PPS, Inc. v. Jewelry Sales Representatives, Inc.

392 F. Supp. 375, 185 U.S.P.Q. (BNA) 374, 1975 U.S. Dist. LEXIS 13437
CourtDistrict Court, S.D. New York
DecidedMarch 11, 1975
Docket74 Civil 3789
StatusPublished
Cited by24 cases

This text of 392 F. Supp. 375 (PPS, Inc. v. Jewelry Sales Representatives, Inc.) 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
PPS, Inc. v. Jewelry Sales Representatives, Inc., 392 F. Supp. 375, 185 U.S.P.Q. (BNA) 374, 1975 U.S. Dist. LEXIS 13437 (S.D.N.Y. 1975).

Opinion

OPINION

EDWARD WEINFELD, District Judge.

Plaintiff PPS, Inc. (“PPS”) claims copyright, trademark, and “dress of goods” rights in a line of “I Like You” products manufactured and sold by its licensee, Rosecraft, Inc. The line of *378 products includes costume jewelry in the shape of an apple and bearing the mark “I Like You,” and other products containing the apple and “I Like You” design. PPS alleges that the defendants in their various capacities have engaged and intend to engage in the manufacture and sale of a line of costume jewelry copied from its “I Like You” line, and seeks injunctive relief and monetary damages for copyright and trademark infringement, and for unfair competition.

Plaintiff PPS moves for a preliminary injunction, and defendant Nu-Style Company, Inc. (“Nu-Style”) moves to dismiss the complaint for lack of personal jurisdiction and improper venue, or to transfer the action under 28 U.S.C., section 1404(a), to the District of Massachusetts.

Nu-Style’s Motion to Dismiss for Lack of Jurisdiction and Improper Venue

Only Nu-Style urges lack of jurisdiction and improper venue. The other defendants, Jewelry Sales Representatives, Inc. (“Jewelry Sales”), Aberbach, and Puccini Jewelry Co. (“Puccini”), concede jurisdiction and venue.

Plaintiff claims to have effected service on Nu-Style by serving Aberbach and Jewelry Sales as its “managing or general agents” 1 in this district, and also by personal service in Massachusetts upon Nu-Style’s president. 2

The question of Nu-Style’s amenability to jurisdiction, service of process, and venue in this district turns largely upon the relationship between Nu-Style and Jewelry Sales. Jewelry Sales, of which Aberbach is its president, director, and controlling shareholder, is a New York corporation and conducts its business in this district. It is the exclusive distributor or sales representative for costume jewelry manufactured by Nu-Style. 3 Jewelry Sales does not buy the jewelry and resell it; rather, it solicits customers, shows them the items, takes the orders, and sends the orders to Nu-Style, which manufactures the items, ships them to the customers, and bills the customers directly. Jewelry Sales does not make any binding commitments to sell; Nu-Style decides whether to accept the orders forwarded by Jewelry Sales and whether to extend credit. Nu-Style also controls the prices: while Jewelry Sales occasionally gives a customer a small discount to induce it to buy, Nu-Style has the right to refuse the order or notify the customer of the acceptable price. In addition to taking orders for Nu-Style, Jewelry Sales provides showroom space for Nu-Style’s products. For all these services, Jewelry Sales is paid a commission of 7% %. Defendant Aberbach sums up the relationship of Jewelry Sales to Nu-Style as follows: “We ['Jewelry Sales] are strictly sales representatives, nothing more and nothing less, subject to anything they may tell us to do.”

The responsibilities assumed by Jewelry Sales in its position as exclusive sales representative for Nu-Style are sufficient, in this court’s view, to warrant the assumption that notice to Jewelry Sales would be effective notice to Nu-Style, and to justify the conclusion that Jewelry Sales is a “managing or general agent” within the meaning of Rule 4(d)(3) of the Federal Rules of Civil Procedure. 4 If, then, Nu-Style is *379 amenable to jurisdiction, service upon' Jewelry Sales is sufficient to subject it to the court’s jurisdiction. In addition, if, as the court hereafter concludes, 5 Nu-Style is amenable to the “long-arm” jurisdiction of the New York courts, personal service of its president in Massachusetts is sufficient to enable this court to acquire jurisdiction over Nu-Style. 6

In determining Nu-Style’s amenability to jurisdiction, the court is faced at the outset with the question whether amenability to personal jurisdiction on the copyright claim is to be tested by state or federal law. While the Second Circuit has specifically left open the question whether state of federal jurisdictional principles are applicable in federal question litigation, 7 several courts, relying on language of the Supreme Court in Angel v. Bullington, 8 have resolved the question in favor of federal law. 9 Federal law appears to be more appropriate, particularly with respect to a copyright claim, over which the subject matter jurisdiction of the federal courts is exclusive.

In this case, the view of federal law taken by most courts that have applied a federal standard would permit jurisdiction over Nu-Style. Nu-Style’s contacts with the State of New York 10 are sufficient to satisfy the due process standards of International Shoe Co. v. Washington 11 and its progeny, and valid service was made upon Jewelry Sales as managing agent under Rule 4(d) (3).

It is not necessary, however, to rely solely on any such federal standard of amenability to jurisdiction, since Nu-Style is also subject to personal jurisdiction under New York’s “long-arm” statute, C.P.L.R., section 302, which provides in pertinent part:

“(a) Acts which are the basis of jurisdiction.
As to a cause of action arising from any of the acts enumerated in this section, a court may exercise personal jurisdiction over any nondomiciliary, or his executor or administrator, who in person or through an agent:
1. transacts any business within the state; or
*380 2. commits a tortious act within the state, except as to a cause of action for defamation of character arising from the act; or
3. commits a tortious act without the state causing injury to person or property within the state, except as to a cause of action for defamation of character arising from the act, if he
(i) regularly does or solicits business, or engages in any other persistent course.of conduct, or derives substantial revenue from goods used or consumed or services rendered, in the state, or
(ii) expects or should reasonably expect the act to have consequences in the state and derives substantial revenue from interstate or international commerce . . . [emphasis added]

Whether Nu-Style is amenable to jurisdiction under this provision depends upon whether Aberbaeh and Jewelry Sales are “agents” whose activities are attributable to Nu-Style for jurisdictional purposes.

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Bluebook (online)
392 F. Supp. 375, 185 U.S.P.Q. (BNA) 374, 1975 U.S. Dist. LEXIS 13437, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pps-inc-v-jewelry-sales-representatives-inc-nysd-1975.