THE SNACK JOINT LLC v. OCM GROUP USA, NJ, INC.

CourtDistrict Court, D. New Jersey
DecidedSeptember 8, 2021
Docket2:21-cv-00818
StatusUnknown

This text of THE SNACK JOINT LLC v. OCM GROUP USA, NJ, INC. (THE SNACK JOINT LLC v. OCM GROUP USA, NJ, INC.) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
THE SNACK JOINT LLC v. OCM GROUP USA, NJ, INC., (D.N.J. 2021).

Opinion

NOT FOR PUBLICATION

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF NEW JERSEY

THE SNACK JOINT LLC,

Plaintiff,

v.

OCM GROUP USA, NJ, INC., OCM Case No. 2:21-cv-00818 (BRM) (JSA) GLOBE INC., OCM GROUP USA INC., GANG WANG, YAOTIAN LI and XIAOHUI CHAI, “JOHN DOES” 1-5, OPINION

Defendants.

MARTINOTTI, DISTRICT JUDGE Before this Court is: (1) a Motion to Dismiss filed by Defendants OCM Group USA, NJ, Inc. (“OCM NJ”), OCM Globe Inc. (“OCM Globe”), OCM Group USA Inc. (“OCM USA”), Gang Wang (“Wang”), Yaotian Li (“Li”), and Xiaohui Chai (“Chai”) (collectively, “Defendants”) seeking to dismiss Plaintiff The Snack Joint LLC’s (“Snack”) Complaint for lack of personal jurisdiction as to Li pursuant to Federal Rule of Civil Procedure 12(b)(2); (2) Defendants’ Motion to Dismiss for improper venue pursuant to Federal Rule of Civil Procedure 12(b)(3); and (3) Defendants’ Motion to Transfer Venue to the United States District Court for the Central District of California (the “Central District of California”) pursuant to 28 U.S.C. § 1404(a). (ECF No. 33.) Snack opposed Defendants’ motions. (ECF No. 34.) Defendants filed a reply in support of their motions. (ECF No. 35.) Also before this Court is Snack’s Motion for Preliminary Injunction. (ECF No. 36.) Defendants opposed Snack’s motion. (ECF No. 37.) Snack filed a reply in support of its motion. (ECF No. 38.) Having reviewed the submissions filed in connection with the motions and having declined to hold oral argument pursuant to Federal Rule of Civil Procedure 78(b), for the reasons set forth below and for good cause appearing, Defendants’ Motion to Dismiss for improper venue is DENIED, Defendants’ Motion to Transfer Venue is GRANTED, and Defendants’ Motion to Dismiss for lack of personal jurisdiction and Snack’s Motion for Preliminary Injunction

are DENIED as moot. I. BACKGROUND Snack is in the food, beverage importation and wholesale business, selling beverages, condiments, and oil products across the U.S. (ECF No. 36-1 at 5.) One of Snack’s products is a coconut juice product distributed under the trademark of YeShu federally registered in the U.S. (the “Asserted Mark”). (Id. at 5–6.) The Asserted Mark is owned by a Chinese company named Coconut Palm Group Limited (“Coconut Palm Group”). (Id. at 6.) Snack claims to have authorization from Coconut Palm Group to use the Asserted Mark exclusively and enforce it in the U.S. (Id.) Snack is incorporated and has its principal place of business in Brooklyn, New York. (ECF No. 1 ¶ 5.)

OCM Globe and OCM USA are in the food and beverage importation and distribution business. (ECF No. 33-1 at 5; ECF No. 37 at 7.) They imported from China and distributed in the U.S. certain coconut juice products (the “Accused Products”), which were manufactured by a Chinese company named Yeshu Group Co. Ltd. (“YeShu Group”). (ECF No. 37 at 7.) Defendants claim YeShu Group has authorized OCM Globe and OCM USA to sell and distribute the Accused Products in the U.S. (Id.) The Accused Products were sold under several trademarks that are owned by YeShu Group and officially registered in China (the “Accused Marks”).1 (Id. at 8.) OCM Globe

1 The Chinese characters for YeShu (i.e., 椰树)—which appear on Snack’s coconut juice products, the Accused Product, and the Accused Mark—mean coconut palm. (ECF No. 1-2 Ex. B; ECF No. 37 at 7–8.) and OCM USA are based in City of Industry, California (near Los Angeles). (ECF No. 33-1 at 5.) Their related company OCM NJ is based in New Jersey.2 (Id.; ECF No. 33-4 ¶ 2.) Wang, the chief executive officer of OCM Globe and OCM USA, is an individual residing in Orange County, California (near Los Angeles). (ECF No. 33-1 at 6.) Li, an employee of OCM USA, is an individual

residing in Chino, California (near Los Angeles). (Id.) Chai, the chief executive officer of OCM NJ, is an individual residing in Los Angeles County, California. (Id. at 7.) Snack argues the Accused Marks are identical or closely similar to the Asserted Mark. (ECF No. 36-1 at 6.) Snack alleges Defendants have no association with Snack or Coconut Palm Group, and have no authorization from Snack or Coconut Palm Group to use the Accused Marks in the U.S. (Id.) Snack contends Defendants have infringed upon Snack and Coconut Palm Group’s trademark rights. (Id. at 7.) On January 15, 2021, Snack filed a Complaint in this Court against Defendants for importing and distributing the Accused Products in the U.S. under the Accused Marks, asserting claims for: (1) trademark infringement under Section 32 of the Lanham Act, 15 U.S.C. § 1114 (Count 1); (2) unfair competition, false designation of origin and false description

under Section 43(a) of the Lanham Act, 15 U.S.C. § 1125(a) (Count 2); (3) trademark infringement under New Jersey common law (Count 3); and (4) unfair competition under New Jersey common law (Count 4). (ECF No. 1.) On June 1, 2021, Defendants filed: (1) a Motion to Dismiss for lack of personal jurisdiction as to Li pursuant to Federal Rule of Civil Procedure 12(b)(2); (2) a Motion to Dismiss for improper venue pursuant to Federal Rule of Civil Procedure 12(b)(3); and (3) a Motion to Transfer Venue to the Central District of California pursuant to 28 U.S.C. § 1404(a). (ECF No. 33.) On June 2,

2 Hereinafter, OCM Globe, OCM USA, and OCM NJ are collectively termed the “OCM Parties.” 2021, Snack opposed Defendants’ motions. (ECF No. 34.) On June 2, 2021, Defendants filed a reply in support of their motions. (ECF No. 35.) On June 14, 2021, Snack filed a Motion for Preliminary Injunction to enjoin Defendants’ allegedly infringing activities. (ECF No. 36.) On June 15, 2021, Defendants opposed Snack’s motion. (ECF No. 37.) On June 15, 2021, Snack filed

a reply in support of its motion. (ECF No. 38.) II. LEGAL STANDARD A. Motion to Dismiss for Improper Venue “Federal Civil Rule of Procedure 12(b)(3) permits a court to dismiss a matter that is filed in an improper venue.” Wilson v. JPMorgan Chase, Civ. A. No. 18-13789, 2020 U.S. Dist. LEXIS 103695, at *3 (D.N.J. June 15, 2020). “[W]hen confronted with a motion to dismiss for improper venue, the [c]ourt may consider both the complaint and evidence outside the complaint.” Boston Sci. Corp. v. Cook Grp., Inc., 269 F. Supp. 3d 229, 234 (D. Del. 2017) (citing 14D Wright & Miller, Federal Practice & Procedure § 3826 (4th ed. 2017)). “[T]he court accepts the allegations in the complaint as true unless they are contradicted by the defendant’s affidavits.” Adams, Nash

& Haskell, Inc. v. United States, Civ. A. No. 19-3529, 2020 U.S. Dist. LEXIS 47471, at *3 (D.N.J. Mar. 19, 2020) (citing Bockman v. First Am. Mktg. Corp., 459 F. App’x 157, 158 n.1 (3d Cir. 2012)). The defendant “bear[s] the burden of showing improper venue.” Wilson, 2020 U.S. Dist. LEXIS 103695, at *4 (quoting Myers v. Am. Dental Ass’n, 695 F.2d 716, 724–25 (3d Cir. 1982)).

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