Troma Entertainment, Inc. v. Centennial Pictures Inc.
729 F.3d 215
2d Cir.2013Background
- Troma seeks to invoke NY CPLR 302(a)(3)(ii) to obtain personal jurisdiction over Robbins and Lauter for alleged IP infringement.
- District court dismissed for lack of in-state injury; Troma appealed.
- Robbins and Lauter allegedly licensed in Germany and engaged in acts outside NY; no NY in-state conduct is alleged.
- Intravest Beteil-igungen GMBH acquired German distribution rights; Troma alleges misrepresentation and bootstrapped profits.
- In 2011 Troma filed suit in EDNY for copyright infringement and related state-law claims; district court held no NY injury under §302(a)(3).
- Penguin II narrowed the situs of injury in Internet-enabled IP infringement, but Penguin II is narrow; this case involves geographically circumscribed conduct and alleged NY injury.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether NY CPLR §302(a)(3)(ii) supports jurisdiction. | Troma relies on Penguin II theory of NY injury to IP rights. | Penguin II is narrow and not controlling here; no non-speculative NY injury shown. | No jurisdiction under §302(a)(3)(ii). |
Key Cases Cited
- Penguin Group (USA) Inc. v. American Buddha, 609 F.3d 30 (2d Cir. 2010) (addresses situs of injury under §302(a)(3)(ii) for copyright cases; requires in-state injury evidence)
- Penguin Group (USA) Inc. v. American Buddha, 16 N.Y.3d 295 (N.Y. 2011) (Penguin II; situs of injury location of copyright owner; narrow to Internet uploading case)
- Fantis Foods, Inc. v. Standard Importing Co., 49 N.Y.2d 317 (N.Y. 1980) (injury alone in NY not sufficient for jurisdiction)
- Lehigh Valley Indus. v. Birenbaum, 527 F.2d 87 (2d Cir. 1975) (consequential NY injuries insufficient for jurisdiction)
- American Eutectic Welding Alloys Sales Co. v. Dytron Alloys Corp., 439 F.2d 428 (2d Cir. 1971) (harm in NY from out-of-state conduct insufficient)
- McGraw-Hill Companies, Inc. v. Ingeni-um Technologies Corp., 375 F. Supp. 2d 252 (S.D.N.Y. 2005) (court addressed jurisdiction in IP context)
