The Complainant's SEXPOSITIVE progressive shop opened in 2018 in Parksville, British Columbia. It has amassed over 1,300 customers. The Registrant is an owner/operator of another local sex shop in the same area. The parties are known to each other and have a 'strained' relationship. The Registrant intends to direct users to a "sexpositive" blog and hopes to launch in the coming weeks. The Registrant states that "sexpositive" is simply a noun and the Complainant does not have any trademark rights "per se". The Panel noted that the term *is* capable of acquiring trademark rights and there was no evidence supporting the the meaning of the term or its use understanding by consumers.
The Panel found that the Domain Name was registered in bad faith because the Registrant likely knew of the Complainant's shop and use of the term SEXPOSITIVE when it registered the Domain Name. Further, the evidence included allegations of "malicious actions" by the Complainant - for example, unwelcomed visits to the store and attending to poach the Registrant's employees - evidence that the Registrant acquired the Domain Name with a primary objective of harming its competitor.
You can read the decision here.