Zippo Manufacturing Co. v. Zippo Dot Com, Inc.

952 F. Supp. 1119, 42 U.S.P.Q. 2d (BNA) 1062, 1997 U.S. Dist. LEXIS 1701, 1997 WL 37657
CourtDistrict Court, W.D. Pennsylvania
DecidedJanuary 16, 1997
DocketCivil Action 96-397 Erie
StatusPublished
Cited by771 cases

This text of 952 F. Supp. 1119 (Zippo Manufacturing Co. v. Zippo Dot Com, Inc.) is published on Counsel Stack Legal Research, covering District Court, W.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Zippo Manufacturing Co. v. Zippo Dot Com, Inc., 952 F. Supp. 1119, 42 U.S.P.Q. 2d (BNA) 1062, 1997 U.S. Dist. LEXIS 1701, 1997 WL 37657 (W.D. Pa. 1997).

Opinion

MEMORANDUM OPINION

MeLAUGHLIN, District Judge.

This is an Internet domain name 1 dispute. At this stage of the controversy, we must *1121 decide the Constitutionally permissible reach of Pennsylvania’s Long. Arm Statute, 42 Pa. C.S.A. § 5322, through cyberspace. Plaintiff Zippo Manufacturing Corporation (“Manufacturing”) has filed a five count complaint against Zippo Dot Com, Inc. (“Dot Com”) alleging trademark dilution, infringement, and false designation under the Federal Trademark Act, 15 U.S.C. §§ 1051-1127. In addition, the Complaint alleges causes of action based on state law trademark dilution under 54 Pa.C.S.A. § 1124, and seeks equitable accounting and imposition of a constructive trust. Dot Com has moved to dismiss for lack of personal jurisdiction and improper venue pursuant to Fed.R.Civ.P. 12(b)(2) and (3) or, in the alternative, to transfer the case pursuant to 28 U.S.C. § 1406(a). For the reasons set forth below, Defendant’s motion is denied.

I. BACKGROUND

The facts relevant to this motion are as follows. Manufacturing is a Pennsylvania corporation with its principal place of business in Bradford, Pennsylvania. Manufacturing makes, among other things, well known “Zippo” tobacco lighters. Dot Com is a California corporation with its principal place of business in Sunnyvale, California. Dot Com operates an Internet Web site 2 and an Internet news service and has obtained the exclusive right to use the domain names “zippo.com”, “zippo.net” and “zipponews.com” on the Internet. 3

Dot Corn’s Web site contains information about the company, advertisements and an application for its Internet news service. The news service itself consists of three levels of membership — public/free, “Original” and “Super.” Each successive level offers access to a greater number of Internet newsgroups. A customer who wants to subscribe to either the “Original” or “Super” level of service, fills out an on-line application that asks for a variety of information including the person’s name and address. Payment is made by credit card over the Internet or the telephone. The application is then processed and the subscriber is assigned a password which permits the subscriber to view and/or download Internet newsgroup messages that are stored on the Defendant’s server in California.

Dot Corn’s contacts with Pennsylvania have occurred almost exclusively over the Internet. Dot Corn’s offices, employees and Internet servers are located in California. Dot Com maintains no offices, employees or agents in Pennsylvania. Dot Corn’s advertising for its service to Pennsylvania residents involves posting information about its service on its Web page, which is accessible to Pennsylvania residents via the Internet. Defendant has approximately 140,000 paying subscribers worldwide. Approximately two percent (3,000) of those subscribers are Pennsylvania residents. These subscribers have contracted to receive Dot Corn’s service by visiting its Web site and filling out the application. Additionally, Dot Com has entered into agreements with seven Internet access providers in Pennsylvania to permit their subscribers to access Dot Corn’s news service. Two of these providers are located in the Western District of Pennsylvania.

The basis of the trademark claims is Dot Corn’s use of the word “Zippo” in the domain names it holds, in numerous locations in its Web site and in the heading of Internet newsgroup messages that have been posted by Dot Com subscribers. When an Internet user views or downloads a newsgroup message posted by a Dot Com subscriber, the word “Zippo” appears in the “Message-Id” *1122 and “Organization” sections of the heading. 4 The news message itself, containing text and/or pictures, follows. Manufacturing points out that some of the messages contain adult oriented, sexually explicit subject matter.

II. STANDARD OF REVIEW

When a defendant raises the defense of the court’s lack of personal jurisdiction, the burden falls upon the plaintiff to come forward with sufficient facts to establish that jurisdiction is proper. Mellon Bank (East) PSFS, N.A. v. Farino, 960 F.2d 1217, 1223 (3d Cir.1992) (citing Carteret Savings Bank v. Shushan, 954 F.2d 141 (3d Cir.1992), cert. denied 506 U.S. 817, 113 S.Ct. 61, 121 L.Ed.2d 29 (1992)). The plaintiff meets this burden by making a prima facie showing of “sufficient contacts between the defendant and the forum state.” Mellon East, 960 F.2d at 1223 (citing Provident Nat. Bank v. California Fed. Sav. & Loan Assoc., 819 F.2d 434 (3d Cir.1987)).

III. DISCUSSION

A. Personal Jurisdiction

1. The Traditional Framework

Our authority to exercise personal jurisdiction in this ease is conferred by state law. Fed.R.Civ.P. 4(e); Mellon, 960 F.2d at 1221. The extent to which we may exercise that authority is governed by the Due Process Clause of the Fourteenth Amendment to the Federal Constitution. Kulko v. Superior Court of California, 436 U.S. 84, 91, 98 S.Ct. 1690, 1696, 56 L.Ed.2d 132 (1978).

Pennsylvania’s long arm jurisdiction statute is codified at 42 Pa.C.S.A. § 5322(a). The portion of the statute authorizing us to exercise jurisdiction here permits the exercise of jurisdiction over non-resident defendants upon:

(2) Contracting to supply services or things in this Commonwealth.

42 Pa.C.S.A. § 5322(a). It is undisputed that Dot Com contracted to supply Internet news services to approximately 3,000 Pennsylvania residents and also entered into agreements with seven Internet access providers in Pennsylvania. Moreover, even if Dot Corn’s conduct did not satisfy a specific provision of the statute, we would nevertheless be authorized to exercise jurisdiction to the “fullest extent allowed under the Constitution of the United States.” 42 Pa.C.S.A. § 5322(b).

The Constitutional limitations on the exercise of personal jurisdiction differ depending upon whether a court seeks to exercise general or specific jurisdiction over a non-resident defendant. Mellon, 960 F.2d at 1221.

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952 F. Supp. 1119, 42 U.S.P.Q. 2d (BNA) 1062, 1997 U.S. Dist. LEXIS 1701, 1997 WL 37657, Counsel Stack Legal Research, https://law.counselstack.com/opinion/zippo-manufacturing-co-v-zippo-dot-com-inc-pawd-1997.