Fraserside IP L.L.C. v. Netvertising Ltd.

902 F. Supp. 2d 1165, 2012 WL 4762125, 2012 U.S. Dist. LEXIS 144314
CourtDistrict Court, N.D. Iowa
DecidedOctober 5, 2012
DocketNo. C11-3034-MWB
StatusPublished
Cited by1 cases

This text of 902 F. Supp. 2d 1165 (Fraserside IP L.L.C. v. Netvertising Ltd.) 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
Fraserside IP L.L.C. v. Netvertising Ltd., 902 F. Supp. 2d 1165, 2012 WL 4762125, 2012 U.S. Dist. LEXIS 144314 (N.D. Iowa 2012).

Opinion

MEMORANDUM OPINION AND ORDER REGARDING DEFENDANTS’ MOTION TO DISMISS

MARK W. BENNETT, District Judge.

TABLE OF CONTENTS

I. INTRODUCTION AND BACKGROUND ...................................1169

A. Procedural Background.............................................1169

B. Factual Background................................................1169

1. Facts Drawn From, Complaint...................................1169

2. Facts Related Solely To Personal Jurisdiction.....................1170

II. LEGAL ANALYSIS.....................................................1171

A. Rule 12(b)(2) Standards and Personal Jurisdiction....................1171

B. Personal Jurisdiction Analysis......................................1173

C. Federal Long-Arm Statute..........................................1177

1. Claim arises under federal law...................................1178

2. No state with personal jurisdiction over defendants................1178

3. Due process ....................................................1179

D. Limited Jurisdictional Discovery....................................1180

III. CONCLUSION.........................................................1181

Plaintiff, a producer of adult motion pictures, alleges that defendants, a Hungarian corporation and two Hungarian residents, have willfully violated plaintiffs copyright and trademarks by offering plaintiffs motion pictures on an Internet website they operate. However, the merits of plaintiffs claims are not presently before me. Rather, I must resolve, inter alia, whether plaintiff has made a prima facie showing that defendants have sufficient minimum contacts with Iowa to satisfy due process and permit the exercise of personal jurisdiction over them under Iowa’s long-arm statute, or whether their contacts with the United States as a whole, [1169]*1169as distinct from contacts with Iowa, are sufficient to permit the exercise of personal jurisdiction over them under the federal long-arm statute.

I. INTRODUCTION AND BACKGROUND

A. Procedural Background

On August 30, 2011, plaintiff Fraserside IP L.L.C. (“Fraserside”) filed an Amended Complaint against Netvertising Ltd., doing business as HardXXXTube.com, Richard Szeles, Laslo Racz, John Does and John Doe Companies, alleging the following causes of action: copyright infringement, in violation of 17 U.S.C. §§ 106 and 501 et seq.; contributory copyright infringement, in violation of 17 U.S.C. §§ 106 and 501 et seq.; vicarious copyright infringement, in violation of 17 U.S.C. §§ 106 and 501 et seq.; inducing copyright infringement, in violation of 17 U.S.C. §§ 106 and 501 et seq.; false designation of origin, in violation of 15 U.S.C. § 1125(a); and, dilution of trademark, in violation of 15 U.S.C. § 1125(c).1

On June 16, 2012, Netvertising Ltd., Szeles and Racz (collectively, the “Netvertising defendants”) filed a Motion to Dismiss. In their motion, the Netvertising defendants contend that they are not subject to personal jurisdiction in Iowa or under Federal Rule of Civil Procedure 4(k)(2) and the Complaint must be dismissed pursuant to Federal Rule of Civil procedure 12(b)(2). On June 30, 2012, Fraserside filed a resistance to the Netvertising defendants’ Motion to Dismiss. Fraserside argues that Netvertising’s internet activities establish a sufficient basis for specific personal jurisdiction under Iowa’s long-arm statute. Fraserside, alternatively, argues that, even if it did not make a prima facie showing of personal jurisdiction under Iowa’s long-arm statute, personal jurisdiction exists under the federal long-arm statute found in Federal Rule of Civil Procedure 4(k)(2). Fraser-side also alternatively requests that I delay ruling on the Netvertising defendants’ motion and permit it limited jurisdictional discovery. After obtaining an extension of time, the Netvertising defendants filed a timely reply brief on July 30, 2012.

B. Factual Background 1. Facts Drawn From Complaint

On a motion to dismiss, I must assume all facts alleged in the Complaint are true, and must liberally construe those allegations. Conley v. Gibson, 355 U.S. 41, 45-46, 78 S.Ct. 99, 2 L.Ed.2d 80 (1957). The following factual background is drawn from the Amended Complaint, documents attached to the Amended Complaint, and public records.2

[1170]*1170Plaintiff Fraserside is a subsidiary of Private Media Group, Inc., a Nevada Corporation (“Private Media”). Private Media and Fraserside, collectively, are commercially known as “Private.” Private Media is a producer of adult motion pictures. Its adult films are distributed on a wide range of platforms, including mobile handsets in 45 countries, digital television in 24 countries, broadband internet, a South American cable channel, DVDs, and on demand and subscription based services on the Internet. Private has produced over 1,000 adult films and holds over 75 United States copyrights for its works.

Defendant Netvertising is the owner of HardXXXTube.com. Netvertising is a Hungarian entity with an address in Szentes, Hungary. HardXXXTube.com is a website and competes with Fraserside in the distribution and sale of adult audiovisual works through the Internet. HardXXXTube.com allows users to view Fraserside’s copyrighted works. HardXXXTub.com sells advertising space on pages displaying Fraserside’s copyrighted works. HardXXXTube.com uses Fraserside’s copyrighted works to increase traffic to its website and drive advertising revenue. HardXXXTube.com sells premium memberships through another website, mm.HardSexTube.com, and pays third parties to send traffic to its website.

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Cite This Page — Counsel Stack

Bluebook (online)
902 F. Supp. 2d 1165, 2012 WL 4762125, 2012 U.S. Dist. LEXIS 144314, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fraserside-ip-llc-v-netvertising-ltd-iand-2012.