Weather Underground, Inc. v. Navigation Catalyst Systems, Inc.

688 F. Supp. 2d 693, 2009 U.S. Dist. LEXIS 106075, 2009 WL 3818191
CourtDistrict Court, E.D. Michigan
DecidedNovember 13, 2009
DocketCase 09-10756
StatusPublished
Cited by3 cases

This text of 688 F. Supp. 2d 693 (Weather Underground, Inc. v. Navigation Catalyst Systems, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Weather Underground, Inc. v. Navigation Catalyst Systems, Inc., 688 F. Supp. 2d 693, 2009 U.S. Dist. LEXIS 106075, 2009 WL 3818191 (E.D. Mich. 2009).

Opinion

OPINION AND ORDER GRANTING IN PART AND DENYING IN PART DEFENDANTS’ MOTION TO DISMISS PURSUANT TO FED. R. CIV. P. 12(b)(6) OR, IN THE ALTERNATIVE, TRANSFER

MARIANNE O. BATTANI, District Judge.

Before the Court is Defendant’s Motion to Dismiss Pursuant to Fed.R.Civ.P. 12(b)(2) or in the Alternative, Transfer (Doc. # 15). The Court heard oral argument, and at the conclusion of the hearing took this matter under advisement. For the reasons that follow, the motion is GRANTED in part and DENIED in part.

I. STATEMENT OF FACTS

Plaintiff, Weather Underground, Inc. (“Weather Underground”), is incorporated and maintains its principal place of business in Ann Arbor, Michigan. (Compl. ¶ 1.) Weather Underground is a commercial weather service, acting as an index for the information provided to it by multiple weather stations. (Id. ¶¶ 11-13.) Its primary sources of revenue are subscriptions (id. ¶ 14) and the sale of advertisements on its Web site, <www.wunderground.com> (id. ¶ 22). Plaintiffs trademarks include, but are not limited to, “Weather Underground,” “Wund,” “Wunderground,” “Weather Sticker,” “Wundersearch,” “Wundermarp,” and “Wunderradio.” (Id. ¶¶ 26-35.) Plaintiff owns approximately 125 Web addresses, or domain names, the majority of which integrate its trademarks and service marks. (Id. ¶ 24.)

*695 Defendants in this case, Navigation Catalyst Systems, Inc. (“NCS”), Basic Fusion, Inc. (“Basic Fusion”), Connexus Corp. (“Connexus”), and Firstlook, Inc. (“First-look”), are incorporated in Delaware. (Def.’s Br. 4.) Connexus is the parent company of Firstlook, which, in turn, is the parent company of both NCS and Basic Fusion. (Id.) NCS is a “domain name holding company which acquires generic and descriptive domain names in bulk.” (Id.) Basic Fusion is a domain name registrar. 1 (Id.) After NCS registers domain names through Basic Fusion, the names are submitted to First Look, and First Look creates automatically generated Web pages based on the text of the domain name. (Id. at 5.) The Web pages contain hyperlinks to third party advertisers, who pay on a pay-per-click basis. According to the Complaint, the links redirect users to Plaintiffs competitors, such as Weather-Bug, Top-Weather.net, A LOT Weather, and DTN Meteorlogix. (Compl. ¶ 66.)

NCS profits from “direct navigation.” (Id. at ¶ 42.) When an Internet user enters a word or phrase in a Web browser’s address bar, instead of the search field of a search engine, the user would be taken to a Web site with information relevant to the search. (Decl. of Seth Jacoby, at ¶ 4.) For example, if a user looking for parties supplies types www.partysupplies.org in the address bar, he would reach NCS’s Web page, which contains “hyperlinks to products and services that a visitor might be interested in based on the domain name itself.” (Id. at ¶ 7.) Each Web page also contains a search box that allows the visitor to input a search. (Id. at ¶ 9.)

Plaintiff alleges that Defendants’ business model capitalizes on Internet users’ errors in typing the Web addresses to businesses whose Web sites they intend to visit. Plaintiff characterizes Defendants’ business as “typosquatting.” (Compl. ¶¶ 44, 45.) Weather Underground alleges that Defendants infringed its trademarks by registering domain names with various misspellings of Plaintiffs Web properties, <weatherunderground.com>, and <wund.com> (Pl.’s Br. 3.) in order to redirect Plaintiffs customers to competitors and third-party advertisers (id. at 2). A few of the identified 41 domains alleged to infringe include the following: Qwundergoound.com, Swunderground.com, Udergroundweather.com, Undegroundweather.com, Undergroudweather.com, Undergroundwaether.com, Undergroundwweather.com. (Comp. ¶ 77.)

Plaintiff filed suit against Defendants, alleging cybersquatting under the AntiCybersquatting Consumer Protection, 15 U.S.C. § 1125(d), trademark infringement under the Lanham Act, 15 U.S.C. § 1114(1), false designation of origin under the Lanham Act, 15 U.S.C. § 1125(a), and dilution by blurring and tarnishment under the Lanham Act, 15 U.S.C. § 1125(c). Under Michigan common law, Plaintiff advances claims of unfair competition and trademark infringement, civil conspiracy, contributory trademark infringement, and vicarious trademark infringement. Plaintiff seeks a declaratory judgment, injunctive relief, damages, and attorneys’ fees.

Defendants ask the Court to dismiss Plaintiffs suit for lack of personal jurisdiction pursuant to Fed. R. Civ. P. 12(b)(2), or in the alternative, to transfer this case to the United States District Court for the Central District of California pursuant to 28 U.S.C. § 1404(a) based on the convenience of the parties and the interests of justice.

*696 II. STANDARD OF REVIEW

A. Dismissal for Lack of Personal Jurisdiction

A motion to dismiss under Fed.R.Civ.P. 12(b)(2) challenges the sufficiency of the jurisdictional facts regarding the existence of personal jurisdiction over a defendant. The plaintiff has the burden of establishing the existence of personal jurisdiction. Chandler v. Barclays Bank PLC, 898 F.2d 1148, 1151 (6th Cir.1990). When a court decides whether it has personal jurisdiction on the basis of written submissions alone, the plaintiff “may not rest on his pleadings to answer the movant’s affidavits, but must set forth, by affidavit or otherwise ... specific facts showing that the court has jurisdiction.” Serras v. First Tennessee Bank National Ass’n, 875 F.2d 1212, 1214 (6th Cir.1989). If a plaintiffs pleadings and affidavits state the facts with sufficient particularity, a court must ignore contrary assertions by a defendant. Id. at 1215. “Dismissal is proper only if all the specific facts which the plaintiff ... alleges collectively fail to state a prima facie case for jurisdiction.” Theunissen v. Matthews, 935 F.2d 1454, 1458 (6th Cir.1991).

B. Transfer Venue

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688 F. Supp. 2d 693, 2009 U.S. Dist. LEXIS 106075, 2009 WL 3818191, Counsel Stack Legal Research, https://law.counselstack.com/opinion/weather-underground-inc-v-navigation-catalyst-systems-inc-mied-2009.