Snaprays v. Ontel Products Corporation
2:16-cv-01198
D. UtahMay 22, 2017Background
- SnapPower (Utah) designs and sells the Guidelight outlet cover with built-in LEDs; Ontel (New Jersey) marketed a competing product called Night Angel.
- SnapPower alleges Ontel and its CEO Khubani purchased SnapPower products, copied images/video from SnapPower’s website, and used them in Night Angel marketing and a TV commercial.
- SnapPower originally sued (Nov. 2016) asserting patent and other claims, obtained a TRO and then a stipulated preliminary injunction; Telebrands and another individual were later dismissed.
- Ontel appeared at the TRO hearing and signed the stipulated preliminary injunction but moved to dismiss for lack of personal jurisdiction two months later.
- Ontel provided redesigned product samples; SnapPower removed patent claims but later sought leave to amend to reassert patent and unfair competition claims after analyzing the samples.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Personal jurisdiction (12(b)(2)) | SnapPower relies on Ontel's contacts and forum-related conduct; implicitly argues jurisdiction exists and defendants waived objections by participating in proceedings. | Ontel contends the court lacks personal jurisdiction over it and Khubani. | Court held Ontel waived the personal-jurisdiction defense by participating in the TRO/preliminary injunction proceedings; motion to dismiss denied. |
| Motion for leave to amend (Rule 15) | SnapPower sought leave to re-assert removed patent and unfair-competition claims after inspecting Ontel’s redesigned product; amendment timely and not prejudicial. | Ontel argued amendment is futile because SnapPower’s patents are invalid and SnapPower is not assignee of some patents, submitting expert declarations. | Court granted leave to amend, finding no apparent undue delay or prejudice and that futility arguments were premature and better addressed on motion to dismiss or summary judgment. |
Key Cases Cited
- Dudnikov v. Chalk & Vermillion Fine Arts, Inc., 514 F.3d 1063 (10th Cir.) (prima facie showing standard for personal jurisdiction when no evidentiary hearing)
- Ins. Corp. of Ir., Ltd. v. Compagnie des Bauxites de Guinee, 456 U.S. 694 (U.S.) (personal-jurisdiction is an individual right that can be waived)
- Wyrough & Loser v. Pelmor Laboratories, Inc., 376 F.2d 543 (3d Cir.) (participation in preliminary injunction hearing can waive personal-jurisdiction defense)
- Marquest Med. Prods., Inc. v. EMDE Corp., 496 F. Supp. 1242 (D. Colo.) (same waiver principle where defendants submitted to stipulation restraining them)
- Minter v. Prime Equip. Co., 451 F.3d 1196 (10th Cir.) (Rule 15 standard; leave to amend within district court discretion)
