Euromarket Designs, Inc. v. Crate & Barrel Ltd.

96 F. Supp. 2d 824, 2000 U.S. Dist. LEXIS 6746, 2000 WL 640963
CourtDistrict Court, N.D. Illinois
DecidedMay 16, 2000
Docket99 C 6926
StatusPublished
Cited by39 cases

This text of 96 F. Supp. 2d 824 (Euromarket Designs, Inc. v. Crate & Barrel Ltd.) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Euromarket Designs, Inc. v. Crate & Barrel Ltd., 96 F. Supp. 2d 824, 2000 U.S. Dist. LEXIS 6746, 2000 WL 640963 (N.D. Ill. 2000).

Opinion

MEMORANDUM OPINION AND ORDER

MORTON DENLOW, United States Magistrate Judge.

Cyberselling is here to stay. The Internet makes it possible for persons worldwide to buy, sell and ship goods to or from anywhere in the world from their own living room using a computer and an Internet hook-up. 1 Courts and legislatures must keep pace with the ever changing world of cyberspace. This opinion addresses the issue of whether an Irish retailer with an interactive website allowing Illinois residents to order goods from Illinois for shipment to a foreign address can be sued in Illinois by an Illinois company for violation of the Lanham Act.

Plaintiff Euromarket Designs, Inc., d/b/a Crate & Barrel (“Crate & Barrel”) filed a three-count complaint alleging trademark violations under the Lanham Act, 15 U.S.C. § 1051 et seq., and the Illinois Uniform Deceptive Trade Practices Act, 815 ILCS § 510/2 et seq. arising out of the alleged use of the Crate & Barrel mark by Defendant Crate & Barrel Limited (“Limited” or “Defendant”). Defendants Limited, Miriam Peters (“Peters”), and Point Blank Multimedia (“Point Blank”) bring this motion to dismiss for lack of subject matter jurisdiction or personal jurisdiction pursuant to Federal Rules of Civil Procedure 12(b)(1) and (2). In the alternative, Defendants move to stay the proceedings pending the disposition of related litigation in Ireland and the United Kingdom.

At oral argument on April 20, 2000, the claims against Miriam Peters and Point Blank Multimedia were dismissed, without prejudice, on Plaintiffs oral motion. Therefore, the issue to be decided is whether to dismiss the action for lack of subject matter or personal jurisdiction as to Limited. For the reasons set forth below, the Court denies Limited’s motion to dismiss and motion to stay proceedings because the Court has both subject matter jurisdiction over the dispute and personal jurisdiction over Limited.

I. FACTUAL BACKGROUND

A. Crate & Barrel, Plaintiff

Plaintiff Crate & Barrel is an Illinois corporation with its principal place of business in Northbrook, Illinois. (PLComp. ¶ 1). Plaintiff has used the name and mark “Crate&Barrel” exclusively for more than 35 years in connection with its business as a retailer selling housewares and furniture. (PLCompJ 8). Plaintiff is the owner of federal trademark and service mark registrations for both “Crate&Barrel” and “CRATE AND BARREL,” and also owns a large number of foreign registrations for the marks, including registrations in Ireland, the United Kingdom, and the European Community. (Id.). Plaintiff has characterized its name and mark as “one of the most famous, celebrated, and well-regarded.” (PLComp. ¶ 9).

In addition to extensive advertising and sales in the United States and abroad, Plaintiff has developed and registered an interactive website on the Internet at the domain name “www.crateandbarrel.com.” (PLCompJ 14). The website contains information about Crate & Barrel products and other business information. (PLComp. ¶ 10). Website visitors worldwide may purchase products from Plaintiff using the website. (Id.).

B. Crate & Barrel Limited, Defendant

Defendant Limited is a corporation organized under the law of Ireland with a principal place of business at 56/57 Upper *829 Georges Street, Dun Laoghaire, Co.> Dublin, Ireland. (Pl.Comp^ 2). Limited’s only retail store is located at this address. (D.Mot. to Dismiss, Ex. A ¶ 4). The retail store has the name “CRATE & BARREL” prominently displayed on- its facade. (Pl.Comp.Ex.5). The store was opened in 1994. (D. Reply Memo, Ex. A, ¶ 5).

Peters, an Irish citizen residing in Dublin, Ireland, is Director and Company Secretary of Limited. (D.Mot. to Dismiss, Ex. A). According to Plaintiff, Peters visited Illinois, saw the Crate & Barrel store in Oak Brook, Illinois, and returned to Ireland to open a retail store of the same name. The Plaintiffs characterization of these events has been controverted by Peters in one of her affidavits, where she claims that “the name Crate & Barrel Limited was selected based on the suggestion of a friend in Ireland.” . (D. Reply Memo., Ex. A ¶ 6).

After the Crate & Barrel retail store was opened in Ireland, Limited also created and registered an Internet website at the domain name “www.crateandbarrel-ie. com.” (Pl.’s Compl. ¶ 16 and Ex. 4). The website identifies itself as Crate & Barrel, and allows website visitors worldwide to both view and purchase the same household goods and furniture sold in the retail store. (Pl.Supp.Memo, Ex. A). The goods sold by Limited are similar to the types of goods offered for sale by plaintiff.

On its website, Limited’s goods were priced in U.S. dollars until the commencement of this suit. (PLMemo., Ex. 8). After the suit was filed, Limited changed the valuation of its goods to Irish pounds and added the statement “Goods Sold Only in the Republic of Ireland” to the opening page of its website. (D.Supp,Submissions, Ex. C). Despite this statement, website users who wish to purchase goods are given the opportunity to select the United States as part of both their shipping and billing addresses. (Pl.Supp.Memo., Ex. A6). On the website pages containing the fields in which users are to ' enter their shipping and billing address information, the fields are clearly organized for a United States-format address. (Id.). There is an entry window for the ■ shipping/billing city, state, and zip code — a format unique to the United States. (Id.). The entry window for shipping/billing state contains a pull-down menu of the United States. (Id.).

Limited has made and maintained connections with the United States, and Illinois, in several ways. First, Limited has purchased goods ■ from vendors in Lisle, Chicago, and Hicksville, Illinois, and has made purchases from other vendors located in America. (Pl.Supp.Memo., Ex. D). Second, Limited, through its Director Miriam Peters, has participated in trade shows in the United States, including Chicago, Illinois, in order to promote its business. (Pl.Supp.Memo., Ex. E). Third, Limited advertises in publications, such as British Homes and Gardens and the Irish Times, that are circulated in the United States and specifically in Illinois. .(PI. Supp.Memo., Ex. Cl). Finally, in a transaction instigated by personnel at Plaintiffs law firm, Limited sold goods to an Illinois resident, April Wagner, who placed an order on Limited’s website for a set of beaded coasters. (Pl.Supp.Memo., Ex. A3). Ms. Wagner entered an Illinois billing address, and had the package sent to an address in Dublin, Ireland. (Pl.Supp. Memo., Ex. 6). The item’s packaging clearly indicated that the sender was “Crate & Barrel.” (Pl.Supp.Memo., Ex. A10).

C. Related. Litigation

Plaintiff has also filed suit against Defendants in the United Kingdom and the Republic of Ireland. (D.Mot. to Dismiss Ex. C and D).

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Cite This Page — Counsel Stack

Bluebook (online)
96 F. Supp. 2d 824, 2000 U.S. Dist. LEXIS 6746, 2000 WL 640963, Counsel Stack Legal Research, https://law.counselstack.com/opinion/euromarket-designs-inc-v-crate-barrel-ltd-ilnd-2000.