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Bids.com UDRP Denied As Being Outside The Scope Of UDRP Panel Decision

Posted on November 17, 2014
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Insolvency Services Group, Inc., which is the Assignee for the Benefit of Creditors of BIDZ.COM, INC. just won the UDRP on the domain name Bids.com which is currently in an bankruptcy auction with several other domains including Bidz.com

The sole panelist Sandra J. Franklin denied the UDRP finding the dispute is outside those cases that should be decided by the UDRP system.

As the domain name is currently one domain in a lot of domain name being auctioned off by Hilco Streambank (actually bids for the lot were due by last week) its still unclear what a buyer is buying; a clear title to bids.com or future litigation?

Here are the short but relevant facts and findings by the one person panel:

Complainant has rights in the registered BIDZ.COM trademark by virtue of an Assignment from BIDZ.COM, INC.

Respondent Leon Kuperman / LGK Consulting did not respond to the Complaint.

“Daniella Zinberg filed a response and an Additional Submission, but is not the listed owner of the disputed domain name and thus has no standing to file documents in this proceeding.

Therefore, no Response has been filed.

The dispute over the bids.com is the subject of lengthy history and contractual obligations that are outside the scope of the UDRP.

Complainant argues that this dispute is within the scope of the UDRP as a dispute between a former employee (Respondent Kuperman) who misappropriated the domain name for his own benefit.

Without even noting Daniella Zinberg’s arguments on this point, the Panel finds that Complainant’s own statements suggest the existence of a complicated business dispute underlying the ownership of both the BIDZ.COM mark and the bids.com domain name. The Panel notes that Complainant did not even provide the Assignment document upon which it rests its rights in the BIDZ.COM mark until its Additional Submission.

That Assignment document is not straightforward, particularly regarding the domain name, allegedly part of the assets of BIDZ.COM, INC.

Complainant presents a convoluted history regarding who is listed as the registrant of the disputed domain name, and a complicated history of the winding down of BIDZ.COM, INC.

Both the listed registrant of the disputed domain name and Daniella Zinberg have ties to BIDZ.COM, INC.; Leon Kuperman was the former President of BIDZ.Com, Inc. and Daniella Zinberg is allegedly the daughter of the founder of the company. Complainant also entertains the argument that it has not abandoned the use of the BIDZ.COM mark.

Thus, many issues have been raised which would require proof more suited to the thorough scrutiny afforded in litigation.

Thus, the Panel finds that this is a business dispute that falls outside the scope of the UDRP.

Accordingly, it is Ordered that the domain name REMAIN WITH RESPONDENT.”

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