HSC Organics LLC v. Bymaster

CourtDistrict Court, M.D. Florida
DecidedJune 23, 2022
Docket8:21-cv-01852
StatusUnknown

This text of HSC Organics LLC v. Bymaster (HSC Organics LLC v. Bymaster) is published on Counsel Stack Legal Research, covering District Court, M.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
HSC Organics LLC v. Bymaster, (M.D. Fla. 2022).

Opinion

UNITED STATES DISTRICT COURT MIDDLE DISTRICT OF FLORIDA TAMPA DIVISION

HSC ORGANICS LLC,

Plaintiff,

v. Case No: 8:21-cv-1852-WFJ-CPT

RYAN L. BYMASTER,

Defendant. __________________________________/ ORDER GRANTING MOTION TO DISMISS This matter comes before the Court on Defendant Ryan L. Bymaster’s Motion to Dismiss for Lack of Personal Jurisdiction, Dkt. 33. Plaintiff HSC Organics LLC filed a response in opposition, Dkt. 44, to which Defendant replied, Dkt. 47. On May 19, 2022, the Court heard cogent oral argument from the parties concerning this matter. Dkt. 50. Upon careful consideration, the Court grants Defendant’s motion. BACKGROUND Co-founded by Florida resident Greg Smith in 2013, Plaintiff is a Florida limited liability company that markets and sells organic products designed to treat hydrophobic soil and revitalize and maintain turf grass. Dkt. 13 ¶¶ 2, 12, 18. Defendant, a United States citizen and resident of Mexico, met Mr. Smith in 2009 while both men were living in Mexico. Id. ¶¶ 11−12. During that time, Mr. Smith developed the products that the plaintiff company would later be founded to

market and sell to golf courses. Id. ¶¶ 12−13. When Mr. Smith met with golf course maintenance professionals in Mexico to discuss his products, Defendant would serve as his translator. Id. ¶ 13. In their

interactions, Mr. Smith supposedly shared with Defendant his plans to start a company called “HSC Organics” to sell the products. Id. ¶ 14. Defendant, however, claims the pair came up with the HSC Organics name together. Dkt. 33 at 3. In 2011, while the men continued to work together in Mexico, Defendant

registered and paid for the American Internet domain name “hscorganics.com.” Dkt. 13 ¶ 16; Dkt. 34 ¶ 15. Defendant listed “LatAm Services” as the registrant and Mexico as the registrant country. Dkt. 13 ¶ 16. Plaintiff states that Mr. Smith did

not know of or consent to Defendant’s registration of the American website. Id. Defendant, however, denies that Mr. Smith lacked knowledge of this registration. Dkt. 34 ¶ 16. Upon leaving Mexico, Mr. Smith and others founded the plaintiff company

in Apollo Beach, Florida, in 2013. Dkt. 13 ¶ 18. Plaintiff contends that, since its founding, it has continuously used the trademark “HSC ORGANICS” (the “Wordmark”) to promote its products and services in interstate commerce. Id. ¶ 19.

Mr. Smith and others also founded HSC Organics SA de CV (“Mexican HSC Organics”) to serve as Plaintiff’s sister company in Mexico. Id. ¶¶ 9, 12. Plaintiff supplied its sister company with proprietary and patented formulations necessary

to produce Plaintiff’s products. Id. ¶ 30. Mr. Smith thereafter engaged Defendant, who remained in Mexico, to market both companies and operate Mexican HSC Organics. Id. ¶ 23. In 2015 and 2016, Mr. Smith purportedly gave Defendant

membership units in both companies as past and future consideration for his services. Id. ¶ 25. In June 2015, Defendant allegedly registered a second Internet domain name without the knowledge or consent of Plaintiff or Mexican HSC Organics. Id. ¶¶

26−27. This time, Defendant paid for and registered the Mexican Internet domain name “hscorganics.mx” and listed himself as the registrant. Id.; Dkt. 33 at 5. As with his registration of the American website, Defendant asserts that Mr. Smith

knew Defendant was going to register the Mexican website. Dkt. 34 ¶ 16. Despite its allegations that it was not apprised of Defendant’s registrations, Plaintiff maintains that it continuously used both the American and Mexican websites to promote its goods and services. Id. ¶¶ 32−34. Plaintiff further states that it paid for

the creation of a combination word-and-logo mark (the “Logo”) seen on both websites and has exclusively used that Logo since July 2015. Id. ¶¶ 21, 31. For the next few years, Defendant and Mr. Smith appeared to have a

harmonious business relationship. The record reflects that Defendant created marketing materials for Plaintiff, managed the two websites, emailed Plaintiff’s newsletters to Florida golf courses, and attended a January 2020 golf industry show

in Orlando, Florida, on Plaintiff’s behalf. See Dkt. 44-1 at 78−117. At some point, however, the parties’ business relationship deteriorated. In December 2020, without Plaintiff’s knowledge or consent, Defendant

filed a trademark application with the United States Patent and Trademark Office (“USPTO”) in Virginia to register the Logo in his name. Dkt. 13 ¶ 38. In his application, as well as his answer to Plaintiff’s opposition submitted to the USPTO, Defendant stated that he was the rightful owner of the Logo and that

Plaintiff was merely licensing the Logo from him. Dkt. 44-1 at 57, 65. Plaintiff asserts that Defendant then took control of the American and Mexican websites in early 2021 to redirect Internet traffic from the former to the

latter. Dkt. 13 ¶ 39. Around this time, Defendant also allegedly caused Plaintiff and its employees’ email addresses, which were listed on the websites, to be redirected to Defendant. Id. ¶¶ 36, 42. According to Plaintiff, Defendant has since been using the Wordmark, Logo, and “confusingly similar” marks on the Mexican website

without Plaintiff’s consent. Id. ¶ 44. Plaintiff further alleges that Defendant has placed false copyright notices on the Mexican website, suggesting that Plaintiff is not the copyright owner of the website’s content. Id. ¶ 46. After learning of these

actions, Plaintiff and Mexican HSC Organics ended their working relationship with Defendant. Id. ¶ 49. After Defendant allegedly took control of the American and Mexican

websites, Mr. Smith registered a new website for the plaintiff company, found at www.hscorganics.net. Id. ¶ 47. Mr. Smith thereafter received a trademark infringement email from a web hosting server relaying a notice from Defendant.

Id. ¶ 81. That October 2021 notice stated that Plaintiff’s new website domain or content “may be infringing on a trademark and/or violating local laws or regulations.” Id.; Dkt. 13-2. Plaintiff contends that this notice made clear that Defendant was claiming ownership over the Wordmark, Logo, and American and

Mexican websites’ content. Dkt. 13 ¶ 82. Based on the above allegations, Plaintiff brings a five-count Amended Complaint against Defendant. In Count I, Plaintiff asserts that Defendant engaged

in unfair competition in violation of the Lanham Trademark Act (“Lanham Act”), 15 U.S.C. § 1125(a). Id. ¶¶ 56−61. Next, Count II alleges a violation of the Digital Millennium Copyright Act (“DCMA”), 17 U.S.C. § 1202(a). Id. ¶¶ 62−69. In Count III, Plaintiff brings a common law trademark infringement claim. Id. ¶¶

70−76. Count IV asserts a violation of the Florida Unfair and Deceptive Trade Practices Act (“FUDTPA”), Section 501.201−.213, Florida Statutes. Id. ¶¶ 77−79. Finally, Plaintiff’s Count V seeks a declaratory judgment that Defendant does not

own the rights to the Wordmark, Logo, or the content found on the American and Mexican websites. Id. ¶¶ 80−86. Defendant now moves to dismiss the Amended Complaint for lack of personal jurisdiction pursuant to Federal Rule of Civil

Procedure 12(b)(2). Dkt. 33. LEGAL STANDARD Pursuant to Federal Rule of Civil Procedure 12(b)(2), a district court may

dismiss a complaint for lack of personal jurisdiction. Where a nonresident defendant asserts the absence of personal jurisdiction, a court must engage in a three-step, burden-shifting analysis. Diulus v. Am. Express Travel Related Servs.

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