Keep up with the latest developments and legal issues in the telecommunications and emerging technology sectors, with exclusive access to a comprehensive collection of telecommunications law news,...
An online jewelry business that displayed images of a California-based competitor’s custom designs on its website and social media pages created the minimum contacts necessary to establish jurisdiction over the business, the U.S. District Court for the Southern District of California ruled Dec. 15 ( Metzger v. Temple of Ancient Dragon, Inc. , 2016 BL 417888, S.D. Cal., No. 16cv1299-WQH-NLS, 12/15/16 ).
The defendant, Michigan-based Temple of the Ancient Dragon Inc., knew its action of copying the images would create customer confusion and harm the plaintiff, Deric Metzger, in California where he has his principal place of business, Judge William Q. Hayes said.
The decision shows that a court can exercise jurisdiction over an out-of-state defendant that doesn’t advertise directly towards the forum state and sells to few forum residents, on the basis that it infringed on the copyrighted works of a company in the state.
The assertion of specific personal jurisdiction, consistent with constitutional due process, requires a showing that the defendant purposefully directed its activities at residents of the forum state, and that the cause of action arose out of those activities.
Metzger, the operator of a California jewelry business, alleged that Temple of the Ancient Dragon copied Metzger’s custom jewelry designs onto its social media and advertising pages. The defendant, in moving to dismiss for lack of personal jurisdiction, said that it didn’t direct its advertising to California residents and that its sales in the state accounted for less than 1 percent of its total business.
The court said that because both parties designed and sold custom jewelry over the internet and have sold jewelry to California, the defendant knew that its conduct would cause harm to Metzger’s California business.
To contact the reporter on this story: Alexis Kramer in Washington at aKramer@bna.com
To contact the editor responsible for this story: Keith Perine at email@example.com
Full text at http://src.bna.com/kPg.
Copyright © 2016 The Bureau of National Affairs, Inc. All Rights Reserved.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)