Sanho Corporation v. CIMO Technologies, Inc
4:11-cv-02473
N.D. Cal.Jul 30, 2012Background
- Sanho is a Delaware corporation with its principal place of business in Sunnyvale, California, manufacturing and distributing iPad 2 protective covers and displaying its copyrighted images on HyperShop.com with a California-located brand mark.
- CIMO is a New Jersey corporation with a Paterson headquarters that sells technology-related accessories, including iPad 2 covers, on cimousa.com and on eBay/Amazon storefronts.
- Plaintiff discovered and identified Sanho’s copyrighted images on CIMO’s websites and filed suit for copyright infringement and related state-law claims; CIMO acknowledged copying but characterized it as inadvertent.
- Plaintiff alleges that CIMO’s use caused a 40% drop in sales, market confusion, and reputational damage; CIMO argues the copying occurred for about 16 days and did not significantly affect sales.
- Plaintiff filed a second amended complaint asserting federal copyright and vicarious infringement claims and state-law unfair competition, false designation of origin, false advertising, and California tort claims; CIMO moved to dismiss for lack of personal jurisdiction under Fed. R. Civ. P. 12(b)(2).
- The court held a hearing on July 25, 2012, and GRANTED CIMO’s motion to dismiss for lack of personal jurisdiction, not reaching other Rule 12(b) issues.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the court has specific personal jurisdiction over CIMO. | Plaintiff argues the effects of copyright infringement satisfy the express aiming prong. | CIMO argues it lacked forum-specific targeting and that mere website presence is insufficient. | Not satisfied; lack of express aiming defeats specific jurisdiction. |
| Whether CIMO’s conduct was expressly aimed at California under the effects test. | CIMO knew Sanho’s California HQ and that conduct would affect California; website was interactive and California-accessible. | There was no targeted conduct at California; mere foreseeability is insufficient. | Express aiming not satisfied; jurisdiction not established. |
Key Cases Cited
- Calder v. Jones, 465 U.S. 783 (1984) (established effects test for purposeful direction)
- Mavrix Photo, Inc. v. Brand Technologies, Inc., 647 F.3d 1218 (9th Cir. 2011) (express aiming satisfied when defendant targeted nationwide audience for commercial gain)
- Pebble Beach Co. v. Caddy, 453 F.3d 1151 (9th Cir. 2006) (express aiming requires more than foreseeable effects; targeted conduct needed)
- Brayton Purcell, LLP v. Recordon & Recordon, 606 F.3d 1124 (9th Cir. 2010) (intentional act and targeting at the forum may establish express aiming)
- Rio Props., Inc. v. Rio Int’l Interlink, 284 F.3d 1007 (9th Cir. 2002) (internet activity and forum reach considerations for jurisdiction)
