Impossible Foods Inc. v. Impossible X LLC

80 F.4th 1079
CourtCourt of Appeals for the Ninth Circuit
DecidedSeptember 12, 2023
Docket21-16977
StatusPublished
Cited by43 cases

This text of 80 F.4th 1079 (Impossible Foods Inc. v. Impossible X LLC) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Impossible Foods Inc. v. Impossible X LLC, 80 F.4th 1079 (9th Cir. 2023).

Opinion

FOR PUBLICATION

UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT

IMPOSSIBLE FOODS INC., No. 21-16977

Plaintiff-Appellant, D.C. No. 5:21-cv-02419- v. BLF

IMPOSSIBLE X LLC, OPINION Defendant-Appellee.

Appeal from the United States District Court for the Northern District of California Beth Labson Freeman, District Judge, Presiding

Argued and Submitted December 6, 2022 San Francisco, California

Filed September 12, 2023

Before: Carlos F. Lucero,* Daniel A. Bress, and Lawrence VanDyke, Circuit Judges.

Opinion by Judge Bress; Dissent by Judge VanDyke

* The Honorable Carlos F. Lucero, United States Circuit Judge for the U.S. Court of Appeals for the Tenth Circuit, sitting by designation. 2 IMPOSSIBLE FOODS, INC. V. IMPOSSIBLE X LLC

SUMMARY**

Personal Jurisdiction

The panel reversed the district court’s dismissal, for lack of personal jurisdiction, of a trademark declaratory judgment action brought against Impossible X, LLC, by Impossible Foods, Inc., a corporation that manufactures and markets plant-based meat substitutes, and remanded for the district court to consider the merits of Impossible Foods’ claims. Impossible X, now a Texas LLC, is a one-person company run by Joel Runyon, a self-described “digital nomad” who for two years operated his business from San Diego. Impossible X sells apparel, nutritional supplements, diet guides, and a consulting service through its website and various social media channels. Impossible Foods sued Impossible X in federal court in California, seeking a declaration that Impossible Foods’ use of the IMPOSSIBLE mark did not infringe on Impossible X’s trademark rights. The panel held that Impossible X was subject to specific personal jurisdiction in California because it previously operated out of California and built its brand and trademarks there, and its activities in California were sufficiently affiliated with the underlying trademark dispute to satisfy the requirements of due process. First, Impossible X purposefully directed its activities toward California and availed itself of the privileges of conducting activities there by building its brand and working to establish trademark rights there. Second, Impossible Foods’ declaratory

** This summary constitutes no part of the opinion of the court. It has been prepared by court staff for the convenience of the reader. IMPOSSIBLE FOODS, INC. V. IMPOSSIBLE X LLC 3

judgment action arose out of or related to Impossible X’s conduct in California because Impossible X’s trademark building activities formed the basis of the contested trademark rights. The panel did not confine its analysis to Impossible X’s trademark enforcement activities, but rather concluded that, to the extent the Federal Circuit follows such an approach for patent declaratory judgments, that approach is not justified in the trademark context. Third, the panel concluded that there was nothing unreasonable about requiring Impossible X to defend a lawsuit based on its trademark building activities in the state that was its headquarters and Runyon’s home base, and that continued to be a business destination for Runyon and Impossible X. Dissenting, Judge VanDyke wrote that Impossible X was not subject to specific personal jurisdiction in California because Impossible Foods waived any argument that Impossible X’s brand-building activities create specific jurisdiction. Even ignoring wavier, Impossible X did not purposefully direct any trademark enforcement activity at California, and this declaratory judgment action did not arise out of or relate to Impossible X’s relevant activities in California.

COUNSEL

William H. Brewster (argued) and Theodore H. Davis, Jr., Kilpatrick Townsend & Stockton LLP, Atlanta, Georgia; Gia L. Cincone, Kilpatrick Townsend & Stockton LLP, San Francisco, California; for Plaintiff-Appellant. Thomas M. Johnson, Jr. (argued), David E. Weslow, and Adrienne J. Kosak, Wiley Rein LLP, Washington, D.C.; 4 IMPOSSIBLE FOODS, INC. V. IMPOSSIBLE X LLC

Kevin K. Eng, Markun Zusman Freniere & Compton LLP, San Francisco, California; for Defendant-Appellee.

OPINION

BRESS, Circuit Judge:

We determine whether a California federal court in a trademark declaratory judgment action has personal jurisdiction over a one-person company run by a self- described “digital nomad” who for two years operated his business from San Diego. We hold that Impossible X, the declaratory judgment defendant, is subject to specific personal jurisdiction in California because it previously operated out of California and built its brand and trademarks there. Impossible X’s activities in the forum state are sufficiently affiliated with the underlying trademark dispute to satisfy the requirements of due process. We reverse the district court’s dismissal of the plaintiff’s complaint. I A Declaratory judgment plaintiff Impossible Foods, a Delaware corporation, manufactures and markets plant- based meat substitutes. This includes the “Impossible Burger,” which is sold in grocery stores and restaurants nationwide. Impossible Foods’ principal place of business is in Redwood City, California. Declaratory judgment defendant Impossible X, now a Texas LLC, sells apparel, nutritional supplements, diet guides, exercise plans, and consulting services through its website and various social media channels. Impossible X is solely owned and operated IMPOSSIBLE FOODS, INC. V. IMPOSSIBLE X LLC 5

by entrepreneur Joel Runyon, who currently resides in Austin, Texas. Impossible X and Impossible Foods use a similar all- caps version of the word “IMPOSSIBLE” to market their products. Both companies have federally registered trademarks for their versions of the IMPOSSIBLE mark. Runyon first used the mark on his personal fitness and lifestyle blog in 2010. The purpose of the blog was to encourage Runyon himself and others “to push ourselves to our limits and do something impossible.” In 2012, Runyon in his personal capacity registered the IMPOSSIBLE mark for use on a website featuring information on personal fitness and “adventure activities.” Shortly thereafter, Runyon turned his personal blog into a business, forming Impossible Ventures LLC as an Illinois legal entity. Runyon changed the name of the LLC to Impossible X in 2016. Between 2014 and 2018, Impossible X obtained several additional trademark registrations related to the original IMPOSSIBLE mark, such as IMPOSSIBLE FITNESS and IMPOSSIBLE HQ. Impossible X uses these marks on numerous nationwide platforms, including several domain names, an Amazon e-commerce platform, and a YouTube channel. Though Impossible X ambitiously expanded its virtual footprint, it has fewer ties to the physical world. Impossible X has no employees or outside investors, has no manufacturing or production facilities, and does not itself own or rent any office space. The company is, for all practical purposes, an extension of Joel Runyon, who claims to “handle[] business for Impossible LLC . . . remotely from wherever I happen[] to be.” 6 IMPOSSIBLE FOODS, INC. V. IMPOSSIBLE X LLC

As it happens, Runyon—who refers to himself as a “digital nomad”—has worked from several places since he first registered the IMPOSSIBLE mark. While Runyon has traveled extensively, his ties to California are substantial, at least as related to the present dispute. Although Runyon never registered Impossible X to do business in California, San Diego served as Impossible X’s de facto headquarters from 2014 to 2016. Runyon claims he split his time between San Diego and New York City during this period, but he also described San Diego as a “base point,” and his Impossible X business activities were clearly concentrated there. In these years, Runyon rented both an apartment and a workspace in San Diego from which he ran Impossible X. He did not rent workspace in New York or elsewhere.

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Bluebook (online)
80 F.4th 1079, Counsel Stack Legal Research, https://law.counselstack.com/opinion/impossible-foods-inc-v-impossible-x-llc-ca9-2023.