This is а declaratory judgment action in which the plaintiff seeks a determination that a patent held by the defendant is invalid, unenforceable, and not infringed. The plaintiff, Nova Biomedical Corporation, is a Massachusetts corporation located in Newton and engaged in the manufacture and sale of medical instruments. The defendant, Willi Moller, is a citizen and resident of Switzerland and owner of a sole proprietorship in Zurich, formerly known as Gebruder Moller Glasblaserei. On November 28,1979, the district court dismissed the complaint, ruling that Nova had failed to establish personal jurisdiction over Moller pursuant to Mass. Gen. Laws Ann. ch. 223A, § 3, the Massachusetts long arm statute. We reverse.
I.
The facts are undisputed. The patent in suit, which Moller acquired in 1970 from the Swiss inventor, covers an electrode capable, inter alia, of measuring potassium levels in fluids such as blood. Nova manufactures and sells a device which employs a similar electrode to perform the same function. On May 31, 1978, and again on March 16, 1979, Moller’s attorneys wrote to Nova charging it with patent infringement; the first letter demanded that Nova “cease and desist” from such infringement, while the second suggested that a “prompt response” would avoid the “need for instituting litigation.” Rather than following up on this threat, however, Moller filed a patent infringement suit on June 14, 1979, in the District of Columbia against two hospitals who had purchased the disputed electrode system from Nova. Five weeks later, Nova filed the present action for declaratory relief and for an injunction against the customer suit.
Moller’s principal contact with Massachusetts consists of a cross-licensing agreement with a Massachusetts corporation called Orion Research Incorporated, covering the patent in suit, another patent owned by Moller, and a patent owned by Orion. Although this agreement was formally consummated in March of 1979 at Orion’s headquarters in Cambridge, Massachusetts, its basic terms had been settled upon by 1976, and Orion had commenced payment of royalties the following year. In addition to granting licensing rights and specifying the level of royalty payments for each of the three patents, the agreement, inter alia, requires an exchange of quarterly reports concerning worldwide sales of the covered electrodes, permits Moller to inspect Orion’s books in Massachusetts, obligates each party to inform the other of any suspected infringement by third parties, and provides that the law of Switzerland will be controlling.
Through the first quarter of 1979, Orion had paid to Moller just under $50,000 in royalties under the second of the Moller patents covered by the agreement. By contrast, although Orion has manufactured “thousands” of the electrodes covered by the patеnt in suit, it has never paid any royalties to Moller therefor; the agreement provides that such electrodes are royalty-free to the extent they are sold by Orion to end users, as opposed to other manufacturers. Orion does, however, owe some royalties for its sale of these electrodes. It estimates that $10,000 is due, but the precise amount is disputed by the two parties. Orion’s use of the patent in suit also confers upon Moller the sеcondary benefit of a substantially royalty-free use of Orion’s patented device. The electrodes sold by Moller under the Orion cross-licensed patent — although ordinarily subject to a royalty — are royalty-free to the extent they do not exceed twenty percent of the number of elec *192 trodes sold by Orion under the patent in suit during the same accounting period. By means of this reciprocal arrangement, therefore, even those electrodes sold by Orion under the patent in suit that are nominally royalty-free provide a monetary benefit to Moller.
Of Moller’s remaining contacts with Massachusetts, the most substantial has consisted of the sale to Orion of various products and chemicals. The largest of these transactions has been Orion’s purchase in March of 1979 of over $110,000 worth of pH electrodes, approximately one-third of which had been shipped to Boston by the end of September. In addition, within the past two years, Moller has sold to Orion almost $19,000 worth of calcium ion exchanger and over $5,000 worth of sodium electrodes, connectors, and a chemical called valinomycin. All of these materials are unrelated to the electrodes covered by the patent in suit except for the chemical valinomycin, which is a component thereof. Moller and Orion have engaged in an extensivе course of correspondence, devoted primarily to negotiation of the license agreement. Moller also has visited Massachusetts twice to confer with Orion personnel and to talk with another Massachusetts company concerning unrelated business. Finally, the defendant has negotiated in Switzerland with a third Massachusetts company regarding a license under the patent in suit. Moller maintains no office, representative, salеs force, telephone, or bank account in Massachusetts and does not advertise in any publication distributed here.
II.
A preliminary observation concerning the scope of the Massachusetts long arm statute is in order. In
“Automatic” Sprinkler Corp.
v.
Seneca Foods Corp.,
G.L. c. 223A, § 3, asserts jurisdiction over the person to the constitutional limit only when some basis for jurisdiction enumerated in the statute has been established. Although presented with jurisdictional facts sufficient to survive due process scrutiny, a judge would be required to decline to exercise jurisdiction if the plaintiff was unable to satisfy at least one of the statutory prerequisites.
Good Hope Indus., Inc. v. Ryder Scott Co.,
79 Mass.Adv.Sh. 1155, - Mass. -,
In each of the cases decided by the Supreme Judicial Court under Mass.Gen.Laws Ann. ch. 223A, § 3, the applicability of one of the statute’s literal requirements was not, seriously in question and the Court’s attention was devoted to the constitutional inquiry.
See Carlson Corp. v. University of Vermont,
A court may exercise personal jurisdiction over a person, who acts directly or by an agent, as to a cause of action in law or equity arising from the person’s
(a) transacting any business in this commonwealth .
Mass.Gen.Laws Ann. ch. 223A, § 3(a). Two questions are presented: (1) whether the mailing of two letters charging patent infringement and threatening litigation constitutes the “transaction]” of “business”; and (2) whether Nova’s cause of action can be viewed as “arising from” Moller’s licensing arrangement with Orion. An affirmative answer to either will suffice to support jurisdiction.
III.
Despite the paucity of pertinent Massachusetts case law, there are severаl indications that the “transacting any business” clause should be construed broadly. First, the Supreme Judicial Court has ruled that the provision is not limited to commercial activity by the defendant, but rather “is general and applies to any purposeful acts by an individual, whether personal, private, or commercial.”
Ross v. Ross,
371
*194
Mass. 439,
Tо support its contention that the mailing of two letters charging patent infringement and threatening litigation constituted the transaction of business, Nova relies principally on
B & J Manuf. Co. v. Solar Indus., Inc.,
[Tjhere is no doubt but that the requests and threats were designed to reduce competition and thereby improve defendant’s marketing and economic position. As such, we are сonvinced that the sending of these letters did, in a very real sense, constitute a transaction of business in Minnesota.
Id. at 598. After determining that the defendant’s various contacts with the forum, when viewed together, were sufficient to satisfy due process, the court sustained jurisdiction.
*195
The court below dismissed the
B & J
decision as “not persuasive,” and the reaction of other courts has been decidedly mixed.
7
Nonetheless, although its application to the facts of that case gives us slight pаuse,
8
we think the Eighth Circuit’s rule has substantial merit in appropriate circumstances. The mailing of a letter charging patent infringement and threatening litigation is clearly a “purposeful” act by the defendant.
Ross v. Ross,
It is argued that any rule which automatically subjects a patentee to foreign jurisdiction whenever he demands recourse from an infringer would be both undesirable and unfair. The argument runs as follows. First, such a rule would discourage the giving of written notice of patent infringement and lead to the filing of suit without warning — “the blitzkreig nature of the attack being necessary to avoid vulnerability to fоreign jurisdiction.”
Conwed Corp. v. Nortene, S. A.,
We do not dispute the force of these legitimate, albeit contradictory, concerns. For two reasons, however, we do not consider them seriously threatened by the conclusion reached here. First, mailing a letter charging infringement and threatening suit is already a two-edged sword; it is well-established that such conduct creates an “actual controversy” and thus gives rise to a cause of action under the Declaratory Judgments Act, 28 U.S.C. § 2201 (1970).
E. g., Brisk Waterproofing Co. v. A. Belanger & Sons, Inc.,
More importantly, we do not hold here — nor did the court in
B & J Manufacturing
— that “sending threatening infringement letters into the forum district suffices to succumb to that district’s jurisdiction.”
Cascade Corp. v. Hiab-Foco AB,
*197
IV.
In light of the facts described — and with particular reference to Mоller’s receipt of royalties from Orion’s use of the patent in suit and the competitive positions of Nova and Orion — we conclude that Moller’s threatening infringement notices to Nova constituted a transaction of business under, section 3(a) giving rise to the present cause of action. With the requirements of both the long arm statute and due process satisfied, the district court can properly assert in personam jurisdiction over the defendant.
Nova has sought two additional forms of reliеf: an injunction against further proceedings in the District of Columbia action and a modification of a protective order issued by the district court. We prefer to let the lower court address these issues initially. Although, on the present record, this case would appear to invoke the “rebut-table presumption” recognized in
Codex Corp. v. Milgo Electronic Corp.,
Reversed and remanded.
Notes
.
Compare, e. g., Southern Machine Co. v. Mohasco Indus., Inc.,
. Despite the Court’s conclusion in
Droukas
that “the defendant’s contacts with Massachusetts were insufficient to constitute the transac
*193
tion of business in the Commonwealth so as to Come within the reach of § 3(a),”
Droukas v. Divers Training Academy, Inc.,
. By entering into the licensing agreement with Orion and visiting Massachusetts twice on related business, Molier has “purposefully availfed] [him]self of the privilege of conducting activities within the forum state, thus invoking the benefits and protections of its laws.”
Hanson v. Denckla,
Other factors relevant to the constitutional inquiry,
see, e. g., id.
at 4081;
Whittaker Corp. v. United Aircraft Corp.,
. Ross involved an action to enforce the terms of a separation agreement, in which the plaintiff successfully argued that his nonresident former wife had transacted business in the Commonwealth by using the state courts to obtain an increase in the level of support initially ordered in a divorce decree that had adopted the support provisions of the separation agreement.
. The defendant’s only contacts with Massachusetts consisted of placing an advertisement in a publicаtion distributed here, receiving the plaintiff’s telephonic order for the two marine engines, sending correspondence to the plaintiff confirming the sale, and shipping the engines from Florida to Massachusetts.
. As noted earlier,
see
note 2
supra,
although the language in
Droukas
suggested that the denial of jurisdiction was based on noncompliance with the statute, the Court later interpreted that decision as resting on constitutional grounds, adding that the defendant “might be viewed literally as having ‘transacted] . business’ in Massachusetts.
Good Hope Indus., Inc.
v.
Ryder Scott Co.,
79 Mass. Adv.Sh. 1155,-Mass.-,
. The
B & J
holding has been specifically embraced by several courts,
see Cardiac Pacemakers, Inc.
v.
Coratomic, Inc.,
. Since the products sold by the defendant in Minnesota did not include the patented item, it is not immediately apparent that “the requests and threats were designed to reduce competition and thereby improve the defendant’s marketing and economic position.”
B & J Manuf. Co. v. Solar Indus., Inc.,
. Viewing Moller’s charge of infringement in this light, of course, goes far towards resolving the second question presented as an alternative on appeal:
viz,
whether Nova’s cause of action can be regarded as “arising from” Moller’s li
*196
censing arrangement with Orion. While we express no opinion as to the reach of the “arising from” language, we note that other courts in related contexts have adopted an expansive view of this term. See, e.
g., Medtronic, Inc. v. Mine Safety Appliances Co.,
. Under the licensing agreement, Moller and Orion are obliged to inform the other of any suspected infringement by third parties. On November 22, 1977, Orion reported Nova’s alleged infringement to Moller and threatened to cease payment of royalties if the condition continued. Several months later, Orion sent to Moller’s Swiss attorney, at the latter’s request, draft infringement notices with a suggestion that they be signed by Moller and sent under his letterhead. In addition, Orion recommended a United States patent attorney to Moller at his request, obtained one of Nova’s electrodes, presumably for examination, and advised Moller of indications that Nova might be willing to settle.
. If jurisdiction over Moller were found lacking in Massachusetts, Nova could bring a declaratory judgment action against him in the District of Columbia under 35 U.S.C. § 293 (1970).
