LegalForce RAPC Worldwide P.C. v. ITP Service

CourtDistrict Court, N.D. California
DecidedOctober 23, 2019
Docket5:19-cv-01538
StatusUnknown

This text of LegalForce RAPC Worldwide P.C. v. ITP Service (LegalForce RAPC Worldwide P.C. v. ITP Service) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
LegalForce RAPC Worldwide P.C. v. ITP Service, (N.D. Cal. 2019).

Opinion

8 UNITED STATES DISTRICT COURT

9 NORTHERN DISTRICT OF CALIFORNIA 10 SAN JOSE DIVISION 11

12 LEGALFORCE RAPC WORLDWIDE Case No. 19-CV-01538-LHK P.C., 13 Plaintiff, ORDER GRANTING MOTION TO DISMISS FOR LACK OF PERSONAL 14 v. JURISDICTION WITH LEAVE TO AMEND 15 GLOTRADE, et al., Re: Dkt. No. 18 16 Defendants. 17 18 LegalForce RAPC Worldwide, P.C. (“Plaintiff”) sued eighteen defendants, including 19 Worldwide Mail Solutions, Inc. (“Defendant”), for alleged violations of the Lanham Act, 20 California’s False Advertising Law, and California’s Unfair Competition Law, as well as a claim 21 for intentional interference with prospective economic advantage. ECF No. 1. Before the Court is 22 Defendant’s motion to dismiss for lack of personal jurisdiction.1 ECF No. 18. Having considered 23 the submissions of the parties, the relevant law, and the record in this case, the Court GRANTS 24 25 1 Defendant’s motion to dismiss contains a notice of motion that is separately paginated from the 26 memorandum of points and authorities in support of the motion. See Mot. at 1-2. Civil Local Rule 7-2(b) provides that the notice of motion and points and authorities should be contained in 27 one document with a combined limit of 25 pages. See Civ. Loc. R. 7-2(b). 1 1 Defendant’s motion to dismiss with leave to amend. 2 I. BACKGROUND 3 A. Factual Background 4 Plaintiff is a California professional corporation that “offers services including trademark 5 preparation and prosecution, patent preparation and prosecution, copyright registration and 6 counseling, international trademark and patent filings, and corporate formation and stock and 7 equity structuring.” ECF No. 1 at ¶¶ 18,41 (“Compl.”). Plaintiff alleges that companies, termed 8 “Mailer Defendants,” “use publicly available trademark filer information to send targeted 9 ‘solicitations’ to . . . trademark applicants.” Id. ¶¶ 2, 43. The “‘solicitations’ are constructed to 10 [deceptively] make the trademark applicant believe that an official U.S. government agency or the 11 [United States Patent & Trademark Office (USPTO)] itself is sending a letter to them, raising fear 12 among the unsuspecting public that they must pay large amounts of money or forfeit trademark 13 rights.” Id. ¶ 2. These “Mailer Defendants” provide no real services and “result in no value to 14 trademark owners.” Id. 15 As a result of the Mailer Defendants’ actions, Plaintiff asserts that “significant business” 16 was deceptively diverted to Mailer Defendants. Id. ¶ 198. Plaintiff also alleges that Plaintiff 17 “received inquiries from its clients confused about the unsolicited actions by the Mailer 18 Defendants and worried that [Plaintiff’s] services to the clients were somehow deficient.” Id. 19 ¶ 199. Plaintiff claims that it spent “valuable time and expenses to investigate the facts to 20 appropriately advise its clients.” Id. ¶ 200. 21 Plaintiff alleges that Mailer Defendants “appear to originate . . . [in] countries outside the 22 United States (most frequently from eastern Europe).” Id. ¶ 3. As relevant to the instant motion to 23 dismiss, Plaintiff asserts that “GLOTRADE” is one such “Mailer Defendant,” operates out of the 24 Czech Republic, and sends advertisements or mailers that falsely state that GLOTRADE protects a 25 trademark from copyright infringement when GLOTRADE in fact provides no such services. Id. 26 ¶¶ 78, 83-91. According to Plaintiff, GLOTRADE—because it operates out of the Czech 27 2 1 Republic—must obtain a domestic U.S. mailing address in order to appear as a legitimate 2 organization and to receive payments from its allegedly false advertisements. Id. ¶ 78-79. 3 GLOTRADE relies on Defendant, who is in the business of “provid[ing] a U.S. street address to 4 customers and allow[ing] them to receive mail at a U.S. address that can then be forwarded 5 internationally.” Id. ¶ 80. Plaintiff alleges that Defendant, by allowing GLOTRADE to obtain a 6 U.S. mailing address, helps GLOTRADE “mask[] its true identity from people sending the 7 checks.” Id. ¶ 81. On this basis, Plaintiff claims that Defendant is liable as a “logistics enabler” of 8 GLOTRADE. Id. ¶ 1. 9 Furthermore, Plaintiff alleges that Defendant advertises its mail services to business 10 owners in California. ECF No. 24-2, Exs. 4-5. According to Plaintiff, Defendant has multiple 11 California customers who use Defendant’s mailing services. Id. Defendant, however, is not a 12 California corporation and has no employees in California. ECF No. 18-2 ¶ 11. Defendant is a 13 corporation duly formed under the laws of the State of Texas with a principal place of business in 14 Houston, Texas. Id. ¶¶ 4-5. Defendant has never owned, leased, possessed, or maintained any 15 real or personal property in California, nor has Defendant maintained any bank, savings, or loan 16 accounts in California. Id. ¶¶ 9-10. Finally, Defendant acknowledges that it provided 17 GLOTRADE with a mailing address in Houston, Texas, but notes that Defendant never sent any 18 mail to Plaintiff. Id. ¶¶ 13, 17. 19 B. Procedural History 20 On March 25, 2019, Plaintiff sued eighteen defendants and alleged the following causes of 21 action: (1) violations of the Lanham Act, 15 U.S.C. § 1125(a); (2) violations of California’s False 22 Advertising Law, Cal. Bus. & Prof. Code § 17500; (3) violations of California’s Unfair 23 Competition Law, Cal. Bus. & Prof. Code § 17200; and (4) intentional interference with 24 prospective economic advantage. Compl. ¶¶ 203-61. The eighteen defendants fell into two 25 categories: “Mailer Defendants,” which are entities that directly engaged in the allegedly false 26 advertising; and “Logistics Enablers,” which are companies that provided mailing addresses that 27 3 1 facilitated the allegedly fraudulent conduct. Id. ¶ 1; see generally id. ¶¶ 203-61. 2 To date, Plaintiff has voluntarily dismissed six of the seven “Logistics Enablers” and three 3 of the eleven “Mailer Defendants.” ECF Nos. 16, 25, 28, 33, 42, 48, and 72. Six of the “Mailer 4 Defendants” were served but did not appear, and the Clerk entered default against them. See ECF 5 Nos. 47, 64, and 66. Of the two other Mailer Defendants, one filed a motion to dismiss, and 6 another filed an answer. ECF Nos. 51 and 78. 7 As pertaining to the instant Order, on May 8, 2019, Defendant, who is the sole remaining 8 “Logistics Enabler” Defendant, filed a motion to dismiss for lack of personal jurisdiction. ECF 9 No. 18 (“Mot.”). Plaintiff filed an opposition on May 22, 2019, ECF No. 24 (“Opp.”), and 10 Defendant filed a reply on May 28, 2019, ECF No. 26 (“Reply”). The motion to dismiss is now 11 fully briefed and ripe for adjudication. 12 II. LEGAL STANDARD 13 A. Motion to Dismiss under Rule 12(b)(2) 14 In a motion challenging personal jurisdiction under Federal Rule of Civil Procedure 15 12(b)(2), the plaintiff, as the party seeking to invoke the jurisdiction of the federal court, has the 16 burden of establishing that jurisdiction exists. See Schwarzenegger v. Fred Martin Motor Co., 374 17 F.3d 797, 800 (9th Cir. 2004). When the motion to dismiss constitutes a defendant’s initial 18 response to the complaint, the plaintiff need only make a prima facie showing that personal 19 jurisdiction exists. See Data Disc, Inc. v. Sys. Tech. Assocs., Inc., 557 F.2d 1280, 1285 (9th Cir. 20 1977).

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LegalForce RAPC Worldwide P.C. v. ITP Service, Counsel Stack Legal Research, https://law.counselstack.com/opinion/legalforce-rapc-worldwide-pc-v-itp-service-cand-2019.