Foreign Candy Co. v. Tropical Paradise, Inc.

950 F. Supp. 2d 1017, 2013 WL 3155960, 2013 U.S. Dist. LEXIS 89457
CourtDistrict Court, N.D. Iowa
DecidedJune 24, 2013
DocketNo. C 13-4005-MWB
StatusPublished
Cited by9 cases

This text of 950 F. Supp. 2d 1017 (Foreign Candy Co. v. Tropical Paradise, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Foreign Candy Co. v. Tropical Paradise, Inc., 950 F. Supp. 2d 1017, 2013 WL 3155960, 2013 U.S. Dist. LEXIS 89457 (N.D. Iowa 2013).

Opinion

MEMORANDUM OPINION AND ORDER REGARDING DEFENDANT’S MOTION TO DISMISS

MARK W. BENNETT, District Judge.

TABLE OF CONTENTS

I. INTRODUCTION 1020

[1019]*1019A. Factual Background................................................1020

1. The parties.....................................................1020

2. Jurisdictional facts .............................................1021

B. Procedural Background.............................................1021

1. Foreign Candy’s Complaint .....................................1021

2. Tropical Paradise’s Motion To Dismiss...........................1022

II. LEGAL ANALYSIS.....................................................1022

A. Personal Jurisdiction...............................................1022

1. Arguments of the parties ........................................1022

2. Applicable standards............................................1024

a. Rule 12(b)(2) standards......................................1024

b. Due process requirements....................................1025

c. Internet contacts............................................1026

3. Analysis .......................................................1081

a. Nature and quality of contacts...............................1031

b. The quantity of contacts.....................................1032

c. The relationship of the contacts with the cause of action........1033

d. Interest and convenience of the forum.........................1034

e. “Effects ” in this forum......................................1034

f. “Fair play and substantial justice ” in the totality of the circumstances ............................................1035

4. Jurisdictional discovery.........................................1035

a. Arguments of the parties.....................................1035

b. Analysis....................................... 1036

5. Summary ......................................................1036

B. Venue.............................................................1037

1. Arguments of the parties ........................................1037

2. Analysis .......................................................1037

III. CONCLUSION.........................................................1038

In this action by a candy importer against a fruit juice seller, involving federal and state law claims of trademark, trade dress, and copyright infringement and unfair competition, the fruit juice seller’s motion to dismiss for lack of personal jurisdiction and improper venue exemplifies the collision between modern conceptions of a “global marketplace” and long-standing constitutional conceptions of due process. The United States Supreme Court recognized, a decade and a half ago, that “[t]he Internet is ‘a unique and wholly new medium of worldwide human communication,’ ”1 yet commentators and courts have suggested that the analysis of personal jurisdiction based on Internet activity “ ‘should not be different at its most basic level from any other personal jurisdiction case.’ ”2 Here, the fruit juice seller, a New York corporation based in Massachusetts with no business presence in Iowa, asserts that it simply has insufficient contacts with this Iowa forum for the exercise of personal jurisdiction to comport with due process. The candy importer, on the other hand, asserts that the fruit juice seller has sufficient contacts for the exercise of personal jurisdiction to meet due process requirements based on a link on the fruit juice seller’s otherwise passive website to the website of a distributor from whom the [1020]*1020fruit juice seller’s products can be purchased online and based on a single purchase of the fruit juice seller’s products from the distributor’s website for shipment to an Iowa customer (the plaintiffs president, chief executive officer (CEO), and owner).

I. INTRODUCTION

A. Factual Background

Because this case is before me on a motion to dismiss, and no jurisdictional discovery has been authorized or conducted, the factual background is necessarily drawn — at least in the first instance — from the factual allegations in the plaintiffs Complaint (docket no. 1). On a Rule 12(b)(2) motion to dismiss for lack of personal jurisdiction, however, I may also consider affidavits and exhibits presented with the motion and in opposition to it. See Dairy Farmers of Am., Inc. v. Bassett & Walker Int’l, Inc., 702 F.3d 472, 474-75 (8th Cir.2012). Where appropriate or necessary, I have amplified the facts alleged in the Complaint with facts from such additional sources. For present purposes, the focus is on facts relevant to personal jurisdiction and venue, rather than all facts giving rise to the parties’ dispute.

1. The parties

The Foreign Candy Company (Foreign Candy), the plaintiff in this action, alleges that it is an Iowa corporation with its principal place of business in Hull, Iowa, and that it is engaged in the business of importing, distributing, and selling candy products. Foreign Candy alleges that it is the exclusive owner of a number of registered trademarks, including the following: “RIPS,” Registration No. 2,848,847 (the '847 Mark); “LET ‘ER RIP,” Registration No. 2,738,693 (the '693 Mark); and “RIP ROLLS,” Registration No. 2,763,991 (the '991 Mark). Foreign Candy describes these marks collectively as “the RIP Marks.” See Complaint, Exhibits A-C. Foreign Candy also alleges that it is the owner of the trade dress (Foreign Candy Trade Dress) embodied in the packaging, label, and the like, used in connection with its RIPS Products. See Complaint, Exhibit E. Further, Foreign Candy alleges that it has applied for and been issued copyright certificates of registration for various embodiments of its packaging (Foreign Candy’s Packaging) used in connection with the RIPS Products, consisting of certificates of registration bearing Registration Nos. TX' 7-446-536, TX 7-452-638, TX 7-451-463, and TX 7-452-521, with effective dates of September 7, 2011, September 8, 2011, September 9, 2011, and September 15, 2011, respectively.

Tropical Paradise, Inc., doing business as Cool Tropics (Tropical Paradise), the defendant in this action, alleges in its Motion To Dismiss (docket no. 5) that it is a New York corporation headquartered in Bedford, Massachusetts. Foreign Candy alleges, and Tropical Paradise has not yet disputed, that Tropical Paradise sells, offers for sale, distributes, and advertises fruit juice packs available in a variety of fruit flavors under a Cool Tropics brand name (the Cool Tropics Products).

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Bluebook (online)
950 F. Supp. 2d 1017, 2013 WL 3155960, 2013 U.S. Dist. LEXIS 89457, Counsel Stack Legal Research, https://law.counselstack.com/opinion/foreign-candy-co-v-tropical-paradise-inc-iand-2013.