Allstar Marketing Group, LLC v. Your Store Online, LLC

666 F. Supp. 2d 1109, 2009 U.S. Dist. LEXIS 90994, 2009 WL 3156558
CourtDistrict Court, C.D. California
DecidedAugust 10, 2009
DocketCase CV 09-02094 MMM (AGRx)
StatusPublished
Cited by61 cases

This text of 666 F. Supp. 2d 1109 (Allstar Marketing Group, LLC v. Your Store Online, LLC) is published on Counsel Stack Legal Research, covering District Court, C.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Allstar Marketing Group, LLC v. Your Store Online, LLC, 666 F. Supp. 2d 1109, 2009 U.S. Dist. LEXIS 90994, 2009 WL 3156558 (C.D. Cal. 2009).

Opinion

ORDER DENYING DEFENDANT’S MOTION TO DISMISS OR TRANSFER

MARGARET M. MORROW, District Judge.

On May 15, 2009, plaintiffs Allstar Marketing Group, LLC (“Alistar”) and Felknor Ventures, LLC (“Felknor”) commenced this action against defendants Your Store Online, LLC (“YSO”), Chris Reoch, Paul Reoch, TV Market, LLC, and TV Marketplace, LLC, alleging, inter alia, violation of plaintiffs’ trademarks with regard to three products: “Snuggie” brand fleece sleeved blankets, “Topsy Turvy” brand tomato planters, and “Aqua Globes” brand plant watering bulbs. On June 15, 2009, defendants filed a motion to dismiss for lack of personal jurisdiction and improper venue, or, in the alternative, for transfer to the Eastern District of Wisconsin.

I. FACTUAL & PROCEDURAL BACKGROUND

Alistar is a New York limited liability company with its principal place of business in New York; 1 Felknor is a Tennessee limited liability company with its principal place of business in Tennessee. 2 Alistar is a producer and distributor of “unique household products,” including the three products at issue in this case. It markets the products through direct response television advertising. 3 Allstar created the Snuggie and Aqua Globes products. 4 Felknor created the Topsy Turvy product and granted Allstar an exclusive license to market it in June 2008. 5

The Snuggie is a fleece blanket with attached sleeves, which Alistar began marketing in August 2008. 6 The product has been featured in the New York Times, and on “Real Time with Bill Maher,” “The Tonight Show with Jay Leño,” and “The Oprah Winfrey Show.” 7 Allstar alleges *1116 that it owns common law trademark rights in the mark “Snuggie” for use in connection with sleeved blankets. 8 Its federal trademark applications for the mark are pending. 9

The Aqua Globes are stained blown glass watering bulbs designed to water potted plants. 10 Allstar is the owner of a federal trademark registration for the mark “Aqua Globes” for use in connection with “plant watering globes of blown glass.” 11 It also claims common law trademark rights in the “Aqua Globes” marks. 12

Felknor is the owner of United States Patent No. 6,874,278, which covers a hanging planter designed to grow transplanted plants upside down, and a federal trademark registration for the mark “Topsy Turvy” for use in connection with planters. 13 It is also the owner of a copyright in a photograph of the Topsy Turvy product. 14

Chris and Paul Reoch are the co-owners, managing members, and sole employees of YSO, a Wisconsin limited liability company with its principal place of business in Wisconsin. 15 YSO conducts business through its online store located at <youronlinestore.net>. 16 Plaintiffs assert that YSO “regularly advertises its products to and solicits business from California residents, and regularly ships products into [the Central District of California].” 17 They allege that defendants have infringed their trademark rights in the products at issue by marketing and selling sleeved fleece blankets under the names “Snuggie” or “Snuggle”; hanging planters identical in appearance to the Topsy Turvy under the name “Topsy Turny”; and watering bulbs under the name “Aqua Globes.” 18 In addition plaintiffs allege that defendants have purchased the terms “Snuggie” and “Aqua Globes” as keywords for Internet advertising programs, including Google’s “Ad-Words.” 19 As a result, an advertisement with a link to defendants’ website appears when customers run searches using those words. 20 Plaintiffs further allege that defendants have used the word “Snuggie” in the headers and text of their website to ensure that their site appears as a search result when search engine users search for “Snuggie.” 21 They allege that defendants have used the copyrighted photograph of the Topsy Turvy in packaging and advertising for the Topsy Turny. 22 Finally, plaintiffs alleges that defendants have marketed their products with the “As Seen on TV” label, despite the fact that defendants have never paid for television advertising. 23

*1117 With regard to all three products, plaintiffs assert a variety of Lanham Act claims; unfair competition and false advertising claims under California Business and Professions Code §§ 1200 and 17500; and common law unfair competition and trademark infringement claims. In addition, they assert a copyright infringement claim based on defendants’ use of the Topsy Turvy photograph.

On June 15, 2009, Chris and Paul Reoch filed the present motion. The Reoches argue that they are not subject to personal jurisdiction in this district in their individual capacities and that venue is improper. They do not, however, argue that the court lacks jurisdiction over the corporate defendants. Alternatively, the Reoches argue that, even if the court can exercise personal jurisdiction over them and venue is proper, the court should transfer the case to the Eastern District of Wisconsin under 28 U. S.C. § 1404(a) for the convenience of the parties and witnesses and in the interests of justice. 24

II. THE MOTION TO DISMISS

A. Standard Governing Motions To

Dismiss for Lack of Personal Jurisdiction

When a defendant moves to dismiss under Rule 12(b)(2), the plaintiff bears the burden of demonstrating that the court may properly exercise personal jurisdiction over the defendant. Pebble Beach Co. v. Caddy, 453 F.3d 1151, 1154 (9th Cir.2006); Bohara v. Backus Hosp. Medical Benefit Plan, 390 F.Supp.2d 957, 961 (C.D.Cal.2005) (citing Ziegler v. Indian River County, 64 F.3d 470, 473 (9th Cir.1995)).

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666 F. Supp. 2d 1109, 2009 U.S. Dist. LEXIS 90994, 2009 WL 3156558, Counsel Stack Legal Research, https://law.counselstack.com/opinion/allstar-marketing-group-llc-v-your-store-online-llc-cacd-2009.