Monster Energy Co. v. Wensheng

136 F. Supp. 3d 897, 2015 U.S. Dist. LEXIS 132283, 2015 WL 5732050
CourtDistrict Court, N.D. Illinois
DecidedSeptember 29, 2015
DocketCase No. 15 C 4166
StatusPublished
Cited by43 cases

This text of 136 F. Supp. 3d 897 (Monster Energy Co. v. Wensheng) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Monster Energy Co. v. Wensheng, 136 F. Supp. 3d 897, 2015 U.S. Dist. LEXIS 132283, 2015 WL 5732050 (N.D. Ill. 2015).

Opinion

OPINION AND ORDER

Joan H. Lefkow, United States District Judge

On May 12,' 2015, Monster Energy Company (MEC) filed suit against Chinese entities that have offered counterfeit Monster Energy prodúcts for sale online (“defendants”)1 alleging trademark counterfeiting and copyright infringement. (Dkt. 1.) MEC’s five-count second amended complaint brings claims for (1) willful trademark infringement and counterfeiting in violation of section 32 of the Lanham Act, 15 U.S.C. § 1114; (2) willful false designation of origin in violation of section 43 of the Lanham Act, 15 U.S.C. § 1125; (3) willful cybersquatting in violation of section 43(d) of the Lanham Act, 15 U.S.C. § 1125(d); (4) willful violation of [901]*901the Illinois Uniform- Deceptive Trade Practices Act, 815 ILCS § 510 et seg.; and (5) deliberate copying of MEC’s copyrighted designs in violation of the Copyright Act, 17 U.S.C. § 501(a). (Dkt. 53 (Second Am. Compl.) ¶¶ 34-62.) On May 20, 2015, the court entered a temporary restraining order (TRO) freezing defendants’ PayPal accounts. (Dkt. 22.) The court converted the TRO to a preliminary injunction on May 27, 2015. (Dkt. 33.) Two defendants, Wu Zou d/b/a the Internet Store Legend Trading Co., Ltd. (“Legend Trading”) and Zhang Yuan d/b/a Internet Store mqxxc, have moved to dismiss for lack of personal jurisdiction under Federal Rule of Civil Procedure 12(b)(2) and to release the frozen funds. (Dkts. 50, 57.) For the reasons stated below, defendants’ motions are denied.2

BACKGROUND3

In 2002, MEC launched its MONSTER ENERGY® brand of drinks bearing its now famous MONSTER ENERGY mark and design. (Second Am. Compl. ¶5.) MEC is the owner of numerous valid trademarks. (Id at 14r-15.) In addition to its MONSTERtm line of energy drinks, MEC uses its Claw Icon mark, MONS-TERtm mark, MONSTER ENERGY® mark, and has copyrighted designs in connection with a large variety of products, including stickers, helmets, sports gear, clothing items, headgear, and sports bags (the Monster Energy Products). (Id ¶ 8; see also dkt. 88 (Kingsland Dec.) ¶4.) Due to its substantial and continuous marketing and promotion, MEC’s MONS-TERtm family products have achieved substantial commercial success, with estimated retail sales exceeding $5 billion per year worldwide. (See Second Am. Compl. ¶ 13.) MEC has also sold millions of dollars’ worth of MEC’s MONSTERtm family of products to Illinois residents through brick and mortar accounts such as 7-Elev-en, Walmart, Costco, Sam’s Club, CVS, Target, and Circle K, to name a few. (Kingsland Dec. ¶ 7.) The success of the Monster Energy brand has resulted in its significant counterfeiting, giving rise to the present claims. (See' Second Am. Compl. ¶ 25.)

Legend Trading and mqxxc created and operated commercial, fully interactive Internet stores on the global marketplace AliExpress.com (AliExpress). (Id ¶ 23; see afeo'dkts. 87 at 3, 89 ¶2," 92 at 3, 94 ¶ 2.) AliExpress is an' English language global retail marketplace for Chinese sellers to target añd sell’ to consumers worldwide. ■ (Dkts. 87 at 3, 92 at 3; see also dkts. 89, 94 (collectively, Martin Decs.) ¶ 5.) Through AliExpress, Chinese sellers learn techniques 'for targeting ' United States buyers. (Dkt. 90, 95 (collectively, Fu Decs.) ¶¶ 21-22.)

Each defendant through its Internet store targets and offers to sell counterfeit Monster Energy Products to consumers within the United States, including Illinois. (Second Am. Compl. ¶23.) Defendants’ offers to ■ sell consist of displaying' photographs of' counterfeit Monster Energy Products and inviting potential buyers to buy products through their 'Internet stores. Then, defendants have the ordered items shipped to the United States. (See id. 35-36; see also Martin Decs. ¶ 6.) In creating their online stores, defendants [902]*902affirmatively select a shipping template to ship, their products, including counterfeit Monster Energy Products, to the United States and Illinois.- (See id.; see, also Martin Décs.-¶¶ 7-8; Fu Decs. ¶¶ 3-14.)

ANALYSIS

I. Personal Jurisdiction

A. Legal Standard

Rule 12(b)(2) permits dismissal of a claim based on lack of personal jurisdiction over the defendant. See Fed. R. Civ. P. 12(b)(2). The party asserting personal jurisdiction bears the burden of proof. See Purdue Research Found. v. Sanofi-Synthelabo, S.A., 338 F.3d 773, 782 (7th Cir. 2003). When the court rules on the motion without a hearing, the plaintiff need only establish a “prima facie case of personal jurisdiction.” id. (quoting Hyatt Int’l Corp. v. Coco, 302 F.3d 707, 713 (7th Cir. 2002)). The court will “read the complaint liberally, in its entirety, and with every inference drawn in favor” of the plaintiff. Cent. States, 440 F.3d at. 878 (quoting Textor, 711 F.2d at 1393). Jurisdictional allegations pled in the complaint -are accepted as true unless proved otherwise by affidavits or exhibits. See Purdue Research Found., 338 F.3d at 782. But “once the defendant has submitted affidavits or other evidence in opposition to the .exercise of jurisdiction, .the plaintiff must go beyond the pleadings and submit affirmative evidence supporting the exercise of jurisdiction.” Id. at 783. If any conflicts arise between the plaintiffs complaint (or supporting materials) and the defendant’s affidavits or evidence, the. plaintiff is entitled to have those conflicts resolved in its favor. Id.

B. Court’s Review of Personal Jurisdiction

Plaintiff asserts claims under, the Lanham Act, Copyright; Act, and Illinois statutory law. Because neither the Lan-ham Act nor the Copyright Act authorizes nationwide service of process, a court - sitting in Illinois may exercise jurisdiction over defendants only if authorized both by the United States Constitution and Illinois law. be2 LLC v. Ivanov, 642 F.3d 555, 558 (7th Cir.2011) (citing Fed. R. Civ. P 4(k)(1)(A) and stating that the Lanham Act does not authorize nationwide: service); Tamburo v. Dworkin, 601 F.3d 693, 700 (7th Cir.2010) (same); Janmark, Inc. v. Reidy, 132 F.3d 1200, 1201 (7th Cir.1997) (Copyright Act does not authorize nationwide service), abrogated on other grounds by Advanced Tactical Ordnance, LLC v. Real Action Paintball, Inc., 751 F.3d 796 (7th Cir.2014). The Illinois long-arm statute “permits its courts to exercise personal jurisdiction on any basis permitted by the constitutions of both Illinois and the United States.” Id.; 735 Ill. Comp. Stat. 5/2-209(c).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Gaul v. SignalHire LLC
C.D. Illinois, 2024

Cite This Page — Counsel Stack

Bluebook (online)
136 F. Supp. 3d 897, 2015 U.S. Dist. LEXIS 132283, 2015 WL 5732050, Counsel Stack Legal Research, https://law.counselstack.com/opinion/monster-energy-co-v-wensheng-ilnd-2015.