JANE DOE, on behalf of herself and all others similarly situated v. WEBGROUP CZECH REPUBLIC, A.S.; WGCZ HOLDING, A.S.; WGCZ LIMITED, S.R.O.; NKL ASSOCIATES, S.R.O.; TRAFFIC F, S.R.O.; GTFLIX TV, S.R.O.; FTCP, S.R.O.; VS MEDIA, INC.; HC MEDIA, S.R.O.; HC MULTIMEDIA LLC; FBP MEDIA, S.R.O.; STEPHANE MICHAEL PACAUD; DEBORAH MALORIE PACAUD; SERVERSTACK, INC.; DIGITAL OCEAN HOLDINGS, INC.; DIGITAL OCEAN, LLC, FKA Digital Ocean, Inc.
No. 22-55315
United States Court of Appeals for the Ninth Circuit
January 2, 2024
D.C. No. 2:21-cv-02428-VAP-SK. Argued and Submitted December 9, 2022 Pasadena, California.
Before: Milan D. Smith, Jr., Daniel P. Collins, and Kenneth K. Lee, Circuit Judges. Opinion by Judge Collins; Concurrence by Judge Lee.
FOR PUBLICATION
OPINION
SUMMARY*
Personal Jurisdiction
The panel reversed in part and vacated in part the district court‘s dismissal, for lack of personal jurisdiction, of claims asserted against 11 foreign-based defendants in a putative class action alleging that defendants violated federal and California law by participating in, or benefitting from, the distribution of videos on the internet that depicted the sexual abuse of Plaintiff and of other victims of childhood-sex-trafficking.
At least four of the videos depicting Plaintiff were uploaded to two pornography websites, which use English as their default language but are respectively operated by two related Czech entities, Defendants WebGroup Czech Republic, a.s. and NKL Associates, s.r.o. Both entities have their principal place of business in the Czech Republic, and neither has offices, conducts business operations, or is registered to do business in the United States. Plaintiff filed this putative class action against WGCZ, NKL, and nine additional foreign defendants (collectively, the “Foreign Defendants“), and five U.S.-based defendants.
Plaintiff contended that personal jurisdiction over the Foreign Defendants is authorized by
The panel held that the district court erred in holding that it lacked specific personal jurisdiction against WGCZ and NKL under the requisite three-part due process test because (1) Plaintiff established a prima facie case that WGCZ and NKL purposefully directed their websites at the United States, (2) her claims seek redress for harms that arise from WGCZ‘s and NKL‘s forum-related activities in targeting their websites towards the U.S. market, and (3) WGCZ and NKL failed to make a compelling showing that the exercise of personal jurisdiction would be unreasonable.
The panel therefore reversed the district court‘s dismissal of the action against WGCZ and NKL for lack of personal jurisdiction. Because the district court dismissed the remaining nine Foreign Defendants solely on the ground that there was no personal jurisdiction over WGCZ and NKL, the panel vacated the dismissal of those additional defendants. The panel instructed the district court to address on remand the remaining unresolved issues concerning whether personal jurisdiction may be asserted against those additional defendants.
Concurring, Judge Lee wrote separately to state that it would have been prudent for the district court to have ordered very limited jurisdictional discovery here, which would have tethered the district court‘s analysis more tightly onto this circuit‘s personal jurisdiction framework.
COUNSEL
Mark B. Schoeller (argued), Kevin D. Kent, and Vanessa L. Huber, Clark Hill PLC, Philadelphia, Pennsylvania; Abbas Kazerounian and Mona Amini, Kazerouni Law Group APC, Costa Mesa, California; Benjamin W. Bull, Peter A. Gentala, and Dani B. Pinter, National Center on Sexual Exploitation, Washington, D.C.; Kimberly L. Adams, Levin Papantonio Rafferty Proctor Buchanan O‘Brien Barr & Mougey PA, Pensacola, Florida; for Plaintiff-Appellant.
Derek Shaffer (argued), Quinn Emanuel Urquhart & Sullivan LLP, Washington, D.C.; Michael T. Zeller, Michael E. Williams, Diane Cafferata, and Dylan C. Bonfigli, Quinn Emanuel Urquhart & Sullivan LLP, Los Angeles, California; Victor Hao-Jan Jih, Wilson Sonsini Goodrich & Rosati Professional Corporation, Los Angeles, California; Brian M. Willen, Wilson Sonsini Goodrich & Rosati Professional Corporation, New York, New York; for Defendants-Appellees.
OPINION
COLLINS, Circuit Judge:
Plaintiff-Appellant, proceeding pseudonymously as “Jane Doe” (hereinafter,
I
A
Because the district court did not hold an evidentiary hearing on the question of personal jurisdiction and instead held that Plaintiff had failed to establish a prima facie case for personal jurisdiction against the relevant defendants, the applicable standard of review requires us to take the “uncontroverted allegations” in Plaintiff‘s complaint as true and to resolve any “conflicts between the facts contained in the parties’ affidavits” in Plaintiff‘s favor. Rio Props., Inc. v. Rio Int‘l Interlink, 284 F.3d 1007, 1019 (9th Cir. 2002). Applying those standards, we take the following facts as true.
Doe is a California resident and U.S. citizen who, at the age of 14, was a victim of sex trafficking in the United States. Specifically, while Plaintiff “was still a minor, a sex trafficker forced [Plaintiff] to participate in the creation of videos of adults raping her.” At least four such videos were uploaded to the pornography websites XVideos.com and Xnxx.com, which are “video hosting website[s], where registered users can upload adult videos” and visitors “can view those videos for free without creating an account.” While they were hosted on these websites, the videos of Plaintiff‘s abuse were viewed, shared, and downloaded multiple times, with one video being viewed more than 160,000 times. Plaintiff claims that, beginning in 2017, she contacted these two websites several times to ask them to take down these videos, but she received no response until her attorney sent a cease-and-desist letter in the fall of 2020.1 After the cease-and-desist letter was received, the videos were taken down.
Although both XVideos.com and Xnxx.com use English as their default language, the two websites are respectively operated by two related Czech entities, Defendants-Appellees WebGroup Czech Republic, a.s. (“WGCZ“) and NKL Associates, s.r.o. (“NKL“). Both entities have their principal place of business in Prague, Czech Republic, and neither entity has offices, conducts business operations, or is registered to do business in the United States. As explained in a declaration provided by the person who serves as “administrative director” for both WGCZ and NKL, Xnxx.com “is similar to xvideos.com, and it displays basically the same video content as xvideos.com but through a different interface.” XVideos.com and Xnxx.com are both hosted on servers located in the Netherlands that are operated by ServerStack, Inc. (“ServerStack“), a U.S.-based company that is wholly owned and operated by its ultimate parent company, U.S.-based DigitalOcean Holdings, Inc. (“DigitalOcean“). WGCZ and NKL also contract with ServerStack to analyze “new [video] uploads,” including for purposes of “flagging[]
In addition, WGCZ and NKL contract with various content delivery networks (“CDNs“), including U.S.-based CDN companies, that temporarily copy content from the Netherlands-based servers that host XVideos.com and Xnxx.com to additional servers, including servers in the United States. This temporary copying by CDNs helps to ensure that the websites’ “high-definition video content” will be “efficiently and reliably stream[ed]” to users who are located closer to those CDN servers, thereby providing an “uninterrupted experience.” In operating their websites, WGCZ and NKL use the services of several California-based companies, including Google, EPOCH, PayPal, and Twillio. Specifically, WGCZ and NKL contract with Google and Twillio to manage emails, and they contract with PayPal and EPOCH to manage payments in U.S. dollars to and from their users and advertisers.2 WGCZ and NKL are also the owners of several registered U.S. trademarks for XVideos.com and Xnxx.com.
Registered users who upload videos to either XVideos.com or Xnxx.com agree to similar standard “Terms of Service,” which include a provision that users will not “submit material that depicts any person under 18 years of age (or the age of majority under the laws of [their] state or jurisdiction), whether real or simulated.” After submitting suitable video verification “to prove that the content under [their] account is clearly [theirs],” registered users on XVideos.com have the option to create a “channel,” which allows them to “promote [their] brand through various ads and links” and monetize their uploaded videos.3 WGCZ “promotes and profits from these partner channels,” including channels that distributed videos of Plaintiff‘s abuse.
As of July 2021, XVideos.com “was ranked the 7th most trafficked website globally” and “the 9th most trafficked website in the United States,” and Xnxx.com “was ranked the 10th most trafficked website both in the world and in the United States.” The United States is the largest market for both XVideos.com and Xnxx.com, with each website generally drawing “between 12 and 19 percent” of its traffic from users with U.S.-based IP addresses. Although neither WGCZ nor NKL solicits video content for these two websites from particular countries or individuals, the websites’ advertising includes geographically targeted and location-based ads that are arranged by a Czech website-advertising company (Traffic F, s.r.o.) that sells ad space to third parties.
B
On March 18, 2021, Plaintiff filed this putative class action against WGCZ, NKL, and nine additional foreign defendants (collectively, the “Foreign Defendants“),4 and five U.S.-based defendants (including
First, Plaintiff asserted a claim under
Second, Plaintiff alleged that the distribution of child pornography depicting her and the class members violated the federal child pornography prohibitions in
Third, Plaintiff alleged that the defendants violated
Fourth, Plaintiff alleged that defendants were liable under California‘s statute creating a civil cause of action in favor of a person who suffers damages from the unauthorized distribution of private sexually explicit images of that person. See
The defendants filed various motions to dismiss, only one of which is at issue here. Specifically, the Foreign Defendants moved to dismiss under
The district court‘s January 13, 2022 order also dismissed the claims against the five remaining U.S.-based defendants for failure to state a claim, but the order granted leave to file a further amended complaint on or before February 15, 2022. Plaintiff, however, did not file an
II
A court may exercise personal jurisdiction over a defendant if such jurisdiction is authorized by applicable law and “the exercise of that jurisdiction does not violate federal due process.” Pebble Beach Co. v. Caddy, 453 F.3d 1151, 1154 (9th Cir. 2006). The only applicable law that Plaintiff contends authorizes personal jurisdiction over the Foreign Defendants here is
rule in this case is co-extensive
Accordingly, whether personal jurisdiction exists under
Plaintiff does not contend that the Foreign Defendants’ contacts with the United States were sufficient to give rise to “general jurisdiction,” which would allow the forum to “hear any and all claims against them.” Daimler AG v. Bauman, 571 U.S. 117, 127 (2014) (citation omitted). To support a claim of such general jurisdiction, Plaintiff would have to show that the defendant‘s contacts with the forum “are so ‘continuous and systematic’ as to render them essentially at home in the forum State.” Id. (citation omitted). Plaintiff does not assert that that high standard could be met here. “Accordingly, the sole potential basis for personal jurisdiction is specific jurisdiction” over the particular matters at issue in this lawsuit. Ayla, LLC v. Alya Skin Pty. Ltd., 11 F.4th 972, 979 (9th Cir. 2021) (emphasis added).
Specific jurisdiction may be constitutionally exercised over a non-U.S. defendant under
As we noted earlier, Plaintiff‘s argument below was that (1) personal jurisdiction existed under this test against WGCZ and NKL; and (2) the remaining nine Foreign Defendants were alter egos of WGCZ and NKL, such that the court‘s personal jurisdiction over WGCZ and NKL extended to these additional defendants. See supra at 10. The district court concluded that Plaintiff‘s first premise failed and it therefore declined to address either the merits of Plaintiff‘s alter ego
III
We conclude that the district court erred in holding that it lacked specific personal jurisdiction against WGCZ and NKL under the three-part due process test set forth above.
A
The first prong of the due process analysis examines whether the defendant either “[1] purposefully directed its activities toward the United States or [2] purposefully availed itself of the privilege of conducting business in the United States.” Ayla, 11 F.4th at 979 (simplified). Although these two standards overlap to some extent, “[w]e generally focus our inquiry on purposeful availment when the underlying claims sound in contract and on purposeful direction when they arise from alleged tortious conduct committed outside the forum.” Id.; see also Schwarzenegger v. Fred Martin Motor Co., 374 F.3d 797, 802 (9th Cir. 2004). We have held that the civil cause of action for victims of sex-trafficking in
The governing test for determining whether a defendant has purposefully directed its actions toward the forum is the so-called “‘effects’ test, derive[d] from Calder v. Jones, 465 U.S. 783 (1984).” Axiom Foods, 874 F.3d at 1069. Under that test, “[t]he defendant must have (1) committed an intentional act, (2) expressly aimed at the forum state, (3) causing harm that the defendant knows is likely to be suffered in the forum state.” Id. (citation and internal quotation marks omitted). WGCZ and NKL concede that they committed intentional acts by operating Xvideos.com and Xnxx.com, and so the first element of the Calder test is met. WGCZ and NKL contend, however, that the other two elements have not been satisfied, and we therefore address those elements in turn.
1
We conclude that Plaintiff made a sufficient prima facie showing that WGCZ‘s and NKL‘s operation of their pornography websites was “expressly aimed” at the United States. Axiom Foods, 874 F.3d at 1069 (citation omitted).
We have held that “maintenance of a passive website alone cannot satisfy the express aiming prong” of the Calder effects test. Mavrix Photo, Inc. v. Brand Techs., Inc., 647 F.3d 1218, 1229 (9th Cir. 2011) (citation omitted). However, “operating even a passive website in conjunction with ‘something more‘—conduct directly targeting the forum—is sufficient.” Id. (citation omitted). In determining whether a defendant‘s operation of a particular website has crossed the line between passively benefiting from U.S. users of its website and expressly aiming its website at such users, “we have considered several factors, including the interactivity of the defendant‘s website; the geographic scope of the
Will concerned a Japanese pornographer‘s U.S. copyright infringement claims against the defendant operators of an adult “video-hosting site based in Hong Kong.” See 47 F.4th at 919. In concluding that the defendants operated their website in a way that was expressly aimed at the United States, we emphasized that the defendants had taken two specific steps that “reduced the time it takes for the site to load in the United States.” Id. at 924. Specifically, the defendants “acquired hosting services from an American company, Gorilla Servers, with servers in Utah,” and they “purchase[d] content delivery network services for North America.” Id. at 920, 924. The use of these measures, we held, showed that the defendants “chose to have the site load faster for viewers in the United States and slower for viewers in other places around the world.” Id. at 925. Given that “[t]he time it takes for a site to load, sometimes referred to as a site‘s ‘latency,’ is critical to a website‘s success,” we held that the defendants’ adoption of measures that differentially favored the United States market was “good evidence” of the defendants’ efforts to actively appeal specifically to the United States market, as opposed to passively offering a website to the world at large. Id. at 924-25.
Here, in contrast to Will, WGCZ and NKL did not contract to host their websites on physical servers in the United States. However, they did contract with U.S.-based content delivery network services (“CDNs“) for their websites, and they did so for the conceded purpose of ensuring that “users viewing videos have [an] uninterrupted experience.” As WGCZ and NKL acknowledge, “it is not ideal to efficiently and reliably stream high-definition video content to all users over the globe without using CDNs.” According to WGCZ and NKL, its CDN providers “‘pull’ certain content from [the companies‘] servers in Amsterdam onto the CDN providers’ regional facilities based upon local user clicks and videos.” That content “is temporarily cached on, and served from, the CDN facilities and subsequently deleted.” By using U.S.-based CDNs to improve the viewing experience of persons near those CDNs, and by allowing CDN providers to pull content onto the U.S.-based CDNs’ servers to do so, WGCZ and NKL have differentially targeted U.S. visitors in a way that, under Will, constitutes express aiming at the U.S. market. See Briskin v. Shopify, Inc., 87 F.4th 404, 420 (9th Cir. 2023) (noting that, under Will, express aiming is shown when there is “some differentiation of the forum state from other locations“).
On this point, our decision in Ayla is also instructive. In Ayla, a U.S.-based beauty company sued an Australian skincare company for trademark infringement and related torts. 11 F.4th at 976–77. In holding that the Australian defendant was subject to personal jurisdiction in the United
In arguing for a contrary conclusion, WGCZ and NKL rely on AMA Multimedia, in which we declined to find that a Polish pornography website had expressly aimed at the U.S. market merely by using a U.S.-based “domain name server (‘DNS‘)” company. 970 F.3d at 1205. As we explained, a DNS company “allows users to access [a website] more efficiently by translating its domain names [i.e., webpage addresses] into Internet Protocol addresses.” Id. We held that, even if the use of a U.S.-based company to perform this basic threshold step for locating a webpage resulted in faster speeds for U.S. users, such a contract for DNS services was nonetheless insufficient to show a differential “desire to appeal to the U.S. market or generate more U.S. users, as opposed to more users globally.” Id. at 1212. But unlike the mere use of a U.S.-based company in AMA Multimedia for the basic threshold step of translating webpages into IP addresses, the use of CDNs in particular locations to pull content onto local servers in those locations (including specifically the United States), and for the express purpose of improving nearby users’ viewing experience, demonstrates differential targeting of the U.S. market. See id. at 1212 n.8 (distinguishing UMG Recordings, Inc. v. Kurbanov, 963 F.3d 344, 354 (4th Cir. 2020), on the ground that, inter alia, the defendant in UMG, who was alleged to have infringed the plaintiff‘s copyrights, had “relied on U.S.-based servers” (citation omitted)).
The fact that WGCZ and NKL may have also differentially targeted other particular locations does not detract from the fact that their use of U.S.-based CDNs shows that they expressly aimed their websites at the U.S. market. Indeed, in Will, we found express aiming due to the use of U.S.-based CDNs, even though the defendant also used other CDNs in Asia. See 47 F.4th at 920, 925. Likewise, in Ayla, we held that the Australian defendant‘s use of advertising that was targeted “specifically at Americans” showed express aiming at the U.S. market, even though the defendant “addressed much of its advertising to an international or Australian audience.” Id. at 980–81. As we explained, the existence of other advertising specifically directed at other markets did “not alter the jurisdictional effect of marketing targeted specifically at the United States, the relevant forum.” Id. at 981.
Moreover, as in Will, WGCZ and NKL not only actively appealed to a U.S.-based audience, but they also “profited from an audience in that forum.” 47 F.4th at 922-23
We recognize that, as WGCZ and NKL correctly contend, Plaintiff did not make a prima facie showing that the specific advertising structure used by XVideos.com and Xnxx.com would itself be sufficient to show express aiming at the United States. In AMA Multimedia, we held that the use of a “third-party advertising company” to provide “geolocated advertisements” that are ”always directed” at whatever forum happens to be the source of that particular visit by a website user does not constitute express aiming. 970 F.3d at 1211 (emphasis in original). Put another way, AMA Multimedia held that tailoring ads to the particular geographic source of every particular user who visits a page is effectively the same as passively offering the webpage to any visitor from anywhere in the globe, and it is therefore the antithesis of differential aiming at a subset of particular locations. By contrast, we clarified in Will that, under our decision in Mavrix, an advertising structure that entails more advertising revenue based on a greater number of clicks in a particular jurisdiction shows “something more” than the mere use of generic geo-located advertising. See Will, 47 F.4th at 924 (citation omitted). Here, the record does not contain sufficient evidence to say whether WGCZ‘s and NKL‘s advertising falls on the AMA Multimedia side of the line or the Mavrix/Will side, and we therefore cannot say that the companies’ advertising, standing alone, demonstrates express aiming at the United States. However, we have already concluded that WGCZ‘s and NKL‘s use of U.S.-based CDNs to improve the viewing experience of U.S. visitors shows that WGCZ and NKL actively targeted the U.S. market. Therefore, the substantial financial success that the companies achieved from those efforts is a relevant additional factor in confirming that the companies expressly aimed their websites at the United States. As in Will, the record here shows that WGCZ and NKL “both actively appealed to and profited from an audience in that forum.” 47 F.4th at 922-23 (simplified).6
Accordingly, we conclude that WGCZ‘s and NKL‘s operation of their websites was “expressly aimed” at the United States and that this element of the Calder test for determining purposeful direction has been satisfied.
2
We turn, then, to the remaining prong of the Calder test, which asks whether WGCZ‘s and NKL‘s operation of their websites “caus[ed] harm that the defendant[s] know[] is likely to be suffered in the forum state.” Axiom Foods, 874 F.3d at 1069 (citation omitted); AMA Multimedia, 970 F.3d at 1209 (citation omitted). The answer to that question is yes.
“A defendant causes harm in a particular forum when the ‘bad acts’ that form the basis of the plaintiff‘s complaint occur in that forum.” Will, 47 F.4th at 926 (citing Mavrix, 647 F.3d at 1231). Here, the harm on which Plaintiff‘s complaint is based is the publication of videos of her childhood sexual abuse on WGCZ‘s and NKL‘s websites. At least one of those videos attracted more than 160,000 views worldwide before it was taken down in response to a cease-and-desist letter from Plaintiff‘s attorney. And given that between 12% and 19% of the relevant websites’ users are in the United States, it is clear that a substantial volume of the widespread publication of the videos of Plaintiff‘s abuse occurred in the United States. These facts more than suffice to bring this case squarely within the rule that, where “a Defendant‘s actions cause harm in multiple fora, jurisdiction is proper in any forum where a ‘sufficient’ amount of harm occurs, even if that amounts to only a small percentage of the overall harm caused.” Id. (citing Yahoo! Inc. v. La Ligue Contre Le Racisme Et L‘Antisemitisme, 433 F.3d 1199, 1207 (9th Cir. 2006) (en banc)). Indeed, in Will, we held that sufficient publication-related harms (i.e., copyright infringement) had been suffered in the United States when U.S. viewers made up only 4.6% of the viewership of a foreign website. Id. at 926–27; see also Keeton v. Hustler Mag., Inc., 465 U.S. 770, 780–81 (1984) (holding that jurisdiction was proper in New Hampshire for publication-based defamation torts, even though the defendant magazine publisher sold most of its magazines elsewhere and that, as a result, “the bulk of the harm done to [the plaintiff] occurred outside New Hampshire“); see also Keeton v. Hustler Mag., Inc., 682 F.2d 33, 33 (1st Cir. 1982) (noting, in the decision subsequently reviewed by the Supreme Court, that the percentage of the defendant‘s magazines that were sold in New Hampshire was “less than one percent“).
Moreover, this U.S.-based publication harm was clearly foreseeable, given the facts described earlier concerning WGCZ‘s and NKL‘s targeting of the U.S. market and the inferences that may reasonably be drawn in Plaintiff‘s favor. Here, as in Will, the relevant defendants “actively appealed to a U.S. audience, knew that a significant number of people in the United States were actually viewing the website[s], and were put on notice that they were hosting [the offending material] when [Plaintiff] sent them a takedown notice.” 47 F.4th at 927. Given these facts, it is “hard to see how [WGCZ and NKL] could have failed to anticipate the harm that occurred in the forum.” Id.
Because Plaintiff has met all the requirements of the Calder effects test, she has established a prima facie case that WGCZ and NKL purposefully directed their websites at the United States, and she has therefore satisfied the first prong of the due process analysis.
B
The second prong of the due process analysis requires Plaintiff to show that her claims “arise out of or relate to” WGCZ‘s and NKL‘s “contacts with the forum.” Ford Motor Co. v. Mont. Eighth Jud. Dist. Ct., 592 U.S. 351, 141 S. Ct. 1017, 1026 (2021) (citation and emphasis omitted). Where, as here, the relevant contacts with the forum consist of directing a content-sharing website at the U.S. market, we have little difficulty concluding that the Plaintiff‘s publication-based harms arise out of those forum-related activities.
C
The only remaining question concerns the third prong of the due process analysis, under which “the exercise of jurisdiction... must be reasonable.” Axiom Foods, 874 F.3d at 1068 (citation omitted). Where, as here, the plaintiff has satisfied the first two prongs, “the burden then shifts to the defendant to ‘present a compelling case’ that the exercise of jurisdiction would not be reasonable.” Id. at 1068-69 (emphasis added) (citation omitted). WGCZ and NKL have not carried that burden.
In evaluating the reasonableness of an exercise of personal jurisdiction, we “use a seven-factor balancing test that weighs“:
- the extent of the defendant‘s purposeful interjection into the forum state‘s affairs;
- the burden on the defendant of defending in the forum;
- the extent of conflict with the sovereignty of the defendant‘s state;
- the forum state‘s interest in adjudicating the dispute;
- the most efficient judicial resolution of the controversy;
- the importance of the forum to the plaintiff‘s interest in convenient and effective relief; and
- the existence of an alternative forum.
Freestream Aircraft (Bermuda) Ltd. v. Aero Law. Grp., 905 F.3d 597, 607 (9th Cir. 2018). Consideration of these factors here confirms the reasonableness of exercising personal jurisdiction over WGCZ and NKL.
As we reaffirmed in Ayla, the “purposeful interjection factor in the reasonableness analysis is ‘analogous to the purposeful direction’ prong.” 11 F.4th at 984 (quoting Sinatra v. Nat‘l Enquirer, Inc., 854 F.2d 1191, 1199 (9th Cir. 1988)). Here, WGCZ and NKL have purposely directed their websites at the U.S. market, using U.S.-based CDN service providers, and they thereby garnered substantial and financially valuable web traffic in the United States. Given these “ongoing ties to the forum,” this “factor weighs in favor of jurisdiction.” Id.
Given WGCZ‘s and NKL‘s “extensive contacts with the United States,” their argument that it would be unduly burdensome to “have to travel to the United States for court appearances is entitled to little weight.” Ayla, 11 F.4th at 984. That remains true even though, as a general matter, “litigation in a distant forum is inconvenient” and there are “‘unique burdens
Finally, we have held that the remaining factor—namely, “the existence of an alternative forum“—is relevant only when, under the other factors, a U.S. forum “is shown to be unreasonable.” Ayla, 11 F.4th at 984 (citations omitted). As we have explained, WGCZ and NKL have “not made that showing.” Id. at 985 (citation omitted).
Taking all these considerations together, we conclude that WGCZ and NKL have failed to make a compelling showing that the exercise of personal jurisdiction here would be unreasonable.
IV
For the foregoing reasons, we conclude that Plaintiff sufficiently established a prima facie case for exercising personal jurisdiction over WGCZ and NKL, and those defendants failed to show that the exercise of such jurisdiction would be unreasonable. We therefore reverse the district court‘s dismissal of this action against WGCZ and NKL for lack of personal jurisdiction. Because, as we explained earlier, the district court dismissed the remaining nine Foreign Defendants solely on the ground that there was no personal jurisdiction over WGCZ and NKL, we vacate the dismissal of those additional defendants. On remand, the district court should address the remaining unresolved issues concerning whether personal jurisdiction may be asserted against those additional defendants.
REVERSED IN PART, VACATED IN PART, and REMANDED.
LEE, Circuit Judge, concurring.
I largely agree with Judge Collins’ excellent opinion. But I write separately because it would have been prudent for the district court to have ordered very limited jurisdictional discovery here. Such discovery would have tethered the district court‘s analysis more tightly onto our circuit‘s personal jurisdiction framework.
For example, it would have helped to know the extent of WGCZ‘s and NKL‘s use of content delivery network services (CDNs) in the United States—and elsewhere around the globe—to improve the viewing experience of their users. That, in turn, would have aided us in determining whether WGCZ and NKL differentially targeted the United States and thus expressly aimed at our market. Will Co., Ltd. v. Lee, 47 F.4th 917, 922–26 (9th Cir. 2022).
