ORDER DENYING DEFENDANT’S MOTION TO DISMISS OR TRANSFER
On May 15, 2009, plaintiffs Allstar Marketing Group, LLC (“Alistar”) and Felknor Ventures, LLC (“Felknor”) commenced this action against defendants Your Store Online, LLC (“YSO”), Chris Reoch, Paul Reoch, TV Market, LLC, and TV Marketplace, LLC, alleging, inter alia, violation of plaintiffs’ trademarks with regard to three products: “Snuggie” brand fleece sleeved blankets, “Topsy Turvy” brand tomato planters, and “Aqua Globes” brand plant watering bulbs. On June 15, 2009, defendants filed a motion to dismiss for lack of personal jurisdiction and improper venue, or, in the alternative, for transfer to the Eastern District of Wisconsin.
I. FACTUAL & PROCEDURAL BACKGROUND
Alistar is a New York limited liability company with its principal place of business in New York; 1 Felknor is a Tennessee limited liability company with its principal place of business in Tennessee. 2 Alistar is a producer and distributor of “unique household products,” including the three products at issue in this case. It markets the products through direct response television advertising. 3 Allstar created the Snuggie and Aqua Globes products. 4 Felknor created the Topsy Turvy product and granted Allstar an exclusive license to market it in June 2008. 5
The Snuggie is a fleece blanket with attached sleeves, which Alistar began marketing in August 2008.
6
The product has been featured in the New York Times, and on “Real Time with Bill Maher,” “The Tonight Show with Jay Leño,” and “The Oprah Winfrey Show.”
7
Allstar alleges
The Aqua Globes are stained blown glass watering bulbs designed to water potted plants. 10 Allstar is the owner of a federal trademark registration for the mark “Aqua Globes” for use in connection with “plant watering globes of blown glass.” 11 It also claims common law trademark rights in the “Aqua Globes” marks. 12
Felknor is the owner of United States Patent No. 6,874,278, which covers a hanging planter designed to grow transplanted plants upside down, and a federal trademark registration for the mark “Topsy Turvy” for use in connection with planters. 13 It is also the owner of a copyright in a photograph of the Topsy Turvy product. 14
Chris and Paul Reoch are the co-owners, managing members, and sole employees of YSO, a Wisconsin limited liability company with its principal place of business in Wisconsin. 15 YSO conducts business through its online store located at <youronlinestore.net>. 16 Plaintiffs assert that YSO “regularly advertises its products to and solicits business from California residents, and regularly ships products into [the Central District of California].” 17 They allege that defendants have infringed their trademark rights in the products at issue by marketing and selling sleeved fleece blankets under the names “Snuggie” or “Snuggle”; hanging planters identical in appearance to the Topsy Turvy under the name “Topsy Turny”; and watering bulbs under the name “Aqua Globes.” 18 In addition plaintiffs allege that defendants have purchased the terms “Snuggie” and “Aqua Globes” as keywords for Internet advertising programs, including Google’s “Ad-Words.” 19 As a result, an advertisement with a link to defendants’ website appears when customers run searches using those words. 20 Plaintiffs further allege that defendants have used the word “Snuggie” in the headers and text of their website to ensure that their site appears as a search result when search engine users search for “Snuggie.” 21 They allege that defendants have used the copyrighted photograph of the Topsy Turvy in packaging and advertising for the Topsy Turny. 22 Finally, plaintiffs alleges that defendants have marketed their products with the “As Seen on TV” label, despite the fact that defendants have never paid for television advertising. 23
On June 15, 2009, Chris and Paul Reoch filed the present motion. The Reoches argue that they are not subject to personal jurisdiction in this district in their individual capacities and that venue is improper. They do not, however, argue that the court lacks jurisdiction over the corporate defendants. Alternatively, the Reoches argue that, even if the court can exercise personal jurisdiction over them and venue is proper, the court should transfer the case to the Eastern District of Wisconsin under 28 U. S.C. § 1404(a) for the convenience of the parties and witnesses and in the interests of justice. 24
II. THE MOTION TO DISMISS
A. Standard Governing Motions To
Dismiss for Lack of Personal Jurisdiction
When a defendant moves to dismiss under Rule 12(b)(2), the plaintiff bears the burden of demonstrating that the court may properly exercise personal jurisdiction over the defendant.
Pebble Beach Co. v. Caddy,
“The general rule is that personal jurisdiction over a defendant is proper if it is permitted by a long-arm statute and if the exercise of that jurisdiction does not violate federal due process.”
Pebble Beach,
The Fourteenth Amendment’s Due Process Clause permits courts to exercise personal jurisdiction over any defendant who has sufficient “minimum contacts” with the forum that the “maintenance of the suit does not offend traditional notions of fair play and substantial justice.”
Int'l Shoe Co. v. Washington,
The Ninth Circuit applies a three-prong test to determine whether a court may exercise specific jurisdiction over a defendant:
“ ‘(1) The non-resident defendant must purposefully direct his activities or consummate some transaction with the forum or resident thereof; or perform some act by which he purposefully avails himself of the privilege of conducting activities in the forum, thereby invoking the benefits and protections of its laws;
(2) the claim must be one which arises out of or relates to the defendant’s forum-related activities; and
(3) the exercise of jurisdiction must comport with fair play and substantial justice, i.e., it must be reasonable.’ ”
Schwarzenegger v. Fred Martin Motor Co.,
Here, plaintiffs premise personal jurisdiction primarily on an allegation that de
B. Whether Plaintiffs Have Established Purposeful Availment
“Purposeful availment analysis examines whether the defendant’s contacts with the forum are attributable to his own actions or are solely the actions of the plaintiff.”
Sinatra v. National Enquirer,
The complaint alleges that the Reoches have personally participated in and encouraged the infringing sales on which plaintiffs rely to establish personal jurisdiction.
33
Both of the Reoches state in their declarations that they are the “managing members” of YSO and its only two employees.
34
They do not offer any evidence rebutting plaintiffs’ allegations that they participated in and encouraged the infringing sales. The court therefore accepts plaintiffs’ allegations as true for purposes of this motion. See
Doe,
1. Whether the Fiduciary Shield Doctrine Insulates the Reoches from Personal Jurisdiction
“The fiduciary shield doctrine protects individuals from being subject to jurisdiction solely on the basis of their employers’ minimum contacts within a given jurisdiction. In other words, ‘[t]he mere fact that a corporation is subject to local jurisdiction does not necessarily mean its nonresident officers, directors,
Courts typically consider a corporate officer’s contacts on behalf of a corporation as his or her personal contacts for purposes of personal jurisdiction when the contacts support “some identifiable theory of liability pursuant to which [the officer’s] contacts on behalf of the corporate employer may justifiably be imputed to the employee.”
Matsunoki Group, Inc. v. Timberwork Oregon, Inc.,
No. C 08-04078 CW,
The Ninth Circuit has noted with approval language in a First Circuit opinion that “cases which have found personal liability on the part of corporate officers have typically involved instances where the defendant was the ‘guiding spirit’ behind the wrongful conduct ... or the ‘central figure’ in the challenged corporate activity.’ ”
Davis,
As noted, the court accepts for purposes of analyzing jurisdiction the uneontroverted allegation that the Reoches personally participated and encouraged the sales of allegedly infringing products to this district. This is sufficient to establish that they were the moving force behind the infringing activity. See
Matsunoki Group, Inc.,
2. Whether the Reoches’ Sales of Allegedly Infringing Products Via Their Company’s Website Constitute Purposeful Availment
“In the internet context, the Ninth Circuit utilizes a sliding scale analysis under which ‘passive’ websites do not create sufficient contacts to establish purposeful availment, whereas interactive websites may create sufficient contacts, depending on how interactive the website is.”
Jeske v. Fenmore,
No. SACV 08-01015 DOC (MLGx),
“At one end of the scale are ‘passive’ websites which merely display information, such as an advertisement. See [Stomp, Inc. v. NeatO, LLC,61 F.Supp.2d 1074 , 1078 (C.D.Cal.1999) ]. Personal jurisdiction is ‘not appropriate when a website is merely ... passive.’ Id. At the other end of the scale are ‘interactive’ websites which function for commercial purposes and where users exchange information. See Cybersell, Inc. v. Cybersell, Inc.,130 F.3d 414 , 418 (9th Cir.1997) (citing Zippo Mfg. Co. v. Zippo Dot Com, Inc.,952 F.Supp. 1119 ,1124 (W.D.Pa.1997)). Personal jurisdiction is appropriate ‘when an entity is conducting business over the internet.’ Stomp, Inc., 61 F.Supp.2d at 1078 . Where a website is somewhere between the two extremes, ‘the likelihood that personal jurisdiction can be constitutionally exercised is directly proportionate to the nature and quality of commercial activity that an entity conducts over the internet.’ Cybersell,130 F.3d at 419 (quoting Zippo Mfg.,952 F.Supp. at 1124 ).” American Auto. Ass'n, Inc.,2009 WL 1066506 at *4.
Plaintiffs allege that, through their website, defendants solicit business from California customers and regularly sell infringing products to customers in the state.
35
As the Reoches once again offer no conflicting evidence, the court accepts this allegation as true for purposes of analyzing personal jurisdiction. Based on the allegation, the court concludes that by operating a highly commercial website through which regular sales of allegedly infringing products are made to customers in this state, the Reoches have purposefully availed themselves of the benefits of doing business in this district, such that they should reasonably anticipate being haled into court here.
Washington v. www.dirtcheapcig.com, Inc.,
C. Whether the Claims Arise Out of the Reoches’ Contacts
A lawsuit arises out of a defendant’s contacts with the forum state if there is a direct nexus between the cause of action being asserted and the defendant’s activities in the forum. See
Shute v. Carnival Cruise Lines,
The Reoches’ contacts with the forum are their sales of allegedly infringing products to customers in this state; but for the Reoches’ sales, plaintiffs would not have been injured. Accordingly, the second requirement for specific jurisdiction is satisfied. See
Salu, Inc. v. Original Skin Store,
No. CIV. S-08-1035 FCD/KJM,
D. Whether Exercising Jurisdiction Is Reasonable
The final prong of the jurisdictional test examines whether it is reasonable to subject defendants to suit in the forum state. Reasonableness is assessed by weighing the following factors: (1) the extent of defendant’s purposeful injection into the forum; (2) defendant’s burden in litigating in the forum; (3) the extent of conflict with the sovereignty of defendant’s state; (4) the forum state’s interest in adjudicating the dispute; (5) the most efficient judicial resolution of the controversy; (6) the importance of the forum to plaintiffs interest in convenient and effective relief; and (7) the existence of an alternative forum.
Ziegler,
“Even if there is sufficient ‘interjection’ into [California] to satisfy the [purposeful availment prong], the degree of interjection is a factor to be weighed in assessing the overall reasonableness of jurisdiction under the [reasonableness prong].”
Ziegler,
Here, the Reoches sell a substantial amount of allegedly infringing products to California customers. The degree of interjection therefore favors a finding of reasonableness. See
Lamm ex rel. Doherty v. Bumbo, Bumbo Ltd.,
Nos. C 07-04807 MHP, C 07-05597 MHP,
The second factor — the burden on defendant in litigating in the state— must be examined “in light of the corresponding burden on the plaintiff.”
Sinatra,
Turning to the remaining factors, the third factor involves evaluating the extent of any conflict with the sovereignty of defendants’ home state. “Litigation
The fourth factor is California’s interest in adjudicating the controversy. Although none of the parties is a California citizen, the allegedly infringing products were sold to California citizens. This factor thus favors a finding that the exercise of jurisdiction is reasonable, as “California has a strong interest in protecting its citizens from trademark infringement and consumer confusion.”
Nissan Motor Co.,
The fifth factor — efficient judicial resolution — focuses on the location of the evidence and witnesses.
Panavision,
The sixth factor is the importance of the forum to plaintiffs interest in convenient and effective relief. Plaintiffs contends that their witnesses and evidence are located primarily in this state, and thus that this is the forum that will afford convenient relief.
40
Although “neither the Supreme Court nor [the Ninth Circuit] has given much weight to inconvenience to the plaintiff,”
Ziegler,
As can be seen, three factors favor plaintiffs, two are neutral, and two favor defendants. Given the state of the record, it cannot be said that the Reoches have adduced sufficient evidence to establish that exercising jurisdiction over them is unreasonable.
41
See, e.g.,
Ting v. Orbit Communication Co.,
In sum, considering each of the three relevant factors, the court concludes that it is appropriate to exercise personal jurisdiction over defendants Chris and Paul Reoch in this case.
E. The Motion to Dismiss for Improper Venue
1. Legal Standard Governing Motions to Dismiss under Rule 12(b)(3)
A party wishing to challenge venue may bring a motion under Rule 12(b)(3) of the Federal Rules of Civil Procedure and 28 U.S.C. § 1406, which provides that a district court shall dismiss or transfer a case if venue is improper. Venue in federal courts is governed entirely by statute. See
Leroy v. Great Western United Corp.,
The plaintiff has the burden of showing that venue is proper in this district. See
Piedmont Label Co. v. Sun Garden Packing Co.,
2. Whether Venue Is Proper in the Central District of California
a. Whether Venue Is Proper Under 28 U.S.C. § 1400(a)
Plaintiffs first argue that venue is proper under 28 U.S.C. § 1400(a), which
“Civil actions, suits, or proceedings arising under any Act of Congress relating to copyrights or exclusive rights in mask works or designs may be instituted in the district in which the defendant or his agent resides or may be found.”
The Ninth Circuit has interpreted this statute to mean that venue “is proper in any judicial district in which the defendant would be amenable to personal jurisdiction if the district were a separate state.”
Columbia Pictures Television v. Krypton Broadcasting of Birmingham, Inc.,
Although plaintiffs do not explain why the copyright venue statute makes bringing suit in this district appropriate for all their claims, it is possible that they rely on a “pendent venue” theory. “On occasion, where venue exists for the principal cause of action, courts have agreed to adjudicate closely related claims even if they lacked an independent source of venue.”
Id.
at *11 n. 4 (quoting
Save Our Cumberland Mountains, Inc. v. Clark,
b. Whether Venue over the Trademark Claims Is Proper under 28 U.S.C. § 1391(b)
Venue over trademark claims is governed by the general venue statute, 28 U.S.C. § 1391. See
Golden Scorpio Corp. v. Steel Horse Bar & Grill,
“(b) A civil action wherein jurisdiction is not founded solely on diversity of citizenship may, except as otherwise provided by law, be brought only in (1) a judicial district where any defendant resides, if all defendants reside in the same State, (2) a judicial district in which a substantial part of the events or omissions giving rise to the claim occurred, or a substantial part of property that is the subject of the action is situated, or (3) a judicial district in which any defendant may be found, if there is no district in which the action may otherwise be brought.
(c) For purposes of venue under this chapter, a defendant that is a corporation shall be deemed to reside in any judicial district in which it is subject to personal jurisdiction at the time the action is commenced .... ”
Plaintiffs argue that venue is appropriate in this district because a substantial part of the sales giving rise to the claim occurred here. “In a trademark suit brought under the Lanham Act, a ‘substantial part’ of the events giving rise to the claims occur in any district where consumers are likely to be confused by the accused goods, ‘whether that occurs solely in one district or in many.’ ”
Golden Scorpio,
Although the court accepted plaintiffs’ allegations regarding defendants’
Although the court has not found a case in this circuit adopting this precise principle regarding venue, the Ninth Circuit’s statements that a district court “need not” accept factual allegations and “may” consider evidence outside the pleadings suggests that it adopts a similar approach with regard to uncontroverted allegations.
47
The court believes such an approach is appropriate under the circumstances, considering defendants’ superior access to proof regarding their sales in this district. For purposes of analyzing venue, therefore, the court accepts as true
III. THE MOTION TO TRANSFER VENUE
A. Legal Standard Governing Motions to Transfer Venue Under 28 U.S.C. § 1404
“For the convenience of parties and witnesses, in the interest of justice, a district court may transfer any civil action to any other district or division where it might have been brought.” 28 U.S.C. § 1404(a). This provision gives a district court broad discretion to transfer a case to another district where venue is also proper.
49
See, e.g.,
Sparling v. Hoffman Constr. Co.,
In deciding a motion to transfer venue, the court must weigh multiple factors, including (1) the plaintiffs choice of forum; (2) the convenience of the parties; (3) the convenience of the witnesses; (4) the location of books and records; (5) which forum’s law applies; (6) the interests of justice; and (7) administrative considerations. Wright et al.,
supra,
§§ 3841-55; see also
Jones,
B. Discussion
1. Plaintiffs Choice of Forum
Despite the broad discretion afforded the district court in determining whether to transfer venue, a plaintiffs choice of venue is generally accorded deference. See, e.g.,
Gulf Oil Corp. v. Gilbert,
A plaintiffs choice of forum is entitled to less deference, however, when the plaintiff elects to pursue a case outside its home forum. See, e.g.,
GTE Wireless, Inc. v. Qualcomm, Inc.,
2. The Convenience of the Parties
Defendants argue that they will be inconvenienced by litigating in California because YSO has only two employees; they contend that the company’s business will be disrupted if the two employees are required to travel to California.
50
The liti
3. The Convenience of Witnesses
The convenience of witnesses is often the most important factor in determining whether a transfer under § 1404 is appropriate. See, e.g.,
Denver & Rio Grande Western Ry. Co. v. Brotherhood of Railroad Trainmen,
The court accords less weight to the inconvenience of
party
witnesses, however, as they can be compelled to testify regardless of the forum in which the lawsuit is ultimately litigated. See, e.g.,
Applied Elastomerics, Inc.,
Defendants do not specifically identify any witnesses whom they expect will testify at trial other than the Reoches. Plaintiffs identify four witnesses located in California, all of whom are plaintiffs’ employees.
52
Because none of the parties has identified non-party witnesses, this factor adds little to the court’s analysis. Certainly, defendants have not demonstrated that the factor favors transfer. See
Bohara,
4. The Location of the Evidence
“If [a] motion [to transfer venue] is based on the location of records and documents, the [defendant] must show with particularity the location, difficulty of transportation, and the importance of such record.”
Bohara,
5. Which Forum’s Law Applies
Neither party addresses this factor. As plaintiffs’ claims are primarily federal trademark and copyright claims, however, the factor carries little weight. Courts in this district and the Eastern District of Wisconsin are equally capable of applying federal law. 54
“The ‘interest[s] of justice’ include such concerns as ensuring speedy trials, trying related litigation together, and having a judge who is familiar with the applicable law try the case.”
Heller Financial, Inc. v. Midwhey Powder Co., Inc.,
7. Administrative Considerations
Administrative considerations such as docket congestion are given little weight in this circuit in assessing the propriety of a § 1404(a) transfer. See
Gates Learjet Corp. v. Jensen,
8. Balancing the Discretionary Factors
Balancing the relevant factors, the convenience of the parties weights slightly in favor of transfer. The remaining factors are neutral or weigh slightly against transfer. Although the relative size of the parties favors transfer, this factor alone is not sufficient to warrant granting defendants’ § 1404(a) motion. See
Iyalla v. TRT Holdings, Inc.,
No. 04 Civ.8114(NRB),
IV. CONCLUSION
For the reasons stated, defendants’ motion to dismiss, or, in the alternative, to transfer venue to the Eastern District of Wisconsin is denied.
Notes
. First Amended Complaint ("FAC”), ¶ 3.
. Id., ¶ 4.
. Id., ¶ 14.
. Id., ¶¶ 16, 59.
. Id., ¶¶41, 44.
. Id., ¶ 16.
. Id., ¶¶ 20, 31-33.
. Id., ¶ 17.
. Id., ¶ 18.
. Id., ¶ 59.
. Id.A 62.
. Id., ¶ 61.
. Id., ¶¶ 41, 42. The patent is not at issue in this case.
. Id., ¶ 43.
. Id., ¶¶ 5-7; Declaration of Chris Reoch ("C. Reoch Decl.”), ¶¶ 2-3; Declaration of Paul Reoch (“P. Reoch Decl.”), ¶¶ 2-3. According to the Reoches’ declarations, TV Market, LLC, and TV Marketplace, LLC are no longer active companies. (C. Reoch Decl., 11 2; P Reoch Decl., 112.)
. FAC, ¶5.
. Id.
. Id., ¶¶ 22, 49, 65.
. Id., ¶¶ 25, 68.
. Id., ¶¶ 26, 69.
. Id., ¶¶ 27, 34.
. Id., ¶ 56.
. Id.
. Motion to Dismiss for Lack of Personal Jurisdiction and Improper Venue or in the Alternative to Transfer for Improper Venue ("Mot.”) at 1.
. To make this showing, plaintiffs may rely on allegations in their pleadings to the extent they are not controverted by the moving party. See, e.g.,
Doe v. Unocal Corp.,
. Properly invoked, general jurisdiction allows a federal court to hear
any
cause of action against the defendant, even one unrelated to his activities in the forum state.
Perkins v. Benguet Consolidated Mining Co.,
. Plaintiffs' Opposition to Defendants' Motion to Dismiss for Lack of Personal Jurisdiction and Improper Venue, or in the Alternative to Transfer for Improper Venue (“Opp.”) at 9 n. 1.
. Declaration of Frank Mendez, ¶ 5.
. C. Reoch Decl., ¶ 6; P Reoch Deck, ¶ 6.
. Mot. at 7-9.
. Id.
. Opp. at 10-13.
. FAC, ¶¶ 40, 58, 73.
. C. Reoch Deck, ¶¶ 2-3; P Reoch Deck, ¶¶ 2-3.
. FAC, ¶ 5.
. C. Reoch Decl., ¶ 6; P Reoch Decl., ¶ 6.
. Declaration of Howard Boilen, ¶¶ 2, 5, 7.
. C. Reoch Decl., ¶¶ 3, 8.
. Opp. at 20.
. Id.
. At the hearing, the Reoches' counsel argued that exercising personal jurisdiction over the men would be unreasonable because, as individuals residing in Wisconsin, the Reoches did not expect to be sued in California in their individual capacities. Counsel conceded that exercising personal jurisdiction over YSO was reasonable, however. The fact that the Reoches wrongly assumed that their status as officers of YSO would insulate or shield them from personal jurisdiction in their individual capacities does not make the court's exercise of jurisdiction over them unreasonable. Given their personal contacts with the state, exercising personal jurisdiction over the Reoches with respect to claims arising out of those contacts is reasonable.
. Id. at 16.
. Boilen Dec!, ¶ 5.
. The court does not consider orders placed by plaintiffs’ employees or the private investigator hired by plaintiffs, as these individuals were not confused by defendants’ products.
. Yousuf Decl., Exh. 3.
. Id.
. With regard to personal jurisdiction, the Ninth Circuit has instructed that allegations in the complaint are to be taken as true unless controverted. See
Doe,
. At the hearing, the Reoches’ counsel represented that 19% of defendants’ sales occur in California.
. Because defendants reside in the Eastern District of Wisconsin, venue would be proper in that district. See 28 U.S.C. § 1391(b)(1).
. Mot. at 14.
. Yousuf Deck, ¶ 6. See
Spin Master Ltd. v. Your Store Online,
No. CV 09-2121 CAS
(JCx),
. Opp. at 20.
. Mot. at 12.
. Plaintiffs assert state law claims, but they are largely duplicative of the federal claims. As respects the state law claims, this court is
. Plaintiffs identify other cases in this district in which defendants are parties. (Yousuf Deck, ¶¶ 5-6). One case, Bragel International Inc. v. TV Marketplace, LLC, No. CV 06-4931 JFW (JCx) is closed. The other, Spin Master Ltd. v. Your Store Online, No. CV 09-2121 CAS (JCx), is currently pending, but does not involve the products at issue in this case.
