Cepia, LLC v. Universal Pictures Visual Programming Ltd.

177 F. Supp. 3d 1129, 2016 U.S. Dist. LEXIS 46902, 2016 WL 1383701
CourtDistrict Court, E.D. Missouri
DecidedApril 7, 2016
DocketNo. 4:15 CV 1181 JMB
StatusPublished
Cited by1 cases

This text of 177 F. Supp. 3d 1129 (Cepia, LLC v. Universal Pictures Visual Programming Ltd.) is published on Counsel Stack Legal Research, covering District Court, E.D. Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cepia, LLC v. Universal Pictures Visual Programming Ltd., 177 F. Supp. 3d 1129, 2016 U.S. Dist. LEXIS 46902, 2016 WL 1383701 (E.D. Mo. 2016).

Opinion

MEMORANDUM AND ORDER

JOHN M. BODENHAUSEN, United States Magistrate Judge

Currently before the Court is Defendants’ Motion to Dismiss Plaintiffs Complaint for Lack of Personal Jurisdiction (“Motion to Dismiss”), pursuant to Fed. R. Civ. P. 12(b)(2).1 (ECF No. 10) Plaintiff [1133]*1133filed a Memorandum in Opposition (ECF No. 14) and Defendants filed a Reply (ECF No. 20). On December 3, 2015, the Court heard oral argument on the Motion to Dismiss. All matters are pending before the undersigned, with the consent of the parties, pursuant to 28 U.S.C. § 636(c). The Court concludes that the Motion to Dismiss may be resolved on the basis of the existing record. For the reasons outlined below, Defendants’ Motion to Dismiss will be granted.

Procedural and Factual BaCkground

I. General Background

Plaintiff Cepia, LLC (“Cepia”) is a limited liability company incorporated under the laws of Missouri, with its principal place of business in St. Louis, Missouri. Cepia is in the business of developing, manufacturing, and selling innovative toys, including the ZhuZhu Pets Toy Line that inspired the movies, Quest for Zhu and Amazing Adventures of Zhu (“the Movies”). (ECF No. 1 at Exh. 1 at ¶¶2-3) Defendants in this matter are Universal Pictures Visual Programming Limited (“UPVP”) and Universal Pictures International Entertainment (“UPIE”) (sometimes collectively referred to herein as “Universals”). Defendants UPVP and UPIE are NBCUniversal business entities; both defendants are foreign corporations with their principal place of business in London, England. (Id. at ¶¶ 4-5)

Cepia initiated the instant lawsuit on July 31, 2015. Cepia’s Complaint seeks monetary damages and other remedies in connection with a dispute stemming from the marketing and distribution of two animated children’s movies produced by Ce-pia. In particular, Cepia alleges a breach of contract between UPVP and Cepia (Counts I and II), conversion by Defendants (Count III), and a breach of the implied duty of good faith and fair dealing by UPVP (Count IV). (ECF No. 1 at ¶ 1)

Cepia alleges diversity jurisdiction, pursuant to 28 U.S.C. § 1332. Cepia contends that this • Court has personal jurisdiction based on Defendants doing business with Cepia in this District and their commission of alleged tortious act(s) that have an effect in this district. (Id. at ¶ 9) Cepia argues that “Missouri is designated as the jurisdiction to administer the Distribution Agreement at issue, and the law of Missouri applies to the Distribution Agreement.” (Id.)

On September 15,2015, Defendants filed the instant Motion to Dismiss, claiming that this case should be dismissed for lack of personal jurisdiction. (ECF No. 10) In response, Cepia asserts that the Court can exercise personal jurisdiction over Defendant UPVP because UPVP entered into a Distribution Agreement and purposefully availed itself of the privilege of conducting business in Missouri.

The Court notes that Cepia’s response and Declaration of Laura Kurzu address only Defendant UPVP and the exercise of personal jurisdiction over UPVP; it is silent as to the exercise of personal jurisdiction over Defendant UPIE. During oral argument, the parties’ arguments indicated an agreement that UPIE was only tangentially involved in the matter. The record in this case indicates that the Court would have no independent basis to exercise personal jurisdiction over UPIE apart from that which might exist for UPVP. Inasmuch as the Court concludes that it lacks personal jurisdiction over UPVP, it also concludes that it lacks jurisdiction over UPIE. The remainder of this Memorandum and Order focuses on UPVP.

According to Cepia’s Complaint, Cepia conceived, developed, and manufactured a children’s Toy Line featuring motorized hamsters under 'the trademark ZhuZhu Pets. (ECF No. 1 at Exh. 1 at ¶¶ 11-13) [1134]*1134The Toy Line became a marketplace success, and Cepia heavily promoted the Zhu-Zhu Pets Toy Line throughout the United States and the United Kingdom. In 2010, Cepia extended distribution of the Toy Line beyond the United States to Europe, Asia, Australia, New Zealand, and North and South America. (Id. at ¶ 16) In addition to expanding its geographic distribution, Cepia extended the Toy Line to include additional creatures and combat hamsters, as well as related play sets and accessories under the Kung Zhu trademark. (Id. at ¶¶ 17-18) The ZhuZhu Pets and Kung Zhu toy lines were part of Ce-pia’s “Zhu-niverse” brand of toys. (Id. at ¶ 19) Cepia also developed Zhu-themed games, music, and videos showcasing the Zhu worlds and promoting Zhu products and driving Zhu-niverse toy sales. (Id. at ¶¶ 21-22) In 2011, Cepia financed and produced the Movies — Quest for Zhu and Amazing Adventures of Zhu (previously known as Kung Zhu). (Id. at ¶ 24; Glassman Aff. at ¶13)

Cepia approached NBCUniversal’s Home Entertainment division about marketing and distributing the Movies, and thereafter Cepia’s inquiries to UPVP came from agents for Cepia based outside of Missouri including agents located in the United Kingdom. (Glassman Aff. at ¶14) The agents discussed distribution and marketing of the Movies outside-the United States and Canada. (Glassman Aff. at ¶¶ 13-14) Cepia and UPVP entered into a Distribution Agreement governing the terns under which UPVP would have the exclusive right to distribute the Movies outside of the United States and Canada. (ECF No. 1 at Exh. A)

UPVP is an NBCUniversal entity. (Glassman Aff. at ¶¶ 4-5) In 2011 and 2012, UPVP’s business was primarily media marketing and distribution of films and television shows for home entertainment outside of North America. UPVP does not have any employees or agents in Missouri, does not own any property or bank accounts in Missouri, does not conduct business in Missouri, and is not licensed to do business in Missouri. (Glassman Aff. at ¶¶ 5-7) UPVP does not distribute any media for the home entertainment market in Missouri or order any finished products for distribution. (Id. at ¶¶ 9-10) UPVP did not advertise the Movies in Missouri. (Id. at ¶ 11)

II. Distribution Agreement

A. Summary of Pertinent Terms

The present dispute arises out of the Distribution Agreement (“the Agreement”) between Cepia and UPVP. A copy of the Agreement was filed with the Complaint as Exhibit A. (ECF No. 1-1) The Agreement is one-page in length, signed by representatives of Cepia and UPVP, and dated “4-21-2011.” (Id.) The Agreement is directed only to the distribution of the movies Quest for Zhu and Kung Zhu, but indicates that other titles would be “discussed in good- faith.” (Id.) The Agreement grants UPVP certain exclusive distribution rights relative to the two referenced Zhu movies. (Id.) In particular,, the Agreement grants UPVP “the exclusive right to distribute both Titles on DVD, Blu-ray, 3D Blu-ray, EST, VOD, and TV.” These exclusive rights, however, were territorial only and expressly excluded any distribution rights in the United States and Canada.

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177 F. Supp. 3d 1129, 2016 U.S. Dist. LEXIS 46902, 2016 WL 1383701, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cepia-llc-v-universal-pictures-visual-programming-ltd-moed-2016.