Coastal Video Communications, Corp. v. Staywell Corp.

59 F. Supp. 2d 562, 1999 U.S. Dist. LEXIS 11827, 1999 WL 592025
CourtDistrict Court, E.D. Virginia
DecidedAugust 2, 1999
Docket2:99cv198
StatusPublished
Cited by24 cases

This text of 59 F. Supp. 2d 562 (Coastal Video Communications, Corp. v. Staywell Corp.) is published on Counsel Stack Legal Research, covering District Court, E.D. Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Coastal Video Communications, Corp. v. Staywell Corp., 59 F. Supp. 2d 562, 1999 U.S. Dist. LEXIS 11827, 1999 WL 592025 (E.D. Va. 1999).

Opinion

OPINION AND ORDER

REBBECA BEACH SMITH, District Judge.

This matter comes before the court on the motion of The Staywell Corporation, d/b/a Krames Communications (“Krames”), to dismiss for lack of personal jurisdiction pursuant to Rule 12(b)(2) of the Federal Rules of Civil Procedure and plaintiffs motion seeking discovery on the issue of personal jurisdiction. 1 For the reasons stated below, the plaintiffs motion for discovery is GRANTED, pursuant to the guidelines contained in this opinion, and defendant’s motion to dismiss is taken under advisement pending the outcome of the limited discovery granted herein.

I. Factual Background

Plaintiff, Coastal Video Communications, Corp., d/b/a Coastal Training Technologies (“Coastal”), is a Virginia corporation engaged in the business of producing employee handbooks, video training programs, posters, and interactive CD-ROM courses. Coastal sells these products to companies throughout the United States. One of Coastal’s products is an employee handbook titled “Defending Your Safety Zone: Back Protection.”

The Staywell Company, d/b/a Krames Communications (“Krames”), is a Delaware corporation with its principal place of business in California. Krames is in the business of publishing patient education, health promotion, safety, and injury prevention training materials. As part of this effort, Krames publishes “Safety Zone: Using Natural Limits to Protect Your Back,” for which it holds U.S. Copyright Registration Number TX 3 208 886. Krames has held the copyright on this material since November, 1991.

On January 26, 1999, Krames and Times Mirror sent Coastal a cease and desist letter, notifying Coastal that the “Defending Your Safety Zone” handbook was an infringement of Krames’s “Safety Zone” copyright. The letter also discussed potential damages provided by law for copyright infringement and unfair' competition. *564 On February 6, 1999, Coastal filed the instant action, seeking a declaration that the handbook, “Defending Your Safety Zone: Back Protection,” does not infringe on copyrighted material contained in Krames’s “Safety Zone” handbook. On April 8, 1999, the instant motion to dismiss for lack of personal jurisdiction was filed.

Coastal, through the affidavits of Philip Price, Vice President of Marketing and Sales, and Pamela Rice, In-House Legal Counsel, offers the following facts in support of its argument that the court has personal jurisdiction over Frames. None of plaintiffs assertions summarized here are disputed by the defendant.

Frames sells its products to managed care organizations, more than seventy percent of hospitals in the United States, and to more than 100,000 physicians, nurses, and health educators in private practice and hospitals. Frames also sells its products to customers in fifty countries on six continents. Frames has also sold and distributed products in Virginia in the past and currently. Frames mailed product catalogs to individuals in Virginia, as recently as Winter, 1998. Frames has also sent mailings to Virginia residents at their homes and business addresses containing order forms for Frames products and free product samples. According to the Rice Affidavit, Frames also has apparently distributed and sold products to at least three hospitals located in Virginia: Chesapeake General Hospital, Virginia Beach General Hospital, and Sentara Norfolk General Hospital. However, there is no indication in plaintiffs affidavits that Frames’s “Safety Zone” publication was ever purchased by any of these hospitals. Furthermore, apart from allegations that the “Defense of the Safety Zone” publication is available for sale through the website and catalog and generic “products” have been sold in Virginia, there is no indication in the affidavits provided by plaintiff that any copies of Frames’s “Safety Zone” publication were actually sold in Virginia. Frames is qualified to do business in Virginia and maintains a registered agent in Virginia.

Although The Staywell Corporation and Frames Communications are in reality the same company, there are two separate websites in operation. Frames’s World Wide Web site advertises over 850 Frames products and allows customers to order products directly over the Web by completing order forms online. The Frames website also provides an “Ask Frames” service by which potential customers may e-mail questions about Frames products and services to the company. Frames offers the “Safety Zone” product over its website. In addition to the Frames site, there is also a separate site for Staywell. Staywell’s website states that it is the “premier provider of integrated health improvement and behavior change programs.” According to the site, Staywell is the exclusive creator and publisher of American Red Cross health and safety training programs and manuals. These materials are distributed by more than 1,300 local American Red Cross chapters around the country, including, presumably, those located in Virginia. Staywell publishes student course books, instructor training materials, videos, and slides for American Red Cross courses in First Aid, CPR, Aquatics, and mission-related care giving, such as child care, babysitting, and HIV/AIDS.

The website also describes Staywell products in the areas of health risk assessment, focused intervention, disease management, workplace wellness, and newsletter publishing, among others. The site lists a toll-free number to call with inquiries about Staywell products. Visitors to the site may download a free demonstration of a Staywell/Frames on-line “On Demand Patient Education Program.” The Staywell site also lists job opportunities available with the company, and permits interested individuals to send a resume to the company over the Internet, as well as provides an e-mail address and fax number *565 to contact the company concerning employment opportunities. 2

II. Discussion

Federal Rule of Civil Procedure 12(b)(2) permits dismissal of an action lacking the requisite personal jurisdiction. A district court applies the relevant state statute to determine whether the court has personal jurisdiction over a defendant. See Fed.R.Civ.P. 4(e)-(f). Determining whether personal jurisdiction exists is a two-step process that requires an assessment of whether (1) the particular facts and circumstances of a case fall within the state’s statutory language, and (2) the Due Process Clause of the Constitution would permit such jurisdiction to be asserted. Ellicott Mach. Corp., Inc. v. John Holland Party, Ltd., 995 F.2d 474, 477 (4th Cir.1993). However, because Virginia’s long-arm statute extends personal jurisdiction to the fullest extent permitted by due process, see English & Smith v. Metzger,

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Bluebook (online)
59 F. Supp. 2d 562, 1999 U.S. Dist. LEXIS 11827, 1999 WL 592025, Counsel Stack Legal Research, https://law.counselstack.com/opinion/coastal-video-communications-corp-v-staywell-corp-vaed-1999.