Tangle, Inc. v. Buffalo Games, LLC

District Court, N.D. California·Decided April 3, 2023·No. 3:22-cv-07024·Unknown

Opinion

TANGLE, INC., Case No. 22-cv-07024-JSC

Plaintiff, ORDER GRANTING MOTION TO v. DISMISS WITHOUT PREJUDICE

BUFFALO GAMES, LLC, Re: Dkt. No. 18 Defendant.

Tangle, Inc. (“Plaintiff”) sues Buffalo Games, LLC (“Defendant”) for (1) trademark infringement under 15 U.S.C. § 1114; (2) false designation of origin under 15 U.S.C. § 1125(a); (3) copyright infringement under 17 U.S.C. § 501(a); and (4) unfair competition under California Business & Professions Code § 17200. (Dkt. No. 4.)1 Defendant moves to dismiss Plaintiff’s Complaint for lack of personal jurisdiction and improper venue. (Dkt. No. 18.) Alternatively, Defendant seeks to transfer this matter to the Western District of New York. (Id.) Having reviewed the parties’ submissions, and having had the benefit of oral argument on March 16, 2023, the Court GRANTS Defendant’s motion to dismiss for lack of personal jurisdiction and denies the venue motions. Plaintiff is a California toy manufacturer and distributor principally operating out of South San Francisco, California. (Dkt. Nos. 4, 20-1.) Plaintiff owns a trademark for its “TANGLE” products covered by U.S. Trademark Registration No. 1,779,055, which has been substantially and continuously promoted since 1993. (Dkt. No. 4 at ¶¶ 6-7.) Plaintiff also owns all exclusive rights 1 in various copyrights for TANGLE products. Ud.) Three example TANGLE products are 2 pictured below (Dkt. No. 4 at 5):

5 — 6 , cai Cy» 7 8 Defendant is a New York limited liability corporation that produces games and puzzles 9 with its principal place of business in Buffalo, NY. (Dkt. No. 4 at ¥ 11.) Defendant has no 10 physical locations, facilities, or personnel in California. (Dkt. No. 18-2 at 46.) Defendant is not 11 licensed to conduct business in California, owns no property or assets in California, and neither 12 owes nor pays income taxes in California. (Ud. at J] 8-12.) None of Defendant’s officers, 13 || directors, or shareholders are domiciled in California, nor are any California citizens. Ud. at J 7.) 14 Plaintiff alleges Defendant sells its “Chuckle & Roar Sensory Fidget Box 10-pack,”— 3 15 || which includes a “Twist & Tangle” toy (the “Infringing Toy”)—at Target’s brick-and-mortar a 16 || locations in California. (Dkt. No. 4 at § 14.) Plaintiff alleges Defendant also offers the Infringing 3 17 || Toy to California consumers online through www.target.com. (/d.) Plaintiff alleges the Infringing 18 Toy appears identical to its TANGLE toys but is constructed with “substandard, stiff material, 19 making [it] much less flexible.” (Ud. at 2.) Defendant’s product in question, featuring the 20 Infringing Toy, is pictured below (Dkt. No. 4 at 7-8): 21 => ——.. 0 — — zs = emsthatprovidea — □ 23 Te AR

a= “ = □□□

Plaintiff sent a cease-and-desist letter, demanding Defendant stop sales of the Infringing Toy, recall all such products, and cancel any outstanding orders. (Dkt. No. 20-1 at 59-60.) Plaintiff submits screenshots indicating—at time of filing—the Infringing Toy was available online at www.target.com and in several brick-and-mortar Target retailers throughout this district. (Dkt. No. 4 at 7.) I. Personal Jurisdiction Plaintiff “bears the burden” of establishing personal jurisdiction exists. In re Boon Global Ltd., 923 F.3d 643, 650 (9th Cir. 2019). “Where, as here, the defendant’s motion is based on written materials rather than an evidentiary hearing, ‘the plaintiff need only make a prima facie showing of jurisdictional facts to withstand the motion to dismiss.’” Ranza v. Nike, Inc., 793 F.3d 1059, 1068 (9th Cir. 2015) (quoting CollegeSource, Inc. v. AcademyOne, Inc., 653 F.3d 1066, 1073 (9th Cir. 2011)). The Court may consider declarations and other evidence outside the pleadings to determine whether it has personal jurisdiction. See Boon Global, 923 F.3d at 650. “[U]ncontroverted allegations in plaintiff’s complaint must be taken as true, and conflicts between parties over statements contained in affidavits must be resolved in the plaintiff’s favor.” Id. (cleaned up). However, courts “may not assume the truth of allegations in a pleading which are controverted by affidavit.” Mavrix Photo, Inc. v. Brand Techs., Inc., 647 F.3d 1218, 1223 (9th Cir. 2011) (cleaned up). When there is no applicable federal statute governing personal jurisdiction, as is the case here, the law of the forum state determines personal jurisdiction. Schwarzenegger v. Fred Martin Motor Co., 374 F.3d 797, 800 (9th Cir. 2004). California’s long arm statute is co-extensive with federal due process requirements, and therefore the jurisdictional analyses under California law and federal due process are the same. See Cal. Civ. Proc. Code § 410.10; Mavrix, 647 F.3d at 1223. Courts recognize two forms of personal jurisdiction, general and specific, sometimes of Cal., S.F. Cty., 582 U.S. 255, 262 (2017) (citing Goodyear Dunlop Tires Operations, S.A. v. Brown, 564 U.S. 915, 918 (2011)). General jurisdiction over a nonresident corporation “is appropriate only when the corporation’s contacts with the forum state are so constant and pervasive as to render it essentially at home in the state.” Martinez v. Aero Caribbean, 764 F.3d 1062, 1066 (9th Cir. 2006); see Tuazon v. R.J. Reynolds Tobacco Co., 433 F.3d 1163, 1169 (9th Cir. 2006) (“[T]he standard for general jurisdiction is high” and “[a] defendant must not only step through the door, it must also [sit] down and [make] itself at home.”). By contrast, specific jurisdiction requires a nonresident defendant’s “suit-related conduct [to] create a substantial connection with the forum.” Walden v. Fiore, 571 U.S. 277, 285 (2014). “Where there is no such connection, specific jurisdiction is lacking regardless of the extent of a defendant’s unconnected activities in the State.” Bristol-Myers, 582 U.S. at 264; see Goodyear, 564 U.S. at 931 n.6 (“[E]ven regularly occurring sales of a product in a State do not justify the exercise of jurisdiction over claims unrelated to those sales.”). As Plaintiff does not contend general jurisdiction exists, the Court addresses only whether Plaintiff has met its burden of establishing specific personal jurisdiction. The Ninth Circuit applies a three-part test to determine if the exercise of specific personal jurisdiction over a nonresident is appropriate: (1) the defendant must purposefully direct its activities toward the forum or purposefully avail itself of the privileges of conducting activities in the forum; (2) the plaintiff’s claim must arise out of or relate to those activities; and (3) the assertion of personal jurisdiction must be reasonable. Schwarzenegger, 374 F.3d at 802. It is Plaintiff’s burden to plead allegations that satisfy the first two prongs, whereupon the burden shifts to the defendant to show why the exercise of specific personal jurisdiction would not be reasonable under prong three. Id. (citing Burger King Corp. v. Rudzewicz, 471 U.S. 462, 477-78 (1985)). A. Purposeful Direction The first test requires Plaintiff establish Defendant “either purposefully availed itself of the privilege of conducting activities in California, or purposefully directed its activities toward California.” Id. “A

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Tangle, Inc. v. Buffalo Games, LLC, (N.D. Cal. 2023).

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