Meta Platforms Incorporated v. Namecheap Incorporated

CourtDistrict Court, D. Arizona
DecidedNovember 10, 2020
Docket2:20-cv-00470
StatusUnknown

This text of Meta Platforms Incorporated v. Namecheap Incorporated (Meta Platforms Incorporated v. Namecheap Incorporated) is published on Counsel Stack Legal Research, covering District Court, D. Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Meta Platforms Incorporated v. Namecheap Incorporated, (D. Ariz. 2020).

Opinion

1 WO 2 3 4 5 6 IN THE UNITED STATES DISTRICT COURT 7 FOR THE DISTRICT OF ARIZONA

9 Facebook Incorporated, et al., No. CV-20-00470-PHX-GMS

10 Plaintiffs, ORDER

11 v.

12 Namecheap Incorporated, et al.,

13 Defendants. 14 15 Pending before the Court is Defendant WhoisGuard, Inc.’s (“WhoisGuard”) Motion 16 to Dismiss for Lack of Personal Jurisdiction and for Failure to State a Claim (Doc. 31) and 17 Defendant Namecheap, Inc.’s (“Namecheap”) (collectively, “Defendants”) Motion to 18 Dismiss for Failure to State a Claim (Doc. 30). For the following reasons, WhoisGuard’s 19 Motion is denied, Namecheap’s Motion is granted, and Plaintiffs shall have leave to amend 20 their Complaint as to Defendant Namecheap. 21 BACKGROUND 22 This case arises out of Defendants’ alleged registration, trafficking, and use of 23 domain names that encroach on the exclusive marks of Facebook, Inc., Instagram, LLC 24 and WhatsApp, Inc. (collectively, “Plaintiffs”). Defendant Namecheap is an Internet 25 Corporation of Assigned Names and Numbers (“ICANN”) accredited domain registrar. 26 (Doc. 1 ¶ 51.) In offering its customers domain name registry services, Namecheap allows 27 its customers to opt into Defendant WhoisGuard’s proxy service. Id. ¶ 52. In its proxy 28 service, WhoisGuard registers Namecheap’s customers’ domain names in WhoisGuard’s 1 name and licenses the domain names back to the customers. Id. As the domain name 2 registrant, WhoisGuard’s name, not the name of the customer, is listed in the WHOIS 3 record, a directory that contains the identity and contact information for domain names. Id. 4 ¶¶ 6, 55. 5 Several agreements relate to Namecheap’s and WhoisGuard’s services. As an 6 ICANN-accredited registrar, Namecheap is subject to ICANN’s Registrar Accreditation 7 Agreement (“RAA”). Id. ¶ 51. The RAA requires Namecheap to enter into a registration 8 agreement, which must include certain provisions, with each registered name holder. 9 (Doc. 1-5 at 16.) As relevant here, one such required provision is Section 3.7.7.3 of the 10 RAA. Id. at 16-17. Section 3.7.7.3 states:

11 Any Registered Name Holder that intends to license use of a domain name 12 to a third party is nonetheless the Registered Name Holder of record and is responsible for providing its own full contact information and for providing 13 and updating accurate technical and administrative contact information 14 adequate to facilitate timely resolution of any problems that arise in connection with the Registered Name. A Registered Name Holder licensing 15 use of a Registered Name according to this provision shall accept liability for 16 harm caused by wrongful use of the Registered Name, unless it discloses the current contact information provided by the licensee and the identity of the 17 licensee within seven (7) days to a party providing the Registered Name 18 Holder reasonable evidence of actionable harm. 19 Id. The Namecheap, Inc. Registration Agreement (“Registration Agreement”) sets forth 20 the terms for use of Namecheap’s domain name registration and related services. (Doc. 21 1-2 at 3.) Plaintiffs and Defendants dispute whether WhoisGuard agreed to the terms in 22 the Registration Agreement and whether Section 3.7.7.3, as stated above, is incorporated 23 in the Registration Agreement. In addition to the Registration Agreement, Namecheap’s 24 customers that opt into WhoisGuard’s proxy service are bound by the terms in the 25 Namecheap WHOIS Proxy Agreement (“Proxy Agreement”) and the WhoisGuard 26 Services Agreement (“WhoisGuard Agreement”). (Doc. 1 ¶ 29.) 27 Plaintiffs allege that at least forty-five domains (“Infringing Domain Names”) 28 registered by WhoisGuard are identical or confusingly similar to trademarks and service 1 marks to which they own exclusive rights. Id. ¶ 69. Between October 2018 and February 2 2020, Plaintiffs contacted WhoisGuard about the Infringing Domain Names and requested 3 that WhoisGuard disclose the licensees’ identities. Id. ¶ 83. Plaintiffs allege WhoisGuard 4 assumed liability on behalf of its licensees when it failed to disclose the identity or contact 5 information of its licensees pursuant to Section 3.7.7.3 of the RAA. Id. ¶¶ 80, 84. 6 Plaintiffs brought this action on March 4, 2020. Plaintiffs assert causes of action 7 for cybersquatting (Count 1), trademark infringement (Count 2), false designation of origin 8 (Count 3), and dilution (Count 4). Defendant Whoisguard moves to dismiss Plaintiffs’ 9 Complaint for lack of personal jurisdiction and both Defendants move to dismiss all counts 10 for failure to adequately allege sufficient facts.

11 DISCUSSION 12 I. Defendant WhoisGuard’s Motion to Dismiss for Lack of Personal 13 Jurisdiction

14 A. Legal Standard 15 “When a defendant moves to dismiss for lack of personal jurisdiction, the 16 plaintiff bears the burden of demonstrating that the court has jurisdiction over the 17 defendant.” Pebble Beach Co. v. Caddy, 453 F.3d 1151, 1154 (9th Cir. 2006). Where, as 18 here, the motion to dismiss a complaint for lack of personal jurisdiction “is based on written 19 materials rather than an evidentiary hearing, ‘the plaintiff need only make a prima facie 20 showing of jurisdictional facts.’” Schwarzenegger v. Fred Martin Motor Co., 374 F.3d 21 797, 800 (9th Cir. 2004). 22 When determining the sufficiency of a prima facie showing, “[t]he court may 23 consider evidence presented in affidavits.” Doe v. Unocal Corp., 248 F.3d 915, 922 (9th 24 Cir. 2001). The court must assume as true all uncontroverted facts in the complaint and 25 must interpret all evidentiary disputes in the plaintiff’s favor. See Schwarzenegger, 374 26 F.3d at 800. However, “the plaintiff cannot simply rest on the bare allegations of its 27 complaint” if controverted by evidence incorporated into the defendant’s motion. Id. 28 (internal quotation omitted); see also Data Disc, Inc. v. Sys. Tech. Assocs., 557 F.2d 1280, 1 1284 (9th Cir. 1977) (explaining that a court “may not assume the truth of allegations in a 2 pleading which are contradicted by affidavit.”). All evidence must be admissible to be 3 considered. See Travelers Cas. & Sur. Co. of Am. v. Telstar Const. Co., Inc., 252 F. Supp. 4 2d 917, 923 (D. Ariz. 2003). 5 B. Personal Jurisdiction 6 A federal court sitting in diversity “applies the personal jurisdiction rules of the 7 forum state provided the exercise of jurisdiction comports with due process.” Scott v. 8 Breeland, 792 F.2d 925, 927 (9th Cir. 1986). The Arizona long arm statute is co-extensive 9 with the limits of federal due process. See Doe v. Am. Nat’l Red Cross, 112 F.3d 1048, 10 1050 (9th Cir. 1997) (citing Batton v. Tenn. Farmers Mut. Ins. Co., 153 Ariz. 268, 270, 11 736 P.2d 2, 4 (1987)); see also Ariz. R. Civ. P. 4.2(a). “Due process requires that 12 nonresident defendants have certain minimum contacts with the forum state, so that the 13 exercise of personal jurisdiction does not offend traditional notions of fair play and 14 substantial justice.” Doe, 112 F.3d at 1050 (citing Int’l Shoe Co. v. Washington, 326 U.S. 15 310, 316 (1945)). There are two types of personal jurisdiction, general and specific. 16 Burger King Corp. v. Rudzewicz, 471 U.S. 462, 473 n. 15 (1985). 17 The existence of a forum selection clause in this case renders personal jurisdiction 18 proper in this Court.

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Meta Platforms Incorporated v. Namecheap Incorporated, Counsel Stack Legal Research, https://law.counselstack.com/opinion/meta-platforms-incorporated-v-namecheap-incorporated-azd-2020.