed domain name carries a risk of association with the Complainant’s trademark. See WIPO Overview 3.0 at section 2.5.1.

For these reasons, the Panel concludes that the Respondent is not making use of the disputed domain name in connection with bona fide offering of goods or services.

In the Panel’s view, the Complainant has made out its prima facie case under this element of the Policy and the Respondent has failed to rebut it. Accordingly, the Complaint succeeds in relation to the second element of the Policy.

C. Registered and Used in Bad Faith

Finally, the Complainant must show that the disputed domain name has been registered and is being used in bad faith under paragraph 4(a)(iii) of the Policy.

Paragraph 4(b) of the Policy provides a non-exhaustive list of circumstances that, if found by a 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 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; or

(iii) the respondent has registered the domain name primarily for the purpose of disrupting the business of a competitor; or

(iv) by using the domain name, the respondent has intentionally attempted to attract, for commercial gain, Internet users to the respondent’s website or other online location, by creating a likelihood of confusion with the complainant’s mark as to the source, sponsorship, affiliation, or endorsement of the respondent’s website or location or of a product or service on the respondent’s website or location.

Considering the Panel’s finding under the second element, the Panel finds that the registration and use of the disputed domain name falls under the circumstances described under paragraph 4(b)(iv) of the Policy, namely, the Respondent has intentionally attempted to attract, for commercial gain, Internet users to its website or other online location, by seeking to create a likelihood of confusion with the Complainant’s mark as to the source, sponsorship, affiliation, or endorsement of the Respondent’s website.

Accordingly, the Panel finds that the requirements of paragraph 4(a)(iii) of the Policy have been met by the Complainant.

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 <ıqos.com> [<xn--qos-iua.com>] be transferred to the Complainant.

Emre Kerim Yardimci
Sole Panelist
Date: July 22, 2019

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