DP Creations, LLC v. Adolly.com

CourtCourt of Appeals for the Tenth Circuit
DecidedOctober 15, 2024
Docket23-4126
StatusUnpublished

This text of DP Creations, LLC v. Adolly.com (DP Creations, LLC v. Adolly.com) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
DP Creations, LLC v. Adolly.com, (10th Cir. 2024).

Opinion

Appellate Case: 23-4126 Document: 43-1 Date Filed: 10/15/2024 Page: 1 FILED United States Court of Appeals UNITED STATES COURT OF APPEALS Tenth Circuit

FOR THE TENTH CIRCUIT October 15, 2024 _________________________________ Christopher M. Wolpert Clerk of Court DP CREATIONS, LLC, a Utah limited liability company, d/b/a Bountiful Baby,

Plaintiff - Appellant, No. 23-4126 v. (D.C. No. 2:22-CV-00230-DBB) (D. Utah) ADOLLY.COM, an unknown Chinese business entity; SHENZEN CITY AIDUOLA HUALIANWANG, LTD., an unknown Chinese business entity, d/b/a Adolly US; HUIZHOU CITY OTARD GIFTS, LTD., an unknown Chinese business entity, d/b/a Otarddolls; RUGAO LUOEN TRADING CO., LTD., an unknown Chinese business entity, d/b/a Reborn Doll Gallery; NANJING TIANZENG GIFTS, LTD., an unknown Chinese business entity, d/b/a NPK,

Defendants - Appellees. _________________________________

ORDER AND JUDGMENT* _________________________________

Before TYMKOVICH, BACHARACH, and CARSON, Circuit Judges. _________________________________

* After examining the briefs and appellate record, this panel has determined unanimously that oral argument would not materially assist in the determination of this appeal. See Fed. R. App. P. 34(a)(2); 10th Cir. R. 34.1(G). The case is therefore ordered submitted without oral argument. This order and judgment is not binding precedent, except under the doctrines of law of the case, res judicata, and collateral estoppel. It may be cited, however, for its persuasive value consistent with Fed. R. App. P. 32.1 and 10th Cir. R. 32.1. Appellate Case: 23-4126 Document: 43-1 Date Filed: 10/15/2024 Page: 2

This is a copyright case. The question on appeal is whether the district court

had personal jurisdiction over two Chinese companies that consented to jurisdiction

in any judicial district in which Amazon “may be found,” as that phrase is used

in 17 U.S.C. § 512(g)(3)(D). The district court interpreted the word “found” as

requiring plaintiff to show that Amazon does business in Utah such that it is subject

to suit and service of process there. The court determined that the plaintiff failed to

make that showing.

We conclude the district court applied the wrong test. Whether Amazon may

be found in Utah for § 512(g)(3)(D) purposes turns on whether its officers or agents

are in Utah carrying on Amazon’s business there, not whether the manner in which

Amazon does business in Utah renders it liable to suit and service of process there.

We further conclude Plaintiff showed that Amazon’s officers and agents are carrying

on Amazon’s business in Utah. Accordingly, exercising jurisdiction under 28 U.S.C.

§ 1291, we reverse the district court’s amended judgment and remand for further

proceedings.

I. Statutory Framework

Congress enacted Title II of the Digital Millenium Copyright Act (“DMCA”)

in 1998 to “preserve[] strong incentives for service providers and copyright owners to

cooperate to detect and deal with copyright infringements that take place in the

digital networked environment.” H.R. Rep. No. 105-796, at 72 (1998), as reprinted

in 1998 U.S.S.C.A.N. 639, 649. The DMCA also aimed to “provide[] greater

2 Appellate Case: 23-4126 Document: 43-1 Date Filed: 10/15/2024 Page: 3

certainty to service providers concerning their legal exposure for infringements that

may occur in the course of their activities.” Id.

When a copyright owner notifies a service provider (like Amazon) that a

subscriber’s material on the service provider’s system or network infringes its

copyrighted work, the service provider is not liable for copyright infringement if,

among other things, it expeditiously removes or disables access to the allegedly

infringing material. See § 512(c)(1)(C), (g)(4).1 If the service provider notifies the

subscriber that it has removed or disabled the material, it is not liable to any person

for having done so. See § 512(g)(1)–(2)(A).

The subscriber, however, may have the material replaced by submitting a

written counter notification to the service provider. § 512(g)(2)(B). To be effective,

the notice must, among other things, set out “a good faith belief that the material was

removed or disabled as a result of mistake or misidentification of the material.”

§ 512(g)(3)(C). And for subscribers whose “address is outside of the United States,”

the notice must contain “a statement that the subscriber consents to the jurisdiction of

Federal District Court . . . for any judicial district in which the service provider may

1 For purposes of subsections (c) and (g), and as relevant here, the DMCA defines “service provider” as “a provider of online services or network access, or the operator of facilities therefor.” 17 U.S.C. § 512(k)(1)(B). In the present case, Amazon is a service provider within the meaning of § 512(k)(1)(B) because it provides online services. See Corbis Corp. v. Amazon.com, Inc., 351 F. Supp. 2d 1090, 1100 (W.D. Wash. 2004) (holding that Amazon is a service provider as defined in § 512(k)(1)(B) because it “operates web sites, provides retail and third party selling services to Internet users, and maintains computers to govern access to its web sites”). 3 Appellate Case: 23-4126 Document: 43-1 Date Filed: 10/15/2024 Page: 4

be found.” § 512(g)(3)(D) (emphasis added). Further, the subscriber must state it

“will accept service of process from the person who provided notification under

subsection (c)(1)(C) or an agent of such person.” Id.

Upon receipt of an effective counter notification, the service provider may

secure relief from liability by giving a copy of the counter notification to the person

who provided the (c)(1)(C) notice, see § 512(g)(2)(B), and replacing the material

within the stated timeframe unless it receives notice of a judicial action seeking to

restrain the subscriber from engaging in infringing activity, see § 512(g)(2)(C).

II. Factual and Procedural Background

Plaintiff DP Creations, LLC, doing business as Bountiful Baby (“Bountiful

Baby”), manufactures kits and supplies for creating lifelike infant dolls known as

reborn dolls. Bountiful Baby owns copyrights for its reborn-doll sculptures. In

2022, Bountiful Baby learned that two Chinese companies—Shenzen City Aiduola

Hualianwang, Ltd., doing business as Adolly US (“AUS”), and Rugao Luoen Trading

Co., Ltd., doing business as Reborn Doll Gallery (“RDG”), were selling counterfeit

copies of reborn dolls through Amazon.2 Bountiful Baby notified Amazon, which

immediately took down the infringing materials and provided the companies with

§ 512(g)(2)(A) notifications. AUS and RDG submitted counter notifications tracking

2 Bountiful Baby learned that other Chinese companies were also offering counterfeit reborn dolls for sale through channels other than Amazon, and it named those companies as defendants in this action. The district court’s disposition of the claims against those other companies is not at issue in this appeal, so we do not discuss those claims. 4 Appellate Case: 23-4126 Document: 43-1 Date Filed: 10/15/2024 Page: 5

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DP Creations, LLC v. Adolly.com, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dp-creations-llc-v-adollycom-ca10-2024.