OPINION AND ORDER ON MOTION TO DISMISS
On October 4, 1985, plaintiffs California Software, Inc. and Reliacomm, Inc. filed a complaint alleging that defendants Reliability Research,.Inc. (hereinafter referred to as “RRI”), James White and Larry Martin made false statements through the use of the telephone, the mails, and a nationwide computer network concerning plaintiffs’ right to market a software program. Defendants moved to dismiss the complaint for lack of personal jurisdiction. The issue presented is whether defendants’ utilization of the foregoing means of communicating with plaintiffs’ prospective customers both in and out of California for the purpose stated supports an exercise of jurisdiction in this forum. By this Order, the Court finds limited jurisdiction over two of these defendants. Accordingly, defendants RRI and White’s motion is denied and defendant Martin’s motion is granted.
I. BACKGROUND
In 1985, Reliacomm employed California Software to provide marketing and consulting services for a new system of computer software known as resCue/MYS (“the *1358 product”). Under the employment contract, California Software agreed to promote and sublicense the product on behalf of Reliacomm. Both plaintiffs are California corporations having their principal places of business in California.
Reliability Research, Inc. (“RRI”), a Nevada corporation with its principal place of business in Vermont, has as its sole business the development of a single software program. RRI granted UCCEL, 1 a Texas corporation, an exclusive license to market the software. RRI employs two individuals, Larry Martin, a citizen of Connecticut, the corporation’s president and vice-president, and James White, a citizen of Vermont, its treasurer.
Plaintiffs brought this action as a result of defendants’ allegedly tortious communications with certain business entities throughout the United States and Canada. Their claims for intentional interference with prospective economic advantage, slander of title, libel, slander, civil conspiracy, unfair competition, and intentional interference with their right to pursue a lawful business arise out of two sets of communications made by defendant White with potential purchasers of the resCue/MVS software.
First, White communicated directly with the following three California residents, each of whom had seriously considered sublicensing plaintiffs’ software: (1) Gibraltar Savings & Loan in Los Angeles, which received a letter dated May 3, 1985; (2) the Atlantic Richfield Company (ARCO) in Los Angeles, which received a telephone call in the Spring of 1985; and (3) Southern California Gas Company in Monterey Park, which received communications by both the mail and the telephone in the Fall of 1985. White told these companies of a title dispute over the product in a New York action and that, if successful, RRI would cancel all sublicenses to the product marketed by California Software and seek damages from plaintiffs and their sublicensees.
Second, on July 23, 1985, White placed a message on a nationally disseminated computer based information service known as the Computer Reliability Forum (the “CRF”), which is operated by defendants. Operators of large computer installations, having a license from UCCEL, utilize the CRF to share information regarding computer hardware and software. Although one may use the CRF to respond to a specific inquiry, the system acts as a bulletin board, its messages being available and visible to all its users.
White’s CRF message stated that RRI was currently attempting to establish its ownership of the resCue/MVS software in a lawsuit filed in New York against California Software. The message further stated that RRI would hold any licensee of the product financially responsible for its use if RRI prevailed in the lawsuit. 2 White’s message was received by at least three users of the CRF network: Pacific Northwest Bell in the State of Washington; Marine Midland Bank in Buffalo, New York; and Canada Trust in Ontario, Canada. White placed the message on the CRF in response to inquiries made by these prospective purchasers of the product. The message was also made available to ARCO in California, although no evidence indicates that this CRF message influenced *1359 ARCO’s decision not to purchase the product. 3
Plaintiffs claim that these communications contained false and malicious information which discouraged those who received the messages from purchasing plaintiffs’ product. Prior to White’s interference, the prospective customers had expressed interest in the resCue/MVS software.
II. DISCUSSION
This Court has diversity jurisdiction over the instant matter pursuant to 28 U.S.C. § 1332. In diversity actions, California courts exert personal jurisdiction over nonresident defendants to the fullest extent permissible under the Fourteenth Amendment to the U.S. Constitution. Cal.Code of Civ.Proc. § 410.10. Thus, it must be determined whether defendants have sufficient contacts with the State of California to satisfy due process requirements such that it is appropriate to exercise general or limited jurisdiction.
Data Disc, Inc. v. Systems Technology Associates, Inc.,
In order for this Court to assert jurisdiction, the non-resident defendants’ contacts with the forum state, though minimal, must be of such quality and quantity that “maintenance of the suit does not offend traditional notions of fair play and substantial justice.”
International Shoe Co. v. Washington,
In the Ninth Circuit, a plaintiff bears the burden of establishing jurisdictional facts, although the plaintiff’s burden may vary according to the nature of the proceeding and the type of evidence the Court permits the plaintiff to present.
Data Disc,
A. General Jurisdiction
Plaintiffs failed to meet their burden in demonstrating general jurisdiction over any defendant. A defendant may be haled into a forum state’s courts to defend against causes of action unrelated to his conduct there if his activities in the state are “substantial” or “continuous and systematic.”
Perkins v. Benguet Consolidated Mining Co.,
The evidence submitted indicates that neither the corporate defendant nor the two individual defendants maintain sufficient contacts with the State of California to support a finding of general jurisdiction. RRI is not licensed to do business in California and has no offices, agents, employees, telephone listings, bank accounts, or property within the State. . Admittedly, RRI is a user of the CRF network and presumably maintains regular communications with California users. The mere act of transmitting information through the use of interstate communication facilities is not, however, sufficient to establish jurisdiction over the sender.
Thomas P. Gonzalez v. Consejo Nacional de Produccion de Costa Rica,
B. Limited Jurisdiction
On the other hand, this Court may assert limited jurisdiction over the non-resident defendants if their activities in the forum give rise to or are related to the litigation.
Helicopteros,
1. The non-resident defendant must do some act or consummate some transaction within the forum of perform some act by which he purposefully avails himself of the privilege of conducting activities in the forum, thereby invoking the protections and benefits of its laws.
2. The claim must be one which arises out of or results from the defendant’s forum-related activities.
3. Exercise of jurisdiction must be reasonable.
Data Disc,
As Data Disc itself demonstrates, a Court may assert jurisdiction over defendants who conduct their activities outside the physical boundaries of the forum state. In Burger King, Corp. v. Rudzewicz, the Supreme Court observed:
□Jurisdiction ... may not be avoided merely because the defendant did not physically enter the forum State____ [IJt is an inescapable fact of modern commercial life that a substantial amount of business is transacted solely by mail and wire communications across state lines, thus obviating the need for physical presence within a State____ So long as a commercial actor’s efforts are “purposefully directed” toward residents of another State, we have consistently rejected the notion that an absence of physical contacts can defeat personal jurisdiction there. Keeton v. Hustler Magazine, [citations]; see also Calder v. Jones, [citations].
Burger King Corp. v. Rudzewicz,
— U.S. at-,
In
Calder v. Jones,
Burger King, Calder,
and
Keeton
each involved intentional, out-of-state conduct directed at the forum state. A defendant who purposefully directs his actions at a resident of the forum has “fair warning” that he may have to litigate there.
Keeton,
1. Communications by Mail to California Residents
In the present case, both sets of communications by defendant White subject himself and RRI to the jurisdiction of this Court. First, White contacted three California residents and allegedly employed defamatory statements to dissuade them from purchasing plaintiffs’ software. Such conduct clearly falls within the Calder-Data Disc test. White’s statements influenced the receiver’s conduct in the State of California, as in Data Disc, and caused injury there, as in Calder. Plaintiffs’ causes of action arise out of statements directed to Californians (ARCO, Gibraltar, and Southern California Gas Company) and expressly aimed at injuring California residents (plaintiffs). Given the purposeful nature of White’s conduct, he should have foreseen answering for the effects of his communications in California. See Calder, supra; World-Wide Volkswagen, supra; and Data Disc, supra. Jurisdiction based on these direct contacts is, therefore, reasonable.
2. Communications Over the CRF to Non-California Residents
a. The First Two Prongs of the Data Disc Test
This Court may also assert limited jurisdiction over defendants White and RRI as a result of the communications made through the CRF network. Defendants made tortious statements which, though directed at third persons outside California, were expressly calculated to cause injury in California.
Calder,
It is significant that defendants acted intentionally. Plaintiffs do not charge defendants with untargeted negligence, the result of which fortuitously injured plaintiffs. Rather, defendants allegedly intentionally manipulated third persons to interrupt their plans to purchase plaintiffs’ product. Although the unilateral activity
*1362
of the plaintiff or a third person cannot subject a non-resident defendant to the forum state’s jurisdiction,
see World-Wide Volkswagen, supra; Kulko v. Superior Court,
The fact that defendants directed their conduct through third parties does not insulate them from jurisdiction when it is the defendants’ own activity that creates the injury in the forum state. The recipients of White’s message acted, in a sense, as RRI’s alter ego, deflecting business away from California.
See Burger King,
— U.S. at —,
Because defendants intentionally influenced third parties to injure the California plaintiffs, defendants should have foreseen answering for the veracity of their statements and the propriety of their conduct in California. “The foreseeability that is critical to due process analysis ... is that the defendant’s conduct and connection with the forum State are such that he should reasonably anticipate being haled into court there.”
World-Wide Volkswagen,
This result finds support in a recent Fourth Circuit decision. In
Blue Ridge Bank v. Veribanc, Inc.,
Defendants argue that, although they acted intentionally, they merely responded to inquiries made through the CRF, thereby distinguishing this case from
Calder.
The conversational format, however, does not affect the jurisdictional analysis. Defendants intentionally responded to the inquiries with allegedly libelous statements and economic threats directed at plaintiffs in California. As explained above, this Court’s inquiry must focus on the defendants' actions and not the independent conduct of a third party.
Shaffer,
Not only did defendants act intentionally but, by communicating through the CRF network, they made their messages available to an audience wider than those requesting the information. Explaining the expansion of traditional notions of personal jurisdiction, the Supreme Court wrote almost thirty years ago:
Looking back over this long history of litigation a trend is clearly discernible toward expanding the permissible scope of state jurisdiction over foreign corporations and other nonresidents. In part this is attributable to the fundamental transformation of our national economy over the years. Today many commercial transactions touch two or more States and may involve parties separated by the full continent. With this increasing nationalization of commerce has come a great increase in the amount of business conducted by mail across state lines.
McGee v. International Life Insurance Co.,
b. The Third Prong of the Data Disc Test
Finally, this Court’s assertion of limited jurisdiction over the defendants in relation to their communication over the CRF satisfies the requirement of reasonableness under Data Disc. Recognizing that the courts cannot apply an objective test to determine whether the assertion of jurisdiction is reasonable under the minimum contacts analysis of International Shoe, the Ninth Circuit has identified the following seven factors which might, in a particular case, assist in assessing the reasonableness of asserting jurisdiction:
(A) the extent of the purposeful interjection into the forum state; (B) the burden on the defendant of defending in the forum; (C) the extent of conflict with the sovereignty of defendant’s state; (D) the forum state’s interest in adjudicating the dispute; (E) the most efficient judicial resolution of the controversy; (F) the importance of the forum to plaintiff’s interest in convenient and effective relief; and (G) the existence of an alternative forum.
Insurance Company of North America v. Marina Salina Cruz,
The State of California has a strong interest in protecting the rights of its injured citizens. Plaintiffs are resident corporations which felt the brunt of the harm from defendants’ out-of-state acts in California. In
Keeton
the Supreme Court recognized the interest of the State of New
*1364
Hampshire in protecting non-resident plaintiffs from the effects of defamatory statements. That interest is even stronger in a case involving resident plaintiffs.
Veribanc, 755
F.2d at 874.
See also Keeton, supra; Calder, supra.
It would be both unfair, in light of the forum-related activity, and inefficient to require plaintiffs who have suffered an economic injury as a result of defendants’ intentional conduct to sue in defendants’ home states (Nevada and Vermont) or in the three jurisdictions in which the known recipients of the CRF message reside (Washington, New York, and Canada).
Calder,
Assertion of jurisdiction does not unduly burden defendants. “Modern means of communication and transportation have tended to diminish the burden of defense of a lawsuit in a distant forum.”
Ins. Co. of North America,
In conclusion, defendants purposefully injected themselves into California through third parties. Although the defendants did not induce reliance in California itself through the CRF message, they intentionally directed the effects of their conduct into the forum, making jurisdiction in this case reasonable. Data Disc, 557 F.2d at 1288 (it may be unreasonable to subject a defendant liable for only negligent conduct having an effect in the forum state).
White’s status as an RRI employee or agent does not insulate him from jurisdiction.
Supra,
On the other hand, plaintiffs have failed to present any evidence establishing the requisite minimum contacts between the State of California and defendant Larry Martin. Plaintiffs merely allege that there is such unity of interest between Martin and defendant RRI that the parties themselves are indistinguishable. Such a bald assertion fails to satisfy the requisite prima facie showing of jurisdictional facts, required under
Data Disc, supra.
Absent any evidence of relevant conduct by Martin himself, this Court cannot assert jurisdiction over a non-resident defendant based on the activities of his employer.
Calder,
Accordingly, defendants RRI and White’s Motion to Dismiss for Lack of Personal Jurisdiction is denied, and defendant Martin’s Motion is granted.
IT IS SO ORDERED.
Notes
. UCCEL is not a defendant in this action.
. On July 23, 1985, James White sent the following message over the CRF to Wayne Holmes of Pacific Northwest Bell:
Wayne, Rescue/mvs is a program developed by Larry Feinberg and licenced [sic] to Cal. Software. Mr. Feinberg is the European R+ Licensee and under the terms of his license anything that he developes [sic] in the area of computer reliability is the property of RRI. In order to avoid this restriction Mr. Feinberg transfered the R+ license to a corporate shell and claimed this freed him to bypass terms of license agreement. [0]ur Lawyers are pursuing this matter in the court system ... If our claim is upheld then we will terminate any license issued by Cal. Software and hold the licensee and licensor financially responsible for missuse [sic] of our property____ I know that Mel Shutt went through this matter with ARCO lawyers and they advised him to stay away from tainted goods.
Wayne Holmes immediately replied:
Thanks for the warning____ I will pass on the info to our legal types. I am sure they will agree with ARCO.
. ARCO, a user of the CRF, placed the following message on the CRF system on July 30, 1985:
Wayne. I was wondering when this subject would show up here on CRF. First of all the product appears to ... work, and it looks real good. On the downside there is a definite legal dispute that the court will have to decide____ On the other side of the coin, I asked the Calif, software rep if there is any legal problems with MVS/Rescue and he said NO, as it is totally different____ I have probably said too much already so I will shut up. Mel.
. In most jurisdictions, the court's inquiry into the propriety of exercising jurisdiction in a particular case turns on two independent considerations: whether the forum’s long-arm statute confers jurisdiction over the non-resident defendants and whether such jurisdiction accords with principles of due process.
Data Disc, Inc. v. Systems Technology Associates, Inc.,
.
But see Reuber v. United States,
