Ferman v. Jenlis, Inc.

224 F. Supp. 3d 791, 2016 U.S. Dist. LEXIS 177860, 2016 WL 7912016
CourtDistrict Court, S.D. Iowa
DecidedAugust 18, 2016
DocketNo. 4:16-cv-00074-JEG
StatusPublished

This text of 224 F. Supp. 3d 791 (Ferman v. Jenlis, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ferman v. Jenlis, Inc., 224 F. Supp. 3d 791, 2016 U.S. Dist. LEXIS 177860, 2016 WL 7912016 (S.D. Iowa 2016).

Opinion

ORDER

JAMES E. GRITZNER, Senior Judge, UNITED STATES DISTRICT COURT

This matter is before the Court on Motion by Defendants Jenlis, Inc. (Jenlis) and [796]*796Daniel S. Amundson (Amundson) (jointly, Defendants) to dismiss the Complaint by Plaintiffs Randall S. Ferman (Ferman) and Extreme Hunting Solutions, LLC (Extreme Hunting) pursuant to Federal Rule of Civil Procedure 12(b)(6), or in the alternative, pursuant to Federal Rule of Civil Procedure 12(b)(2) or 12(b)(3). The parties have not requested a hearing, and the Court finds a hearing is unnecessary. The Motion is fully submitted and ready for ruling.

I. FACTUAL AND PROCEDURAL BACKGROUND

Courts consider motions to dismiss “accepting the allegations contained in the complaint as true and drawing all reasonable inferences in favor of the nonmoving party.” Cockram v. Genesco, Inc., 680 F.3d 1046, 1056 (8th Cir. 2012) (citation omitted).

Ferman owns a copyrighted work entitled “No Trespassing signs with pictures of wireless surveillance cameras with no antenna mounted on the side, and antenna mounted on the top of the camera” (the Ferman Sign). Ferman owns Extreme Hunting and has assigned ownership of the Ferman Sign to the entity. Ferman created the Ferman Sign in 2014 and has distributed it nationally since 2014. Fer-man registered his copyright in the Fer-man Sign around January 16, 2015. A copy of the certificate of registration is attached as an exhibit to the Complaint.

Like Plaintiffs, Jenlis also develops and sells “no trespassing” signs. Amundson is the chief executive officer of Jenlis. Around January 14, 2016, Plaintiffs allegedly discovered that Defendants were selling a “no trespassing” sign (the Jenlis Sign) similar to the Ferman Sign. An image of the Jenlis Sign is attached as an exhibit to the Complaint, though an image of the Ferman sign is not. The Jenlis Sign includes wording, a two-toned colored background, and a depiction of a camera, all allegedly similar to the Ferman Sign. Defendants allegedly had access to the Ferman Sign prior to their creation of the Jenlis Sign.

On March 18, 2016, Plaintiffs filed a one-count Complaint alleging infringement of Plaintiffs’ copyright in the Ferman Sign in violation of 17 U.S.C. §§ 106 and 501 (the Copyright Act). Plaintiffs request monetary and equitable relief. On April 19, 2016, Defendants filed the present Motion to Dismiss. Plaintiffs resist.

II. DISCUSSION

A. Jurisdiction

1. Subject Matter Jurisdiction

This Court has subject matter jurisdiction over claims arising under the Copyright Act pursuant to 28 U.S.C. § 1331 (“The district courts shall have original jurisdiction of all civil actions arising under the Constitution, laws, or treaties of the United States.”) and 28 U.S.C. § 1338 (“The district courts shall have original jurisdiction of any civil action arising under any Act of Congress relating to patents, plant variety protection, copyrights and trademarks.”).

2. Personal Jurisdiction

Jenlis is a Minnesota corporation with its principal place of business in Minnesota. Amundson is a resident of Winona, Minnesota. Plaintiffs allege this Court has jurisdiction because Defendants are doing business in the State of Iowa and in this judicial district, because the allegedly infringing acts occurred in'this judicial district, and because Defendants have injured Plaintiffs in this judicial district. Defendants argue these general allegations are insufficient to support a finding of personal jurisdiction and therefore move to dismiss the Complaint under Federal Rule of Civil [797]*797Procedure 12(b)(2). Defendants contend they are Minnesota residents with no property, place of business, or employees in Iowa, and no other substantial contacts sufficient to find general personal jurisdiction. Furthermore, Defendants argue Plaintiffs have not alleged any specific Jenlis sign was marketed or sold in Iowa, and that Plaintiffs have not alleged any other specific conduct connecting Defendants to Iowa. Defendants contend that the only proffered evidence of their contact with Iowa was an affidavit by Ferman that included only hearsay. Specifically Fer-man’s affidavit included a hearsay account that the Jenlis Sign was offered for sale at a trade show in Des Moines, Iowa, called the 2016 Iowa Deer Classic, and that a business card of a Jenlis salesperson was observed at the trade show. On surreply, Plaintiffs submitted an affidavit of a Justin Houseal, which includes non-hearsay evidence of Jenlis’s presence at the trade show.

“To survive a motion to dismiss for lack of personal jurisdiction, a plaintiff must make a prima facie showing that personal jurisdiction exists, which is accomplished by pleading sufficient facts to support a reasonable inference that the defendant can be subjected to jurisdiction within the state.” K-V Pharm. Co. v. J. Uriach & CIA, S.A., 648 F.3d 588, 591-92 (8th Cir. 2011) (internal quotations and citation omitted). The evidentiary showing is minimal and can be shown not only from the pleadings but also from affidavits and exhibits filed in support of or opposition to the motion. Id. at 592. The Court “must view the evidence in a light most favorable to the plaintiff and resolve factual conflicts in the plaintiffs favor; however, the party seeking to establish the court’s personal jurisdiction carries the burden of proof and that burden does not shift to the party challenging jurisdiction.” Fastpath, Inc. v. Arbela Techs. Corp., 760 F.3d 816, 820 (8th Cir. 2014).

A federal court may assume jurisdiction over nonresident defendants only to the extent permitted by the long-arm statute of the forum state and in conformance with due process. Dakota Indus., Inc. v. Dakota Sportswear, Inc., 946 F.2d 1384, 1389 n.2 (8th Cir. 1991); Fed. R. Civ. P. 4(k)(1)(A). “Because Iowa’s long-arm statute ‘expands Iowa’s jurisdictional reach to the widest due process parameters allowed by the United States Constitution,’ [the Court’s] inquiry is limited to whether the exercise of personal jurisdiction comports with due process.” Wells Dairy, Inc. v. Food Movers Int’l, Inc., 607 F.3d 515, 518 (8th Cir. 2010) (quoting Hammond v. Fla. Asset Fin. Corp., 695 N.W.2d 1, 5 (Iowa 2005)).

Due process requires the nonresident defendant to have sufficient “minimum contacts” with the forum state such that “maintenance of the suit ‘does not offend traditional notions of fair play and substantial justice.’” World-Wide Volkswagen Corp. v. Woodson, 444 U.S. 286, 291-92, 100 S.Ct.

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224 F. Supp. 3d 791, 2016 U.S. Dist. LEXIS 177860, 2016 WL 7912016, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ferman-v-jenlis-inc-iasd-2016.