Innovative Research Technology Inc v. Internet Technology Group Inc

District Court, W.D. Washington·Decided May 2, 2025·No. 2:24-cv-01263·Unknown

Opinion

UNITED STATES DISTRICT COURT WESTERN DISTRICT OF WASHINGTON INNOVATIVE RESEARCH CASE NO. 2:24-cv-01263-TL TECHNOLOGY, INC., a Tennessee corporation, ORDER ON MOTION TO DISMISS Plaintiff, v. INTERNET TECHNOLOGY GROUP, INC., an Oklahoma corporation, et al.

Defendant.

This matter comes before the Court on Third-Party Defendant Michael Heisler’s Motion to Dismiss for Lack of Personal Jurisdiction. Dkt. No. 30. This action arises out of a business relationship between Plaintiff Innovative Research Technology, Inc., (“IRT”) and Defendant/Counter-claimant Internet Technology Group, Inc. (“ITG”). Having reviewed Defendant ITG’s response (Dkt. No. 33), Third-Party Defendant Heisler’s reply (Dkt. No. 38), and the relevant record, the Court GRANTS Third-Party Defendant Heisler’s motion to dismiss (Dkt. No. 30). The Parties have provided competing narratives in their respective pleadings. Compare Dkt. No. 1 ¶¶ 3.1–3.60, with Dkt. No. 22 at 27–35. The Court recites each Party’s factual assertions as they have been alleged.

A. The Parties and Their Distribution Agreement Plaintiff IRT is a Tennessee corporation with its principal place of business in Virginia. Dkt. No. 1 ¶ 1.1. Defendant ITG is an Oklahoma corporation with its principal place of business in Washington. Id. ¶ 1.2. Third-Party Defendant Michael Heisler resides in Nevada; he is Plaintiff IRT’s sole shareholder. Id. ¶ 1.1. Plaintiff IRT is the inventor of the Urinator, a “product designed to allow those wishing to protect their privacy with relation to their genetic material by providing synthetic urine and a discreet delivery system.” Id. ¶¶ 3.1–3.2. The company has sold the Urinator in commerce since 1998 using the trademark “Urinator.” Id. ¶ 3.3. In or around November 2013, Plaintiff IRT entered into a distribution agreement with

Defendant ITG to sell the Urinator product. Id. ¶ 3.6. Pursuant to the agreement, Defendant ITG was allowed to use the “Urinator” trademark in accordance with Plaintiff IRT’s brand standards, and Plaintiff IRT granted Defendant ITG the right to use the “Urinator” wordmark on a limited basis when distributing the Urinator product. Id. ¶¶ 3.7–3.8. Under the agreement, Defendant ITG was allowed to utilize the Urinator mark in accord with Plaintiff IRT’s brand standards, including marketing the Urinator exclusively as a method to protect genetic privacy. Id. ¶ 3.7. Plaintiff IRT could revoke at will both the distribution agreement and the license to utilize the Urinator trademark. Id. ¶ 3.8.

B. Plaintiff IRT’s Complaint On August 15, 2025, Plaintiff IRT filed a civil action in this Court, alleging six causes of action: federal trademark infringement (Dkt. No. 1 ¶¶ 4.1–4.11), federal false designation of origin (id. ¶¶ 4.12–4.17), state-law trademark imitation (id. ¶¶ 4.18–4.23), violation of the

Washington Consumer Protection Act (“WCPA”) (id. ¶¶ 4.24–4.28), common-law trademark infringement (id. ¶¶ 4.29–4.36), and breach of contract (id. ¶¶ 4.37–4.43). Plaintiff IRT’s Complaint stems from alleged misconduct undertaken by Defendant ITG after Plaintiff IRT terminated its distribution agreement with Defendant ITG. Id. ¶¶ 3.9–3.12. In October 2023, Plaintiff IRT discovered that Defendant ITG had been violating the distribution agreement by marketing the Urinator product as a way to bypass drug-testing protocols. Id. ¶ 3.9. Plaintiff IRT terminated the agreement and revoked Defendant ITG’s permission to utilize the Urinator mark for any purpose. Id. ¶ 3.10. But even after the termination of the agreement, Defendant ITG continued to market the Urinator as its own device and falsely claimed ownership of the product. Id. ¶ 3.11. Further, Defendant ITG continued to utilize the

“Urinator” trademark “to market a product sold through the domain TestClear.com that was similar to the Urinator [and] that ITG distributed.” Id. ¶ 3.12. Plaintiff IRT claims that TestClear’s product is marketed specifically as a device to circumvent urinalysis tests. Id. ¶ 3.13. Plaintiff IRT alleges that, in using the “Urinator” trademark to market TestClear’s product, Defendant ITG “diluted the value of the Urinator mark and damaged the mark and brand’s image.” Id. C. Defendant ITG’s Counterclaims On December 24, 2024, Defendant ITG answered Plaintiff IRT’s complaint. Dkt. No. 22. Defendant ITG also brought counterclaims against Plaintiff IRT and Third-Party Defendant

Heisler.1 See id. There are five counterclaims; only four of them have been brought against Third-Party Defendant Heisler: false advertising (id. at 32–33 ¶¶ 43–48), violation of the WCPA (id. at 33–34 ¶¶ 49–57), defamation/libel (id. at 34–35 ¶¶ 58–62), and tortious interference with business expectancy (id. at 35 ¶¶ 63–67). The remaining counterclaim, for declaratory judgment

of non-infringement, is alleged exclusively against Plaintiff IRT. Id. at 31–32 ¶¶ 38–42. Defendant ITG’s narrative differs from that provided by Plaintiff IRT. For the purposes of the instant motion, the material difference concerns the breakdown of the commercial relationship between Plaintiff IRT and Defendant ITG. Where Plaintiff IRT alleges that it terminated the agreement, Defendant ITG alleges that, “In October 2023, [Plaintiff] IRT proposed a new Distributor Agreement, which was highly financially unfavorable to [Defendant] ITG.” Id. at 29 ¶ 20. Rather than accept the “unfavorable” agreement, “[Defendant] ITG chose to terminate its selling partnership with [Plaintiff] IRT and sell its remaining inventory of genuine URINATOR products that it had purchased from [Plaintiff] IRT.” Id. at 29 ¶ 21. In response, Plaintiff IRT and Third-Party Defendant Heisler retaliated. Id. at 29 ¶ 24. Plaintiff IRT and

Third-Party Defendant Heisler “embarked on a campaign of false statements designed to harm ITG’s reputation and business.” Id. Specifically, Third-Party Defendant Heisler made improper statements on three websites: Plaintiff IRT’s websites (urinator.com and urinatorbt.com), reddit.com, and the Better Business Bureau (“BBB”) website. See id. at 30–31 ¶¶ 25–30. On February 3, 2025, Third-Party Defendant Heisler filed the instant Motion to Dismiss Defendant ITG’s third-party counterclaims against him pursuant to Federal Rule of Civil Procedure 12(b)(2)—that is, on the basis of lack of personal jurisdiction. Dkt. No. 30. On March

1 Third-Party Defendant Heisler is not a party to the Plaintiff IRT’s lawsuit. Defendant ITG has named him as an additional defendant in its counterclaims against Plaintiff IRT. Therefore, the Court refers to Heisler as a third-party defendant. 3, 2025, Defendant ITG responded. Dkt. No. 33. On March 14, 2025, Third-Party Defendant Heisler filed a reply. Dkt. No. 38. For a court to constitutionally exercise personal jurisdiction over a non-resident

defendant, a plaintiff must show that the defendant has or had “certain minimum contacts with the state,” such that exercising jurisdiction “does not offend traditional notions of fair play and substantial justice.” Int’l Shoe Co. v. Washington, 326 U.S. 310, 316 (1945). The central concern of personal jurisdiction is the relationship between the defendant, the forum state, and the litigation. Shaffer v. Heitner, 433 U.S. 186, 204 (1977). The defendant’s conduct and connection with the forum state must be sufficiently purposeful that the defendant would reasonably anticipate being brought into court there. World-Wide Volkswagen Corp. v. Woodson, 444 U.S. 286, 297 (1980). “Under the due process analysis, a defendant may be subject to either general or specific personal jurisdiction.” Easter v. Am. W. Fin., 381 F.3d 948, 960 (9th Cir. 2004) (citing

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