Sinclair v. Studiocanal, S.A.

709 F. Supp. 2d 496, 2010 U.S. Dist. LEXIS 51484, 2010 WL 1743208
CourtDistrict Court, E.D. Louisiana
DecidedApril 29, 2010
DocketCivil Action 09-7240
StatusPublished
Cited by10 cases

This text of 709 F. Supp. 2d 496 (Sinclair v. Studiocanal, S.A.) is published on Counsel Stack Legal Research, covering District Court, E.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sinclair v. Studiocanal, S.A., 709 F. Supp. 2d 496, 2010 U.S. Dist. LEXIS 51484, 2010 WL 1743208 (E.D. La. 2010).

Opinion

ORDER AND REASONS

MARTIN L.C. FELDMAN, District Judge.

Before the Court are two motions: (1) the defendant’s motion to dismiss for lack of subject matter and personal jurisdiction; and (2) the plaintiffs motion to continue hearing to permit jurisdictional discovery. For the reasons that follow, the defendant’s motion is GRANTED, and the plaintiffs motion is DENIED.

Background

This trademark declaratory judgment action arises from a dispute over the mark TERMINATOR. StudioCanal, S.A., 1 a French company, owns the famous TERMINATOR® movie franchise and trademarks. 2 Daniel S. Sinclair, Jr. 3 has owned, since 2008, a business in St. Tammany Parish in which he uses TERMINATOR and also uses a stylized logo incorporating TERMINATOR.

On October 18, 2007 Sinclair applied to register his TERMINATOR mark with the United States Patent and Trademark Office. On March 17, 2009 the patent office granted Sinclair registration number 3,592,326 in connection with pre-moistened cosmetic wipes, antibacterial handwash, pre-moistened medicated wipes, as well as condoms and other contraceptive prophylactics. On June 29, 2009 Sinclair filed another trademark application for certain non-alcoholic and alcoholic beverages; that application is pending.

StudioCanal discovered that Sinclair had obtained a trademark registration for TERMINATOR. On November 4, 2009 *501 counsel for StudioCanal sent a cease and desist letter to counsel for Sinclair, asserting superior rights in its trademark TERMINATOR® and a willingness to take legal action; the letter provided (in part):

Any use by your client of the mark TERMINATOR ... causes serious injury to out client, confuses and misleads the consuming public ..., suggests a connection with our client that your client does not have and dilutes the distinctiveness of our client’s TERMINATOR Marks. Moreover, the use by your client of TERMINATOR on condoms, products used in connection with sexual acts or other related items tarnishes our client’s reputation in that the consuming public would be led to believe that the products being sold emanate from our client or its licensees. U.S. federal and state laws as well as similar laws in other non-U.S. jurisdictions provide significant penalties for such conduct, including injunctive relief, your client’s profits and our client’s damages and attorney’s fees, all of which our client is entitled to.
Our client is willing to take legal action to vindicate its rights and safeguard its investment in the reputation of the TERMINATOR Marks which it has carefully cultivated over the last 25 years....
If possible, our client would prefer to resolve this matter amicably. To that end, we call upon your client to immediately cease an and all use whatsoever of and agree not to use in the future the mark TERMINATOR or any mark confusingly similar to TERMINATOR in connection with all products and advertising and promotion thereof and to withdraw with prejudice or surrender [all] applications or registrations filed by your client for any marks for or containing TERMINATOR or any mark confusingly similar thereto.
We ask that you advise us in writing no later than Wednesday, November 18, 2009 that your client intends to comply with these demands so that additional immediate steps to enforce our client’s rights are unnecessary....

Five days later, on November 9, 2009 Sinclair sued StudioCanal, seeking a judgment declaring that he has the right to use TERMINATOR as his trademark in connection with his business and that such activities do not infringe or violate Studio-Canal’s rights. Sinclair asserts that StudioCanal has wrongly claimed that he cannot use the mark TERMINATOR in connection with his business and that StudioCanal must be enjoined from making any further wrongful claim, which has damaged or may damage his business and reputation in St. Tammany Parish. In his complaint, Sinclair invokes this Court’s subject matter jurisdiction on various grounds:

the Federal Declaratory Judgment Act 28 U.S.C. §§ 2201-02 (seeking a declaration regarding an actual controversy); 15 U.S.C. § 1121 (actions arising under the Federal Trademark Act [sic]); 4 28 U.S.C. § 1338(a) (acts of Congress relating to trademarks); 28 U.S.C. § 1367 (supplemental jurisdiction); and 28 U.S.C. § 1332 (citizens of a State and citizens or subjects of a foreign state, and the amount in controversy exceeds $75,000, excluding interest and costs).

On November 10, 2009 counsel for Sinclair offered to settle the dispute between the parties: Mr. Sinclair would dismiss the declaratory judgment action in exchange for an agreement by StudioCanal that Sin *502 clair’s use of his registered trademark TERMINATOR does not infringe any of StudioCanal’s trademark rights. Studio-Canal apparently declined to settle the matter and now seeks to dismiss the suit on the grounds that the Court lacks subject matter jurisdiction over the case and lacks personal jurisdiction over it. Sinclair opposes the motion to dismiss and requests that the Court permit him to conduct limited discovery relating to personal jurisdiction.

I.

Subject Matter Jurisdiction

Rule 12(b)(1) authorizes the dismissal of a case for lack of subject matter jurisdiction. If the Court determines at any time that it lacks subject matter jurisdiction, dismissal is required. Fed. R.Civ.P. 12(h)(3); Stockman v. Federal Election Commission, 138 F.3d 144, 151 (5th Cir.1998). “A case is properly dismissed for lack of subject matter jurisdiction when the court lacks the statutory or constitutional power to adjudicate the case.” Home Builders Ass’n of Miss., Inc. v. City of Madison, 143 F.3d 1006, 1010 (5th Cir.1998) (citation omitted). The party invoking the Court’s jurisdiction “has the burden of proving subject matter jurisdiction by a preponderance of the evidence.” Vantage Trailers, Inc. v. Beall Corp., 567 F.3d 745, 748 (5th Cir.2009) (citation omitted). In resolving disputed facts, the Court must not give plaintiffs allegations a presumption of truthfulness. Id. (citation omitted).

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Bluebook (online)
709 F. Supp. 2d 496, 2010 U.S. Dist. LEXIS 51484, 2010 WL 1743208, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sinclair-v-studiocanal-sa-laed-2010.