Richter v. INSTAR Enterprises International, Inc.

594 F. Supp. 2d 1000, 2009 U.S. Dist. LEXIS 4720, 2009 WL 174981
CourtDistrict Court, N.D. Illinois
DecidedJanuary 23, 2009
Docket08 C 50026
StatusPublished
Cited by18 cases

This text of 594 F. Supp. 2d 1000 (Richter v. INSTAR Enterprises International, Inc.) 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
Richter v. INSTAR Enterprises International, Inc., 594 F. Supp. 2d 1000, 2009 U.S. Dist. LEXIS 4720, 2009 WL 174981 (N.D. Ill. 2009).

Opinion

MEMORANDUM OPINION AND ORDER

FREDERICK J. KAPALA, District Judge:

On February 21, 2008, plaintiff, Pat Richter, filed a seven-count complaint against defendant, INSTAR Enterprises International, alleging that defendant reproduced, distributed and displayed plaintiffs artwork without permission in violation of the Copyright Act, 17 U.S.C. § 501. Plaintiff is an artist who has created numerous works of visual art for which she has obtained federal copyright registrations. Plaintiff alleges that defendant, a New Jersey corporation with its principal place of business in New Jersey, displayed and sold decals 1 of plaintiffs work through its interactive website. Plaintiff also alleges that defendant sells decals and designs to customers in Illinois through its website. On May 21, 2008, defendant filed a motion to dismiss for lack of personal jurisdiction and improper venue pursuant to Federal Rule of Civil Procedure 12(b). Fed.R.Civ.P. 12(b)(2)-(3).

I. BACKGROUND

In support of its motion, defendant offers the affidavit of Gary Rogers, the Vice President of INSTAR Enterprises. According to Rogers, defendant is a small company with four employees that does not have a place of business or agent in Illinois, and is not licensed to do business here. In 2007, defendant’s total sales were approximately $900,000. Rogers avers that it is highly unlikely more than one tenth of one percent of defendant’s business comes from Illinois. Rogers does not deny that at some point, plaintiffs designs were placed on defendant’s website. According to Rogers, defendant obtained decals of plaintiffs works from a company called Tile Art, a licensee of plaintiff. On November 16, 2007, Rogers received a phone call from plaintiffs husband, David Richter, who told Rogers that he had seen several decals of plaintiffs work at a craft show at Arlington Racetrack, in Illinois, and did not believe defendant had the right to sell the decals. In response, Rogers removed the decals from the website that same day. Upon review of defendant’s database, Rogers surmised that defendant had sold 239 decals of plaintiffs works, none of which was either billed to or shipped to Illinois. Rogers avers that the decals Richter saw at Arlington Racetrack were sold to a customer in Minnesota, who transferred them to a customer in Wisconsin, who attached them to furniture and brought them to Illinois.

In her response to defendant’s motion, plaintiff has submitted David Richter’s af *1005 fidavit. Richter is the Vice President of Pat Richter Gallery, Inc. According to Mr. Richter, in early November 2007, he saw plaintiffs works on display and for sale at an art show at Arlington Racetrack, and learned that the decals of the works were purchased from defendant. Thereafter, Mr. Richter learned that unauthorized copies of plaintiffs work were also on display at craft shows in Villa Park, Illinois and Rockford, Illinois. The salespeople of these works informed Richter that they had received the decals in question from defendant. Richter then visited defendant’s website, which he accessed from his computer in Boone County, Illinois. When he searched for plaintiffs work, he found no fewer than eight electronic image copies of plaintiffs works that defendant was offering for sale. Richter noted that defendant’s website was fully interactive and allowed customers to purchase items, including plaintiffs works, from its website. Richter has seen works made from defendant’s decals at half a dozen art and craft shows in the northern part of Illinois.

In its motion, defendant argues that this court lacks personal jurisdiction because defendant does not have a place of business or agent in Illinois, its sales to this state are de minimus, and its interactive website is not sufficient to confer jurisdiction. Plaintiff responds that personal jurisdiction is proper because defendant has contributed to acts of infringement within the state, and sold and offered products for sale in Illinois. Because the court finds it does not have personal jurisdiction over defendant, it does not proceed to consider defendant’s arguments as to venue.

II. DISCUSSION

“[W]hen the district court rules on a defendant’s motion to dismiss based on the submission of written materials, without the benefit of an evidentiary hearing, ... the plaintiff need only make out a prima facie case of personal jurisdiction.” Purdue Research Found. v. Sanofi-Synthelabo, S.A., 838 F.3d 773, 782 (7th Cir.2003) (quotation marks omitted). This burden is not a heavy one. Rual Trade Ltd. v. Viva Trade LLC, 549 F.Supp.2d 1067, 1073 (E.D.Wis.2008). “In evaluating whether the prima facie standard has been satisfied, the plaintiff ‘is entitled to the resolution in its favor of all disputes concerning relevant facts presented in the record.’ ” Id. However, “the court accepts as true any facts contained in the defendants’ affidavits that remain unrefuted by the plaintiffs.” First Nat’l Bank v. El Camino Res., Ltd., 447 F.Supp.2d 902, 905 (N.D.Ill.2006) (quotation marks omitted).

In a federal question case, such as this one, personal jurisdiction has the reach set out in Federal Rule of Civil Procedure 4(k). Rule 4(k)(l) provides the district court with jurisdiction over the person of a defendant “who is subject to the jurisdiction of a court of general jurisdiction in the state where the district court is located.” Fed.R.Civ.P. 4(k)(1)(A). Rule 4(k)(2) further extends personal jurisdiction in federal question cases if the defendant is “not subject to jurisdiction in any state’s courts of general jurisdiction” and “exercising jurisdiction is consistent with the United States Constitution and laws.” Fed.R.Civ.P. 4(k)(2)(A)-(B). In this case, because defendant is subject to jurisdiction in the state courts of New Jersey, 2 Rule *1006 4(k)(2) does not apply. Thus, in order for this court to have personal jurisdiction, defendant must be subject to the jurisdiction of a court, of general jurisdiction in Illinois.

The Illinois long-arm statute, 735 ILCS 5/2-209, permits its courts to exercise jurisdiction on any basis permitted by the Illinois and United States Constitutions. Hyatt Int’l Corp. v. Coco, 302 F.3d 707, 714 (7th Cir.2002) (quotation marks omitted); see also 735 ILCS 5/2-209(c).

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Cite This Page — Counsel Stack

Bluebook (online)
594 F. Supp. 2d 1000, 2009 U.S. Dist. LEXIS 4720, 2009 WL 174981, Counsel Stack Legal Research, https://law.counselstack.com/opinion/richter-v-instar-enterprises-international-inc-ilnd-2009.