The Prudential Insurance Company of America v. Zhang

CourtDistrict Court, E.D. Virginia
DecidedJuly 22, 2020
Docket1:20-cv-00450
StatusUnknown

This text of The Prudential Insurance Company of America v. Zhang (The Prudential Insurance Company of America v. Zhang) is published on Counsel Stack Legal Research, covering District Court, E.D. Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
The Prudential Insurance Company of America v. Zhang, (E.D. Va. 2020).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF VIRGINIA Alexandria Division THE PRUDENTIAL INSURANCE COMPANY ) OF AMERICA, ) Plaintiff, ) Vv. Civil Action No. 1:20-cv-450 pru.com, @ domain name, and FRANK ZHANG, ) Defendants. ) MEMORADUM OPINION This anti-cybersquatting and trademark infringement action is before the Court on defendant Frank Zhang’s motion to dismiss plaintiff's complaint pursuant to Rule 12(b)(1) and/or Rule 12(b)(2) or to transfer the case to the District of Arizona pursuant to 28 U.S.C. § 1404(a). Zhang has filed his motion individually and on behalf of the subject res, , a domain name (the “Domain Name”). Plaintiff, The Prudential Company of America, opposes defendant’s motion, arguing that plaintiff properly brought this in rem action against the Domain Name in the Eastern District of Virginia. For the reasons that follow, defendant Zhang’s motion to dismiss is granted in part and denied in part. Zhang’s motion to dismiss is granted insofar as all claims against defendant Zhang in plaintiff's complaint are dismissed for lack of personal jurisdiction. Zhang’s motion to dismiss is denied insofar as Zhang seeks dismissal of plaintiff's in rem anti-cybersquatting claim against the Domain Name. Plaintiff has adequately plead an in rem anti-cybersquatting claim against the Domain Name, and there is in rem jurisdiction to proceed against the Domain Name in the Eastern District of Virginia pursuant to 15 U.S.C. § 1125(d)(2).

I. It is first necessary to set forth the pertinent factual and procedural history of this case. On April 22, 2020, plaintiff filed the instant complaint against Frank Zhang, a Chinese resident, and the Domain Name alleging two claims: (i) cybersquatting, in violation of the Anti-cybersquatting Consumer Protection Act (“ACPA”), 15 U.S.C. § 1125(d) (‘Count I”), and (ii) trademark infringement, in violation of Section 32 of the Lanham Act, 15 U.S.C. § 1114 (“Count II”). See Complaint, Dkt. 1, at 22-31, 32-36. The complaint alleges that the Domain Name is identical to plaintiff's PRU trademark and confusingly similar to plaintiff's PRU-formative trademarks. See id. at □ 11. The complaint further alleges that there is in rem jurisdiction over the Domain Name in the Eastern District of Virginia pursuant to 15 U.S.C. § 1125(d)(2)(A) because VeriSign, the domain name registry, is located in Virginia and plaintiff may be unable to obtain in personam jurisdiction over defendant Zhang. See id. at | 7. Prior to filing this lawsuit in the Eastern District of Virginia, plaintiff learned that the Domain Name was offered for sale on an Internet website and that the identity of the Domain Name registrant was hidden by the registrar’s privacy service. See id. at | 18; Declaration of Charles G. Giger (“CGG Decl.”), Dkt. 19-1., { 7.! Plaintiff hired a private investigator to attempt to buy the Domain Name via the registrar’s Domain Broker Service, but the GoDaddy? broker

' Specifically, on March 23, 2020, the GoDaddy Whols record contained the following registrant information: Name: Registration Private Organization: Domains By Proxy, LLC Address: 14455 N. Hayden Road, Scottsdale, Arizona, US Phone: +1.4806242599 Fax: +1.4806242598 Email: pru.com@domainsbyproxy.com See CGG Decl., Ex. A, Dkt. 19-1. ? GoDaddy Inc., which is headquartered in Arizona, is the registrar for the Domain Name.

reported to plaintiff's private investigator on March 18, 2020 that the registrant of the Domain Name wanted an offer in “the ‘six figure’ range” and wanted to know the identity of the buyer. See id. at J 8. After this communication, plaintiff did not continue negotiations to purchase the Domain Name through GoDaddy’s broker. Thereafter, on March 25, 2020, plaintiff filed a Uniform Domain Name Dispute Resolution Policy (“UDRP”) complaint with the World Intellectual Property Organization (“WIPO”) against the unknown registrant of the Domain Name. See Compl. at § 16. In its UDRP complaint, plaintiff, as required by UDRP rules, submitted to the jurisdiction of the courts at the location of the principal office of the concerned registrar, here Arizona, “with respect to any challenges that may be made by the Respondent to a decision by the Administrative Panel to transfer or cancel the domain name that is the subject of this Complaint.” CGG Decl., at § 10. On March 27, 2020, WIPO sent plaintiff an email that provided the Domain Name registrant information that WIPO received from the registrar, namely: Registrant Name: Frank Zhang Registrant Organization: Bailun Registrant Street: meixihu Registrant City: changsha Registrant State/Province: Hunan Registrant Postal Code: 410000 Registrant Country: CN Registrant Phone: +86.83232311 Registrant Email: zhang@bailun.com See Email from WIPO to Prudential (March 27, 2020), Ex. F, Dkt. 19-1. On April 1, 2020, plaintiff amended its UDRP complaint to reflect the registrar-disclosed registrant information. See Email from WIPO to Prudential (April 1, 2020), Ex. G, Dkt. 19-1. On April 21, 2020, Zhang, individually, submitted his response to the UDRP complaint. According to Zhang’s sworn declaration, which was submitted as an exhibit to his motion to

dismiss at issue here, Zhang’s response to the UDRP complaint asserted that he, either via proxy for his employer, Shenzhen Stone Network Information Ltd. (“Shenzhen Stone”), or otherwise, did not acquire the Domain Name in bad faith. See Declaration of Zhaoyuan “Frank” Zhang (“Zhang Decl.”), Dkt. 17-2, 25. As noted, on April 22, 2020, plaintiff filed its complaint in this federal lawsuit in the Eastern District of Virginia. On April 24, 2020, plaintiff submitted a notice to WIPO of this federal lawsuit and requested several forms of relief, including that the WIPO administrative proceedings be terminated. See CGG Decl., § 13. According to Zhang’s sworn declaration, Zhang filed an opposition to plaintiff's request to terminate the UDRP proceeding on April 28, 2020. See Zhang Decl., | 28. On May 7, 2020, the WIPO proceedings were terminated. See Case Details for WIPO Case D2020-0714, Ex. H, Dkt. 19-1. On May 29, 2020, defendant Zhang filed the instant motion to dismiss or alternatively to transfer this lawsuit from the Eastern District of Virginia to the District of Arizona. In a sworn declaration, Zhang avers that he “was entrusted by Shenzhen Stone to register and manage” the Domain Name. See Zhang Decl., Dkt. 17-2, ] 2, 8. Zhang further avers that he is a senior executive of Shenzhen Stone, a Chinese company. See id. at □□ 2, 4. Zhang expressly consents to the jurisdiction of Arizona for “the purpose of challenging the proposed transfer of the... Domain Name away from Shenzhen Stone to any third party.” See id. at 29. But Zhang refuses to consent to jurisdiction in Virginia. See id. at { 31. Zhang’s motion to dismiss argues that the complaint should be dismissed in its entirety because Zhang is not subject to personal jurisdiction in Virginia, and Zhang has consented to personal jurisdiction in Arizona. Because in rem jurisdiction pursuant to 15 U.S.C. § 1125(d) is only appropriate where in personam jurisdiction is unavailable over a person who registers, traffics

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The Prudential Insurance Company of America v. Zhang, Counsel Stack Legal Research, https://law.counselstack.com/opinion/the-prudential-insurance-company-of-america-v-zhang-vaed-2020.