Metamorfoza D.O.O. v. Big Funny, LLC

CourtDistrict Court, S.D. New York
DecidedFebruary 25, 2021
Docket1:19-cv-11743
StatusUnknown

This text of Metamorfoza D.O.O. v. Big Funny, LLC (Metamorfoza D.O.O. v. Big Funny, LLC) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Metamorfoza D.O.O. v. Big Funny, LLC, (S.D.N.Y. 2021).

Opinion

UNITED STATES DISTRICT COURT DOCUMENT SOUTHERN DISTRICT OF NEW YORK ELECTRONICALLY FILED DOC#: METAMORFOZA, D.O.O., DATE FILED:

Plaintiff, 19-CV-11743 (RA) v. OPINION & ORDER BIG FUNNY LLC, et al.,

Defendants.

RONNIE ABRAMS, United States District Judge: This case arises from a trademark dispute between Plaintiff Metamorfoza D.O.O., which owns multiple businesses under the name “Museum of Illusions,” and Defendants Big Funny LLC, Big Funny FL LLC, and Big Funny Corporation, which also own several businesses under the name “Museum of Illusions,” as well as “Museum of 3D Illusions.” Defendants have moved to dismiss this action on two grounds: lack of personal jurisdiction under Federal Rule of Civil Procedure 12(b)(2) and failure to state a claim under Federal Rule of Civil Procedure 12(b)(6). In the alternative, Defendants have filed a motion to transfer this action to the United States District Court for the Central District of California. For the reasons that follow, the Court concludes that it lacks personal jurisdiction over Defendants and grants the motion to transfer. BACKGROUND1 Plaintiff is an entity organized under the laws of Croatia with its principal place of business in Zagreb, Croatia. Am. Compl. ¶ 7. Defendant Big Funny Corporation is a Nevada Corporation. Id. ¶ 10. Big Funny Corporation operates through its two wholly owned subsidiaries, Big Funny, LLC (a

1 The Court draws the facts cited in this opinion from the following sources: the Amended Complaint (“Am. Compl.”), Dkt. 33; the Declaration of Defendants’ employee Margarita Graff, dated April 16, 2020 (“Graff Decl.”), Dkt. 47; and the Declaration of Defendants’ counsel Ali Razai, dated April 30, 2020 (“Razai Decl.”), Dkt. 46; as well as the accompanying exhibits, Dkt. 46 Ex. 1–5. California limited liability company with its principal place of business in Los Angeles) and Big Funny FL, LLC (a Florida limited liability company with its principal place of business in Miami). Graff Decl. ¶¶ 2, 7. According to Plaintiff, in 2015, it opened its first Museum of Illusions in Zagreb, Croatia. Am Compl. ¶ 15. Over the following years, Plaintiff—either itself or through its licensees and franchisees— opened several more Museums of Illusions throughout Europe, Asia, and Canada. Id. ¶ 16. In September 2016, Plaintiff “began communicating with potential commercial partners” about opening a

Museum of Illusions in New York, to be its first in the United States. Id. ¶ 26. On November 23, 2016, Plaintiff filed an application with the U.S. Patent and Trademark Office (“USPTO”) to trademark its logo (hereinafter, “the design mark”). Id. ¶ 29. The design mark included the words “Museum of Illusions,” but upon action of the USPTO, Plaintiff expressly disclaimed any exclusive right to the words themselves. See Razai Decl. Ex. 1 at 3 (USPTO’s Office Action in response to Plaintiff’s 2016 trademark application, requiring Plaintiff to “disclaim all the wording in the mark”); id. Ex 2 at 2 (Plaintiff’s response, asserting that “[n]o claim is made to the exclusive right to use MUSEUM OF ILLUSIONS apart from the mark as shown”). Starting in September 2018, Plaintiff opened a series of “Museums of Illusions” in the United States, including in New York, Dallas, and Kansas City. Am. Compl. ¶¶ 43–44. In 2019, Plaintiff registered the name “Museum of Illusions” (hereinafter, “the word mark”) on the

USPTO’s Supplemental Register. Razai Decl. Ex. 4 (USPTO’s Office Action in response to Plaintiff’s 2019 trademark application). On January 1, 2018, before Plaintiff opened its first United States location, Defendants opened their own “Museum of Illusions” in Los Angeles. Graff Decl. ¶ 3. Defendants later opened two more museums: a “Museum of 3D Illusions” in San Francisco, opened March 1, 2019, Am. Compl. ¶ 64, and a “Museum of Illusions” in Miami, opened December 1, 2019, Graff Decl. ¶ 7. Defendants do not operate a museum in New York, nor do they do any business in New York. Id. According to the general manager of Defendants’ Los Angeles museum, “Defendants are not incorporated in New York[,] Defendants are not licensed to do business in New York[,] Defendants have no registered agent for service of process in New York[,] Defendants have no offices or employees in New York[,] Defendants own no property in New York[,] Defendants do not conduct business in New York[,] Defendants do not have contracts with New York entities[,] Defendants do not ship any goods to New York[, and] Defendants do not perform any services in New York.” Id. ¶¶ 8–16. Defendants

do, however, operate websites, through which customers—regardless of location—can purchase tickets to Defendants’ Los Angeles, San Francisco, and Miami museums. Am. Compl. ¶ 5, 11 (https://laillusions.com/, https://sfillusions.com/, and https://miaillusions.com/). The tickets are received via email, and may only be redeemed in-person at Defendants’ museums. Graff Decl. ¶ 5. Defendants also send marketing and promotional emails to customers. Am. Compl. ¶ 5. Some of these emails offer discounts on tickets to be purchased online, while others offer discounts on tickets to be purchased at Defendants’ museums. Id. ¶ 84 (offering gift cards for sale online or in store); id. ¶ 85 (offering a 50% discount but only to customers who purchased their tickets at the front desk of the Los Angeles location); id. ¶ 86 (offering a 30% discount for those who mentioned the discount-code at the front desk of the Miami location). Defendants have sent promotional emails and sold tickets to persons who reside in

New York. See, e.g., Am. Compl. ¶¶ 79–87; Graff Decl. ¶ 17. Plaintiff brought this suit against Defendants on December 23, 2019. Dkt. 1. Following Defendants’ filing of a motion to dismiss, dkt. 27, Plaintiff filed an amended complaint on April 2, 2020, dkt. 33. Defendants responded with a second motion to dismiss on April 30, 2020. Dkt. 44. Following oral argument on February 2, 2021, the Court permitted Plaintiff to file a proposed second amended complaint. See Dkt. 62. Both parties were given the opportunity to be heard on the legal significance of the proposed amendments. Dkt. 63 (Plaintiff); Dkt. 64 (Defendants). LEGAL STANDARD On a motion to dismiss pursuant to Federal Rule of Civil Procedure 12(b)(2), “the plaintiff bears the burden of establishing that the court has jurisdiction over the defendant.” Bank Brussels Lambert v. Fiddler Gonzalez & Rodriguez, 171 F.3d 779, 784 (2d Cir. 1999). “[W]here a court relies on pleadings and affidavits, rather than conducting a full-blown evidentiary hearing, the plaintiff need only make a prima facie showing that the court possesses personal jurisdiction over the defendant.” Dorchester Fin. Sec, Inc. v. Banco BRJ, S.A., 722 F.3d 81, 84 (2d Cir. 2013) (internal quotation marks omitted).

“All pleadings and affidavits are to be construed in the light most favorable to the plaintiff,” id. (alterations adopted), but “[t]he plaintiff cannot rely merely on conclusory statements or allegations; rather, the prima facie showing must be ‘factually supported,’” Yellow Page Solutions, Inc. v. Bell Atlantic Yellow Pages Co., No. 00-CV-5663 (MBM), 2001 U.S. Dist. LEXIS 18831, 2001 WL 1468168, at *3 (S.D.N.Y. Nov. 19, 2001) (internal citations omitted). “In reviewing a motion to dismiss pursuant to [Rule] 12(b)(2), a court may look to evidence outside the pleadings.” Sandoval v.

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Bluebook (online)
Metamorfoza D.O.O. v. Big Funny, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/metamorfoza-doo-v-big-funny-llc-nysd-2021.