Will Co Ltd v. Lee

District Court, W.D. Washington·Decided June 30, 2021·No. 3:20-cv-05802·Unknown

Opinion

UNITED STATES DISTRICT COURT AT TACOMA WILL CO. LTD, CASE NO. C20-5802 BHS Plaintiff, ORDER GRANTING v. DEFENDANTS’ MOTION TO DISMISS FOR LACK OF KA YEUNG LEE, an individual, PERSONAL JURISDICTION YOUHAHA MARKETING AND PROMOTION LIMITED, a foreign company, and DOES 1-20, d/b/a Defendants.

This matter comes before the Court on Defendants Ka Yeung Lee and Youhaha Marketing and Promotion Limited’s (“YMP”) motion to dismiss for lack of personal jurisdiction. Dkt. 18. The Court has considered the briefings filed in support of and in opposition to the motion and the remainder of the file and hereby grants the motion for the reasons stated herein. I. FACTUAL & PROCEDURAL BACKGROUND Plaintiff Will Co. Ltd is a Japan-based adult entertainment company that sells access to its content in the United States. See Dkt. 9, ¶ 1. Its headquarters are in Tokyo, Japan, but Will Co. alleges that it targets the United States market for the purposes of selling paid memberships to access its content. Id. ¶¶ 6, 31. Will Co. has registered

copyrights for its videos and photographs with the United States Copyright Office, some of which are the basis of this lawsuit. Id. ¶¶ 34–36. Will Co. alleges that Defendants own and operate ThisAV.com and that ThisAV.com is displaying Will Co.’s copyrighted content without authorization or license. Id. ¶¶ 39, 46, 53. Will Co. specifically alleges that between June and July 2020 it discovered that ThisAV.com displayed thirteen of its copyright registered works over

nineteen separate and distinct URLs. Id. ¶ 61. It alleges that it sent take down notices to ThisAV.com pursuant to the Digital Millennium Copyright Act (“DMCA”), 17 U.S.C. § 512(c), and that receipt was acknowledged but none of Will Co.’s content was removed. Dkt. 9, ¶¶ 62–63. Will Co. thus brings claims for copyright infringement and inducement of copyright infringement pursuant to 17 U.S.C. §§ 101, et seq. Id. at 11–14.

When Will Co. first filed suit, it did not know the identities of all owners and operators of ThisAV.com. See Dkt. 5 at 1; see also Dkt. 1 (first complaint naming only Does 1–20 as Defendants). Will Co. therefore sought leave to conduct early discovery, Dkt. 5, and the Court granted the motion, Dkt. 8. Through this early discovery, Will Co. identified Defendants Lee and YMP as the owners and operators of ThisAV.com. See

Dkt. 10. Defendant Lee is a director of YMP but does not own or operate ThisAV.com in his personal capacity. Dkt. 18-1, Declaration of Ka Yeung Lee (“Lee Decl.”), ¶¶ 6–8. Lee is a permanent resident of the Hong Kong Special Administrative Region of the People’s Republic of China and currently lives and works in Canada (unrelated to his position as director of YMP). Id. ¶¶ 3–4. He declares that the “allegedly infringing files referenced in

the Complaint in this matter are user generated content, that is, content that was uploaded by users” to ThisAV.com and that he did not upload the allegedly infringing files. Id. ¶¶ 18–19. Defendant YMP is a limited company registered in Hong Kong and is the owner and operator of ThisAV.com. Dkt. 18-1, Declaration of Janus Tam on behalf of Youhaha Marketing and Promotion Ltd. (“YMP Decl.”), ¶¶ 1–2. YMP is operated exclusively out

of Hong Kong. Id. ¶ 3. Like Lee, YMP asserts that it does not create or upload any of the videos of ThisAV.com and that all videos on ThisAV.com are uploaded by the website’s users. Id. ¶ 4. YMP further asserts that it does not have any commercial relationships with any of the users of ThisAV.com. Id. ¶ 9. YMP states that, from April 1, 2020 through June 30, 2020, approximately 4.6%

of the user traffic of ThisAV.com came from the United States. Id. ¶ 56; see also Dkt. 18- 3. ThisAV.com had nearly 1.3 million website visitors from the United States during this time period. See Dkt. 18-3. The majority of users during the April through June 2020 timeframe—approximately 95.4%—were based in Japan, Taiwan, and Hong Kong. YMP Decl., ¶¶ 57–58; see also Dkt. 18-3. Further, YMP states that from March 1, 2020

through February 28, 2021 approximately 3.9% of the user traffic of ThisAV.com came from the United States. YMP Decl., ¶ 59; see also Dkt. 18-4. ThisAV.com had approximately 4.5 million visitors from the United States during this year-long period. See Dkt. 18-4. Again, the vast majority of users from March 2020 through February 2021 were based in Japan, Taiwan, and Hong Kong. YMP Decl., ¶ 59; see also Dkt. 18-4.

While YMP is based in Hong Kong and does not have a commercial relationship with the users of ThisAV.com, it has some business connections to the United States. ThisAV.com’s servers are hosted by Gorilla Servers, Inc., which is based in Ogden, Utah. YMP Decl., ¶¶ 14–15. ThisAV.com also utilizes Cloudflare.com (“Cloudflare”), a United States-based company, for domain name resolution services and DDoS (distributed denial of services attack) protection. Id. ¶ 16. YMP asserts that Cloudflare does not provide

account management for ThisAV.com’s account. Id. ¶ 17. YMP additionally engaged with GoDaddy.com, a U.S.-based company, to register a domain name, and with Domains by Proxy, LLC, a U.S.-based company, for privacy services. Id. ¶¶ 34–36. YMP also uses a website template and source code from the website www.mediaxxxscript.com (“Mediaxxx”) to create the general layout of its website. Id.

¶ 31. YMP avers that Mediaxxx shut down approximately two years ago and that it is unsure of what company owned Mediaxxx or what country the company operated out of. Id. YMP asserts that the “generic” website template provided by Mediaxxx for ThisAV.com contained boilerplate language, including references to “DMCA” and “2257.”1 Id. ¶ 32.

1 As further discussed below, Will Co. asserts that these references are evidence of ThisAV.com and Defendants’ promise to comply with the DMCA and with 18 U.S.C. § 2257. See Dkt. 21 at 10. The revenue from ThisAV.com comes from advertisements, and YMP states that almost all of the site’s advertisements have come from YMP’s relationship with foreign

advertising brokers: Tiger Media, Inc. d/b/a JuicyAds, a Canadian corporation registered in Saskatchewan (“JuicyAds”), Tomksoft S.A. d/b/a PopAds, a Costa Rican joint stock company (“PopAds”), and ExoClick, S.L. d/b/a ExoClick, a Spanish company based in Barcelona (“ExoClick”). Id. ¶¶ 40–41. YMP asserts that it does not cause any specific advertisements to be directed to visitors from specific locations and that, to the extent that advertisements are based on geolocation, it is done at the sole discretion of Juicy Ads,

PopAds, or ExoClick. Id. ¶¶ 43–47. In sum, YMP asserts that it is not advertising ThisAV.com in the United States by virtue of these advertisements. Id. ¶ 48. Defendants Lee and YMP thus moved to dismiss the Complaint for lack of personal jurisdiction pursuant to Federal Rule of Civil Procedure 12(b)(2) on March 11, 2021. Dkt. 18. On March 29, 2021, Will Co. responded, asserting that there is a

substantial connection between Defendants and the forum. Dkt. 21. On April 16, 2021, Defendants replied. Dkt. 29. A. Standard To determine whether it has jurisdiction over a defendant, a federal court applies

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