Factors Etc., Inc. v. Pro Arts, Inc.

444 F. Supp. 288
CourtDistrict Court, S.D. New York
DecidedOctober 13, 1977
Docket77 Civ. 4704 (CHT)
StatusPublished
Cited by15 cases

This text of 444 F. Supp. 288 (Factors Etc., Inc. v. Pro Arts, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Factors Etc., Inc. v. Pro Arts, Inc., 444 F. Supp. 288 (S.D.N.Y. 1977).

Opinion

OPINION

TENNEY, District Judge.

This is a companion action to Factors Etc., Inc. v. Creative Card Co., 444 F.Supp. 279 (S.D.N.Y.1977), in which an opinion was filed October 12, 1977 (“the Creative Card opinion”). The same plaintiffs, Factors Etc., Inc. (“Factors”) and Boxcar Enterprises, Inc., claiming to have the sole right to exploit through commercial souvenir merchandise the name and visage of the late Elvis Presley, are suing still another manufacturer of an allegedly infringing Presley poster, Pro Arts, Inc. (“Pro Arts”), and a retail distributor, The Stop and Shop Companies, Inc. (“Stop & Shop”), which sells that item. Plaintiffs have requested a preliminary injunction pursuant to Rule 65 of the Federal Rules of Civil Procedure (“Rules”), and defendant Pro Arts has moved pursuant to Rule 12(b) to dismiss for want of personal jurisdiction and/or improper venue, or, in the alternative, for transfer to the Northern District of Ohio pursuant to 28 U.S.C. § 1404(a) or for a stay of this action pending the outcome of proceedings between defendant Pro Arts and *290 plaintiff Factors in an action filed in that district. 1

For the reasons set out below and those incorporated by reference to the Creative Card opinion, defendant Pro Arts’ motions to dismiss, transfer or stay are denied, and plaintiffs’ motion for a preliminary injunction is granted.

Plaintiffs in this action are asserting an exclusive right to exploit the name and face of the late Elvis Presley, based on their alleged succession to an alienable “right of publicity” which the entertainer exploited in his own lifetime. In the Creative Card opinion this Court fully explored both the theoretical base of this claim and the validity of plaintiffs’ title, concluding that the right existed, was a species of property inhering in Elvis Presley, was alienable, and because it was exploited to the entertainer’s financial advantage in life, passed like any other intangible property at his death, in this case to plaintiffs. The infringement of that right was a tort in the nature of unfair competition.

The same analysis applies in this case. However, for purposes of the instant action the Court must address, at least as to defendant Pro Arts, the questions of jurisdiction and venue and the contention that this matter would be more properly heard in the Northern District of Ohio.

The defendant is an Ohio corporation. Affidavit of Michael P. Trikilis, President of Pro Arts, Inc., sworn to Oct. 4, 1977, ¶ 1. Pro Arts has “sold or shipped” less than one percent of its Presley posters in or into the state of New York. Id. ¶ 5. Defendant does not supply the date as of which that figure was current. In a later statement, Mr. Trikilis reiterates that less than one per cent of the posters “were sold and delivered to New York.” Trikilis Affidavit, sworn to Oct. 10, 1977, ¶ 12. The balance of this statement is given over to general sales figures for the Presley poster and projections of future sales, none of which allude directly to distribution in the New York market. Affiant Trikilis states that as of October 6, 1977 Pro Arts, Inc. made total gross sales of its allegedly infringing Elvis Presley poster in the amount of $940,851.40, id. ¶ 4, and that weekly sales volume for the item is expected to increase until Christmas of 1977. Id. ¶ 7. Nothing further is said concerning the volume of sales in New York, where the poster is apparently available for purchase at Bradlees Mini City, New City, New York. Rohner Affidavit, sworn to Sept. 23, 1977, ¶ 2.

J urisdiction

Despite the paucity of fact, the Court has no difficulty in concluding that it has jurisdiction over defendant Pro Arts. In this diversity case, the law of New York dictates whether the Court has personal jurisdiction over the foreign corporation. Arrowsmith v. United Press Int'l, 320 F.2d 219 (2d Cir. 1963) (en banc). The operative statute is New York C.P.L.R. § 302(a)(2), which gives New York courts jurisdiction over any non-domiciliary who commits “a tortious act within the state.” Although the burden is on plaintiff to sustain its assertion of jurisdiction, McNutt v. General Motors Acceptance Corp., 298 U.S. 178, 56 S.Ct. 780, 80 L.Ed. 1135 (1936); Top Form Mills v. Sociedad Nationale Industria Applicazione Viscosa, 428 F.Supp. 1237 (S.D.N.Y.1977), the Court may examine affidavits to establish jurisdictional facts. H. L. Moore Drug Exchange, Inc. v. Smith, Kline & French Labs., 384 F.2d 97 (2d Cir. 1967) (per curiam).

*291 Having isolated defendant’s activity as the tort of unfair competition,' the Court is free to apply the rule that in unfair competition “the wrong takes place . where the passing off occurs,” i. e., at the point of consumer purchase. Vanity Fair Mills, Inc. v. T. Eaton Co., 234 F.2d 633, 639 (2d Cir.), cert. denied, 352 U.S. 871, 77 S.Ct 96, 1 L.Ed.2d 76 (1956); see Honda Associates, Inc. v. Nozawa Trading, Inc., 374 F.Supp. 886 (S.D.N.Y.1974); Car-Freshner Corp. v. Broadway Mfg. Co., 337 F.Supp. 618 (S.D.N.Y.1971). Therefore, based on the fact that the allegedly infringing Pro Arts Presley poster was sold in this district, the Court can conclude that defendant Pro Arts’ conduct falls squarely within N.Y.C.P. L.R. § 302(a)(2), “which requires no specified level of activity within the State, but only that the plaintiff suffer some damage as a result of a tortious act committed by defendant or its agent in New York.” Honda, supra, 374 F.Supp. at 889; see Feathers v. McLucas, 15 N.Y.2d 443, 261 N.Y.S.2d 8, 209 N.E.2d 68 (1965).

Venue

The propriety of venue in this district is a more difficult question. The choice of venue is governed in this diversity action by 28 U.S.C. § 1391(a), which permits venue to be laid, inter alia, “where the claim arose.” The interpretation of that language has generated a test of “more than miniscule contacts” which this Court adopted in the Creative Cards opinion. See Tefal, S.A. v. Products Int’l Co., 529 F.2d 495 (3d Cir. 1976); Transamerica Corp. v. Transfer Planning, Inc.,

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Bluebook (online)
444 F. Supp. 288, Counsel Stack Legal Research, https://law.counselstack.com/opinion/factors-etc-inc-v-pro-arts-inc-nysd-1977.