Innovative Research Technology Inc v. Internet Technology Group Inc

CourtDistrict Court, W.D. Washington
DecidedMay 2, 2025
Docket2:24-cv-01263
StatusUnknown

This text of Innovative Research Technology Inc v. Internet Technology Group Inc (Innovative Research Technology Inc v. Internet Technology Group Inc) is published on Counsel Stack Legal Research, covering District Court, W.D. Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Innovative Research Technology Inc v. Internet Technology Group Inc, (W.D. Wash. 2025).

Opinion

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5 6 7 8 UNITED STATES DISTRICT COURT WESTERN DISTRICT OF WASHINGTON 9 AT SEATTLE 10 11 INNOVATIVE RESEARCH CASE NO. 2:24-cv-01263-TL TECHNOLOGY, INC., a Tennessee 12 corporation, ORDER ON MOTION TO DISMISS 13 Plaintiff, v. 14 INTERNET TECHNOLOGY GROUP, 15 INC., an Oklahoma corporation, et al.

16 Defendant.

17 This matter comes before the Court on Third-Party Defendant Michael Heisler’s Motion 18 to Dismiss for Lack of Personal Jurisdiction. Dkt. No. 30. This action arises out of a business 19 relationship between Plaintiff Innovative Research Technology, Inc., (“IRT”) and 20 Defendant/Counter-claimant Internet Technology Group, Inc. (“ITG”). Having reviewed 21 Defendant ITG’s response (Dkt. No. 33), Third-Party Defendant Heisler’s reply (Dkt. No. 38), 22 and the relevant record, the Court GRANTS Third-Party Defendant Heisler’s motion to dismiss 23 (Dkt. No. 30). 24 1 I. BACKGROUND 2 The Parties have provided competing narratives in their respective pleadings. Compare 3 Dkt. No. 1 ¶¶ 3.1–3.60, with Dkt. No. 22 at 27–35. The Court recites each Party’s factual 4 assertions as they have been alleged.

5 A. The Parties and Their Distribution Agreement 6 Plaintiff IRT is a Tennessee corporation with its principal place of business in Virginia. 7 Dkt. No. 1 ¶ 1.1. Defendant ITG is an Oklahoma corporation with its principal place of business 8 in Washington. Id. ¶ 1.2. Third-Party Defendant Michael Heisler resides in Nevada; he is 9 Plaintiff IRT’s sole shareholder. Id. ¶ 1.1. 10 Plaintiff IRT is the inventor of the Urinator, a “product designed to allow those wishing 11 to protect their privacy with relation to their genetic material by providing synthetic urine and a 12 discreet delivery system.” Id. ¶¶ 3.1–3.2. The company has sold the Urinator in commerce since 13 1998 using the trademark “Urinator.” Id. ¶ 3.3. 14 In or around November 2013, Plaintiff IRT entered into a distribution agreement with

15 Defendant ITG to sell the Urinator product. Id. ¶ 3.6. Pursuant to the agreement, Defendant ITG 16 was allowed to use the “Urinator” trademark in accordance with Plaintiff IRT’s brand standards, 17 and Plaintiff IRT granted Defendant ITG the right to use the “Urinator” wordmark on a limited 18 basis when distributing the Urinator product. Id. ¶¶ 3.7–3.8. Under the agreement, Defendant 19 ITG was allowed to utilize the Urinator mark in accord with Plaintiff IRT’s brand standards, 20 including marketing the Urinator exclusively as a method to protect genetic privacy. Id. ¶ 3.7. 21 Plaintiff IRT could revoke at will both the distribution agreement and the license to utilize the 22 Urinator trademark. Id. ¶ 3.8. 23

24 1 B. Plaintiff IRT’s Complaint 2 On August 15, 2025, Plaintiff IRT filed a civil action in this Court, alleging six causes of 3 action: federal trademark infringement (Dkt. No. 1 ¶¶ 4.1–4.11), federal false designation of 4 origin (id. ¶¶ 4.12–4.17), state-law trademark imitation (id. ¶¶ 4.18–4.23), violation of the

5 Washington Consumer Protection Act (“WCPA”) (id. ¶¶ 4.24–4.28), common-law trademark 6 infringement (id. ¶¶ 4.29–4.36), and breach of contract (id. ¶¶ 4.37–4.43). Plaintiff IRT’s 7 Complaint stems from alleged misconduct undertaken by Defendant ITG after Plaintiff IRT 8 terminated its distribution agreement with Defendant ITG. Id. ¶¶ 3.9–3.12. 9 In October 2023, Plaintiff IRT discovered that Defendant ITG had been violating the 10 distribution agreement by marketing the Urinator product as a way to bypass drug-testing 11 protocols. Id. ¶ 3.9. Plaintiff IRT terminated the agreement and revoked Defendant ITG’s 12 permission to utilize the Urinator mark for any purpose. Id. ¶ 3.10. But even after the termination 13 of the agreement, Defendant ITG continued to market the Urinator as its own device and falsely 14 claimed ownership of the product. Id. ¶ 3.11. Further, Defendant ITG continued to utilize the

15 “Urinator” trademark “to market a product sold through the domain TestClear.com that was 16 similar to the Urinator [and] that ITG distributed.” Id. ¶ 3.12. Plaintiff IRT claims that 17 TestClear’s product is marketed specifically as a device to circumvent urinalysis tests. Id. ¶ 3.13. 18 Plaintiff IRT alleges that, in using the “Urinator” trademark to market TestClear’s product, 19 Defendant ITG “diluted the value of the Urinator mark and damaged the mark and brand’s 20 image.” Id. 21 C. Defendant ITG’s Counterclaims 22 On December 24, 2024, Defendant ITG answered Plaintiff IRT’s complaint. Dkt. No. 22. 23 Defendant ITG also brought counterclaims against Plaintiff IRT and Third-Party Defendant

24 1 Heisler.1 See id. There are five counterclaims; only four of them have been brought against 2 Third-Party Defendant Heisler: false advertising (id. at 32–33 ¶¶ 43–48), violation of the WCPA 3 (id. at 33–34 ¶¶ 49–57), defamation/libel (id. at 34–35 ¶¶ 58–62), and tortious interference with 4 business expectancy (id. at 35 ¶¶ 63–67). The remaining counterclaim, for declaratory judgment

5 of non-infringement, is alleged exclusively against Plaintiff IRT. Id. at 31–32 ¶¶ 38–42. 6 Defendant ITG’s narrative differs from that provided by Plaintiff IRT. For the purposes 7 of the instant motion, the material difference concerns the breakdown of the commercial 8 relationship between Plaintiff IRT and Defendant ITG. Where Plaintiff IRT alleges that it 9 terminated the agreement, Defendant ITG alleges that, “In October 2023, [Plaintiff] IRT 10 proposed a new Distributor Agreement, which was highly financially unfavorable to [Defendant] 11 ITG.” Id. at 29 ¶ 20. Rather than accept the “unfavorable” agreement, “[Defendant] ITG chose to 12 terminate its selling partnership with [Plaintiff] IRT and sell its remaining inventory of genuine 13 URINATOR products that it had purchased from [Plaintiff] IRT.” Id. at 29 ¶ 21. In response, 14 Plaintiff IRT and Third-Party Defendant Heisler retaliated. Id. at 29 ¶ 24. Plaintiff IRT and

15 Third-Party Defendant Heisler “embarked on a campaign of false statements designed to harm 16 ITG’s reputation and business.” Id. Specifically, Third-Party Defendant Heisler made improper 17 statements on three websites: Plaintiff IRT’s websites (urinator.com and urinatorbt.com), 18 reddit.com, and the Better Business Bureau (“BBB”) website. See id. at 30–31 ¶¶ 25–30. 19 On February 3, 2025, Third-Party Defendant Heisler filed the instant Motion to Dismiss 20 Defendant ITG’s third-party counterclaims against him pursuant to Federal Rule of Civil 21 Procedure 12(b)(2)—that is, on the basis of lack of personal jurisdiction. Dkt. No. 30. On March 22

23 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 24 defendant. 1 3, 2025, Defendant ITG responded. Dkt. No. 33. On March 14, 2025, Third-Party Defendant 2 Heisler filed a reply. Dkt. No. 38. 3 II. LEGAL STANDARD 4 For a court to constitutionally exercise personal jurisdiction over a non-resident

5 defendant, a plaintiff must show that the defendant has or had “certain minimum contacts with 6 the state,” such that exercising jurisdiction “does not offend traditional notions of fair play and 7 substantial justice.” Int’l Shoe Co. v. Washington, 326 U.S. 310, 316 (1945). The central concern 8 of personal jurisdiction is the relationship between the defendant, the forum state, and the 9 litigation. Shaffer v. Heitner, 433 U.S. 186, 204 (1977). The defendant’s conduct and connection 10 with the forum state must be sufficiently purposeful that the defendant would reasonably 11 anticipate being brought into court there. World-Wide Volkswagen Corp.

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