Penguin Group (USA) Inc. v. American Buddha, 16 N.Y.3d 295

Penguin sues American Buddha in SDNY for copyright infringement based on alleged uploading of four books to two Oregon/Arizona-hosted websites.
District Court dismissed for lack of personal jurisdiction, holding injury occurred in Oregon/Arizona where copying/uploading occurred.
Second Circuit certified a question on CPLR 302(a)(3)(ii) and narrowed it to online uploading context, reformulating the issue.
CPLR 302(a)(3)(ii) elements require: (1) out-of-state tort, (2) arising from act, (3) injury in New York, (4) defendant’s expectation of New York consequences, (5) substantial interstate revenue; only the injury question was at issue.
Court recognizes Internet context; concludes injury for in-state jurisdiction under CPLR 302(a)(3)(ii) occurred in New York because of the copyright holder’s multifaceted rights and online availability of works; sets forth safeguards and notes due-process considerations remain require further briefing.
The opinion accepts that copyrights have a location for jurisdictional purposes and that, in this case, location is New York.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Is the situs of injury under CPLR 302(a)(3)(ii) the infringing action’s location or the copyright holder’s location?	Penguin argues for New York injury based on copyright ownership.	American Buddha argues injury is in Oregon/Arizona where infringement occurred.	Situs of injury is the copyright holder’s location (New York).

Fantis Foods v Standard Importing Co., 49 N.Y.2d 317 (N.Y. 1980) (derivative economic injury insufficient for in-state jurisdiction)
Sybron Corp. v Wetzel, 46 N.Y.2d 197 (N.Y. 1978) (sufficient direct injury in New York beyond plaintiff’s domicile)
American Eutectic Welding Alloys Sales Co. v Dytron Alloys Corp., 439 F.2d 428 (2d Cir. 1971) (three options for situs of injury; third option closely tied to lost business)
Spectacular Promotions, Inc. v Radio Sta. Wing, 272 F. Supp. 734 (ED N.Y. 1967) (origin of the three-location approach to injury situs)
Twentieth Century Music Corp. v Aiken, 422 U.S. 151 (U.S. 1975) (copyrights rights and economic incentives)
Princeton Univ. Press v Michigan Document Servs., Inc., 99 F.3d 1381 (6th Cir. 1996) (economic incentives to publish; indirect effects considered)
Salinger v Colting, 607 F.3d 68 (2d Cir. 2010) (irreparable harm and copyright injury considerations)
International Shoe Co. v. Washington, 326 U.S. 310 (U.S. 1945) (due process standard for personal jurisdiction)
World-Wide Volkswagen Corp. v. Woodson, 444 U.S. 286 (U.S. 1980) (minimum contacts and fair play)