Will Co., Ltd. v. Ka Lee

47 F.4th 917
CourtCourt of Appeals for the Ninth Circuit
DecidedAugust 31, 2022
Docket21-35617
StatusPublished
Cited by39 cases

This text of 47 F.4th 917 (Will Co., Ltd. v. Ka Lee) 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
Will Co., Ltd. v. Ka Lee, 47 F.4th 917 (9th Cir. 2022).

Opinion

FOR PUBLICATION

UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT

WILL CO., LTD., a limited liability No. 21-35617 company organized under the laws of Japan, D.C. No. Plaintiff-Appellant, 3:20-cv-05802- BHS v.

KA YEUNG LEE, an individual; OPINION YOUHAHA MARKETING AND PROMOTION LIMITED, a foreign company; DOES, 1–20, doing business as ThisAV.com, Defendants-Appellees.

Appeal from the United States District Court for the Western District of Washington Benjamin H. Settle, District Judge, Presiding

Argued and Submitted May 18, 2022 Seattle, Washington

Filed August 31, 2022

Before: Kim McLane Wardlaw, Ronald M. Gould, and Mark J. Bennett, Circuit Judges.

Opinion by Judge Wardlaw 2 WILL CO., LTD. V. LEE

SUMMARY *

Personal Jurisdiction

The panel reversed the district court’s dismissal of a copyright suit for lack of specific personal jurisdiction and remanded for further proceedings.

Will Co. Ltd., a Japanese adult entertainment producer, brought this copyright infringement action against the owners and operators of ThisAV.com, a video-hosting site based in Hong Kong, alleging that the site was displaying without authorization several of its copyrighted works. The district court found that it lacked specific personal jurisdiction over ThisAV.com’s owners and operators because Will Co. could not establish that they “expressly aimed” ThisAV.com’s content at the United States market, or that it was foreseeable that operating the site would cause jurisdictionally significant harm in the United States. Defendants were Youhaha Marketing and Promotion Limited (“YMP”) and Ka Yeung Lee.

The panel held that under Federal Rule of Civil Procedure 4(k), the federal long-arm statute, a federal court may exercise jurisdiction over a foreign defendant if: (1) the claim arises under federal law, (2) the defendant is not subject to jurisdiction in any state’s courts of general jurisdiction, and (3) exercising jurisdiction comports with due process. Defendants conceded the first two elements. As to the third element, the exercise of personal jurisdiction over a defendant comports with due process if a defendant * This summary constitutes no part of the opinion of the court. It has been prepared by court staff for the convenience of the reader. WILL CO., LTD. V. LEE 3

has “minimum contacts” with the relevant forum such that the exercise of jurisdiction does not offend traditional notions of fair play and substantial justice. In the context of tort claims, like the Copyright Act claims at issue here, a defendant has the requisite minimum contacts with the forum if: (1) the defendant purposefully directs its activities at the forum, (2) the lawsuit arises out of or relates to the defendant’s forum-related activities, and (3) the exercise of jurisdiction is reasonable.

To determine whether defendants purposefully directed their activities at the forum, the panel applied the “Calder Effects Test” and asked whether defendants: (1) committed an intentional act, (2) expressly aimed at the forum state, (3) causing harm that the defendant knows is likely to be suffered in the forum state. As to the first element, the panel concluded that both YMP and Lee committed at least one intentional act by operating ThisAV.com and purchasing its domain name and domain privacy services. As to the second element, both defendants did “something more” than mere passive operation of the website. Their advertising structure demonstrated that they profited from viewers in the United States market, and their intent to cultivate an audience in the United States was demonstrated by their choice to host the website in Utah and to purchase content delivery network services for North America, which made the site load faster for viewers there, and by the fact that the webpages they posted on the site that addressed legal compliance were relevant almost exclusively to viewers in the United States. As to the third element, defendants’ conduct caused harm in the United States because there were almost 1.3 million visits to their website in the United States during the relevant period, and that harm was foreseeable. 4 WILL CO., LTD. V. LEE

The panel held that defendants “purposefully directed” their operation of ThisAV.com at viewers in the United States. The panel reversed and remanded to the district court to conduct the remainder of the personal jurisdiction analysis under Rule 4(k).

COUNSEL

Spencer D. Freeman (argued), Freeman Law Firm Inc., Tacoma, Washington, for Plaintiff-Appellant.

Evan Fray-Witzer (argued), Ciampa Fray-Witzer LLP, Boston, Massachusetts; Valentin Gurvits and Frank Scardino, Boston Law Group PC, Newton, Massachusetts; Philip P. Mann, Mann Law Group PLLC, Seattle, Washington; for Defendants-Appellees.

OPINION

WARDLAW, Circuit Judge:

Will Co. Ltd., a Japanese adult entertainment producer, brought this copyright infringement action against the owners and operators of ThisAV.com, a video-hosting site based in Hong Kong, alleging that the site was displaying without authorization several of its copyrighted works. The district court dismissed the suit, finding that it lacked specific personal jurisdiction over ThisAV.com’s owners and operators because Will Co. could not establish that they “expressly aimed” ThisAV.com’s content at the United States market, or that it was foreseeable that operating the site would cause jurisdictionally significant harm in the WILL CO., LTD. V. LEE 5

United States. We disagree, and reverse and remand for further proceedings.

I.

A.

Will Co. Ltd. is a Japanese entertainment company that produces adult videos featuring Japanese models in Japanese environments. The firm has produced more than 50,000 full- length videos and has registered in the United States for copyright protection for all of them. It sells access to its videos exclusively on R18.com, and makes over one million dollars a year selling its content to consumers in the United States.

To protect its market share, Will Co. actively investigates and reviews sites that display Japanese erotica for free looking for instances of copyright infringement. In June 2020, the firm discovered that one of those sites, “ThisAV.com,” was displaying thirteen of its videos without permission. It sent ThisAV.com take-down notices pursuant to the Digital Millennium Copyright Act (“DMCA”), 17 U.S.C. § 512(c). When the works were not removed, Will Co. brought this suit against Does 1–20 under the Copyright Act, 17 U.S.C. § 101 et. seq. After limited discovery, revealing that Youhaha Marketing and Promotion Limited (“YMP”) owns ThisAV.com, and Ka Yeung Lee (“Lee”) serves as a Director of YMP, Will Co. named them as Defendants.

Shortly thereafter, Defendants moved to dismiss this lawsuit under Rule 12(b)(2) for lack of personal jurisdiction. Will Co. conceded that the district court lacked general personal jurisdiction over either defendant. Lee is a permanent resident of Hong Kong and currently resides in 6 WILL CO., LTD. V. LEE

Canada, and YMP is registered in Hong Kong and operates ThisAV.com exclusively out of its offices there. However, Will Co. asserted that the district court had specific personal jurisdiction over both defendants because the tortious conduct in which they allegedly engaged, running ThisAV.com, which unlawfully displayed copyrighted videos, was sufficiently connected to the United States.

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47 F.4th 917, Counsel Stack Legal Research, https://law.counselstack.com/opinion/will-co-ltd-v-ka-lee-ca9-2022.