JAGEX LIMITED v. Impulse Software

750 F. Supp. 2d 228, 2010 U.S. Dist. LEXIS 84201
CourtDistrict Court, D. Massachusetts
DecidedAugust 16, 2010
DocketCivil Action 10-10216-NMG
StatusPublished
Cited by4 cases

This text of 750 F. Supp. 2d 228 (JAGEX LIMITED v. Impulse Software) is published on Counsel Stack Legal Research, covering District Court, D. Massachusetts primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
JAGEX LIMITED v. Impulse Software, 750 F. Supp. 2d 228, 2010 U.S. Dist. LEXIS 84201 (D. Mass. 2010).

Opinion

MEMORANDUM & ORDER

GORTON, District Judge.

In the instant case, plaintiff Jagex Limited (“Jagex”), the owner of an interactive computer game, has brought various claims against defendants Impulse Software, Eric Snellman and Mark Snellman for copyright and trademark infringement. Before the Court are defendants’ motion to dismiss for lack of jurisdiction and plaintiffs motion for preliminary injunction.

*231 I. Factual Background

Plaintiff Jagex, a foreign corporation organizing under the laws of the United Kingdom, owns and operates “Runescape,” a massive multi-player online game (“MMOG”). In 2008, the Guinness Book of World Records recognized Runescape as the world’s most popular free online role-playing game, with over 130 million accounts created since the launch of the game in 2001.

Runescape operates in a fantasy world in which a player guides a customizable avatar (a virtual character) through a visually stimulating environment, completing goals and objectives as set by the player. Players interact with one another by trading, chatting or participating (cooperatively or combatively) in mini-games and challenges.

A player may choose either to play Runescape for free, whereby he gains basic access to the game or to pay for a subscription which provides access to additional levels and skills. Succeeding at either version of Runescape entails a substantial commitment of time and effort. For example, as of October, 2009, the three highest-ranked players had each spent an average of approximately 20,000 hours involved in a game, e.g., 50 hours per week for almost eight years. As players progress, they are rewarded with “experience points” and virtual “gold coins” which symbolize status in the Runescape community and allow the players to acquire resources and complete quests more effectively.

The defendants, Eric and Mark Snell-man, both of whom reside in Florida and do business as Impulse Software, (collectively, “the Snellman brothers”) operate several websites which offer tools that allow players to cheat at MMOGs such as Runescape. More specifically, the Snell-man brothers develop and sell a software program called “iBot” or “Bot” (gamer jargon for “robot”) that enables Runescape users to advance their characters through the game with little or no human participation.

The Bot software functions by downloading a copy of Runescape from the free, online website and using a process called “reflection” to examine the game’s internal operation which is normally hidden from users. The Bot software uses this information to identify objects within the Runescape game with which it wishes to interact and then completes a desired task according to instructions from a script. In essence, the Bot plays the game for its owner while she is away from her computer. The defendants’ technology allows a Bot user to progress more rapidly than a player who completes each task manually, thereby giving the Bot user an unfair advantage over the “honest” player and allegedly resulting in a diminished experience for the gaming community as a whole.

Jagex alleges that although Runescape’s Terms and Conditions expressly prohibit the use of such Bots, more and more players have begun to use them. As a result, honest players have purportedly become frustrated and stopped playing the game and new players are increasingly reluctant to sign up. Jagex also claims that since being served with the complaint in this lawsuit, the Snellman brothers have launched a new website from which they sell the allegedly infringing Bots.

II. Procedural History

On February 9, 2010, Jagex filed a four-count complaint against the Snellman brothers alleging 1) copyright infringement, 2) violation of the Digital Millennium Copyright Act, 3) trademark infringement under the Lanham Act and 4) violation of the Computer Fraud and Abuse Act. The defendants responded by moving to dis *232 miss for lack of personal jurisdiction and improper venue. In the alternative, they seek transfer to the United States District Court for the Middle District of Florida, where they both reside. Jagex also seeks a preliminary injunction prohibiting the defendants from selling and promoting their allegedly infringing software.

The Court convened a motion hearing on July 27, 2010, at which time it announced its tentative rulings and posed various questions to the parties. Having fully considered the parties’ written submissions and oral arguments, the Court now publishes its decision.

III. Legal Analysis

A. Defendant’s Motion to Dismiss [Docket No. 16]

The defendants have moved to dismiss the plaintiffs claims on the grounds that 1) the Court lacks personal jurisdiction over the defendants, both of whom are Florida residents and do not operate any offices or manufacture their products in Massachusetts, and 2) venue is improper in Massachusetts. 1 Alternatively, they move the Court to transfer the case to the Middle District of Florida, Orlando Division.

1. Exercise of Personal Jurisdiction in Massachusetts

On a motion to dismiss for want of personal jurisdiction, the plaintiff bears of the burden of demonstrating that jurisdiction is 1) statutorily authorized and 2) consistent with the Due Process Clause of the United States Constitution. Astro-Med, Inc. v. Nihon Kohden America, Inc., 591 F.3d 1, 8 (1st Cir.2009). Because the Massachusetts long-arm statute reaches to the full extent that the Constitution allows, the Court will proceed directly to the Constitutional analysis. See Tatro v. Manor Care, Inc., 416 Mass. 763, 625 N.E.2d 549, 553 (1994).

Due Process requires that the defendants have “minimum contacts” with the forum state such that the “maintenance of the suit does not offend traditional notions of fair play and substantial justice.” Int’l Shoe Co. v. Washington, 326 U.S. 310, 316, 66 S.Ct. 154, 90 L.Ed. 95 (1945). The First Circuit employs a tripartite analysis to determine whether specific jurisdiction is appropriate. 2 The court inquires as to: 1) whether the claims arise out of or are related to the defendants’ in-state activities, 2) whether the defendants have purposefully availed themselves of the laws of the forum state and 3) whether the exercise of jurisdiction is reasonable under the circumstances. See, e.g., Platten v. HG Bermuda Exempted, Ltd., 437 F.3d 118, 135 (1st Cir.2006).

a. Relatedness

The “relatedness” test is a “flexible, relaxed” standard that focuses on the nexus between the plaintiffs claim and the defendants’ contacts with the forum state. Astro-Med, 591 F.3d at 9; Ticketmaster-New York v. Alioto,

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750 F. Supp. 2d 228, 2010 U.S. Dist. LEXIS 84201, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jagex-limited-v-impulse-software-mad-2010.