MEMORANDUM OPINION
A threshold question presented in this trademark and trade name dispute is whether personal jurisdiction over a defendant exists based on the defendant’s registration of the allegedly infringing domain name with a registrar located in the forum state. More specifically, the question is whether a California defendant who used the Internet to register an allegedly infringing domain name with a domain name registrar located in Virginia is, on that basis alone, subject to suit to in Virginia arising from the registration of the domain name.
I
Plaintiffs America Online, Inc. (“AOL”), and ICQ, Inc., a wholly-owned subsidiary of AOL, are Delaware corporations with a shared principal place of business in Dulles, Virginia. Defendant eAsia, Inc., the sole defendant to have been served at this point, is a California corporation, with its principal place of business in Taipei, Taiwan. Defendant Chih-Hsien Huang,
Plaintiffs offer a wide variety of online services, including services under their common law mark, “ICQ.” 1 The ICQ service allows persons registered with the service to determine whether another person registered with the service is currently online. Thus, ICQ is clever shorthand for “I Seek You.” Once two users realize they are online at the same time, they may exchange messages via email, engage in real time “chat,” and exchange files with one another. In essence, the purpose of ICQ is to facilitate real time Internet communication and interaction.
eAsia, through its subsidiaries, develops Internet related software and provides Internet related services for customers in Taiwan and other parts of Asia. It is apparent from the record that eAsia directs its products and services primarily, if not exclusively, at Chinese-speaking regions of Asia. First, eAsia’s web pages are written in Chinese, and any English or other western words on the pages are rare and used primarily as trademarks. And second, the undisputed affidavit of eAsia’s president establishes that eAsia’s products and services are aimed at, and marketed exclusively in, Asia.
Among the services eAsia offers is a communications protocol it refers to as ICQ. It is unclear on this record whether this service is similar to that offered by plaintiffs under the same mark. In any event, eAsia registered and used the allegedly infringing domain names <picq.eom> and <picq.net>, and Inforia Inc., registered and used the allegedly infringing domain name <cicq.net>. 2 Both corporations registered the domain names with Network Solutions Incorporated (“NSI”), at the cost of approximately $85.00 per year. Significantly, the registration process occurred entirely online, by way of NSI’s web site, and lasted no more than a few minutes.
Plaintiffs contend that the use of the ICQ mark on defendants’ web pages, and defendants’ registration and use of Internet domain names that incorporate the ICQ mark, infringed plaintiffs’ rights to that mark. They have sued all three defendants under a variety of theories, including (i) violation of the recently enacted Anticybersquatting Consumer Protection Act (“ACPA”), 15 U.S.C. § 1125(d), (ii) false designation of origin and false advertising, 15 U.S.C. § 1125(a), (iii) dilution, 15 U.S.C. § 1125(c), (iv) common law unfair competition, (v) common law service mark infringement, (vi) common law trade name infringement, and (vii) violation of Virginia’s Consumer Protection Act, Va.Code § 59.1-1-198. In the motion at bar, eAsia, the only served defendant thus far, seeks dismissal for lack of personal jurisdiction, or in the alternative, for lack of venue. Plaintiffs respond that eAsia is subject to personal jurisdiction in this case by virtue of its having registered the domain names <picq.eom> and <picq.net> with NSI, which is located in Herndon, Virginia. As an additional factor, plaintiffs argue that personal jurisdiction is also appropriate because they are located in the forum state, and therefore the alleged harm was suffered here.
II
Given that domain name registration is the basis relied on for jurisdiction, a useful starting point is discussion of domain names, and the role NSI plays with respect to domain names and the operation of the domain name system (“DNS”). Specifically, it is necessary to understand the essentially decentralized nature of the
The history and structure of the Internet have been discussed by numerous courts, and need not be reiterated here.
3
In essence, the Internet is an international network of computer networks that communicate with one another through the use of a standard language or protocol.
4
At a high level of abstraction, the Internet is simply a medium by which computers or computer networks otherwise isolated from one another may interact. Thus, for the Internet to function, each computer connected to the Internet, known as a “host,” must have a unique identity, so that other computers may identify it. Currently, a computer’s identity on the Internet is its Internet Protocol address (“IP address”), a numerical address that “appear[s] as four numbers, each between 0 and 255, separated by periods.” Gold-foot,
supra
note 4, at 913;
see Thomas,
Yet, a domain name does not replace the IP address. Instead, a domain name is an alphanumeric
means
of determining the appropriate IP address by way of the DNS. In essence, the DNS matches a domain name with the appropriate IP address. But this simple description incorrectly suggests that the DNS is a central database to which other computers may refer, when the DNS is instead a decentralized, albeit hierarchical, process for correlating a domain name with the appropriate IP address.
6
The hierarchical nature of the DNS is reflected in the structure of the “domain name space,” at the top of which is the root, followed closely by the various Top Level Domains (“TLDs”), such as .com and .edu.
7
The decentralized
Thus, NSI and other entities with similar responsibilities have two essential functions: (i) a registrar function, to govern the distribution of SLDs, and to ensure each SLD within a particular TLD is unique,
10
and (ii) a registry function to correlate each SLD with the IP address of the SLD’s name' server, and make that information available to the DNS.
See Thomas,
What this basic description of the DNS makes clear is that a “domain name” is a means of determining a particular, computer address by way of a process that includes the registry and registrar functions of NSI (and other entities with similar responsibilities), as well as the operation of DNS name servers scattered across the Internet, almost all of which are operated and controlled by entities other than NSI or any other registrar. This process is not fail safe; it is subject to failure, in which case the domain name will not fulfill its purported function. And this may occur, even assuming NSI regularly meets each of its obligations under the relevant registration agreements, as NSI operates only a very small portion of the DNS. Thus, the utility of a domain name depends in part on the registrar’s meeting its obligations, 12 and in part on the operation of the DNS, only a small portion of which falls within the domain name registrar’s control. It is against this technical and contractual background that plaintiffs seek to establish personal jurisdiction based on eAsia’s contracts with NSI.
Ill
When the exercise of personal jurisdiction is challenged pursuant to Rule 12(b)(2), Fed.R.Civ.P., the question “is one for the judge, with the burden on the plaintiff ultimately to prove the existence of a ground for jurisdiction by the preponderance of the evidence.”
Combs v. Bakker,
Resolution of personal jurisdiction challenges involve a two-step inquiry. First, courts must ascertain whether a plaintiff has made a
prima facie
showing that Virginia’s long-arm statute reaches the nonresident defendant given the cause of action alleged and the nature of the defendant’s Virginia contacts. Second, a court must determine whether the exercise of personal jurisdiction in the circumstances is consistent with the Due Process Clause, that is, whether the long-arm statute’s reach in the circumstances exceeds
Plaintiffs rely on the “transacting business” provision of the Long Arm Statute, which subjects a nonresident defendant to personal jurisdiction as to any cause of action “arising from” that defendant’s transaction of business in Virginia. See Va.Code § 8 8.01-328.1(A)(1). 14 As a preliminary matter, assuming eAsia transacted business in Virginia by registering the allegedly infringing domain names with NSI, the sole cause of action arising from that transaction of business is the ACPA claim. This is so because a claim of trademark infringement or dilution arises from the commercial use of a domain name that is similar or identical to a person’s trademark, and not from the mere registration of the domain name. 15 Thus, for domain name disputes based on federal or common law trademark infringement or dilution, the relevant tortious act is the use of the domain name, and not the act of registration. The ACPA, however, provides a cause of action against a domain name registrant based on the bad faith registration 16 of a domain name that is identical or confusingly similar to, or in the case of a famous mark, dilutive of, the trademark owner’s mark or marks. See 15 U.S.C. § 1125(d)(1)(A). Accordingly, only plaintiffs ACPA claim “arises from” the transaction between eAsia and NSI.
Next in the statutory analysis is the central question whether eAsia transacted business in Virginia by registering the allegedly infringing domain names with NSI.
17
In this regard, it is settled that a
IV
The Due Process Clause requires that no defendant shall be haled into court unless the defendant has “certain minimum contacts [with the state] ... such that the maintenance of the suit does not offend traditional notions of fair play and substantial justice.”
International Shoe Co. v. Washington,
These principles compel the conclusion that the two domain name registration agreements with NSI from which plaintiffs’ ACPA claim arises are not sufficient contacts with Virginia for purposes of personal jurisdiction over eAsia in this case. While it is clear that NSI and eAsia had a contractual relationship, it is settled that a contract between a resident of the forum state and a nonresident defendant does not, by itself, provide sufficient minimum contacts for personal jurisdiction.
See, e.g., Ellicott Machine Corp., Inc. v. John Holland Party Ltd.,
Similarly, the domain name registration agreements do not create a sufficient relationship between eAsia and Virginia to satisfy due process.
See Chung v. NANA Development Corp.,
Second, while NSI performs its services in Virginia, NSI’s services do not create nearly as substantial a relationship between eAsia and NSI in Virginia, as did the agreement between the nonresident and resident in
English & Smith. See
Plaintiffs claim that a finding of personal jurisdiction is warranted in this case because eAsia purposefully directed its activities toward Virginia by infringing the trademarks of two corporations located in Virginia. Courts have addressed the question whether a person may be haled into court in a trademark owner’s home
In this case, plaintiffs contend that eAsia purposefully directed its activity at Virginia, because eAsia knowingly infringed plaintiffs’ trademarks, and plaintiffs suffered the injury from that infringement in Virginia. Yet, where personal jurisdiction is based on the place at which “the plaintiff feels the alleged injury,” the plaintiff must also show that its injury is “accompanied by the defendant’s own contacts with the state.”
ESAB Group, Inc. v. Centricut, Inc.,
An appropriate order will enter.
Notes
. Not reached here is the question whether ICQ is a valid trademark.
. According to the record, eAsia and its affiliates no longer use these three domain names.
.
See, e.g., Reno v. ACLU,
. See Josh A. Goldfoot, Note, Antitrust Implications of Internet Administration, 84 Va. L.Rev. 909, 910-18 (1998) (providing an explanation of the Internet’s basic structure). The word "internetwork” or "internet” is a computer science term of art that refers to "a network formed by connecting two or more networks together.” Id. at 910.
. A domain name refers to a computer, and does not refer to a particular file, such as a web page. Instead, a particular file on the Internet, such as a web page, is identified by its Uniform Resource Locator ("URL”), which includes the domain name, identifies the file, and indicates the protocol required to access the file. For example, Roger Ebert’s web page is located at the URL, <http://www. suntimes.com/ebert/index.html>, which URL communicates the following information: (i) "http” refers to "Hypertext Transfer Protocol,” the language required to access the web page, (ii) "www.suntimes.com” is the domain name for the Chicago Sun Times, and refers to the web server of the Sun Times, (iii) "ebert” refers to a particular directory on that server, and (iv) "index.html” refers to a particular file in that directory.
.
See Thomas,
. At the very top of the hierarchy is the otherwise nameless "root,” from which extend each of the various Top Level Domains ("TLDs”), from each of which extend a multitude of Second Level Domains ("SLDs”), and so on.
See
Paul Albitz & Cricket Liu, DNS and BIND § 2.1 (3d ed.1998),
available at
<http://www.oreilly.com/catalog4Ins3/chap-ter/ch02.html> (discussing the domain name space). Thus, the domain name space is relational, rather than geographic, and has been described as "a large inverted tree,” at the top of which is the root, and which extends downward through seemingly endless branches and subtrees.
See id.
Although each second level domain is a subdomain of its TLD, management of the second level domains are typically delegated to an entity other than the
.See Albitz & Liu, supra, § 2.4 (discussing zones); see also Albert, supra, at 783 (noting that "each name server only has the address information for computers in its zone”). Thus, the name servers located at James Madison University and Princeton University include accurate databases of all IP addresses that fall within the zones, jmu.edu and princeton.edu, respectively.
There is a subtle, albeit significant, distinction between "zones” and "domains.” A domain includes every subdomain that falls beneath it in the domain name space, so that the domain vaed.uscourts.gov is within the domain, uscourts.gov, which is within the TLD, .gov. See Albitz & Liu, supra, § 2.4. On the other hand, “zones” are distinct areas over which a particular entity has responsibility. Thus, the .edu "zone” is distinct from the jmu.edu "zone,” even though the domain jmu.edu falls within the .edu TLD. See id.
. In many instances, the root server is also an authoritative name server for the relevant TLD, in which case the first and second inquiries are combined. See id.
. Only "sibling” nodes, that is, subdomains with the same "parent” domain, need be unique. See Albitz & Liu, supra, at § 2.1.1. Thus, while there may not be two jmu.edu’s, there may be (and, in fact, there is) a prince-ton.com, as well as a princeton.edu.
. Although NSI was once the sole registrar for the TLDs .com and .net, it is now only one of several registrars for these TLDs.
. Cf. Network Solutions, Inc., 529 S.E.2d at 86-88 (concluding that a domain name was not subject to garnishment because it was the product of .a contract for services between the domain name registrar and registrant).
.
See Bochan v. La Fontaine,
. Plaintiffs, correctly, do not urge any other statutory bases for personal jurisdiction. The use by eAsia or its affiliates of the ICQ mark on a web page maintained in Asia is not a tortious act that occurred in Virginia.
See
Va.Code § 8.01-328.1(A)(3). And assuming eAsia’s out-of-state act caused tortious injury in Virginia, and further assuming that eAsia "regularly ... solicits business” in Virginia by operating a commercial web site that is accessible here,
see
Va.Code § 8.01-328.1(A)(4), operation of such a web site does not, by itself, satisfy the minimum requirements of the due process clause for the exercise of personal jurisdiction.
See Rannoch,
.
See, e.g., Panavision International, L.P. v. Toeppen,
. The ACPA requires the trademark owner to show more than mere registration; the owner must also show that the registrant had a bad faith intent to profit from registration of the mark as a domain name, which derives in significant part from the registrant’s actual or intended use of the domain name. See 15 U.S.C. § 1125(d)(l)(B)(l) (non-exclusive list of factors that may be considered to prove bad faith intent to profit).
. Plaintiffs note that eAsia, and corporations related to eAsia, may have registered several other domain names not in issue in this case. Yet, the instant ACPA claim does not arise from those registrations, and therefore they are not relevant under Va.Code § 8.01-328.1(A)(1).
See City of Virginia Beach v. Roanoke River Basin Ass'n, 776
F.2d 484, 488 (4th Cir.1985) (noting that only contacts related to the cause of action give rise to personal jurisdiction under § 8.01-1-328.1(A)(1)). Similarly, the mere registration of several domain names with NSI is not a sufficient basis for general jurisdiction over claims unrelated to those contacts.
See Helicopteros Nacionales de Colombia,
S.A. v.
Hall,
.
See City of Virginia Beach,
.
See, e.g., English & Smith v. Metzger,
.
See English & Smith,
. In this regard, the transaction between eA-sia and NSI stands in marked contrast to the transaction at issue in
English & Smith.
The contract in
English & Smith
involved the negotiation of the terms of the contract, and the performance of substantial legal services in Virginia over a period of time.
See
.
See, e.g., Danville Plywood Corp. v. Plain and Fancy Kitchens, Inc.,
.
See English & Smith,
. In
Burger King,
. eAsia notes that when it registered the domain names, NSI was the only organization authorized to issue domain names in the .com and .net TLDS, and that NSI, though a private firm, issued domain names pursuant to a government contract. These facts do not affect the jurisdictional analysis in this case. NSI is a private firm from whom eAsia chose to purchase certain services, and for that reason, eAsia may not avail itself of the so-called “government contacts” exception to state long arm statutes.
See, e.g., Naartex Consulting Corp. v. Watt,
. Plaintiffs argue that the forum selection clause in the registration agreement is evidence that eAsia knew it was availing itself of Virginia’s laws when it registered the domain names at issue. In fact, by the agreement, eAsia agreed to litigate claims
with NSI
in Virginia, not claims between eAsia and any third party. A forum selection clause is a bargained-for term in a contract between the contracting parties, and for that reason it may not, in most instances, be enforced by one who is not a party to the contract.
See, e.g., Frietsch v. Refco, Inc.,
.
See
.Some courts have found personal jurisdiction where the nonresident has made substantial use of servers or other computers located in the forum.
See, e.g., Intercon, Inc. v. Bell Atlantic Internet Solutions Inc.,
. The Supreme Court of Virginia recently suggested otherwise when it held that a domain name is "inextricably bound to the domain name services that NSI provides,” and was for that reason not subject to garnishment.
See Network Solutions, Inc. v. Umbro Int’l, Inc.,
- Va. -,
.
See Health Communications, Inc. v. Mariner Corp.,
.
See Health Communications,
. Plaintiffs rely exclusively on two recent cases for the opposite proposition, namely that the fact of registration with NSI by itself establishes sufficient minimum contacts with Virginia to satisfy due process.
See Lucent Technologies, Inc. v. Lucentsucks.Com,
In
Caesars World,
the court was presented with the question whether the ACPA’s
in rem
provisions violated due process. The court concluded that, in light of the limited relief available under the
in rem
proceeding, namely forfeiture of the domain name in question, the registrant’s contact with NSI satisfied due process.
See
.
See, e.g., Cybersell, Inc. v. Cybersell, Inc.,
.
See, e.g., Panavision International, L.P. v. Toeppen,
. The record reflects that (i) the language on eAsia’s web sites is almost exclusively Chinese, (ii) eAsia aims its marketing and other activities at Taiwan and other parts of China, (iii) all of eAsia’s servers are located in Asia, and (iv) the uncontroverted affidavit of eAsia’s president notes that eAsia’s web sites "offer features, products, and/or services that would not likely be of value to Virginia residents.”
.
See Rannoch,
.
See Panavision Int’l, L.P.,
. Plaintiffs note that Congress passed the ACPA in part to make it easier to bring suits against cybersquatters. While this may be so, nothing suggests that Congress intended personal jurisdiction to exist wherever the registrant’s allegedly infringing domain name happens to be registered. In fact, Congress specifically provided that, in the event personal jurisdiction was not available, an
in rem
action would be available at the situs of the registrar. See 15 U.S.C. § 1125(d)(2);
see also Caesars World Inc. v. Caesars-Palace.com,
