P G CREATIVE, INC. v. AFFIRM AGENCY LLC

CourtDistrict Court, S.D. Florida
DecidedOctober 31, 2019
Docket1:18-cv-24299
StatusUnknown

This text of P G CREATIVE, INC. v. AFFIRM AGENCY LLC (P G CREATIVE, INC. v. AFFIRM AGENCY LLC) is published on Counsel Stack Legal Research, covering District Court, S.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
P G CREATIVE, INC. v. AFFIRM AGENCY LLC, (S.D. Fla. 2019).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF FLORIDA

Case No. 18-cv-24299-GAYLES/OTAZO-REYES PG CREATIVE INC., a Florida Corporation,

Plaintiff,

v.

AFFIRM AGENCY, LLC, a Wisconsin Limited Liability Company, and STAPLES MARKETING, LLC, a Wisconsin Limited Liability Company,

Defendants. _________________________________________________/

ORDER THIS CAUSE comes before the Court on Defendants’ Motion to Dismiss for Lack of Personal Jurisdiction (the “Motion”) [ECF No. 37]. The Court has reviewed the Motion and the record and is otherwise fully advised. For the reasons that follow, the Motion is granted. I. BACKGROUND A. Factual1 In 2014, Plaintiff PG Creative Inc., an advertising agency, introduced its “Dose of Reality Prevention Campaign,” which was devised to address the nation’s prescription drug epidemic. See Second Amended Complaint (the “Complaint”) ¶ 14, [ECF No. 32]. The campaign includes marketing materials, such as pamphlets, bumper stickers, and flyers, which heavily feature the

1 Because Defendants challenge the Court’s personal jurisdiction over them, Plaintiff’s alleged jurisdictional facts are taken as true only “to the extent they are uncontroverted by [D]efendants’ affidavits.” Delong Equip. Co. v. Washington Mills Abrasive Co., 840 F.2d 843, 845 (11th Cir. 1988). Defendants have submitted an affidavit from Defendant Affirm Agency’s President, Daniel Mager (the “Mager Affidavit”), challenging various facts related to jurisdiction. [ECF No. 46-1]. As such, the Court distinguishes in its description of the facts between facts taken as true and facts alleged. “Dose of Reality” mark (the “Mark). [ECF No. 32-3]. The Mark includes the words “Dose of Reality” in a stylized font. Compl. ¶ 13. Since 2014, Plaintiff has advertised the Mark on its website, www.preventioncampaigns.com. Id. ¶ 18. In 2015, Defendants Affirm Agency, LLC, and Staples Marketing, LLC, d/b/a Affirm (collectively the “Defendants”2) designed a campaign against prescription drug abuse for the

State of Wisconsin (the “Wisconsin Campaign”). Id. ¶ 32. Defendants use the Mark in the Wisconsin Campaign. Id. ¶ 36. Plaintiff claims that Defendants were fully aware that Plaintiff owned the Mark when they intentionally copied it for the Wisconsin Campaign. Id. ¶ 32. In support of its claim, Plaintiff asserts that “a user in the city of Pewaukee, Wisconsin, the home of Defendants” visited Plaintiff’s website on May 7, 2015, four months before the Wisconsin Campaign launched. Id. ¶ 22. Since the Wisconsin Campaign, Defendants have also helped other states launch similar campaigns featuring the Mark. Id. ¶ 50. In March 2019, the Florida Attorney General’s Office (the “Attorney General”) asked Defendants about implementing the Wisconsin Campaign in Florida. [ECF No. 37 at 5].3 Defendants relayed the Attorney General’s interest to the State of

Wisconsin, and the State of Wisconsin approved the Attorney General’s use. [ECF No. 37 at 10– 11]. Ultimately, the Attorney General did not move forward with the project, and Defendants never transmitted any files to Florida. [ECF No. 46-1 at ¶ 4]. Plaintiff claims Defendants’ use of the Mark has caused, and will continue to cause, confusion among Plaintiff’s potential clients as to who owns the Mark. Compl. ¶ 76. Specifically,

2 Though Defendants argue Affirm Agency, LLC, is a shell company, and thus should not be included in this action, [ECF No. 37 at 3], the Court references both Defendants here since Plaintiff maintains the action against both. 3 Since Plaintiff does not allege when Defendants’ contacts with the Attorney General began, the Court employs Defendants’ uncontroverted timeline outlined in their Motion. Plaintiff alleges Defendants’ actions caused Plaintiff’s search rankings4 for the “Dose of Reality” search term to decline and caused prospective clients––including several at a 2018 Orlando, Florida trade show––to believe Plaintiff had copied Defendants’ Wisconsin Campaign. Id. ¶¶ 23– 25. Plaintiff asserts that this confusion has caused and continues to cause immediate irreparable

harm to Plaintiff’s reputation and goodwill in the marketplace. Id. ¶ 52. B. Procedural On October 17, 2018, Plaintiff filed its Complaint against Defendant Affirm Agency, LLC, bringing four counts sounding in trademark infringement. [ECF No. 1]. Plaintiff soon after filed its First Amended Complaint, adding Defendant Staples Marketing, LLC, d/b/a Affirm. [ECF No. 20]. On December 21, 2018, Defendants filed their first Motion to Dismiss [ECF No. 24], and on April 19, 2019, they filed a related Notice of New Facts (“Notice”) [ECF No. 29]. On May 7, 2019, Plaintiff filed its Second Amended Complaint against Defendants, incorporating the facts asserted in Defendants’ Notice and alleging claims for: (1) service mark infringement in violation of Section 32(1) of the Lanham Act, 15 U.S.C. § 1114(1); (2) unfair

competition in violation of Section 43(a) of the Lanham Act, 15 U.S.C. § 1125(a); (3) false and misleading representations of fact in violation of Florida’s Deceptive and Unfair Trade Practices Act, Fla. Stat. § 501.201 et seq; and (4) common law trademark infringement. Compl. ¶¶ 54, 62, 71, 76–81. On May 20, 2019, Defendants moved to dismiss based on: (1) lack of personal jurisdiction and improper venue; (2) failure to join an indispensable party; and (3) sovereign immunity. [ECF No. 37]. In the alternative, Defendants request that the Court transfer the case, pursuant to 28

4 A search ranking is the position at which a website appears in the results of a search engine query. The higher a website is ranked, the more likely that website is to attract more visitors. U.S.C. § 1404(a) or 28 U.S.C. § 1406(a), to the United States District Court for the Eastern District of Wisconsin. Id. As the Court finds that it has no personal jurisdiction over Defendants, it need not address Defendants’ additional bases for dismissal or transfer. II. LEGAL STANDARD

“A plaintiff seeking to establish personal jurisdiction over a nonresident defendant ‘bears the initial burden of alleging in the complaint sufficient facts to make out a prima facie case of jurisdiction.’” Louis Vuitton Malletier, S.A. v. Mosseri, 736 F.3d 1339, 1350 (11th Cir. 2013) (quoting United Techs. Corp. v. Mazer, 556 F.3d 1260, 1274 (11th Cir. 2009)). Plaintiffs must “properly plead[] facts pertinent to the conduct and activities of the defendant in the forum state[.]” Borislow v. Canaccord Genuity Group Inc., et al., No. 14-cv-80134, 2014 WL 12580259, at *5 (S.D. Fla. June 27, 2014) (internal quotation marks omitted) (quoting Elmex Corp. v. Atl. Fed. Savings & Loan Ass’n of Ft. Lauderdale, 325 So. 2d 58, 61 (Fla. 4th DCA 1976)); see Mcgee v. Cook, No. 8:09-CV-2543-T-27TGW, 2011 WL 1365024, at *5 (M.D. Fla. Apr. 11, 2011) (holding personal jurisdiction insufficiently pled where complaint contained “insufficient specific

allegations” of defendants’ “business activities in Florida, their liens on Florida property, or their contracts to provide insurance in Florida”). “[T]he facts as alleged in the complaint are taken as true to the extent they are uncontroverted by defendants’ affidavits.” Home Ins. Co. v.

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