Toytrackerz LLC v. American Plastic Equipment, Inc.

615 F. Supp. 2d 1242, 2009 U.S. Dist. LEXIS 38545, 2009 WL 1269464
CourtDistrict Court, D. Kansas
DecidedMay 6, 2009
DocketCivil Action Case 08-2297-GLR
StatusPublished
Cited by2 cases

This text of 615 F. Supp. 2d 1242 (Toytrackerz LLC v. American Plastic Equipment, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Toytrackerz LLC v. American Plastic Equipment, Inc., 615 F. Supp. 2d 1242, 2009 U.S. Dist. LEXIS 38545, 2009 WL 1269464 (D. Kan. 2009).

Opinion

MEMORANDUM AND ORDER

GERALD L. RUSHFELT, United States Magistrate Judge.

By their complaint, Plaintiffs, Toytrackerz LLC, (“Toytrackerz”) and one of its managing members, Noah Coop, assert claims for statutory trademark infringement and false advertising under the Lanham Act, 1 common law trademark infringement and unfair competition, cybersquatting, 2 business defamation and injury to business reputation, cancellation of trademark, and invasion of privacy against defendants American Plastic Equipment, Inc. (“American Plastic”), L. Jill Koehler dba Koehler Customs (“Koehler”), Michael Kosowski dba Friends of Johnny (“Kosowski”), and Robin Bone dba Robin Bone Toys (“Bone”). 3 The *1246 parties have consented to the exercise of jurisdiction by a United States Magistrate Judge pursuant to 28 U.S.C. § 636(c). This matter is before the Court upon the Motion to Dismiss Due to Lack of Personal Jurisdiction Over Defendant American Plastic Equipment, Inc. (doc. 33). For the reasons set forth below, the motion is sustained.

I. Background Facts

Plaintiff Toytrackerz is a limited liability company, organized under the law of Kansas and with its principal place of business in Fort Scott, Kansas. It designs, manufactures, packages, promotes and offers for sale 1:6 scale western-style, collectible toy action figures and accessories via the Internet and trade shows in the Kansas area, as well as throughout the United States and abroad. 4 Toytrackerz conducts business under the trade names “Circle X Ranch,” “Marxman Bros Creations,” and “Marx Toys Co., Inc.” 5 It uses the trademarks “Magic Marxie” [figural logo], “Marx,” “Johnny West,” “Johnny West Adventure,” “Fort Apache Fighters,” “Circle X Ranch,” “Best of the West,” “Jed Gibson,” and “Marxman.” It claims to have valid, protected, actionable, and enforceable rights in all of these trade names and trademarks.

Defendant American Plastic is a Florida corporation with its office and principal place of business in Ohio. The complaint alleges that American Plastic, through its licensees Koehler, Kosowski, and Bone, has manufactured and offered for sale in the market for collectible 1:6 scale action figure goods bearing the Toytrackerz trademarks. It further alleges that American Plastic, through its licensees Koehler, Kosowski, and Bone, has engaged in a series of comparative advertisements, promotional initiatives, and sales statements directed to the market for collectible 1:6 scale action figures, which includes Toytrackerz’ products. In these advertisements, initiatives, and statements, Defendants allegedly make false and misleading claims and representations about the quality and origin of Toytrackerz’ products, as well as disparaging comments about the business and personal reputation of the owners of Toytrackerz.

Defendant Koehler is a resident of the state of Ohio. She appears pro se. Plaintiffs allege that defendant Koehler has offered for sale action figures goods bearing the Toytrackerz trademarks on her websites and eBay. She also allegedly prints and distributes display packaging and packaging inserts bearing the allegedly infringing trademarks.

Defendant Kosowski is a resident of the state of New York. He too appears pro se. Plaintiffs allege that defendant Kosowski is the registered owner of the domain names “www.robinbonetoys.com” and “www.friendsofjohnny.com.” Defendants Kosowski and Bone, acting in concert, allegedly use these websites to announce, advertise, promote, and offer for sale, goods that bear the Toytrackerz trademarks. Plaintiffs further allege that defendant Kosowski is the registered owner of domain names essentially identical to the Toytrackerz trademarks.

Defendant Bone is a resident of Wisconsin. He also represents himself pro se. Plaintiffs allege that defendant Bone is registered to conduct business on eBay and conducts this business through the fixed-price interactive commercial ‘web-store’ option hosted by eBay. Plaintiffs allege that through this eBay web-store *1247 Bone offers, or has offered, goods for sale that bear the Toytrackerz trademarks.

Plaintiffs allege in paragraph 9 of their complaint that the Court has personal jurisdiction over defendants because they have advertised, offered for sale, distributed, sold, or participated in the sale of merchandise within Kansas. They further allege that defendants have engaged in acts or omissions within Kansas that cause injury, engaged in acts or omissions outside of Kansas that result in injury within the state, manufactured or distributed products used or consumed within Kansas in the ordinary course of trade, or otherwise made or established contacts with Kansas sufficient to permit the Court to exercise personal jurisdiction over them in Kansas.

II. History of the Dispute Between Toytrackerz and American Plastic

The present lawsuit is not the first that involves a dispute between Toytrackerz and American Plastic over ownership of trademarks. On or about December 3, 2005, Defendant American Plastic sent a cease-and-desist letter to Noah Coop. 6 American Plastic accused Toytrackerz of infringing its trademark “Marx Toys” and related brands, including “Circle X Ranch,” “Fort Apache,” “Best of the West,” “Johnny West Adventure,” “Johnny West,” and “Marxman” or “Marxman Bros.” American Plastic threatened legal action, including criminal prosecution against Toytrackerz.

In January 6, 2006, Toytrackerz filed a declaratory judgment against American Plastic in the District Court of Bourbon County, Kansas (“State Court Action”). In that action, Toytrackerz sought a judgment to declare that American Plastic was without right or authority to threaten or to maintain suit against it for alleged trademark infringement under state or common law for the trademarks “Circle X Ranch,” “Fort Apache Fighters,” “Best of the West,” “Johnny West Adventure,” “Johnny West,” “Marxman,” and “Marxman Bros.” The petition sought to enjoin American Plastic and its licensees from using any form of media to state, suggest, insinuate or intimate that Toytrackerz is engaging in trademark infringement.

On January 9, 2006, Toytrackerz received a notice of claimed infringement (“NOCI”) under eBay’s Verified Rights Owner (“VeRO”) program. The notice advised Toytrackerz that eBay had terminated its auction for eight items in its recent eBay listing, based upon a report by American Plastic that the auction violated its intellectual property rights. 7

On February 8, 2006, American Plastic removed the State Court Action to the United States District Court for the District of Kansas, captioned Toytrackerz LLC dba Circle K Ranch v. American Plastic Equipment, Inc., No. 06-2042-DJW (“2006 D. Kan. action”). 8

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615 F. Supp. 2d 1242, 2009 U.S. Dist. LEXIS 38545, 2009 WL 1269464, Counsel Stack Legal Research, https://law.counselstack.com/opinion/toytrackerz-llc-v-american-plastic-equipment-inc-ksd-2009.