Barranco v. 3D Systems Corp.

6 F. Supp. 3d 1068, 2014 U.S. Dist. LEXIS 34580, 2014 WL 1091740
CourtDistrict Court, D. Hawaii
DecidedMarch 17, 2014
DocketCivil No. 13-00412 LEK-RLP
StatusPublished
Cited by10 cases

This text of 6 F. Supp. 3d 1068 (Barranco v. 3D Systems Corp.) is published on Counsel Stack Legal Research, covering District Court, D. Hawaii primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Barranco v. 3D Systems Corp., 6 F. Supp. 3d 1068, 2014 U.S. Dist. LEXIS 34580, 2014 WL 1091740 (D. Haw. 2014).

Opinion

ORDER DENYING DEFENDANTS’ MOTION TO DISMISS PURSUANT TO FED. R. CIV. P. 12(b)(2) OR, IN THE ALTERNATIVE, TO TRANSFER PURSUANT TO 28 U.S.C. § 1404

LESLIE E. KOBAYASHI, District Judge.

On October 21, 2013, Defendants 3D Systems Corporation (“3D Corp.”), 3D Systems, Inc. (“3D Inc.,” collectively, “3D Systems”), Abraham Reichental (“Reichen-tal”), and Damon Gregoire (“Gregoire,” collectively “Defendants”) filed their Motion to Dismiss Pursuant to Fed.R.Civ.P. 12(b)(2) or, in the Alternative, to Transfer Pursuant to 28 U.S.C. § 1404 (“Motion”). [Dkt. no. 6.] Plaintiff Ronald Barranco (“Plaintiff’) filed his memorandum in opposition on January 6, 2014, and Defendants filed their reply on January 14, 2014. [Dkt. nos. 27, 30.]

On January 31, 2014, this Court issued an entering order vacating the hearing on the Motion. [Dkt. no. 34.] After careful consideration of the Motion, supporting and opposing memoranda, and the relevant legal authority, Defendants’ Motion is HEREBY DENIED, for the reasons set forth below.

BACKGROUND

The Complaint asserts that, for the past thirty years, Plaintiff has worked in the field of 3D printing, which is the “additive manufacturing process of making a three-dimensional solid object of virtually any shape from a digital model.” [Complaint at ¶ 16.] Over the past fifteen years, Plaintiff also developed and owned several businesses in the 3D printing industry. [Id. at ¶ 17.]

[1072]*1072The Complaint alleges that, over the past twenty years, Plaintiff created and owned more than 100 domain names associated with different technologies and businesses in the 3D printing industry. [Id. at ¶ 18.] Examples of domain names that Plaintiff created include: (1) www.stereo lithography.com (“Stereolithogra-phy.com”); and (2) www.lasersintering. com (“Lasersintering.com”). Plaintiff created Stereolithography.com and Lasersin-tering.com on October 31,1997 and February 13, 2004, respectively. [Id. at ¶¶ 19, 23.] Stereolithography.com and Lasersin-tering.com were to license their respective domain names, websites, and instant online quote engines to “third parties who broker physical, three-dimensional printed objects.” [Id. at ¶¶ 22, 26.]

According to the Complaint, 3D Corp. is incorporated in Delaware and operates through its subsidiaries in the United States, Europe, and the Asia-Pacific region. 3D Corp. provides 3D eontent-to-print solutions, and produces 3D printers, integrated print materials, and on-demand custom parts services. Plaintiff alleges that 3D Inc. is a subsidiary of 3D Corp. Plaintiff also alleges that 3D Inc. is the alter ego and/or agent of 3D Corp., and that 3D Corp. is actively- involved in the day-to-day operations of 3D Inc. Plaintiff asserts that both 3D Corp. and 3D Inc. have: corporate offices located at the same address in Rock Hill, South Carolina; and common officers and directors, including Reichental and Gregoire. 3D Corp. is involved in the acquisitions, of 3D Inc., and also transacts business by or on behalf of 3D Inc. [Id. at ¶¶ 27-34.].

The Complaint alleges that, on July 10, 2001, 3D Systems contacted Plaintiff in Hawai’i to see if he would be interested in selling Stereolithography.com and its related business, but Plaintiff declined. 3D Systems contacted Plaintiff again on June 6, 2009, this time to see if he would be interested in selling both Stereolithogra-phy.com and Lasersintering.com (collectively “Primary Domains”) and their related businesses. Plaintiff again declined. [Id. at ¶¶ 35-36.] * Plaintiff asserts that 3D Systems invented the stereolithogra-phy process and was a major participant in the stereolithography and laser sinter-ing sectors of the industry. Nevertheless, 3D Systems did not own the domain names “Stereolithography.com” and “Las-ersintering.com”, which were valuable to 3D Systems. Plaintiff declined to sell his Primary Domains to 3D Systems when a representative called him in Hawai’i on April 6, 2010. [Id. at ¶¶ 37-41.]

Plaintiff alleges that, in mid-February 2011, Abraham Reichental, President and CEO of 3D Systems, invited Plaintiff and Deelip Menezes to 3D Systems’s corporate headquarters in Rock Hill, South Carolina to discuss Print3D Corporation (“Print3D”), which Plaintiff and Menezes own. On February 17, 2011, Plaintiff and Menezes met with Reichental, Senior Vice President and Chief Financial Officer Damon Gregoire, and other 3D Systems representatives in Rock Hill to discuss. Plaintiff alleges that, during this meeting, 3D Systems told Plaintiff and Menezes that it was interested in acquiring Print3D’s assets, and the parties agreed on a purchase price of $10 million. [Id at ¶¶ 42-44.] Plaintiff also informed Reic-hental that he was undergoing daily chemotherapy treatments for leukemia, which he had been diagnosed with in September 2009. The Complaint asserts that, due to the progression of Plaintiffs leukemia, he was interested in selling Print3D. [Id. at ¶ 45.]

Plaintiff alleges that, on March 27, 2011, Reichental called Plaintiff in Hawai’i to ask whether Plaintiff was interested in selling his Primary Domains to 3D Systems. [Id. at ¶ 46.] During that phone call, Plaintiff [1073]*1073told Reichental that he would meet with him and other 3D Systems representatives to discuss the possible sale of his Primary Domains. Plaintiff alleges that, at this time, he was still undergoing daily chemotherapy treatments, which affected his mental health. The parties agreed to meet in Los Angeles, California, in- early April 2011. The Complaint asserts .that, by April 2011, Plaintiff was receiving annual license fees of approximately $150,000 for Stereolithography.com, pursuant to a non-exclusive license agreement with non-party Cranston LLC (“Cranston”). [Id. at ¶¶ 47-50.] Plaintiff was also receiving approximately $100,000 annually for Laser-sintering.com, pursuant to a non-exclusive license agreement with non-party Additive Manufacturing LLC (“Additive”). [Id. at ¶ 51.]

The Complaint alleges that, on April 3, 2011, Plaintiff and Menezes met with Gre-goire, and in-house counsel for 3D Systems, Andrew Johnson, in Los Angeles for about three hours and twenty minutes. The first three hours of the meeting concerned the sale of Print3D to 3D Systems. Menezes then left, and the remainder of the meeting was between Plaintiff, Gre-goire, and Johnson, regarding the' sale of the Primary Domains to 3D Systems. [Id. at ¶¶ 52-53.] The Complaint alleges that, during this portion of the meeting, Gre-goire confirmed that Plaintiff should receive between $5 million and $10 million for the sale of his Primary Domains to 3D Systems. [Id. at ¶ 54.] Gregoire invited Plaintiff to meet with him and Reichental again on April 5, 2011. At their first meeting on April 5, Gregoire emailed Plaintiff a summary of 3D Systems’s valuation of Lasersintering.com and Plaintiffs interest in the Print3D assets. [Id. at ¶¶ 55-57 (citing id., Exh. A).] Plaintiff alleges that this summary valued Lasersin-tering.com at $1,649,322, and that the summary did not include a valuation of Ster-eolithography.com, which was generating approximately fifty percent more income. [Id. at ¶ 58.]

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Cite This Page — Counsel Stack

Bluebook (online)
6 F. Supp. 3d 1068, 2014 U.S. Dist. LEXIS 34580, 2014 WL 1091740, Counsel Stack Legal Research, https://law.counselstack.com/opinion/barranco-v-3d-systems-corp-hid-2014.