FN Herstal, S.A. v. Sarsilmaz Silah Sanayi Anonim Sirketi

CourtDistrict Court, E.D. Virginia
DecidedSeptember 20, 2024
Docket1:23-cv-01380
StatusUnknown

This text of FN Herstal, S.A. v. Sarsilmaz Silah Sanayi Anonim Sirketi (FN Herstal, S.A. v. Sarsilmaz Silah Sanayi Anonim Sirketi) 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
FN Herstal, S.A. v. Sarsilmaz Silah Sanayi Anonim Sirketi, (E.D. Va. 2024).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF VIRGINIA Alexandria Division FN HERTSAL, S.A., ef al., ) Plaintiffs, v. Civil Action No. 1:23-cv-1380 (RDA/WBP) SARSILMAZ SILAH SANAYI ANONIM SIRKETI, et al., ) Defendants. OS

MEMORANDUM OPINION AND ORDER This matter comes before the Court on Defendant Sarsilmaz Silah Sanayi Anonim Sirketi’s Motion to Dismiss (Dkt. 33). This Court has dispensed with oral argument as it would not aid in the decisional process. See Fed. R. Civ. P. 78(b); Local Civil Rule 7(J). This matter has been fully briefed and is now ripe for disposition. Considering the Motion together with Defendant’s Memorandum in Support (Dkt. 34), Plaintiffs’ Opposition Brief (Dkt. 37), and Defendant’s Reply Brief (Dkt. 42), this Court DENIES the Motion for the reasons that follow. I. BACKGROUND A. Factual Background Defendant Sarsilmaz Silah Sanayi Anonim Sirketi (“Sarsilmaz”) is an “anonim siketi (a.s.)” organized and existing under the laws of Turkey. Dkt. 30 4. Defendant SAR USA Corp. (“SAR USA”) is a corporation organized under the laws of Florida. /d. 5. Plaintiffs FN Hertsal S.A. (“‘FNH”) and FN America, LLC (“FNA”) assert that Defendants have infringed on their trademarks. Jd. J 1.

Plaintiffs manufacture, distribute, and sell firearms and related accessories under the trademark “SCAR.” /d. §§ 24-28. Plaintiffs assert that a civilian version of the SCAR rifle was released in November 2008 and that, since then, Plaintiffs’ SCAR Marks have been in continuous use in the United States. Jd. | 29. Consistent with that use, Plaintiffs have registered their marks with the United States Patent and Trademark Office (“USPTO”). Jd. [J 31-36. Plaintiffs assert that Defendants have applied to register with the USPTO the trademark “SAR” for firearms. Jd. §] 37-41. Plaintiffs allege that Defendants are using the SAR Mark to promote a range of firearm products on SAR USA’s website. Jd. {§ 43-44. With respect to personal jurisdiction, Plaintiffs allege: “This Court has personal jurisdiction over Defendants as these causes of action arise as a result of Sarsilmaz’s and SAR USA’s actions in doing and transacting business in this district [sic], offering to sell their products and making their products available by promoting the Infringing SAR Mark to prospective purchasers within this district [sic], and marketing their services and products to prospective purchasers within this District.” /d. 47. Plaintiffs further allege that “Defendants’ infringing firearm products” have been sold in Virginia and that the sarusa.com website solicits business from and ships products to Virginia. Jd. [{ 8-9. According to the sarsusa.com website Sarsilmaz launched SAR USA in 2018 under the leadership of a family member and now operates as the “exclusive importer of Sarsilmaz firearms and ammunition in the U.S. market.” /d. 411. As part of that relationship, “SAR USA also collaborates closely with Sarsilmaz’s engineering team to develop new firearms specifically tailored for the American market.” Jd. 412. In a press release by Sarsilmaz, it indicated that, in 2018, “Sarsilmaz (SAR) established itself in the USA Market” and that it is committed to expanding the USA Market. Jd. 13. The Chairman of the Board of Sarsilmaz has stated that the

United States is “one of our target markets” and that “we are engaged in significant works under the umbrella of this company” such that “our market share and sales volume in the US market [has] continue[d] to increase.” /d. ] 14. SAR USA is also promoted as being “BY SARSILMAZ.” Id. § 15. Sarsilmaz has also published blog posts referring to its attendance at the Shooting, Hunting, Outdoor Trade Show (“SHOT Show”) in Las Vega, Nevada, United States and as having “exhibited its state-of-the-art products” there. /d. 18. The Sarsilmaz website also has touted its attendance at the SHOT Show. Jd. 919. Plaintiffs further allege, upon information and belief, that Sarsilmaz has attended “in person events to promote its firearms within this district [sic], including the Nation’s Gun Show in Chantilly, Virginia” (the “Chantilly Show”). Jd. 4 21. Sarsilmaz’s products are advertised and sold under the mark “SARSILMAZ,” as well as various marks featuring the term “SAR.” Dkt. 35-1 § 10 (Declaration of Cafer Durukan). Sarsilmaz is not registered to do business in the Commonwealth of Virginia or any other state in the United States. Jd. 412. Sarsilmaz does not own or lease property or have employees, officers, or directors in Virginia. Jd. 13-14. Sarsilmaz asserts that it is a wholly separate entity from SAR USA and that SAR USA is not a subsidiary of Sarsilmaz. Jd. Jf 18-21. SAR USA is Sarsilmaz’s distributor of SAR products in the United States. /d. 24-26. Sarsilmaz has never directed SAR USA to advertise and sell firearms in Viriginia, rather its role is to sell firearms in the United States generally. /d. 434. Sarsilmaz has attended the SHOT Show in Las Vegas, but does not sell products there, and has not attended the Chantilly Show. Jd. {J 35-38. Industry publications have referred to SAR USA as a subsidiary of Sarsilmaz. Dkt. 37-1 3, 5-6 (Declaration of Christopher Cole). SAR USA has also held itself out as a subsidiary of Sarsilmaz. /d. 94. It appears that a Sarsilmaz employee also assists in managing the SAR USA Facebook Page. Id. § 7. Although Sarsilmaz did not attend the Chantilly gun show, Sarsilmaz

firearms were sold at the National Gun Expo in Chantilly in December 2022. Id. 8-9. Finally, documents from the USPTO suggest that Sarsilmaz owns and filed the trademarks under which SAR USA operates and uses in commerce in the United States. B. Procedural Background Plaintiffs filed their original Complaint on October 10, 2023. Dkt. 1. On January 10, 2024, Defendant SAR USA filed an Answer to the Complaint. Dkt. 25. That same day, Defendant Sarsilmaz filed a Motion to Dismiss for Lack of Jurisdiction. Dkt. 26. On January 24, 2024, Plaintiffs filed an Amended Complaint. Dkt. 30. SAR USA again filed an Answer. Dkt. 36. On February 14, 2024, Sarsilmaz again filed a Motion to Dismiss for Lack of Jurisdiction. Dkt. 33. On February 28, 2024, Plaintiffs filed an Opposition. Dkt. 37. That same day, Plaintiffs filed a Motion for Leave to Conduct Jurisdictional Discovery. Dkt. 38. On March 5, 2024, Sarsilmaz filed a Reply in support of its Motion to Dismiss. Dkt. 42. On March 13, 2024, Sarsilmaz filed an Opposition to the Motion for Leave to Conduct Jurisdictional Discovery. Dkt. 43. On March 19, 2024, Plaintiffs filed a Reply in support of their Motion. Dkt. 44. On April 5, 2024, Magistrate Judge William B. Porter held a hearing on the Motion for Leave to Conduct Jurisdictional Discovery and then denied the motion. Dkt. Nos. 48; 49.! II. STANDARD OF REVIEW Federal Rule of Civil Procedure 12(b)(2) provides that a court may dismiss a case for lack of personal jurisdiction. Fed. R. Civ. P. 12(b)(2). “Under Rule 12(b)(2), a defendant must affirmatively raise a personal jurisdiction challenge, but the plaintiff bears the burden of demonstrating personal jurisdiction at every stage following such a challenge.” Grayson v.

! Plaintiffs did not appeal from Judge Porter’s denial of their Motion for Leave to Conduct Jurisdictional Discovery.

Anderson, 816 F.3d 262, 267 (4th Cir. 2016) (citation omitted).

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Bluebook (online)
FN Herstal, S.A. v. Sarsilmaz Silah Sanayi Anonim Sirketi, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fn-herstal-sa-v-sarsilmaz-silah-sanayi-anonim-sirketi-vaed-2024.