AirWair International Ltd. v. Pull & Bear Espana SA

District Court, N.D. California·Decided May 4, 2020·No. 3:19-cv-07641·Unknown

Opinion

AIRWAIR INTERNATIONAL LTD., Case No. 19-cv-07641-SI

Plaintiff, ORDER GRANTING MOTION TO DISMISS v.

PULL & BEAR ESPANA SA, et al., Dkt. No. 27 Defendants.

Before the Court is the motion by defendant Pull & Bear España, S.A. (“Pull & Bear”) to dismiss for lack of personal jurisdiction. Dkt. No. 27. Pursuant to Civil Local Rule 7-1(b) and General Order 72, the Court finds this matter appropriate for resolution without oral argument and hereby VACATES the May 8, 2020 hearing. Having considered the papers submitted and for good cause shown, the Court GRANTS Pull & Bear’s motion to dismiss without leave to amend. Plaintiff AirWair International Ltd. is a wholly-owned subsidiary of United Kingdom company Dr. Martens AirWair Group Ltd. (collectively “AirWair”). Dkt. No. 22, ¶ 1 (Am. Compl.). In this action, AirWair brings trademark infringement, trademark dilution, and unfair competition claims under federal and California state law against two defendants. Id. ¶¶ 45-71. Defendant Pull & Bear is a Spanish company “owned by international fashion-retailer Inditex” and allegedly infringing AirWair’s intellectual property rights by marketing, distributing, offering for sale, and selling shoes that unlawfully copy Dr. Martens’ trade dress. Id. ¶¶ 2, 26-27. Defendant ITX USA, LLC (“ITX”) is allegedly “a United States sister company or other & Bear] e-commerce business’ in the United States” and “operates [Pull & Bear’s] U.S.-facing website selling a broad range of clothing and footwear” under “Pull & Bear’s express direction and with Pull & Bear’s substantial oversight.” Id. ¶¶ 5-6. Pull & Bear moves to dismiss the action in its entirety, arguing the Court lacks jurisdiction because Pull & Bear does not distribute goods, market, or advertise in California or the U.S. Dkt. No. 27 at 9 (Mot. to Dismiss). Defendant ITX does not join the motion. In the Amended Complaint, AirWair’s substantive allegations establishing specific personal jurisdiction over Pull & Bear in California are:

[T]he Pull & Bear Spain-facing website informs customers that they may purchase products online from the United States. . . . [T]o the extent ITX alone manages some portion of Pull & Bear’s U.S.-facing self-branded website, accessible at https://www.pullandbear.com/us, Pull & Bear, alone or in collusion with ITX, is responsible for setting the product offerings, prices, and preparing the marketing materials and photos used on [the website]. Such control is evidenced by the indistinguishability between the U.S.-facing [screenshot] and Spain-facing [screenshot] websites, the latter of which is not managed in any part by ITX. . . . Defendants also advertise in the United States through Facebook [web address], Instagram [web address], and Twitter [web address]. Through these popular channels, Defendants market and promote Pull & Bear-branded products, including the infringing footwear, in California, and throughout the United States. Defendants have a domain name that is specifically targeted and purposefully directed to United States residents. Orders submitted on the website are priced in U.S. dollars and ship to the United States, including California. AirWair is informed and believes that the Pull & Bear-branded infringing footwear has been regularly sold in California and in the Northern District of California.1 . . . AirWair is further informed and believes, based on the presence of a physical return location in the United States, that Pull & Bear conducts substantial business and sales in the United States and California. Dkt. No. 22, ¶¶ 29, 32-34 (Am. Compl.). AirWair also alleges purposeful direction at California consumers based on the Pull & Bear website’s description of its physical “store design as taking the ‘California concept to a new level, drawing inspiration from the iconic atmosphere of Palm Springs and other settings from the American West Coast,’” which is further detailed in an article describing Pull & Bear’s “California-style” flagship retail store in Paris, France. Id. ¶ 36; Dkt. No. 22-1, Ex. 17. Plaintiff’s opposition to the instant motion alleges additional facts of a licensing

1 The only evidence in support of this are two receipts attached to the Amended Complaint. See Dkt. No. 22-1, Ex. 7. One is a “commercial invoice” from ASOS, a U.K. company not named in this action, for shipping a Pull & Bear shoe to San Francisco; the other is a receipt for three pairs partnership between UCLA and Pull & Bear leading to a physical shop on campus and a “#UCLAxPullandBear Instagram show[ing] dozens of UCLA students wearing Pull & Bear apparel.” Dkt. No. 33 at 11 (Opp’n); see Dkt. No. 33-1, Ex. A (Yocum Decl. in Supp. of Opp’n). Alternatively, AirWair asserts this Court can exercise personal jurisdiction over Pull & Bear based on an alter ego theory. Dkt. No. 33 at 20 (Opp’n). AirWair contends Pull & Bear and ITX are “intertwined with respect to Pull & Bear brand’s presence in the United States market” based on the terms and conditions page of the U.S.-facing Pull & Bear website, which includes a consumer rights notice for California users, and directs such users to contact ITX with inquiries. Dkt. No. 22, ¶ 28 (Am. Compl.). The opposition alleges additional facts that “ITX’s very few employees are also employed by related entities, and half appear to reside in Spain. AirWair’s research revealed the following ITX officers, who, not coincidentally, have served at least one concurrent role with a Pull & Bear-related company.” Dkt. No. 33 at 21 (Opp’n). Four ITX corporate officers are identified: one is “also a director at Pull & Bear UK,” and the other three “also hold[] or held at least one other position with Inditex or an Inditex subsidiary” as President, director, Managing Director, or CEO. Id.; Dkt. No. 33-1, ¶ 16 (Yocum Decl. in Supp. of Opp’n).2 AirWair asserts this Court can also exercise personal jurisdiction over Pull & Bear on a nationwide basis under the federal long-arm statute. Dkt. No. 33 at 23 (Opp’n). AirWair does not contest that this Court has no general personal jurisdiction over Pull & Bear. See Dkt. No. 27 at 9 (Mot. to Dismiss). “When a defendant moves to dismiss for lack of personal jurisdiction, the plaintiff bears the burden of demonstrating that the court has jurisdiction over the defendant.” Pebble Beach Co. v. Caddy, 453 F.3d 1151, 1154 (9th Cir. 2006). “The court may consider evidence presented in

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