Penguin Group (USA) Inc. v. American Buddha
640 F.3d 497
2d Cir.2011Background
- Penguin sues American Buddha for copyright infringement over four Penguin works hosted on American Buddha's Ralph Nader Library site.
- District court dismissed under NY CPLR 302(a)(3)(ii) for lack of New York long-arm jurisdiction, finding injury occurred where books were uploaded (Arizona/Oregon).
- Second Circuit certified a question to the New York Court of Appeals about the situs of injury under CPLR 302(a)(3)(ii) in online copyright infringement cases.
- New York Court of Appeals answered that a New York injury occurs when a printed literary work is uploaded onto the Internet for public access.
- Second Circuit, after NY Court of Appeals’ ruling, agrees the situs of injury is New York and remands for consideration of the remaining jurisdictional elements and due process.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Situs of injury under CPLR 302(a)(3)(ii)? | Penguin argues situs is New York under Am. Buddha III. | American Buddha argues situs is where infringement occurs/location of download. | Situs is New York. |
| Remand for remaining jurisdictional requirements? | If situs is NY, court should assess four remaining elements. | Court should limit review or dismiss if other elements fail. | Remand to consider the four remaining requirements and due process. |
Key Cases Cited
- Penguin Grp. (USA) Inc. v. Am. Buddha, 609 F.3d 30 (2d Cir. 2010) (long-arm jurisdiction in copyright cases; prior holding on situs)
- Am. Buddha III, 16 N.Y.3d 295 (N.Y. Ct. of Appeals 2011) (situs for in-state injury when printed works uploaded online)
- LaMarca v. Pak-Mor Mfg. Co., 95 N.Y.2d 210 (N.Y. 2000) (elements for CPLR 302(a)(3)(ii) jurisdiction)
- eBay Inc. v. MercExchange, L.L.C., 547 U.S. 388 (U.S. 2006) (property-rights factor in rights-based analyses)