Rice v. Petedge, Inc.

975 F. Supp. 2d 1364, 2013 WL 5423441, 2013 U.S. Dist. LEXIS 137983
CourtDistrict Court, N.D. Georgia
DecidedSeptember 25, 2013
DocketCivil Action No. 1:12-CV-03748-JEC
StatusPublished
Cited by15 cases

This text of 975 F. Supp. 2d 1364 (Rice v. Petedge, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rice v. Petedge, Inc., 975 F. Supp. 2d 1364, 2013 WL 5423441, 2013 U.S. Dist. LEXIS 137983 (N.D. Ga. 2013).

Opinion

ORDER & OPINION

JULIE E. CARNES, Chief Judge.

This case is before the Court on defendant’s Motion to Dismiss for Lack of Personal Jurisdiction or to Transfer [3]. The Court has reviewed the record and the arguments of the parties and, for the reasons set out below, concludes that defendant’s Motion to Dismiss or Transfer [3] should be DENIED.

BACKGROUND

This is a trademark infringement and unfair competition case. (Compl. [1] at ¶¶ 16-18.) Plaintiff manufactures and sells “Funky Monkeys” board games through his business, Games to Remember. (Id. at ¶ 7.) In connection with his business, plaintiff owns a valid trademark for the name “Funky Monkeys.” (Id. at ¶ 11.) Plaintiff is a Georgia resident. (Rice Decl. [9] at ¶ 2.)

Defendant is a Massachusetts corporation with its principal place of business in Beverly, Massachusetts. (Dow Decl. [3] at ¶ 1.) Defendant manufactures pet-related products and sells them through its website www.petedge.com. (Id. at ¶¶ 2, 8.) One of defendant’s products is the “ZANIES® Funky Monkeys” dog toy. (Id. at ¶ 2.) All orders for the toy are processed through defendant’s Massachusetts headquarters, and all related documents are located there. (Id. at ¶ 7.)

Defendant does not specifically target Georgia in its advertising or marketing and has no stores or offices in Georgia. (Id. at ¶ 8-9.) However, petedge.com is a typical e-commerce website that any customer can search to purchase defendant’s products. PetEdge, http://www.petedge. com/ (last visited Sept. 24, 2013.) Petedge customers enter their shipping information onto the website, allowing defendant to ship their purchases anywhere in the United States. Id. Georgia residents accounted for 1.27% of defendant’s total sales of the Funky Monkeys dog toy in 2011 and 1.91% in 2012. (Dow Decl. [3] at ¶ 5.) The percentage of net annual sales for all of defendant’s products from Georgia customers was between 1 and 2% for the five years leading up to 2012. (Id. at ¶ 6.)

Plaintiff contends that defendant’s sale of the Funky Monkeys dog toy in Georgia (1) constitutes trademark infringement and unfair competition under 15 U.S.C. §§ 1114 and 1125 of the Lanham Act and (2) violates Georgia’s common law and statutory protections against unfair competition and deceptive trade practices. (Compl. [1] at ¶¶ 21-40). Defendant moves to dismiss the complaint under Federal Rule 12(b)(2) for lack of personal jurisdiction. (Def.’s Br. in Supp. of Mot. to Dismiss (“Def.’s Br.”) [3] at 7-15.) Alternatively, defendant moves to transfer the ease to Massachusetts under 28 U.S.C. §§ 1404 and 1406. (Id. at 16.)

DISCUSSION

I. MOTION TO DISMISS STANDARD

Dismissal under Federal Rule 12(b)(2) is required if the Court lacks personal jurisdiction over defendant. Fed. R. Civ. P. 12(b)(2). Plaintiff has the burden of establishing a prima facie case of personal jurisdiction. Madara v. Hall, 916 F.2d 1510, 1514 (11th Cir.1990). If defendant presents affidavits or other evidence refuting plaintiffs prima facie case, plaintiff must respond with sufficient evidence to support jurisdiction. Meier ex rel. Meier v. Sun Int’l Hotels, Ltd., 288 F.3d 1264, 1269 (11th Cir.2002). Any conflict in the evi[1368]*1368dence must be construed in favor of plaintiff. Id. and Madam, 916 F.2d at 1514.

A two-step analysis governs whether a federal court can exercise personal jurisdiction over a non-resident defendant. Meier, 288 F.3d at 1269. First, the court must determine whether the long-arm statute of its forum state allows for the exercise of personal jurisdiction. Id. If so, the court must then ascertain whether exercising jurisdiction comports with federal due process. Id. As both requirements are met in this case, defendant’s motion to dismiss for lack of personal jurisdiction [3] is DENIED.

A. The Georgia Long-Arm Statute

Federal courts must interpret a state’s long-arm statute in the same manner as the state supreme court.1 Diamond Crystal Brands, Inc. v. Food Movers Int’l, Inc., 593 F.3d 1249, 1258 (11th Cir.2010). Georgia’s long-arm statute allows for the exercise of personal jurisdiction over a nonresident corporate defendant who transacts “any business” within Georgia. O.C.G.A § 9-10-91. The Georgia Supreme Court has required that this language be construed literally. Innovative Clinical & Consulting Serv., LLC v. First Nat’l Bank of Ames, Iowa, 279 Ga. 672, 675, 620 S.E.2d 352 (2005). Thus, a corporate defendant need not physically enter or establish a presence in Georgia for the state to exercise jurisdiction over it. Diamond Crystal Brands, Inc., 593 F.3d at 1264. Transacting “any business” by mail, telephone, or the internet will suffice. Id.

Defendant’s conduct satisfies Georgia’s requirement. By defendant’s own admission, Georgia customers accounted for between 1 and 2% of its total sales in the last five years, and defendant also sold its Funky Monkeys dog toy in Georgia. (Dow Decl. [3] at ¶¶5, 6.) Thus, the plain language of the Georgia long-arm statute permits the Court to exercise personal jurisdiction over defendant. Id.

B. Federal Due Process

Federal due process provides a dual system of protection that requires a plaintiff to show that the defendant has “minimum contacts” with the forum state. Int’l Shoe Co. v. Washington, 326 U.S. 310, 316, 66 S.Ct. 154, 90 L.Ed. 95 (1945). See also Sculptchair, Inc. v. Century Arts, Ltd., 94 F.3d 623, 630-31 (11th Cir.1996) (applying the minimum contacts analysis). In addition to minimum contacts, due process requires that the exercise of jurisdiction over the defendant comport with “ ‘traditional notions of fair play and substantial justice.’ ” Int’l Shoe, 326 U.S. at 316, 66 S.Ct. 154. See also Goodyear Dunlop Tires Operations, S.A v. Brown, — U.S. -, 131 S.Ct. 2846, 2851, 180 L.Ed.2d 796 (2011). This second analysis involves balancing several “fairness factors” to ensure that requiring the defendant to appear in the forum is reasonable under the circumstances. Burger King Corp. v. Rudzewicz, 471 U.S. 462, 476-77, 105 S.Ct. 2174, 85 L.Ed.2d 528 (1985).

1. Minimum Contacts: General Jurisdiction

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975 F. Supp. 2d 1364, 2013 WL 5423441, 2013 U.S. Dist. LEXIS 137983, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rice-v-petedge-inc-gand-2013.