Lang Van, Inc. v. Vng Corporation

40 F.4th 1034
CourtCourt of Appeals for the Ninth Circuit
DecidedJuly 21, 2022
Docket19-56452
StatusPublished
Cited by23 cases

This text of 40 F.4th 1034 (Lang Van, Inc. v. Vng Corporation) 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
Lang Van, Inc. v. Vng Corporation, 40 F.4th 1034 (9th Cir. 2022).

Opinion

FOR PUBLICATION

UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT

LANG VAN, INC., a California No. 19-56452 corporation, Plaintiff-Appellant, D.C. No. 8:14-cv-00100- v. AG-JDE

VNG CORPORATION, a Vietnamese corporation, OPINION Respondent.

Appeal from the United States District Court for the Central District of California Andrew J. Guilford, District Judge, Presiding

Argued and Submitted November 17, 2021 Pasadena, California

Filed July 21, 2022

Before: Jay S. Bybee and Mark J. Bennett, Circuit Judges, and Joseph F. Bataillon, * District Judge.

Opinion by Judge Bataillon

* The Honorable Joseph F. Bataillon, United States District Judge for the District of Nebraska, sitting by designation. 2 LANG VAN V. VNG

SUMMARY **

Personal Jurisdiction/Rule 4(k)(2)

The panel reversed the district court’s dismissal, for lack of personal jurisdiction, of a copyright infringement suit and remanded for further proceedings.

In a prior appeal, this court vacated a prior dismissal for lack of personal jurisdiction and remanded with instructions that plaintiff Lang Van, Inc., be permitted to undertake jurisdictional discovery. On remand, the district court granted defendant VNG Corporation’s renewed motion to dismiss, finding that there was no specific personal jurisdiction in California over VNG, a Vietnamese corporation that released the Zing MP3 mobile music application in the Apple App Store and the Google Play store.

In assessing whether Lang Van established a prima facie case of jurisdiction, the panel analyzed jurisdiction under Federal Rule of Civil Procedure 4(k)(2), which provides for jurisdiction over foreign defendants that have ample contacts with the United States as a whole, but whose contacts are so scattered among states that none of them would have jurisdiction. Under Rule 4(k)(2), the plaintiff must prove: (1) the claim at issue arises from federal law; (2) the defendant is not subject to any state’s courts of general jurisdiction; and (3) invoking jurisdiction upholds due process. The plaintiff has the burden to show the first two

** This summary constitutes no part of the opinion of the court. It has been prepared by court staff for the convenience of the reader. LANG VAN V. VNG 3

prongs, and the burden then shifts to the defendant to show that application of jurisdiction would be unreasonable.

The panel held that prong 1 was met because the case involved copyright infringement, a claim under federal law. Prong 2 was met because VNG asserted that it was not subject to the personal jurisdiction of any state court of general jurisdiction in the United States.

The panel held that under prong 3, first, there must be purposeful activities or transactions with the United States, with an act that shows defendant purposefully availing itself of the privileges of doing business in the United States; second, the claim must arise out of activities that are related to the United States; and third, the exercise of jurisdiction must comport with notions of fair play and substantial justice. There must also be intentional conduct by the defendant that creates the necessary contacts with the forum. In actions for claims such as copyright infringement, there must be purposeful direction under the Calder effects test, meaning that the defendant must have committed an intentional act that is aimed at the forum, and caused harm that the defendant knew would occur in the forum.

The panel concluded that VNG purposefully targeted American companies and their intellectual property. It released its Zing MP3 in English to the United States, contracted with U.S. businesses in conjunction with Zing MP3, and chose not to geoblock access to Lang Van’s content on Zing MP3, which would have restricted the use of Zing MP3 in the United States or elsewhere outside of Vietnam. VNG thus had substantial contacts with the United States. The panel concluded that there was substantial evidence of intentional direction into the United States 4 LANG VAN V. VNG

market, and this evidence clearly supported Rule 4(k)(2) jurisdiction.

Rejecting VNG’s argument regarding forum non conveniens, the panel concluded that venue in this case was not proper in Vietnam.

COUNSEL

Cory A. Baskin (argued), Brandon J. Witkow, and Erin C. Witkow, Witkow Baskin, Woodland Hills, California, for Plaintiff-Appellant.

Kelly L. Perigoe (argued), Michael D. Roth, and James A. Unger, Los Angeles, California; Quyen L. Ta, San Francisco, California; for Defendant-Appellee.

Megan L. Brown, David E. Weslow, Ari S. Meltzer, and Adrienne J. Kosak, Wiley Rein LLP, Washington, D.C., for Amicus Curiae Association of American Publishers, Inc.

John C. Ulin, Troygould PC, Los Angeles, California; Michael E. Kientzle, Arnold & Porter Kaye Scholer LLP, Washington, D.C.; for Amicus Curiae Copyright Alliance.

Robert H. Rotstein, Los Angeles, California; J. Matthew Williams, Washington, D.C.; for Amicus Curiae Motion Picture Association, Inc. LANG VAN V. VNG 5

OPINION

BATAILLON, District Judge:

BACKGROUND

In 2014, Lang Van, Inc. (“Lang Van”) filed a copyright infringement suit against VNG Corporation (“VNG”). VNG, prior to discovery or answer, moved to dismiss for lack of personal jurisdiction. The district court granted the motion on October 8, 2014. On October 11, 2016, the Ninth Circuit vacated and remanded the action to the district court with instructions that Lang Van be permitted to undertake jurisdictional discovery.

On remand from the Ninth Circuit, VNG filed a renewed motion to dismiss Lang Van’s Second Amended Complaint, arguing (1) a lack of personal jurisdiction; (2) forum non conveniens; and (3) failure to state a claim. Senior District Judge Guilford issued an order granting the motion, finding there was no specific personal jurisdiction over VNG in California. The district court found that Lang Van failed to meet the first prong of the Ninth Circuit’s specific personal jurisdiction test. The district court did not address the forum non conveniens and failure to state a claim arguments, nor did the district court address the issue of long-arm jurisdiction over VNG under Rule 4(k)(2) of the Federal Rules of Civil Procedure. VNG appealed, and we reverse.

FACTUAL SUMMARY

Lang Van, a California corporation, is a producer and distributor of Vietnamese music and entertainment. Lang Van owns copyrights to more than 12,000 songs and 600 original programs. 6 LANG VAN V. VNG

VNG is a Vietnamese corporation that originally developed online games but began the Zing MP3 website, which makes copyrighted music available for download, worldwide. In 2011, VNG released the Zing MP3 mobile application (“Apps”) in the Apple App Store, and in 2012, in the Google Play store.

Lang Van served requests for production and special interrogatories on September 22, 2017. As of February 14, 2019, VNG had not supplied substantive information or documents. Subpoenas were also served on Google and Apple. They complied with the subpoenas and produced evidence. Lang Van contends these documents show that VNG intentionally chose to release the Apps into the United States; consented to California jurisdiction, choice of law, and venue; and allowed hundreds of thousands of downloads by Apple iOS users and tens of thousands by app-based users on Google’s platform.

In addition, VNG sought and received trademark protection in the U.S.

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40 F.4th 1034, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lang-van-inc-v-vng-corporation-ca9-2022.