IMM Holdings, Ltd. v, HKParts Incorporated

CourtDistrict Court, N.D. Illinois
DecidedSeptember 22, 2020
Docket1:19-cv-06451
StatusUnknown

This text of IMM Holdings, Ltd. v, HKParts Incorporated (IMM Holdings, Ltd. v, HKParts Incorporated) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
IMM Holdings, Ltd. v, HKParts Incorporated, (N.D. Ill. 2020).

Opinion

IN THE UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION

IMM HOLDINGS, LTD., ) ) Plaintiff, ) ) No. 19 C 6451 v. ) ) Judge Virginia M. Kendall HK PARTS, INC., ) ) Defendant. ) ) )

MEMORANDUM OPINION AND ORDER

Plaintiff IMM Holdings, Ltd. filed suit against HK Parts, Inc. for trademark infringement, trademark counterfeiting, false labeling, false advertising, and false designation and origin in violation of the Lanham Act and the Illinois Uniform Deceptive Trade Practices Act. (Dkt. 1 at 10). HK Parts moved to dismiss Plaintiff’s Complaint for lack of personal jurisdiction pursuant to Rule 12(b)(2) and/or for improper venue pursuant to Rule 12(b)(3). (Dkt. 30 at 1). Alternatively, HK Parts moved to transfer this matter to the United States District Court for the District of Utah pursuant to 28 U.S.C. § 1406(a) or 28 U.S.C. § 1404(a). (Id.). For the reasons below, this Court denies Defendant’s Motions to Dismiss pursuant to Rules 12(b)(2) and 12(b)(3) and grants Defendant’s Motion to Transfer pursuant to 28 U.S.C. § 1404(a). BACKGROUND For purposes of this motion, the Court assumes that the following facts taken from the Complaint are true and views any factual disputes in favor of the plaintiff.

Matlin v. Spin Master Corp., 921 F.3d 701, 705 (7th Cir. 2019) (citing Tamburo v. Dworkin, 601 F.3d 693, 700 (7th Cir. 2010)). IMM Holdings is an Illinois corporation with its principal place of business located in Elmhurst, Illinois. (Dkt. 1 at ¶ 3). IMM Holdings owns two United States Trademark registrations for “MATCH WEIGHT” and “MATCH WEIGHT BY IMM HOLDINGS and Design.” (Id. at ¶ 4). IMM Holdings has sold goods—including

“attachments” for firearms and holsters”—registered under the mark “MATCH WEIGHT” since 2013, primarily through its online website and third-party websites. (Id. at ¶ 4–5). HK Parts is a Utah corporation with its principal place of business in Draper, Utah. (Id. at ¶ 8). HK Parts conducts its business through its online website and third-party websites. (Id.). HK Parts has allegedly sold and marketed competing products identified under “Match Weight,” to consumers nationwide, including Illinois. (Id.). HK Parts’s website offers shipping of the

infringing products across the United States, including Illinois. (Id. at ¶ 12). HK Parts’s website also includes a webpage that identifies Illinois and describes Illinois law regulating HK Parts’s products. (Id. at ¶ 2). On September 27, 2019, IMM Holdings filed suit against HK Parts under provisions of the Lanham Act. (Id. at ¶ 1). Defendant now moves to dismiss the Complaint or, in the alternative, to transfer the case to the District of Utah. (Dkt. 30 at 1). LEGAL STANDARDS

Federal Rule of Civil Procedure 12(b)(2) allows dismissal of a complaint for lack of personal jurisdiction. Fed. R. Civ. P. 12(b)(2). A plaintiff is not required to anticipate a personal jurisdiction challenge in its complaint; though, once challenged, the plaintiff bears the burden of demonstrating personal jurisdiction. Curry v. Revolution Laboratories, LLC, 949 F.3d 385, 392 (7th Cir. 2020) (citing Purdue Research Found. V. Sanofi-Synthelabo, S.A., 338 F.3d 773, 782 (7th Cir. 2003)).

Whether the court holds an evidentiary hearing determines the nature of the plaintiff’s burden. Id. When the court does not hold an evidentiary hearing and decides the defendant’s Rule 12(b)(2) motion on the basis of written materials alone, the plaintiff must establish merely a prima facie case of personal jurisdiction. Id.; see also Kipp v. Ski Enter. Corp. of Wis., Inc., 783 F.3d 695, 697 (7th Cir. 2015) (citing Purdue Research, 338 F.3d at 782). In evaluating whether the plaintiff has satisfied the prima facie standard, the court must “take as true all well-pleaded facts alleged

in the complaint and resolve any factual disputes in the affidavits in favor of the plaintiff.” Matlin, 921 F.3d at 705 (quoting Tamburo, 601 F.3d at 700). DISCUSSION Defendant moves to dismiss the Complaint on two grounds and alternatively moves to transfer venue. (Dkt. 30 at 1). First, HK Parts moves to dismiss the Complaint pursuant to Rule 12(b)(2) and Rule 12(b)(3) for lack of personal jurisdiction and improper venue under 28 U.S.C. § 1391. (Id.) Alternatively, HK Parts moves to transfer venue pursuant to 28 U.S.C. § 1404(a) or 28 U.S.C. § 1406(a). (Id.) a. Motion to Dismiss for Lack of Personal Jurisdiction

A court’s exercise of personal jurisdiction may depend on the state long-arm statute or the federal Constitution. Tamburo, 601 F.3d at 700. Because “the Lanham Act does not authorize nationwide service of process, . . . a federal court sitting in Illinois may exercise jurisdiction over [the defendant] in this case only if authorized both by Illinois law and by the United States Constitution.” be2 LLC v. Ivanov, 642 F.3d 555, 558 (7th Cir. 2011) (citation omitted). The Illinois long-arm statute allows

a court to “exercise jurisdiction on any basis . . . permitted by the Illinois Constitution and the Constitution of the United States.” 735 Ill. Comp. Stat. 5/2-209(c). Because there is “no operative difference between . . . ” the constitutional limits of the Illinois Constitution and the United States Constitution in terms of personal jurisdiction, the proper inquiry is whether this Court’s exercise of personal jurisdiction over HK Parts complies with the limits imposed by the Fourteenth Amendment’s Due Process Clause. Curry, 949 F.3d at 393 (quoting Mobile Anesthesiologists Chi., LLC v.

Anesthesia Assocs. of Hous. Metroplex, P.A., 623 F.3d 440, 443 (7th Cir. 2010)). These limitations set by the Due Process Clause “protect an individual’s liberty interest in not being subject to the binding judgments of a forum with which he has established no meaningful ‘contacts, ties, or relations.’” Id. (quoting Burger King Corp. v. Rudzewicz, 471 U.S. 462, 471–72 (1985)). Thus, the question before the Court is whether HK Parts had “sufficient ‘minimum contacts’ with Illinois such that the maintenance of the suit ‘does not offend traditional notions of fair play and substantial justice.’” Tamburo, 601 F.3d at 700–01 (quoting Int’l Shoe Co. v. Washington, 326 U.S. 310, 316 (1945)). In other words, HK Parts must have

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IMM Holdings, Ltd. v, HKParts Incorporated, Counsel Stack Legal Research, https://law.counselstack.com/opinion/imm-holdings-ltd-v-hkparts-incorporated-ilnd-2020.