Tech Heads, Inc. v. Desktop Service Center, Inc.

105 F. Supp. 2d 1142, 2000 U.S. Dist. LEXIS 10545, 2000 WL 1016730
CourtDistrict Court, D. Oregon
DecidedJuly 11, 2000
DocketCV-99-1581-ST
StatusPublished
Cited by13 cases

This text of 105 F. Supp. 2d 1142 (Tech Heads, Inc. v. Desktop Service Center, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tech Heads, Inc. v. Desktop Service Center, Inc., 105 F. Supp. 2d 1142, 2000 U.S. Dist. LEXIS 10545, 2000 WL 1016730 (D. Or. 2000).

Opinion

OPINION AND ORDER

STEWART, United States Magistrate Judge.

INTRODUCTION

Plaintiff, Tech Heads Inc. (“Tech Heads”), brings this action against defendant, Desktop Service Center, Inc. (“Desktop”), seeking monetary damages, injunc-tive, and declaratory relief regarding Desktop’s use of the service marks TEC-HEAD, TECH HEADS, and TECH-HEADS (collectively, the “Tech Heads marks”). Tech Heads alleges claims for trademark infringement under the Lan-ham Act, 15 USC §§ 1051-1127 (First Claim for Relief), service mark infringement under Oregon Revised Statute (“ORS”) 647.095 and 647.105 and Oregon common law (Second Claim for Relief), service mark dilution under ORS 647.107 and Oregon common law (Third Claim for Relief), and unfair competition under Oregon common law (Fourth Claim for Relief).

This court has federal question jurisdiction over the Lanham Act claim under 28 USC § 1331 and supplemental jurisdiction over the state law claims under 28 USC § 1367. All parties have consented to allow a Magistrate Judge to enter final orders and judgment in this case in accordance with FRCP 73 and 28 USC § 636(c).

*1144 After allowing Tech Heads additional time to complete discovery regarding Desktop’s contacts with Oregon, Desktop’s Motion to Dismiss for lack of personal jurisdiction pursuant to Federal Rule of Civil Procedure (“FRCP”) 12(b)(2) (docket #4) is now before the court. For the reasons stated below, that motion is denied.

STANDARDS

Under FRCP 12(b)(2), a defendant may move for dismissal on the grounds that the court lacks personal jurisdiction. The plaintiff bears the burden of establishing personal jurisdiction over the defendant. Ballard v. Savage, 65 F.3d 1495, 1498 (9th Cir.1995); Rano v. Sipa Press, Inc., 987 F.2d 580, 587 (9th Cir.1993), citing Data Disc, Inc. v. Systems Tech. Assocs., Inc., 557 F.2d 1280, 1285 (9th Cir.1977). When a court does not conduct an evidentiary hearing, but makes its jurisdictional decision based on pleadings and affidavits, the plaintiff is required merely to make a prima facie showing of personal jurisdiction to defeat a motion to dismiss. Data Disc, 557 F.2d at 1285. That is, plaintiff need only demonstrate facts that if true, would support jurisdiction over the defendant. Ballard, 65 F.3d at 1498.

Personal jurisdiction is proper only if the forum state’s long-arm statute confers personal jurisdiction over the nonresident defendant and the exercise of jurisdiction comports with federal due process. Fireman’s Fund Ins. Co. v. National Bank of Coops., 103 F.3d 888, 893 (9th Cir.1996); Chan v. Society Expeditions, Inc., 39 F.3d 1398, 1404-05 (9th Cir.1994), cert. denied, 514 U.S. 1004, 115 S.Ct. 1314, 131 L.Ed.2d 196 (1995). Oregon’s long arm statute, Oregon Rule of Civil Procedure (“ORCP”) 4, extends personal jurisdiction to the extent permitted by federal due process. Gray & Co. v. Firstenberg Mach. Co., 913 F.2d 758, 760 (9th Cir.1990).

JURISDICTIONAL FACTS

I. Tech Heads

Tech Heads is an Oregon corporation with its principal place of business in Lake Oswego, Oregon. It is in the business of providing, among other things, computer-related services, including installation and maintenance of computer hardware, consulting, and training. Since at least August 1995, Tech Heads has advertised and performed its services in Oregon and in interstate commerce under the service marks TECHEADS and TECH HEADS. Since then, Tech Heads has continuously used the Tech Heads marks in connection with these services in Oregon and in interstate commerce.

Tech Heads has advertised its services in interstate commerce, including on its Internet Web site at www.techeads.com, since at least early 1996. It has expended substantial time, effort, and money advertising and promoting the Tech Heads marks in connection with its services. As a result of these efforts, customers of such services in the state of Oregon and elsewhere associate the marks with Tech Heads and Tech Heads has therefore acquired valuable goodwill in connection with its services offered under the Tech Heads marks.

On September 30, 1997, the Corporation Division of the State of Oregon granted Tech Heads the Oregon Service mark Registration No. S-31907 for the mark TECH HEADS based on its computer consultation and setup business. That registration is currently valid.

II. Desktop

Desktop is a Virginia corporation with its principal place of business in Richmond, Virginia. It offers computer-related services including the recruitment and training of individuals with computer operational and consulting skills. Desktop has no physical presence in Oregon, is not registered to conduct business in Oregon, and has no registered agents, employees, or sales representatives in Oregon. It has never received a franchise inquiry from *1145 Oregon and has never offered a franchise to any Oregon resident or corporation. Desktop asserts that over 95% of its business is in Virginia, “with the remaining business in the neighboring states of Maryland and North Carolina and the District of Columbia.” Affidavit of Philise R. Co-nein, ¶ 4. Desktop “has conducted no business of any type at any time in the state of Oregon or further west than the western border of the state of Virginia.” Id.

Desktop uses the term TECHE AD as a purported service mark in connection with its services, which are identical or similar to Tech Heads’ services, and also has a class of consumers similar or identical to Tech Heads’ class of consumers. Desktop uses the term TECHE AD on its Internet Web site, www.techead.com, and also owns the Internet domain name “techead.net.” On December 23, 1997, Desktop filed an application to register the mark TEC-HEAD with the United States Patent and Service Mark Office. On March 2, 1999, the mark was registered as U.S. Reg. No. 2,228,163.

Desktop’s Internet Web site is comprised of staffing, training, and “web and multimedia development and design” sections.

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Bluebook (online)
105 F. Supp. 2d 1142, 2000 U.S. Dist. LEXIS 10545, 2000 WL 1016730, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tech-heads-inc-v-desktop-service-center-inc-ord-2000.