Washington Shoe Company v. A-Z Sporting Goods Inc

704 F.3d 668, 105 U.S.P.Q. 2d (BNA) 1138, 2012 WL 6582345, 2012 U.S. App. LEXIS 25667
CourtCourt of Appeals for the Ninth Circuit
DecidedDecember 17, 2012
Docket11-35166, 11-35206
StatusPublished
Cited by155 cases

This text of 704 F.3d 668 (Washington Shoe Company v. A-Z Sporting Goods Inc) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Washington Shoe Company v. A-Z Sporting Goods Inc, 704 F.3d 668, 105 U.S.P.Q. 2d (BNA) 1138, 2012 WL 6582345, 2012 U.S. App. LEXIS 25667 (9th Cir. 2012).

Opinion

OPINION

BYBEE, Circuit Judge:

In this copyright infringement action, we address whether an Arkansas retailer is subject to personal jurisdiction in Washington when its only relevant contact with the state is a claim that it willfully violated a copyright held by a Washington corporation. The district court for the Western District of Washington dismissed Washington Shoe Company’s (‘Washington Shoe”) action against A-Z Sporting Goods, Inc. (“A-Z”) for lack of personal jurisdiction. We reverse.

I. FACTS AND PROCEDURAL HISTORY

Plaintiff-appellant Washington Shoe is a Washington corporation that has done business in the state of Washington for over 100 years. Washington Shoe, as its name suggests, manufactures a variety of foot apparel for men, women, and children. Defendant-appellee A-Z is an Arkansas *671 corporation that operates a single retail store in Alma, Arkansas, where it sells goods related to hunting, fishing, and outdoor activities. According to A-Z, it does not sell products over the Internet and does not have an interactive website that allows customers to order its products, although a different A-Z entity, with some common management, does sell some products over eBay.

Between 2007 and 2009, A-Z purchased a number of items from Washington Shoe. Washington Shoe salesman Jesse James regularly visited the A-Z store in Arkansas to determine what additional orders AZ needed. James provided A-Z with brochures and catalogs containing Washington Shoe products and copyright notifications.

During one of his visits to A-Z, James noticed that “Ditsy Dots” and “Spider” boots — two of Washington Shoe’s popular children’s rain boots — were on display. James knew that A-Z had never purchased these particular styles from him. James purchased a pair of the suspicious boots and sent them to Washington Shoe, who confirmed that they were infringing copies. A-Z admits that the boots in dispute were purchased from China and not from Washington Shoe, but claims that the boots had no name on them or other indication that they were subject to copyright.

On April 17, 2009, Washington Shoe’s counsel in Seattle sent A-Z a cease-and-desist letter notifying A-Z that its boot designs were copyrighted and that A-Z’s “infringing boots are clearly illegal knockoffs.” He demanded that all sales of the infringing boots stop and asked for an accounting of past sales. On May 6, 2009, counsel sent a follow-up letter, again warning A-Z that it was violating Washington Shoe’s copyright and might be liable for actual and statutory damages. He requested written assurance that A-Z had ceased importing or selling the infringing rain boots. After receiving these letters, A-Z removed the offending boots from its store, but sold its remaining inventory to a thrift store, whose representative traveled to Arkansas to purchase the boots.

Washington Shoe filed a complaint in the U.S. District Court for the Western District of Washington, alleging copyright infringement, trade dress infringement, and unfair competition. A-Z moved’ to dismiss for lack of personal jurisdiction or, in the alternative, on forum non conveniens grounds. After initial briefing, the district court allowed jurisdictional discovery to test A-Z’s claim that it “has never sold any goods, of any kind, to any person, business or entity in the State of Washington.” The court initially denied A-Z’s motion to dismiss, relying on our decision in Brayton Purcell LLP v. Recordon & Recordon (“Brayton Purcell P), 575 F.3d 981 (9th Cir.2009). That decision was withdrawn and superceded by Brayton Purcell LLP v. Recordon & Recordon (“Brayton Purcell IP’), 606 F.3d 1124 (9th Cir.2010), prompting the district court to issue an order to show cause, and eventually to grant A-Z’s motion to dismiss. Because of the confusion generated by the different Brayton Purcell opinions, the district court denied A-Z’s request for attorneys’ fees under Washington Revised Code § 4.28.185(5). Washington Shoe appeals the dismissal, and A-Z cross-appeals the denial of attorneys’ fees.

II. DISCUSSION

A. Standard of Review

A district court’s determination of whether personal jurisdiction may be properly exercised is a question of law that we review de novo. See Brayton Purcell II, 606 F.3d at 1127. Although the burden' is on the plaintiff to show that the court has jurisdiction over the defendant, in the *672 absence of an evidentiary hearing, the plaintiff need only make a “prima facie showing of jurisdictional facts to withstand the motion to dismiss.” Pebble Beach Co. v. Caddy, 453 F.3d 1151, 1154 (9th Cir.2006) (internal quotation marks omitted). Additionally, the court resolves all disputed facts in favor of the plaintiff, in this case, Washington Shoe. See id.

Because there is no applicable federal statute governing personal jurisdiction in this case, we apply the law of the state of Washington. See Schwarzenegger v. Fred Martin Motor Co., 374 F.3d 797, 800 (9th Cir.2004); Panavision Int’l, L.P. v. Toeppen, 141 F.3d 1316, 1320 (9th Cir.1998). Washington’s long-arm statute extends jurisdiction over a defendant to the fullest extent permitted by the Due Process Clause of the Fourteenth Amendment. See Wash. Rev. Code § 4.28.185; Shute v. Carnival Cruise Lines, 113 Wash.2d 763, 783 P.2d 78, 82 (1989). The relevant question, therefore, is whether the requirements of due process are satisfied by the exercise of personal jurisdiction over A-Z in Washington.

B. Due Process

Due process requires that to exercise jurisdiction over a non-resident defendant, the defendant “have certain minimum contacts with [the forum] such that the maintenance of the suit does not offend ‘traditional notions of fair play and substantial justice.’ ” Int’l Shoe Co. v. Washington, 326 U.S. 310, 316, 66 S.Ct. 154, 90 L.Ed. 95 (1945). We employ a three-part test to determine if a defendant has sufficient minimum contacts to be subject to specific personal jurisdiction 1

(1)The non-resident defendant must purposefully direct his activities or consummate some transaction with the forum or resident thereof; or perform some act by which he purposefully avails himself of the privilege of conducting activities in the forum, thereby invoking the benefits and protections of its laws;
(2) the claim must be one which arises out of or relates to the defendant’s forum-related activities; and

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704 F.3d 668, 105 U.S.P.Q. 2d (BNA) 1138, 2012 WL 6582345, 2012 U.S. App. LEXIS 25667, Counsel Stack Legal Research, https://law.counselstack.com/opinion/washington-shoe-company-v-a-z-sporting-goods-inc-ca9-2012.