Enterprise Rent-A-Car Co. v. StowellEnterprise Rent-A-Car Co. v. Stowell
ENTERPRISE RENT-A-CAR CO., Plaintiff,
v.
Mike STOWELL, Defendant.
United States District Court, E.D. Missouri, Eastern Division.
*1152 Robert Schultz, Schultz and Little, L.L.P., St. Louis, MO, for Enterprise Rent-A-Car Company, plaintiff.
Althea P. Johns, Law Office of Althea P. Johns, P.C., St. Louis, MO, for Mike Stowell, defendant.
MEMORANDUM AND ORDER
MUMMERT, United States Magistrate Judge.
This matter is an action filed by Enterprise Rent-A-Car ("Plaintiff"), a Missouri corporation with its principal place of business in the County of St. Louis, against Michael Stowell ("Defendant"), a California resident, seeking monetary, injunctive, and equitable relief for alleged violations of the Anticybersquatting[1] Consumer Protection Act of 1999,
Arguing that this Court[2] lacks personal jurisdiction over him, Defendant moves to dismiss pursuant to
Background
The facts relevant to a resolution of the pending motions are not in dispute.
*1153 Defendant lives part of the year in California and part in the United Kingdom. (Dep. at 5-6.) He owns several antique stores and, doing business as "UK to L.A.", imports furniture from England to Los Angeles. (Id. at 6-7, 13.) As part of his antique business, Defendant owns and operates a website, "oldpine.com." (Id. at 10.)
Plaintiff is, inter alia, in the business of providing automobile rental services to customers throughout the United States. (Compl.¶ 6.) On June 16, 1997, Plaintiff applied to the United States Patent and Trademark Office to register as its trademark the term "Virtual Car." (Id. ¶ 9.) The Office granted the application in December 1998. (Def.Ex. A.) Plaintiff alleges that it has and will continue to use the mark "Virtual Car" to identify its rental, leasing, and reservation service for automobiles and other motor vehicles. (Comp.¶ 8.)
Defendant, on the other hand, registered the term "VIRTUALCAR.COM" with InterNIC Registration Services as a domain name,[3] effective October 12, 1997. (Dep. Ex. 10.) He intended to buy and sell antique and classic cars on the "VIRTUALCAR.COM" website. (Dep. at 14.) The site was built on Defendant's computer in England. (Id. at 17.)
In June 1999, Defendant was contacted by Plaintiff's legal counsel. (Def.Ex. 2.) Counsel advised Defendant that VIRTUAL CAR was a registered trademark belonging to Plaintiff and requested that Defendant transfer all rights and ownership in the domain name to Plaintiff. (Id.) Counsel noted that, "Our research indicates that you are not currently utilizing the VIRTUALCAR.COM domain name." (Id.) In reply, Defendant's counsel noted that Defendant had registered the VIRTUALCAR.COM domain name prior to VIRTUAL CAR being registered as Plaintiff's trademark. (Def.Ex. 3.) Plaintiff's counsel countered that the date when an application is filed is the determinative factor in trademark law and, in a later letter, offered to pay Defendant $500 to reimburse him for his out-of-pocket expenses in registering the domain name. (Def.Exs.4, 5.)
Defendant shut down the website in October 2000 without having purchased or sold any cars via the site. (Dep. at 15.) He does not know how many "hits" he had on the website while it was in operation. (Id.) He sold the domain name "VIRTUALCAR.COM" in April 2000 to a company in England. (Dep.Ex. 11.) Before the sale, for a period of approximately eighteen months, Defendant's "VIRTUALCAR.COM" website had a link to "oldpine.com." (Dep. at 16.)
Discussion
The issue of personal jurisdiction and the effect of electronic commerce (e-commerce) on that legal principle has been litigated with some frequency in the past six years. See, e.g., Millennium Enterprises, Inc. v. Millennium Music, LP,
"The Internet is a decentralized, self-maintained networking system that links computers and computer networks around the world, and is capable of quickly transmitting communications." ACLU v. Reno,
In October 1997, Defendant registered as a domain name a trademark that Plaintiff applied to register as such five months before. This domain name was the name of his website for his planned business of selling and buying classic and antique cars.
"The World Wide Web [the "Web"] is a publishing forum consisting of millions of individual `Web sites' each containing information such as text, images, illustrations, video, animation or sounds provided by that site's creator." Reno,
The question before the Court is whether the publication of Defendant's website "VIRTUALCAR.COM" on the Internet establishes sufficient contact with the Eastern District of Missouri to create personal jurisdiction over Defendant.
"When personal jurisdiction is challenged, the plaintiff has the burden to show jurisdiction exists." Burlington Indus., Inc. v. Maples Indus., Inc.,
The court is guided by two primary rules when deciding whether to exercise personal jurisdiction over a nonresident defendant: first, the forum state's long-arm statute must be satisfied, and, second, due process must not be violated. Digi-Tel Holdings,
To satisfy due process, the plaintiff must show "minimum contacts" between the defendant and the forum state. International Shoe Co. v. Washington,
Before applying the due process analysis to the instant facts, however, a review of other Circuits' cases determining whether personal jurisdiction exists when the complained-of acts arose in the context of the Internet is instructional.
When asked on an interlocutory appeal to review the district court's assertion of personal jurisdiction over nonresidents, the Circuit Court of Appeals for the District of Columbia in GTE New Media Services, Inc. v. BellSouth Corp., et al., 199 *1156 F.3d 1343 (D.C.Cir.2000), cautioned that "personal jurisdiction surely cannot be based solely on the ability of District residents to access the defendants' websites, for this does not by itself show any persistent course of conduct by the defendants in this District." Id. at 1349. Comparing access to a website to being "nothing more than a telephone call by District resident to the defendants' computer servers," the Court found such contact to be insufficient to satisfy the requirements of the District's long-arm statute or of due process. Id. at 1349-50. Similarly, in Soma Med. Int'l v. Standard Chartered Bank,
The maintenance of a passive website accessible to Texas Internet users was found by the Fifth Circuit Court of Appeals in Mink v. AAAA Dev. LLC,
The maintenance of a passive website was analyzed by the Ninth Circuit Court of Appeals in Cybersell, Inc. v. Cybersell, Inc.,
In Panavision Int'l, L.P. v. Toeppen,
The Second Circuit Court of Appeals examined the question of personal jurisdiction in the context of a website in Bensusan Restaurant Corp. v. King,
The maintenance of a website on the opposite end of the spectrum from passive websites was examined by the Sixth Circuit Court of Appeals in CompuServe, Inc. v. Patterson,
Various district courts confronted with the question whether to assert personal jurisdiction over nonresident defendants who publish a website with a domain name that allegedly infringes on the plaintiff's trademark have considered where on the spectrum the website falls.
If the website is passive, personal jurisdiction is lacking. See Neogen Corp. v. Neo Gen Screening, Inc.,
In between the two opposite ends of the spectrum are interactive websites that allow the exchange of information. The district court found one such website to be the basis for personal jurisdiction in Northern Light Tech., Inc. v. Northern Lights Club,
In Uncle Sam's,
In the instant case, Defendant published and maintained a website with the domain name "VIRTUALCAR.COM" that was accessible to Missouri users of the Internet. The website included photographs of classic cars, but the user could not purchase such cars via the site or exchange information with Defendant via the site. No Missouri users contacted Defendant about buying cars and the site led to no business with a Missouri user. Exercising personal jurisdiction in this case is inconsistent with due process. To hold otherwise "would automatically result in personal jurisdiction wherever the plaintiffs *1159 principal place of business is located. That would not comport with traditional notions of what qualifies as purposeful activity invoking the benefits and protections of the forum state." Cybersell, Inc.,
Plaintiff argues, however, that Defendant did direct its activity to Missouri by attempting to sell the domain name to Plaintiff. This argument is unavailing. Unlike the cyber-pirate in the case cited by Plaintiff, Panavision Int'l,
Plaintiff has submitted evidence that a Missouri user could, for approximately 18 months, click on a link at VIRTUALCAR.COM to a website for Defendant's antique business, "oldpine.com," and on that website could exchange information with Defendant via an e-mail link. (Pl. Ex.1.) It is not "oldpine.com" that is at issue, however. And, this Court declines to find that a link to that site supports personal jurisdiction where otherwise it is lacking.
For the foregoing reasons, the Court finds that the exercise of personal jurisdiction over Defendant in this District would not satisfy due process; the Court will not, however, for the reasons set forth below, dismiss the action but will transfer it to the United States District Court for the Central District of California.
Conditional Motion to Transfer
Plaintiff requests that the Court transfer the case if it finds this District lacks personal jurisdiction over Defendant. Defendant agrees in its response that this action could have been brought initially in the United States District Court for the Central District of California.
Title
The district court of a district in which is filed a case laying venue in the wrong division or district shall dismiss, or if it be in the interest of justice, transfer such case to any district or division in which it could have been brought.
"This section is `broad enough to authorize the transfer of cases, however wrong the plaintiff may have been in filing his case as to venue, whether the court in which it was filed had personal jurisdiction over the defendants or not.'" Uncle Sam's,
Citing
*1160 Whenever a civil action is filed in a court as defined in section 610 of this title or an appeal, including a petition for review of administrative action, is noticed or filed with such a court and that court finds that there is a want of jurisdiction, the court shall, if it is in the interest of justice, transfer such action or appeal to any other such court in which the action or appeal could have been brought at the time it was filed or noticed, and the action or appeal shall proceed as if it had been filed in or noticed for the court to which it is transferred ...
The parties agree that this action could have been filed in the United States District Court for the Central District of California. The Court finds that, in the interest of justice, it is appropriate to transfer this case. See Hempstead County & Nevada County Project v. EPA,
Accordingly,
IT IS HEREBY ORDERED that Defendant's Motion to Dismiss is GRANTED in part and DENIED in part as set forth above. [Doc. 12]
IT IS FURTHER ORDERED that Plaintiffs Conditional Motion to Transfer is GRANTED. [Doc. 19]
IT IS FINALLY ORDERED that, pursuant to
ORDER OF TRANSFER
Pursuant to the Memorandum and Order entered this date and incorporated herein,
IT IS HEREBY ORDERED that this case is transferred to the United States District Court for the Central District of California.
NOTES
Notes
[1] The "deliberate, bad-faith, and abusive registration of Internet domain names in violation of the rights of trademark owners" is referred to as "cybersquatting." S.Rep. No. 106-140 (1999).
[2] The case is before the undersigned for a final disposition pursuant to the written consent of the parties. See
[3] "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 ..., which includes the domain name, identifies the file, and indicates the protocol required to access the file." America Online, Inc. v. Huang,
[4] Although establishing the quantity of users of the Internet is difficult "it was recently established that the Internet connects over 159 countries and more than 109 million users." Reno,
[5] Missouri's long arm statute,
1. Any person or firm, whether or not a citizen or resident of this state, or any corporation, who in person or through an agent does any of the acts enumerated in this section, thereby submits such person, firm, or corporation, and, if an individual, his personal representative, to the jurisdiction of the courts of this state as to any cause of action arising from the doing of any of such acts:
(1) The transaction of any business within this state;
(2) The making of any contract within this state;
(3) The commission of a tortious act within this state; ...
[6] "A hyperlink is a `highlighted text or image that, when selected by the user, permits him to view another, related Web document.'" Bensusan Restaurant,