Shamsuddin v. Vitamin Research Products

346 F. Supp. 2d 804, 2004 U.S. Dist. LEXIS 24564, 2004 WL 2731484
CourtDistrict Court, D. Maryland
DecidedNovember 30, 2004
DocketCIV. AMD 04-1634
StatusPublished
Cited by21 cases

This text of 346 F. Supp. 2d 804 (Shamsuddin v. Vitamin Research Products) is published on Counsel Stack Legal Research, covering District Court, D. Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Shamsuddin v. Vitamin Research Products, 346 F. Supp. 2d 804, 2004 U.S. Dist. LEXIS 24564, 2004 WL 2731484 (D. Md. 2004).

Opinion

MEMORANDUM OPINION

DAVIS, District Judge.

Plaintiffs, AbulKalam M. Shamsuddin, M.D., Ph.D. (“Dr.Shamsuddin”) and Pro *806 prietary Nutritionals, Inc. (“PNI”), brought ■ a patent infringement action against defendant.Vitamin Research Prod-: ucts (“VRP”), a company,organized under the laws of Nevada. Now pending is defendant’s motion to dismiss for lack of personal jurisdiction and improper venue, or, alternatively, to-transfer venue. - The issues have been fully briefed and no hearing is necessary. Local Rule 105.6 (D.Md. 2004). For the reasons stated herein, I am persuaded that personal jurisdiction over defendant is wanting. Accordingly, in lieu of dismissal, I shall transfer this case to the United States District Court for the District of Nevada.

I.

Dr. Shamsuddin is a Maryland resident and a professor of pathology at the University of Maryland School of Medicine. In 1992, the United States Patent & Trademark .Office, granted Dr. Shamsuddin U.S. Patent No. 5,082,833 (“the ’833 patent”) for his invention of a method and pharmaceutical composition for treating cancer using a combination of a compound called inositol hexaphosphate (abbreviated as “IP6”) and a related compound called inositol. PNI, a .Canadian company,- is the exclusive licensee of the ’833 patent. Defendant YRP .is a- privately-held corporation organized under the laws of Nevada, with its principal place of business in Carson City, Nevada. VRP is engaged in the development, manufacture, marketing, and sale of vitamins and dietary supplements. VRP’s products are developed, manufactured, and tested at its headquarters in Carson- City.' It is undisputed that VRP has never maintained any offices or manufacturing facilities in Maryland and has never had any distributors in Maryland. VRP also has no property or. bank accounts in Maryland.

Plaintiffs allege that VRP has infringed the ’833 patent through the manufacture, use, sale, offer to sell, marketing, distribur tion, and/or importation of dietary supplements, including VRP’s IP6/inositol product called. “Product Code 1351, IP6, 400 mg, 120 capsules.” VRP..sells its .products through two channels of distribution: a mail-order catalog featuring a toll-free number for placing orders by telephone, and a website, www.vrp.coin, which is capable of accepting orders and credit card payments electronically. 1 According to Dr. Shamsuddin’s affidavit, two of his acquaintances ordered the allegedly infringing IP6/inositol product in May 2004, one through VRP’s toll-free number and one through VRP’s website. VRP accepted payment from the individuals’ credit cards and shipped the allegedly infringing product to addresses in Maryland. 2

.Citing Zippo Manufacturing Company v. Zippo Dot Com, Inc., 952 F.Supp. 1119 (W.D.Pa.1997), plaintiffs argue that jurisdiction is proper because VRP operates an interactive website through which customers in Maryland can place orders. VRP argues that jurisdiction is improper because its Internet activity is wholly distinguishable from the continuous and systematic transmission of information via the Internet which formed the basis for jurisdiction in Zippo. VRP also maintains that exercising jurisdiction would violate “traditional notions of fair play and substantial justice.” See Int’l Shoe Co. v. Washington, 326 U.S. 310, 316, 66 S.Ct. 154, 90 L.Ed. 95 (1945).

*807 II.

As this is a patent infringement case, I apply Federal Circuit law to determine whether this court may exercise personal jurisdiction over the defendant. Hildebrand v. Steck Mfg. Co., Inc., 279 F.3d 1351, 1354 (Fed.Cir.2002). Where, as here, a hearing is not held, in order to defeat a motion to dismiss for lack of personal jurisdiction, see Fed.R.Civ.P. 12(b)(6), the plaintiffs’ burden is to establish prima facie that defendant is subject to personal jurisdiction. Elecs. For Imaging, Inc. v. Coyle, 340 F.3d 1344, 1349 (Fed.Cir.2003). In considering a challenge to personal jurisdiction, the court must construe all relevant pleadings and affidavits in the light most favorable to plaintiffs. Graphic Controls Corp. v. Utah Med. Prods., 149 F.3d 1382, 1383 n. 1 (Fed.Cir.1998).

A.

Determining whether personal jurisdiction exists over an out-of-state defendant involves two inquiries: whether a forum state’s “long-arm” statute permits service of process, and whether the assertion of jurisdiction is consonant with due process considerations. See Silent Drive, Inc. v. Strong Indus., Inc., 326 F.3d 1194, 1200-01 (Fed.Cir.2003). Maryland’s long-arm statute has been interpreted as extending to constitutional limits; consequently, these two inquiries collapse into a single inquiry: whether an exercise of personal jurisdiction over a defendant comports with due process. Nichols v. G.D. Searle & Co., 991 F.2d 1195, 1199 (4th Cir.1993).

Due process requires that the defendant have “minimum contacts” with the forum state “such that the maintenance of the suit does not offend ‘traditional notions of fair play and substantial justice.’ ” Int’l Shoe, 326 U.S. at 316, 66 S.Ct. 154 (citation omitted). The constitutional touchstone is whether the defendant’s contacts with the state are of such a quality and nature that it could reasonably expect “being haled into court there.” World-Wide Volkswagen v. Woodson, 444 U.S. 286, 297, 100 S.Ct. 559, 62 L.Ed.2d 490 (1980).

The nature and quality of the “minimum contacts” necessary to support jurisdiction depend upon whether the plaintiff asserts general or specific personal jurisdiction over the defendant. General jurisdiction refers to the authority of a court to hear any cause of action involving a defendant, even when the cause of action has no relation to the defendant’s contacts with the forum state. The defendant must have “continuous and systematic” contacts with the forum state in order for a court to assert general jurisdiction. Helicopteros Nacionales de Colombia, S.A. v. Hall, 466 U.S. 408, 414-16, 104 S.Ct. 1868, 80 L.Ed.2d 404 (1984). In the case at bar, the only contacts defendant has had with Maryland include two sales to Maryland residents and the maintenance of a website which is accessible to users in all jurisdictions, including Maryland.

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Bluebook (online)
346 F. Supp. 2d 804, 2004 U.S. Dist. LEXIS 24564, 2004 WL 2731484, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shamsuddin-v-vitamin-research-products-mdd-2004.