International Star Registry of Illinois, Ltd. v. RGIFTS LIMITED

CourtDistrict Court, N.D. Illinois
DecidedNovember 4, 2022
Docket1:21-cv-06446
StatusUnknown

This text of International Star Registry of Illinois, Ltd. v. RGIFTS LIMITED (International Star Registry of Illinois, Ltd. v. RGIFTS LIMITED) 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.

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International Star Registry of Illinois, Ltd. v. RGIFTS LIMITED, (N.D. Ill. 2022).

Opinion

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

INTERNATIONAL STAR REGISTRY ) OF ILLINOIS, LTD., ) ) Plaintiff, ) Case No. 21-cv-06446 ) v. ) Judge Sharon Johnson Coleman ) RGIFTS LIMITED and MATEI SUPPLY ) CORP., ) ) Defendants. )

MEMORANDUM OPINION AND ORDER

Plaintiff International Star Registry of Illinois, Ltd. (“International Star Registry”) brings this action against defendants RGIFTS Limited and MATEI Supply Corp. (collectively, “Defendants”), alleging trademark infringement and other related claims. Before the Court is Defendants’ motion to dismiss the complaint [18] under Federal Rules of Civil Procedure 12(b)(2) and 12(b)(5). For the following reasons, the Court denies Defendants’ 12(b)(2) motion and grants the 12(b)(5) motion without prejudice. Background

As alleged in the Complaint, International Star Registry is an Illinois corporation with its principal place of business in Northbrook, Illinois. Since 1979, the company has sold star registrations to members of the general public. The company claims that it has identified numerous unnamed stars, and, for a price, will assign a consumer’s name to a star. With every star registry purchase, International Star Registry provides “unique star identification materials,” including a decorative certificate suitable for framing, a constellation chart, a star map showing the part of the sky that contains the customer’s newly named star, an astronomy booklet, and a letter. (Dkt. 1, ¶ 12.) According to the Complaint, International Star Registry has adopted multiple trademarks and service marks associated with its star identification packages. These include: (1) the service mark, trademark, and trade name “INTERNATIONAL STAR REGISTRY”; (2) the service mark and trademark “STAR REGISTRY”; and (3) the service mark and trademark “STARREGISTRY.COM.” (Id., ¶ 14.) In addition, International Star Registry owns rights to the domain names “STARREGISTRY.COM” and “STARNAMEREGISTRY.COM.” (Id.)

International Star Registry alleges that its marks and trade names have developed widespread recognition and goodwill among consumers, who have come to identify the company’s marks with its star naming services and packaging, as well as literature associated with astronomy. Defendant RGIFTS Limited (“RGIFTS”) is a private limited company incorporated in the United Kingdom with its principal place of business in Wales. (Id., ¶ 3; see also Dkt. 21-3 at 2.) RGIFTS also operates a star registry business over the Internet. Defendant MATEI Supply Corp. (“MATEI”), a corporation with its principal place of business in California, fulfills star registration orders for RGIFTS’s customers in the United States. (Dkt. 1, ¶¶ 4, 9.) On December 2, 2021, International Star Registry filed a five-count complaint against Defendants, alleging trademark infringement under federal and Illinois law, as well as unfair competition, deceptive trade practices and consumer fraud, and dilution. International Star Registry alleges that Defendants infringed upon its trademarks by using its marks and names, as well as

“confusingly similar” ones, for the advertising, sale, and distribution of star-naming materials on the Internet. (Id., ¶ 30.) In particular, the complaint alleges that Defendants have held themselves out to be “INTERNATIONAL STAR REGISTRY” on the Internet and that Defendants used the domain name “STAR-NAME-REGISTRY.COM” to deceive customers into believing that their products are associated with International Star Registry. (Id., ¶¶ 29–30.) On January 28, 2022, Defendants filed the instant motion to dismiss, which seeks to dismiss the complaint in its entirety (1) as to both defendants for lack of personal jurisdiction under Rule 12(b)(2) and (2) as to RGIFTS for lack of proper service under Rule 12(b)(5). The parties have conducted limited jurisdictional discovery related to Defendants’ motion. Legal Standard A motion to dismiss under Rule 12(b)(2) tests whether a federal court has personal

jurisdiction over a defendant. Fed. R. Civ. P. 12(b)(2); Curry v. Revolution Labs., LLC, 949 F.3d 385, 392 (7th Cir. 2020). Although the plaintiff bears the burden of establishing personal jurisdiction, “[w]hen the district court bases its determination solely on written materials and not an evidentiary hearing, plaintiffs must only make a prima facie showing of personal jurisdiction over the defendants to survive their motion to dismiss.” Matlin v. Spin Master Corp., 921 F.3d 701, 705 (7th Cir. 2019) (citation omitted). “In evaluating whether the prima facie standard has been satisfied, the plaintiff is entitled to the resolution in its favor of all disputes concerning relevant facts presented in the record.” Purdue Research Found. v. Sanofi-Synthelabo, S.A., 338 F.3d 773, 782 (7th Cir. 2003) (quotations and citation omitted). Defendants may challenge the sufficiency of service of process through a motion to dismiss under Rule 12(b)(5). Fed. R. Civ. P. 12(b)(5); Cardenas v. City of Chicago, 646 F.3d 1001, 1005 (7th Cir. 2011). The plaintiff bears the burden of proving effective service of process. Cardenas, 646 F.3d at

1005. In considering a motion under Rule 12(b)(5), the court may look beyond the pleadings but “must ultimately view the facts in the light most favorable to the plaintiff.” 1025 W. Addison Street Apartments Owner, LLC v. Grupo Cinemex, S.A. de C.V., No. 20-cv-6811, 2021 WL 2136073, at *4 (N.D. Ill. May 26, 2021) (Aspen, J.) (citation omitted). “Only proper service vests a district court with personal jurisdiction over a defendant.” Luxottica Grp. S.P.A. v. P’ships & Unincorporated Ass’ns Identified on Schedule “A,” 391 F. Supp. 3d 816, 821 (N.D. Ill. 2019) (Gottschall, J.) (citing Cardenas, 646 F.3d at 1005). “Thus, ‘actual knowledge of the existence of a lawsuit is insufficient to confer personal jurisdiction over a defendant in the absence of valid service of process.’” Id. (quoting Mid- Continent Wood Prods., Inc. v. Harris, 936 F.2d 297, 301 (7th Cir. 1991)). If the court finds that the plaintiff has not met its burden and lacks good cause for failing to perfect service, the court must either dismiss the case or specify a timeframe within which the plaintiff must serve the defendants. Cardenas, 646 F.3d at 1005 (citing Fed. R. Civ. P. 4(m)). The decision is “inherently discretionary.”

Id. (citation omitted). Discussion The Court begins with both defendants’ argument that the complaint should be dismissed under Rule 12(b)(2) for lack of personal jurisdiction. It then turns to the service of process issue as to defendant RGIFTS under Rule 12(b)(5).1 Personal Jurisdiction This case includes claims brought under the Lanham Act, as well as under Illinois law. Because the Lanham Act does not authorize nationwide service of process, personal jurisdiction is governed by the law of Illinois. See Ariel Invs., LLC v. Ariel Cap.

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International Star Registry of Illinois, Ltd. v. RGIFTS LIMITED, Counsel Stack Legal Research, https://law.counselstack.com/opinion/international-star-registry-of-illinois-ltd-v-rgifts-limited-ilnd-2022.