OPINION AND ORDER
This matter is before the Court on Defendant 200 Kelsey Associates, LLC’s (“200 Kelsey”) motion to dismiss pursuant to Federal Rule of Civil Procedure 12(b)(2) or, in the alternative, to dismiss in part pursuant to Federal Rule of Civil Procedure 12(b)(6) and to strike impertinent matter pursuant to Federal Rule of Civil Procedure 12(f). After examining the Complaint, 200 Kelsey’s motion to dismiss and the associated memoranda, the Court finds that the facts and legal contentions are adequately presented and oral argument would not aid in the decisional process. Fed.R.Civ.P. 78(b); E.D. Va. Loc.
I. FACTUAL HISTORY
Plaintiff People Express Airlines, Inc. d/b/a PEOPLExpress Airlines or PEOPLExpress (“PEOPLExpress”) is a Delaware Corporation with a principle place of business in Newport News, Virginia. Defendant Kelsey is a limited liability company organized under the laws of the State of New Jersey with its principal place of business in New York. The suit seeks a declaration of the parties’ rights in certain trademarks and judgment against 200 Kelsey for cybersquatting and unfair trade practices.
PEOPLExpress is a corporation that formed in the summer of 2011 with the intent to begin providing airline passenger service in Virginia under the “famous” brand and marks related to “PEOPLE EXPRESS,” including the word mark “PEOPLEXPRESS,” the combination mark “PEOPLExpress,” and a design mark depicting the profiles of two faces. The “PEOPLE EXPRESS” brand (“Brand”) and related marks (“Marks”) were previously used for passenger flight service by another company, also operating under the name PEOPLExpress, from 1981 until 1987, when that company ceased service after becoming part of another airline. Plaintiff PEOPLExpress claims no connection to the former PEOPLExpress. Plaintiff PEOPLExpress claims only that it intends to make use of the Brand and associated Marks made “famous” by the prior airline.
Plaintiff PEOPLExpress asserts that it intended to commence passenger service in the summer of 2012 and that in the summer of 2011 it began taking several actions in preparation for such service, including performing marketing and accounting studies of the Brand. PEOPLExpress claims that it has invested significant time and money in extensive preparations to use the Brand in commerce; Additionally, on September 22, 2011, PEOPLExpress filed an intent-to-use application with the U.S. Trademark Office. This application and the circumstances surrounding it give rise to the instant litigation.
Specifically, on January 18, 2012, the U.S. Trademark Office informed PEOPLExpress that it could not approve PEOPLExpress’s intent-to-use application, because 200 Kelsey already held a prior-pending intent-to-use application for the mark “PEOPLE EXPRESS,” filed on September 16, 2009. PEOPLExpress claims that 200 Kelsey’s pending intent-to-use application is the second such application that 200 Kelsey has filed with respect to the “PEOPLE EXPRESS” mark, and that 200 Kelsey filed this second application five days before the first application was to become abandoned due to 200 Kel ' sey’s failure to file a statement of use Thus, 200 Kelsey has allegedly kept the “PEOPLE EXPRESS” mark unavailable for registration since September 21, 2005, the date it filed its first intent-to-use application.
PEOPLExpress alleges that 200 Kelsey has a practice of registering trademark applications without having the intent to use the marks in commerce, and that 200 Kelsey continually extends its registrations so it may demand licenses from those, such as PEOPLExpress, who do intend to use the marks in commerce. PEOPLExpress claims that 200 Kelsey aims “to extort money” for marks it has never used and in which it has no legitimate rights. PEOPLExpress further alleges that, in addition to filing fraudulent trademark applications, 200 Kelsey registers domain names for marks in which it has no ownership or interest, and does not intend to use in any way, in an effort to “hold” the domain name. PEOPLExpress complains that, in accordance with this practice, 200 Kelsey registered the domain name www.people expressairline.com on July 26, 2005 and the domain name www.peopleexpressair. com on November 23, 2009.
Sometime after learning of 200 Kelsey’s pending intent-to-use application, PEOPLExpress contacted 200 Kelsey regarding the mark. PEOPLExpress claims that 200 Kelsey refused to consider any agreement involving its application other than a “license” of the mark to PEOPLExpress pending the resolution of such application. PEOPLExpress complains that such a license agreement is improper because it would create in 200 Kelsey controlling rights to the mark where none currently exist.
II. PROCEDURAL HISTORY
PEOPLExpress initiated the instant action on April 26, 2010, when it filed a three-count Complaint against 200 Kelsey seeking a declaratory judgment (Count I) and alleging that 200 Kelsey cyber squatted in violation of the Lanham Act (Count II) and engaged in unfair trade practices (Count III).
PEOPLExpress specifically requests that the court (1) declare that PEOPLExpress’s use of the “PEOPLE EXPRESS” mark does not infringe on the rights of 200 Kelsey; (2) declare that 200 Kelsey has no right, title, or interest in the marks or domain names involving the words PEOPLE and EXPRESS; (3) issue preliminary and permanent injunctions restraining 200 Kelsey from pursuing any existing or future trademark involving the names or logos associated with PEOPLExpress; (4) order 200 Kelsey to assign to PEOPLExpress all rights to any and all websites or domain names; and (5) order 200 Kelsey to abandon any and all trademark applications for any mark including the words “PEOPLE” and “EXPRESS” and any other mark associated with PEOPLExpress. PEOPLExpress also seeks actual and punitive damages, costs, and attorneys’ fees.
On May 18, 2012, 200 Kelsey filed its motion to dismiss and a brief supporting such motion. ECF Nos. 5-6. PEOPLExpress filed its opposition brief on June 5, 2012. ECF No. 9. 200 Kelsey filed its reply brief on June 11, 2012. ECF No. 10. Therefore, 200 Kelsey’s motion to dismiss is fully briefed and ripe for this Court’s consideration.
If the Court lacks personal jurisdiction over 200 Kelsey, dismissal of all claims is appropriate.
A. Standard of Review
Rule 12(b)(2) permits a party to request that a court dismiss an action on the ground that the court lacks personal jurisdiction over that party. Fed.R.Civ.P. 12(b)(2). When a defendant challenges the court’s personal jurisdiction over him, the plaintiff bears the burden of proving that the court possesses personal jurisdiction by a preponderance of the evidence. Mylan Labs., Inc. v. Akzo, N.V.,
When deciding the question of its jurisdiction over a party, the Court may rule “on the basis only of motion papers, supporting legal memoranda and the relevant allegations of a complaint.” Combs,
“ ‘Personal jurisdiction’ is the phrase used to express a court’s power to bring a person into its adjudicative process.” Noble Sec., Inc. v. MIZ Eng’g, Ltd.,
“[F]or a district court to assert [specific] personal jurisdiction over a nonresident defendant, two conditions must be satisfied: (1) the exercise of jurisdiction must be authorized under the [forum] state’s long arm statute; and (2) the exercise of jurisdiction must comport with the due process requirements of the Fourteenth Amendment.” Carefirst of Md., Inc. v. Carefirst Pregnancy Ctrs., Inc.,
Virginia’s long-arm statute provides that “[a] court may exercise personal jurisdiction over a person, who acts directly or by an agent, as to a cause of action arising from” a number of enumerated activities, including “[transacting any business in this Commonwealth,” and “[c]ausing tortious injury by an act or omission in this Commonwealth.” Va.Code Ann. § 8.01-328.1(A)(1) & (3). The United States Court of Appeals for the Fourth Circuit has noted that “a single act by a nonresident which amounts to ‘transacting business’ in Virginia and gives rise to a cause of action may be sufficient to confer jurisdiction upon [Virginia] courts,” even if that act is a mere contractual relationship conducted entirely out-of-state via telephone and mail. English & Smith v. Metzger,
Virginia’s long-arm statute has been determined “to extend personal jurisdiction to the extent permissible under the due process clause, [so that] the statutory inquiry merges with the constitutional inquiry.” Consulting Eng’rs Corp. v. Geometric, Ltd.,
In accordance with the above standard, the Fourth Circuit has established a three-part test for determining whether sufficient minimum contacts exist. Specifically, a district court is to consider: “ ‘(1) the extent to which the defendant purposefully availed itself of the privilege of conducting activities in the State; (2) whether the plaintiffs’ claims arise out of those activities directed at the State; and (3) whether the exercise of personal jurisdiction would be constitutionally reasonable.’” Geometric, .
B. Analysis
As a threshold matter, the Court notes that PEOPLExpress argues only that this Court may exercise specific personal jurisdiction over 200 Kelsey based on its actions with respect to the Brand, Marks, and Plaintiff PEOPLExpress. PEOPLExpress does not contend that this Court may exercise general personal jurisdiction over 200 Kelsey. On the contrary, PEOPLExpress specifically disclaims the Court’s ability to exercise such jurisdiction in its brief in opposition to the instant motion. Accordingly, the Court considers only the question of its specific jurisdiction over 200 Kelsey.
200 Kelsey argues that this Court lacks personal jurisdiction because 200 Kelsey does not have any meaningful contacts with the forum. 200 Kelsey contends that it never purposefully availed itself of the privilege of doing business in Virginia and, accordingly, that haling it into court in this forum would offend traditional notions of fair play and substantial justice. In support of its position, 200 Kelsey has submitted an affidavit from its president, Michael Reich (“Reich”). Reich certifies that 200 Kelsey does not maintain a physical presence in Virginia, does not advertise in Virginia, is not engaged in significant or long-term business activities in Virginia, has no employees or agents in Virginia, and does not have any property, bank accounts, offices, or mailing addresses in Virginia, nor any operations, locations or facilities in Virginia. ECF No. 6-2. Additionally, 200 Kelsey is not incorporated in Virginia (Comply 5) and there are no facts suggesting that 200 Kelsey has otherwise conducted business in Virginia. See ECF No. 6 at 8.
In response,
200 Kelsey replies that PEOPLExpress initiated contact with 200 Kelsey outside of Virginia and that all such contact occurred outside of Virginia. Specifically, 200 Kelsey represents that PEOPLExpress’s attorney contacted its attorney at his office in Connecticut in January 2012 to express PEOPLExpress’s interest in purchasing 200 Kelsey’s rights in the “PEOPLE EXPRESS” mark. After some communication back and forth via telephone and email, Reich met with PEOPLExpress President, Michael Morisi (“Morisi”), in New York to discuss PEOPLExpress’s interest in the mark. However, the parties could not reach an agreement and no contract was formed. 200 Kelsey argues that its response to PEOPLExpress’s interest in purchasing whatever rights it may hold in the “PEOPLE EXPRESS” mark does not constitute purposeful availment of the benefits of doing business Virginia for purposes of establishing personal jurisdiction in this forum, because 200 Kelsey did not initiate the contact, all communications occurred outside the forum, and no contract resulted with PEOPLExpress, the forum party. With respect to PEOPLExpress’s second basis for personal jurisdiction, 200 Kelsey argues that PEOPLExpress is not a trademark owner within the meaning of the Lanham Act and, therefore, 200 Kelsey’s out-of-forum activities concerning the alleged domain names are insufficient to establish personal jurisdiction over 200 Kelsey in the instant action.
As discussed above, determining whether a court can exercise personal jurisdiction over a defendant is a two-pronged inquiry, focusing both on the long-arm statute of the state in which the district court sits and due process considerations. While these two inquiries merge because Virginia’s long-arm statute extends personal jurisdiction to the extent authorized by the Due Process Clause of the Fourteenth Amendment, and the Court therefore need only conduct a constitutional analysis, see Geometric,
i. Virginia’s Long-Arm Statute
PEOPLExpress cites two subsections of Virginia’s long-arm statute in support of its argument that this Court may exercise personal jurisdiction over 200 Kelsey. In relevant part, the long-arm statute provides that:
A. A court may exercise personal jurisdiction over a person, who acts directlyor by an agent, as to a cause of action arising from the person’s:
3. Causing tortious injury by an act or omission in this Commonwealth.
4. Causing tortious injury in this Commonwealth to any person by an act or omission outside this Commonwealth if he regularly does or solicits business, or engages in any other persistent course of conduct, or derives substantial revenue from goods used or consumed or services rendered, in this Commonwealth.
Va.Code Ann. § 8.01-328.1(A)(1) & (3). In reviewing these provisions in light of the facts before it, the Court finds that neither supports the exercise of personal jurisdiction over 200 Kelsey in this case.
First, to subject a nonresident defendant to personal jurisdiction in Virginia pursuant to § 8.01—328.1(A)(3), PEOPLExpress “must allege ‘that one essential act of the alleged tort occurred in Virginia.’ ” Provident Pharm., Inc. v. Amneal Pham., LLC, No. 3:08cv393,
Personal jurisdiction over 200 Kelsey is also not properly exercised pursuant to § 8.01-328.1(A)(4). For this. provision of Virginia’s long-arm statute to confer jurisdiction, PEOPLExpress must show that (1) 200 Kelsey caused tortious injury in the Commonwealth by an act or omission outside of the Commonwealth; (2) 200 Kelsey regularly does or solicits business, or engages in any other persistent course of conduct, or derives substantial revenue from goods used or consumed or services rendered in the Commonwealth; and (3) PEOPLExpress’s cause of action arises from such conduct. See Va.Code Ann. § 8.01-328.1(A)(4). PEOPLExpress has failed to make such showing. Specifically, in arguing this Court’s personal jurisdiction over 200 Kelsey, PEOPLExpress relies solely upon allegations of an isolated demand.
Although the Court finds that the proffered subsections of Virginia’s long-arm statute do not support a finding of personal jurisdiction over 200 Kelsey in this case, it does note that another subsec
ii. Due Process Requirements
As described above, the Fourth Circuit has set forth a three-prong test for determining whether a court has personal jurisdiction over a nonresident defendant. For this Court to find that it has such jurisdiction over 200 Kelsey, it must consider (1) the extent to which 200 Kelsey purposefully availed itself of the privilege of conducting activities in Virginia; (2) whether PEOPLExpress’s claims arise out of those activities; and (3) whether this Court’s exercise of personal jurisdiction is constitutionally reasonable. See Geometric,
a. License Demand as Purposeful Availment
PEOPLExpress’s primary contention is that, by demanding that PEOPLExpress purchase a license to the “PEOPLE EXPRESS” mark, 200 Kelsey purposefully directed its activities at a resident of Virginia in a manner sufficient to give this Court personal jurisdiction over 200 Kelsey for any cause of action arising out of such contact.
PEOPLExpress is correct that “[e]ven a single contact may be sufficient to create jurisdiction when the cause of action arises out of that single contact.” Carefirst,
The unilateral activity of those who claim some relationship with a nonresident defendant cannot satisfy the requirement of contact with the forum state.... [I]t is essential in each case that there be some act by which the defendant purposefully avails itself of the privilege of conducting activities within the forum State, thus invoking the benefits and protections of its laws.
Id. (quoting Hanson v. Denckla,
The Fourth Circuit has summarized various, nonexclusive factors that district courts consider when evaluating whether a defendant has purposefully availed himself of the privileges of conducting business in the forum State. Such factors include, but are not limited to:
(1) whether the defendant maintains offices or agents in the forum state;' (2) whether the defendant owns property in the forum state; (3) whether the defendant reached into the forum state to solicit or initiate business; (4) whether the defendant deliberately engaged in significant or long-term business activities in the forum state; (5) whether the parties contractually agreed that the law of the forum state would govern disputes; (6) whether the defendant made in-person contact with the resident of the forum state in the forum state regarding the business relationship; and (7) the nature, quality and extent of the parties communications about the business being transacted.
Geometric,
The third factor likewise weighs against a finding of purposeful availment. Specifically, both PEOPLExpress and 200 Kelsey agree (although with varying degrees of emphasis), that 200 Kelsey’s license demand was in response to an inquiry initiated by PEOPLExpress after it learned of 200 Kelsey’s prior pending intent-to-use application. There are no facts before the Court suggesting that 200 Kelsey ever “reached into” Virginia to solicit or initiate business. Geometric,
This leaves the seventh and final factor, the nature, quality, and extent of the communications between PEOPLExpress and 200 Kelsey. Geometric,
For these reasons, none of the Geometric factors support a finding of purposeful availment based on the alleged license demand. Although these factors are not exclusive, the Court finds that, in viewing the facts before it as a whole and in the light most favorable to PEOPLExpress, there is simply not enough to support a finding that 200 Kelsey purposefully availed itself of the privilege of doing business in Virginia. Brief email exchanges and telephone conversations, such as those that occurred here, are, alone, “qualitatively insufficient to show purposeful availment.” Tire Eng’g & Distrib.,
b. Alleged Offer to Sell Domain Name as Purposeful Availment
In addition to its primary contention that 200 Kelsey’s license demand was sufficient to create specific personal jurisdiction over 200 Kelsey in Virginia, PEOPLExpress summarily argues that “a person who registers a trademark as a domain name and offers that domain name for sale to a trademark owner ... is subject to personal jurisdiction in the trademark owner’s domicile.” ECF No. 9 at 6 (citing Panavision Int’l, L.P. v. Toeppen,
IV. CONCLUSION
The Court finds that PEOPLExpress has failed to show that 200 Kelsey purposefully availed itself of the privilege of doing business in Virginia or otherwise purposefully directed its activities at PEOPLExpress, a resident of Virginia. Because PEOPLExpress has failed to make a prima facie showing of this first element of the jurisdictional analysis, as set forth in the Rule 12(b)(2) analysis above, the Court concludes that it does not have personal jurisdiction over 200 Kelsey in this action. As a result, the Court need not address 200 Kelsey’s alternative motions under Rules 12(b)(6) and 12(f).
For all of the foregoing reasons, 200 Kelsey’s motion to dismiss pursuant to Rule 12(b)(2) is GRANTED. While the Court finds that personal jurisdiction over 200 Kelsey wanting, it reaches no conclusion as to the substantive aspects of PEOPLExpress’s Complaint. PEOPLExpress is therefore free to take whatever action it sees fit in a more appropriate forum.
The Clerk is REQUESTED to send a copy of this Opinion and Order to counsel of record for the parties.
IT IS SO ORDERED.
Notes
. The facts recited here are drawn from Plaintiff's Complaint and are assumed true for the purpose of deciding the motion currently before the Court. They are not to be considered factual findings for any purpose other than consideration of the pending motion. See TomTom, Inc. v. AOT Sys. GmbH,
. 200 Kelsey has filed a motion to dismiss for lack of personal jurisdiction pursuant to Rule 12(b)(2). PEOPLExpress responds by arguing only that this Court has personal jurisdiction over 200 Kelsey in this action. PEOPLExpress does not argue, in the alternative, that a transfer of venue pursuant to 28 U.S.C. § 1406 is appropriate, should the Court find that it lacks such jurisdiction. Failure to raise a claim that transfer of venue is appropriate constitutes a waiver of such claim. Jensen v. Klayman,
. The Court notes that PEOPLExpress failed to plead personal jurisdiction in its Complaint and that all of PEOPLExpress's arguments in support of this Court’s jurisdiction over 200 Kelsey were raised after 200 Kelsey filed its motion to dismiss pursuant to Rule 12(b)(2).
. 200 Kelsey does not concede that a demand was made, but in ruling on personal jurisdiction, this Court "must construe all relevant pleading allegations in the light most favorable to the plaintiff....” Combs,
. PEOPLExpress characterizes such demand only as a "license” demand. Compl. V 46, ECF No. 1; see also ECF No. 9 at 4, 7. Although PEOPLExpress summarily argues that an offer to sell a domain name to a trademark owner can create jurisdiction in the trademark owner's domicile, PEOPLExpress does not allege that 200 Kelsey ever made such an offer, as the Court discusses in greater detail below.
. Although this standard requires a "substantial connection” with the forum state, it is distinct from the standard applicable to general personal jurisdiction, by which a State exercises jurisdiction over a party "in a suit not arising out of or related to the defendant’s contacts with the forum.” Burger King,
. The Court may properly consider such proffers when evaluating whether PEOPLExpress has made a prima facie showing of a sufficient jurisdictional basis to survive 200 Kelsey's challenge. See PBM Prods.,
. PEOPLExpress generally argues that 200 Kelsey was engaged in a "scheme to extort money” from PEOPLExpress. ECF No. 9 at 8. However, the only facts alleged supporting the existence of such scheme concern the alleged "license” demand. Compl. ¶ 46, ECF No. 1; see also ECF No. 9 at 4, 7. In its Complaint, PEOPLExpress alleges that, in other such schemes, 200 Kelsey registered domain names using marks that it had reserved in intent-to-use applications with the intent to extort money from others interested in such marks. Compl. ¶ 48, ECF No. 1. However, PEOPLExpress fails to allege any facts suggesting that, in this case, 200 Kelsey did anything more than register two domain names in 2005 and 2009. Nowhere does PEOPLExpress claim that 200 Kelsey subsequently offered to sell those domain names to or otherwise extort money from PEOPLExpress.
