Smart Rain Systems, LLC v. Rhren- und Pumpenwerk Bauer Ges.m.b.H.

CourtDistrict Court, D. Nevada
DecidedMarch 25, 2024
Docket2:22-cv-00232
StatusUnknown

This text of Smart Rain Systems, LLC v. Rhren- und Pumpenwerk Bauer Ges.m.b.H. (Smart Rain Systems, LLC v. Rhren- und Pumpenwerk Bauer Ges.m.b.H.) is published on Counsel Stack Legal Research, covering District Court, D. Nevada primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Smart Rain Systems, LLC v. Rhren- und Pumpenwerk Bauer Ges.m.b.H., (D. Nev. 2024).

Opinion

1 2 UNITED STATES DISTRICT COURT DISTRICT OF NEVADA 3 4 Smart Rain Systems, LLC, Case No. 2:22-cv-00232-CDS-EJY

5 Plaintiff Order Granting Defendants’ Motions to Dismiss 6 v.

7 Röhren –und Pumpenwerk Bauer Ges.m.b.H., [ECF Nos. 41, 42] et al., 8 Defendants

9 10 Plaintiff Smart Rain Systems, LLC brings this trademark infringement action, and related 11 claims for relief, against defendants Röhren –und Pumpenwerk Bauer Ges.m.b.H. (GmbH), an 12 Austrian LLC, and Bauer North America, Inc. (Bauer NA), an Indiana based corporation. Smart 13 Rain alleges that GmbH and Bauer NA unlawfully used Smart Rain’s exclusively owned, federal 14 trademarks (“the trademarks”) to advertise Bauer NA’s competing products and services on 15 three separate occasions. See generally Complaint, ECF No. 1 at ¶¶ 24, 27–28. As relevant here, the 16 complaint alleges that one of those occasions was at an irrigation association convention in Las 17 Vegas, Nevada that occurred between December 2 and December 6, 2019. Id. ¶ 24. Both 18 defendants move to dismiss the complaint, arguing that they are improperly grouped together, 19 and that the complaint fails to allege personal jurisdiction or state a claim. See generally ECF Nos. 20 41, 42. Smart Rain opposes the motions, arguing that they should be denied because the court in 21 fact has personal jurisdiction over the parties, and further that Smart Rain has stated plausible 22 claims for Federal Trademark violations against each defendant. See generally ECF No. 50. The 23 motions are fully briefed. See ECF Nos. 50, 51, 52. For the reasons set forth herein, I grant both 24 motions and dismiss the complaint without prejudice and with leave to amend. 25

26 1 I. Background 2 As set forth in the complaint, Smart Rain is a Utah based company that “provides a wide 3 variety of innovative goods and services relating to agricultural irrigation systems, including but 4 not limited to, electrical controls for irrigation systems, advisory services pertaining to water 5 usage by commercial and residential irrigation systems, installation and maintenance services 6 for commercial and residential irrigation systems, and online and downloadable software for 7 controlling irrigation systems.” ECF No. 1 at ¶¶ 1, 13. Smart Rain alleges that over the past ten 8 years, it has been awarded several patents based on its innovations in the irrigation industry, 9 and that it is the exclusive owner of several federally registered trademarks.1 Id. at ¶¶ 13–14. 10 Smart Rain further alleges that its innovation and significant investment in its company, 11 including the trademarks, has developed Smart Rain’s “substantial recognition and goodwill in 12 the United States” for goods and services it provides in connection with the trademarks. Id. at 13 15–16. 14 Smart Rain alleges that defendants are also in the business of providing goods and 15 services related to agricultural irrigation. See generally id. at ¶ 17. Smart Rain further alleges that in 16 April 2016, it was contacted by Bauer NA’s counsel, seeking Smart Rain’s consent to register 17 “SMARTRAIN” in connection with agricultural irrigation systems for Bauer NA.2 Id. at ¶ 19. 18 Smart Rain advised that it opposed any such attempt, citing its rights under its U.S. trademarks. 19 Id. at ¶¶ 20–21. But Smart Rain did offer Bauer NA the opportunity to license its mark for a 20 yearly fee. Id. Bauer NA declined the licensing offer. Id. at ¶¶ 21, 23. Smart Rain further alleges 21 that after twice declining the licensing offer, Bauer NA used Smart Rain’s trademarks, including 22 the trademark associated with its logo, without Smart Rain’s consent in the United States at a 23 convention in Las Vegas, Nevada between December 2–9, 2019. Id. at ¶ 24; see also Ex. B, ECF No. 24 1-2 (pictures of alleged unauthorized use of Smart Rain’s trademarks). 25

26 1 The United States registered trademarks are identified as Nos. 4,422,647 and 6,268,132, and No. 5,288,810. ECF No. 1 at ¶ 14. 2 It is unclear from the face of the complaint if Smart Rain is referring to Bauer NA or GmbH. See id. 1 Following the Las Vegas convention, Smart Rain sent GmbH’s counsel a cease-and- 2 desist letter.3 Id. at ¶ 25; see also Ex. C, Letter, ECF No. 1-3. As alleged in the complaint, GmbH’s 3 counsel responded by stating that Bauer NA “has no intentions to use the SMART RAIN mark 4 in the United States,” that Bauer NA has “no intentions to infringe nor use the SMART RAIN 5 mark in the United States,” and that Bauer NA’s use of the Asserted Marks was “a mistake.” Id. at 6 ¶ 26. Smart Rain contends that after receiving that communication, Bauer NA again used Smart 7 Rain’s trademarks to advertise its competing products and services at an irrigation association 8 convention in San Diego, California on December 9, 2021. Id. at ¶ 27; see also Ex. D, ECF No. 1-4 9 (pictures of alleged unauthorized use of Smart Rain’s trademarks). 10 The complaint also alleges that Bauer NA4 uses the Smart Rain “mark” on its website to 11 advertise its goods and services in the United States. Id. at ¶ 28; see also Ex. E, Website 12 screenshot, ECF No. 1-5. Smart Rain contends that defendants’ use of the trademarks in 13 connection with marketing and advertising, and at conventions in the United States “creates 14 confusion” regarding the source of defendants’ goods and services, misleads consumers to believe 15 that defendants’ products are authorized by Smart Rain, and that defendants’ actions have 16 caused injury to Smart Rain. Id. at ¶¶ 30, 32–33. As a result, Smart Rain brings this federal and 17 state law trademark action, seeking an order enjoining defendants from further trademark 18 infringement and damages. See generally id. at 9–10. 19 II. Discussion 20 As a court of limited jurisdiction, I must first resolve the issues of jurisdiction. Both 21 defendants contend that this court lacks general and specific jurisdiction over them. See generally 22 ECF Nos. 41, 42. Smart Rain avers that this court has both general and specific jurisdiction over 23

24 3 The court assumes the letter was sent to GmbH’s counsel as part of the address is redacted from the letter attached to the complaint as an exhibit. See ECF No. 1-3 at 2. The first paragraph of the letter, 25 however, addresses a previous discussion with its client “Pumpenwerk Bauer Ges.m.b.H.” Id. 26 4 Again, the complaint does not state which defendant utilized the trademark on the website referenced in the complaint, and it is unclear from the screenshots included as exhibits to the complaint. See ECF No. 1-5 (screenshots). 1 defendants, arguing that Bauer NA’s attendance and conduct at the Las Vegas trade show in 2 2019 subjects it to specific personal jurisdiction in Nevada, especially given defendants’ 3 “conscious choice to attend the convention…in Las Vegas” and that Bauer NA intentionally used 4 Smart Rain’s mark at the Las Vegas convention “knowing it lacked permission to do so.” ECF 5 No. 50 at 7. Smart Rain further argues that GmbH is subject to specific personal jurisdiction in 6 this court because the actions of Bauer NA, its subsidiary, are attributable to it, and that Bauer 7 NA’s conduct at the Las Vegas convention is imputed to GmbH because: (1) Bauer NA is the 8 company’s U.S. agent, and (2) Bauer NA provides its products to customers in North America. 9 Id. at 9–10. Finally, Smart Rain argues that Bauer NA’s argument that its website is “passive” 10 fails, and that limited jurisdictional discovery is required to determine if the defendants 11 “delivered any products bearing [the trademarks] to Nevada.” Id. at 10–12. 12 “Personal jurisdiction must exist for each claim asserted against a defendant.” Action 13 Embroidery Corp. v. Atl. Embroidery, Inc., 368 F.3d 1174, 1180 (9th Cir. 2004) (citing Data Disc., Inc. v. 14 Sys. Tech.

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Bluebook (online)
Smart Rain Systems, LLC v. Rhren- und Pumpenwerk Bauer Ges.m.b.H., Counsel Stack Legal Research, https://law.counselstack.com/opinion/smart-rain-systems-llc-v-rhren-und-pumpenwerk-bauer-gesmbh-nvd-2024.