Advanta-Star Automotive Research Corporation of America v. Search Optics, LLC

CourtDistrict Court, E.D. Louisiana
DecidedOctober 27, 2021
Docket2:21-cv-01174
StatusUnknown

This text of Advanta-Star Automotive Research Corporation of America v. Search Optics, LLC (Advanta-Star Automotive Research Corporation of America v. Search Optics, LLC) is published on Counsel Stack Legal Research, covering District Court, E.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Advanta-Star Automotive Research Corporation of America v. Search Optics, LLC, (E.D. La. 2021).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF LOUISIANA

ADVANTA-STAR AUTOMOTIVE CIVIL ACTION RESEARCH CORPORATION OF AMERICA

VERSUS NO. 21-1174

SEARCH OPTICS, LLC, ET AL. SECTION: “G”

ORDER AND REASONS In this litigation, Plaintiff Advanta-Star Automotive Research Corporation of America (“Plaintiff”) alleges Defendants Search Optics, LLC and Search Optics USA, LLC (collectively, “Defendants”) infringed Plaintiff’s copyrighted material.1 Before the Court is Defendants’ “Motion to Dismiss for Lack of Personal Jurisdiction Pursuant to Federal Rule of Civil Procedure 12(b)(2).”2 Having considered the motion, the memoranda in support and in opposition, the reply, the record, and the applicable law, the Court grants the motion. I. Background On June 16, 2021, Plaintiff filed a Complaint against Defendants in this Court.3 According to the Complaint, Plaintiff is a Louisiana corporation that “creates, publishes, and sells detailed reviews, comparisons, and other original works of authorship related to automobiles and their

1 Rec. Doc. 1. 2 Rec. Doc. 16 3 Rec. Doc. 1. features.”4 Plaintiff alleges that it licenses its materials under paid, written lease agreements.5 Plaintiff claims that in late 2011 or early 2012, it learned that Defendants “had reproduced and distributed to its customers some of [Plaintiff]’s copyrighted content, all without [Plaintiff]’s permission.”6 According to Plaintiff, after confronting Defendants about the infringement, the

parties entered into a licensing agreement in April 2012, which was thereafter renewed in July 2013.7 Plaintiff claims that by late 2013, Defendants were in default of the agreement for failure to pay fees, and were distributing certain of Plaintiff’s materials for which they had no license.8 Plaintiff’s claim that Defendants “acknowledged both its payment failure and its unauthorized use of [Plaintiff]’s copyrighted work,” and agreed to pay its outstanding fees and cease infringement.9 Plaintiff alleges that in late 2019, it discovered that Defendants were involved in providing services to car dealerships that were infringing on Plaintiff’s materials.10 Plaintiff claims that Defendants told Plaintiff they were investigating the alleged infringement, but that Defendants ceased communications in July 2020.11

On August 16, 2021, Defendants filed the instant “Motion to Dismiss for Lack of Personal Jurisdiction Pursuant to Federal Rule of Civil Procedure 12(b)(2).”12 On August 30, 2021, Plaintiff

4 Id. at 1, 4. 5 Id. 6 Id. at 5. 7 Id. 8 Id. 9 Id. 10 Id. at 5–6. 11 Id. at 6. 12 Rec. Doc. 16 filed an opposition to the instant motion.13 On September 20, 2021, Defendants filed a reply brief in further support of the instant motion.14 II. Parties’ Arguments

A. Defendants’ Arguments in Support of the Motion to Dismiss On August 16, 2021, Defendants filed the instant motion to dismiss for lack of personal jurisdiction.15 Defendants argue that Plaintiff has not met its burden of establishing that this Court has personal jurisdiction over Defendants.16 Defendants claim that in the Complaint, Plaintiff’s assertion of personal jurisdiction simply “parrots” Louisiana’s long-arm statute.17 Defendants contend that Plaintiff has failed to provide any facts to establish personal jurisdiction in Louisiana and thus, the Complaint “fails as a matter of law.”18 Furthermore, Defendants argue that this Court does not have personal jurisdiction over Defendants.19 Defendants contend that the Court does not have specific personal jurisdiction because Plaintiff’s claims do not arise out of Defendants’ forum-related contacts.20 Defendants

highlight that all alleged acts of infringement took place in California and Illinois, and Defendants have no places of business nor employees in Louisiana.21 Defendants further claim that this Court

13 Rec. Doc. 22. 14 Rec. Doc. 27. 15 Rec. Doc. 16. 16 Rec. Doc. 16-1 at 3. 17 Id. 18 Id. at 4. 19 Id. 20 Id. at 5. 21 Id. does not have general personal jurisdiction over Defendants because Plaintiff has failed to plead any facts, and “there are no facts to plead,” concerning Defendants’ contacts with Louisiana.22 Defendants contend that they do not have continuous or systematic contacts with Louisiana, do not

have a place of business in the state, have no employees residing in the state, and did not make any sales or enter any contracts in Louisiana during the times relevant to this suit.23 B. Plaintiff’s Opposition to the Motion to Dismiss In opposition, Plaintiff argues that Defendants have sufficient minimum contacts with the State of Louisiana for this Court to exercise personal jurisdiction over Defendants.24 Plaintiff points to various parts of the Complaint alleging that Defendants had contacts with Louisiana.25 Specifically, Plaintiff asserts that it contacted Defendants regarding infringement of Plaintiff’s copyright-protected content in 2011 or 2012, and Defendants admitted to the infringement.26 Plaintiff avers that Defendants entered into more than one licensing agreement with Plaintiff in 2012, and that Defendants were required to get approval from Plaintiff before

publication of the licensed content.27 Plaintiff asserts that it confronted Defendants about nonpayment of their license fees and the unauthorized use of certain content.28 Plaintiff further asserts that, in 2019, it discovered unauthorized copies of its content being

22 Id. at 6. 23 Id. 24 Rec. Doc. 22. 25 Id. at 2–4. 26 Id. 27 Id. 28 Id. at 3. used by dealerships, and sent demand letters to the dealerships.29 Plaintiff claims that Defendants’ counsel then emailed Plaintiff’s counsel about certain dealerships’ unauthorized use of its content.30 Plaintiff further claims that Plaintiff and Defendants engaged in a “series of

communications by email and by phone” in which Defendants’ counsel said he would provide information about the individual who had used Plaintiff’s content without authorization.31 Plaintiff asserts that Defendants stopped communication with Plaintiff in January 2020.32 Furthermore, Plaintiff claims that Defendants “specifically inserted [themselves] in this case when [they] responded to Advanta-Star’s demand letters that were sent to two of [their] customers.”33 Based on these allegations, Plaintiff argues that Defendants have sufficient minimum contacts with Louisiana. Next, Plaintiff argues that these contacts are sufficiently linked to this cause of action to establish specific personal jurisdiction over Defendants. Plaintiff argues that the lack of physical presence in Louisiana is not determinative because “copyright infringement is a commercial tort which can cause effects where the copyright owner resides.”34 Thus, Plaintiff argues that “there is

a nexus between activities directed at a forum state that give rise to copyright infringement causing effects in that forum state.”35

29 Id. 30 Id. 31 Id. 32 Id. 33 Id. at 7. 34 Id. at 8 (citing Johnson v. Tuff N Rumble Mgmt., Inc., No. 99-1374, 1999 WL 1201891, at *4 (E.D. La. Dec. 15, 1999) (Vance, J.)). 35 Id. Furthermore, Plaintiff argues that its claims are related to Defendants contacts with Louisiana because Defendants “purposefully settled its prior copyright infringement dispute with Advanta-Star, a Louisiana company,” by entering into licensing agreements related to different

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Advanta-Star Automotive Research Corporation of America v. Search Optics, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/advanta-star-automotive-research-corporation-of-america-v-search-optics-laed-2021.