Tippsy, Inc. v. Tipsy, LLC
2:24-cv-04025
C.D. Cal.Nov 14, 2024Background
- Tippsy, Inc. (a California-based company), and Genki Ito (its CEO) sued Tipsy, LLC (a New York-based company), and its owner Amanda Neville over a trademark dispute involving alleged infringement and rights to similar marks related to alcohol sales.
- Tippsy California has operated since 2018, selling sake and related goods online and in California; Tipsy New York runs a wine store and website in New York, with limited sales nationwide.
- Tipsy New York made a very small percentage of sales to California residents (averaging 19 sales/year until 2021, none in 2022 or later except one gift card), and as of 2023 does not ship wine to California.
- In 2023–2024, Tipsy New York sent cease-and-desist letters to Tippsy California, prompting this declaratory and infringement action in the Central District of California.
- Defendants moved to dismiss for lack of personal jurisdiction, arguing insufficient minimum contacts with California; plaintiffs opposed, also requesting jurisdictional discovery if needed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Does the court have specific personal jurisdiction? | Tipsy NY sold to CA customers via its website | Sales to CA were minimal and stopped in 2022; no targeting | No jurisdiction—plaintiffs failed Calder's test |
| Purposeful direction towards California | Prior CA sales, interactive website shows aim | Minimal, isolated sales; removed CA in 2023 | Purposeful direction not adequately shown |
| Knowledge of harm in forum state | Defendants knew or should have known of harm | No knowledge of Tippsy CA until after CA sales stopped | No knowledge; harm not foreseeable in CA |
| Are cease-and-desist letters sufficient contact? | Asserted as a basis for jurisdiction | Sending such letters does not create jurisdiction | Cease-and-desist letters are insufficient |
| Entitlement to jurisdictional discovery | Discovery could uncover more CA connections | No showing that discovery would change result | Discovery request denied |
Key Cases Cited
- Menken v. Emm, 503 F.3d 1050 (9th Cir. 2007) (establishing burden of proof for personal jurisdiction)
- Sher v. Johnson, 911 F.2d 1357 (9th Cir. 1990) (prima facie showing standard for jurisdiction)
- Dole Food Co. v. Watts, 303 F.3d 1104 (9th Cir. 2002) (minimum contacts standard)
- Calder v. Jones, 465 U.S. 783 (1984) (effects test for purposeful direction of conduct towards forum)
- Schwarzenegger v. Fred Martin Motor Co., 374 F.3d 797 (9th Cir. 2004) (application of effects test and when to stop jurisdiction analysis)
- AT&T v. Compagnie Bruxelles Lambert, 94 F.3d 586 (9th Cir. 1996) (complaint allegations in jurisdictional analysis)
