MEMORANDUM OPINION
This is an Internet domain name 1 dispute. At this stage of the controversy, we must *1121 decide the Constitutionally permissible reach of Pennsylvania’s Long. Arm Statute, 42 Pa. C.S.A. § 5322, through cyberspace. Plaintiff Zippo Manufacturing Corporation (“Manufacturing”) has filed a five count complaint against Zippo Dot Com, Inc. (“Dot Com”) alleging trademark dilution, infringement, and false designation under the Federal Trademark Act, 15 U.S.C. §§ 1051-1127. In addition, the Complaint alleges causes of action based on state law trademark dilution under 54 Pa.C.S.A. § 1124, and seeks equitable accounting and imposition of a constructive trust. Dot Com has moved to dismiss for lack of personal jurisdiction and improper venue pursuant to Fed.R.Civ.P. 12(b)(2) and (3) or, in the alternative, to transfer the case pursuant to 28 U.S.C. § 1406(a). For the reasons set forth below, Defendant’s motion is denied.
I. BACKGROUND
The facts relevant to this motion are as follows. Manufacturing is a Pennsylvania corporation with its principal place of business in Bradford, Pennsylvania. Manufacturing makes, among other things, well known “Zippo” tobacco lighters. Dot Com is a California corporation with its principal place of business in Sunnyvale, California. Dot Com operates an Internet Web site 2 and an Internet news service and has obtained the exclusive right to use the domain names “zippo.com”, “zippo.net” and “zipponews.com” on the Internet. 3
Dot Corn’s Web site contains information about the company, advertisements and an application for its Internet news service. The news service itself consists of three levels of membership — public/free, “Original” and “Super.” Each successive level offers access to a greater number of Internet newsgroups. A customer who wants to subscribe to either the “Original” or “Super” level of service, fills out an on-line application that asks for a variety of information including the person’s name and address. Payment is made by credit card over the Internet or the telephone. The application is then processed and the subscriber is assigned a password which permits the subscriber to view and/or download Internet newsgroup messages that are stored on the Defendant’s server in California.
Dot Corn’s contacts with Pennsylvania have occurred almost exclusively over the Internet. Dot Corn’s offices, employees and Internet servers are located in California. Dot Com maintains no offices, employees or agents in Pennsylvania. Dot Corn’s advertising for its service to Pennsylvania residents involves posting information about its service on its Web page, which is accessible to Pennsylvania residents via the Internet. Defendant has approximately 140,000 paying subscribers worldwide. Approximately two percent (3,000) of those subscribers are Pennsylvania residents. These subscribers have contracted to receive Dot Corn’s service by visiting its Web site and filling out the application. Additionally, Dot Com has entered into agreements with seven Internet access providers in Pennsylvania to permit their subscribers to access Dot Corn’s news service. Two of these providers are located in the Western District of Pennsylvania.
The basis of the trademark claims is Dot Corn’s use of the word “Zippo” in the domain names it holds, in numerous locations in its Web site and in the heading of Internet newsgroup messages that have been posted by Dot Com subscribers. When an Internet user views or downloads a newsgroup message posted by a Dot Com subscriber, the word “Zippo” appears in the “Message-Id” *1122 and “Organization” sections of the heading. 4 The news message itself, containing text and/or pictures, follows. Manufacturing points out that some of the messages contain adult oriented, sexually explicit subject matter.
II. STANDARD OF REVIEW
When a defendant raises the defense of the court’s lack of personal jurisdiction, the burden falls upon the plaintiff to come forward with sufficient facts to establish that jurisdiction is proper.
Mellon Bank (East) PSFS, N.A. v. Farino,
III. DISCUSSION
A. Personal Jurisdiction
1. The Traditional Framework
Our authority to exercise personal jurisdiction in this ease is conferred by state law. Fed.R.Civ.P. 4(e);
Mellon,
Pennsylvania’s long arm jurisdiction statute is codified at 42 Pa.C.S.A. § 5322(a). The portion of the statute authorizing us to exercise jurisdiction here permits the exercise of jurisdiction over non-resident defendants upon:
(2) Contracting to supply services or things in this Commonwealth.
42 Pa.C.S.A. § 5322(a). It is undisputed that Dot Com contracted to supply Internet news services to approximately 3,000 Pennsylvania residents and also entered into agreements with seven Internet access providers in Pennsylvania. Moreover, even if Dot Corn’s conduct did not satisfy a specific provision of the statute, we would nevertheless be authorized to exercise jurisdiction to the “fullest extent allowed under the Constitution of the United States.” 42 Pa.C.S.A. § 5322(b).
The Constitutional limitations on the exercise of personal jurisdiction differ depending upon whether a court seeks to exercise general or specific jurisdiction over a non-resident defendant.
Mellon,
A three-pronged test has emerged for determining whether the exercise of specific personal jurisdiction over a non-resident defendant is appropriate: (1) the defendant must have sufficient “minimum contacts” with the forum state, (2) the claim asserted
*1123
against the defendant must arise out of those contacts, and (3) the exercise of jurisdiction must be reasonable.
Id.
The “Constitutional touchstone” of the minimum contacts analysis is embodied in the first prong, “whether the defendant purposefully established” contacts with the forum state.
Burger King Corp. v. Rudzewicz,
The “reasonableness” prong exists to protect defendants against unfairly inconvenient litigation.
World-Wide Volkswagen,
2. The Internet and Jurisdiction
In
Hanson v. Denckla,
the Supreme Court noted that “[a]s technological progress has increased the flow of commerce between States, the need for jurisdiction has undergone a similar increase.”
Hanson v. Denckla,
[I]t is an inescapable fact of modern commercial life that a substantial amount of commercial business is transacted solely by mail and wire communications across state lines, thus obviating the need for physical presence within a State in which business is conducted.
Id.
Enter the Internet, a global “‘super-network’ of over 15,000 computer networks used by over 30 million individuals, corporations, organizations, and educational institutions worldwide.”
Panavision Intern., L.P. v. Toeppen,
Traditionally, when an entity intentionally reaches beyond its boundaries to conduct business with foreign residents, the exercise of specific jurisdiction is proper.
Burger King,
In
Maritz, Inc. v. Cybergold, Inc.,
Inset Systems, Inc. v. Instruction Set,
Bensusan Restaurant Corp., v. King,
Pres-Kap, Inc. v. System One, Direct Access, Inc.,
3. Application to this Case
First, we note that this is not an Internet advertising case in the line of Inset Systems and Bensusan, supra. Dot Com has not just posted information on a Web site that is accessible to Pennsylvania residents who are connected to the Internet. This is not even an interactivity case in the line of Maritz, supra. Dot Com has done more than create an interactive Web site through which it exchanges information with Pennsylvania residents in hopes of using that information for commercial gain later. We are not being asked to determine whether Dot Corn’s Web site alone constitutes the purposeful availment of doing business in Pennsylvania. This is a “doing business over the Internet” case in the line of CompuServe, supra. We are being asked to determine whether Dot Corn’s conducting of electronic commerce with Pennsylvania residents eon *1126 stitutes the purposeful availment of doing business in Pennsylvania. We conclude that it does. Dot Com has contracted with approximately 3,000 individuals and seven Internet access providers in Pennsylvania. The intended object of these transactions has been the downloading of the electronic messages that form the basis of this suit in Pennsylvania.
We find Dot Corn’s efforts to characterize its conduct as falling short of purposeful availment of doing business in Pennsylvania wholly unpersuasive. At oral argument, Defendant repeatedly characterized its actions as merely “operating a Web site” or “advertising.” Dot Com also cites to a number of cases from this Circuit which, it claims, stand for the proposition that merely advertising in a forum, without more, is not a sufficient minimal contact. 7 This argument is misplaced. Dot Com has done more than advertise on the Internet in Pennsylvania. Defendant has sold passwords to approximately 3,000 subscribers in Pennsylvania and entered into seven contracts with Internet access providers to furnish its services to their customers in Pennsylvania.
Dot Com also contends that its contacts with Pennsylvania residents are “fortuitous” within the meaning of
World-Wide Volkswagen,
Here, Dot Com argues that its contacts with Pennsylvania residents are fortuitous because Pennsylvanians happened to find its Web site or heard about its news service elsewhere and decided to subscribe. This argument misconstrues the concept of fortuitous contacts embodied in
World-Wide Volkswagen.
Dot Corn’s contacts with Pennsylvania would be fortuitous within the meaning of
World-Wide Volkswagen
if it had no Pennsylvania subscribers and an Ohio subscriber forwarded a copy of a file he obtained from Dot Com to a friend in Pennsylvania or an Ohio subscriber brought his computer along on a trip to Pennsylvania and used it to access Dot Corn’s service. That is not the situation here. Dot Com repeatedly and consciously chose to process Pennsylvania residents’ applications and to assign them passwords. Dot Com knew that the result of these contracts would be the transmission of electronic messages into Pennsylvania. The transmission of these files was entirely within its control. Dot Com cannot maintain that these contracts are “fortuitous” or “coincidental” within the meaning of
World-Wide Volkswagen.
When a defendant makes a conscious choice to conduct business with the residents of a forum state, “it has clear notice that it is subject to suit there.”
World-Wide Volkswagen,
Next, Dot Com argues that its forum-related activities are not numerous or significant enough to create a “substantial connection” with Pennsylvania. Defendant points to the fact, that only two percent of its subscribers are Pennsylvania residents. However, the Supreme Court has made clear that even a single contact can be sufficient.
McGee,
We also conclude that the cause of action arises out of Dot Corn’s forum-related conduct in this case. The Third Circuit has stated that “a cause of action for trademark infringement occurs where the passing off occurs.”
Cottman Transmission Systems Inc. v. Martino,
In
Indianapolis Colts,
also case cited by the Third Circuit in
Cottman,
an Indiana National Football League franchise sued a Maryland Canadian Football League franchise in the Southern District of Indiana, alleging trademark infringement.
Indianapolis Colts,
In the instant case, both a significant amount of the alleged infringement and dilution, and resulting injury have occurred in Pennsylvania. The object of Dot Corn’s contracts with Pennsylvania residents is the transmission of the messages that Plaintiff claims dilute and infringe upon its trademark. When these messages are transmitted into Pennsylvania and viewed by Pennsylvania residents on their computers, there can be no question that the alleged infringement and dilution occur in Pennsylvania. Moreover, since Manufacturing is a Pennsylvania corporation, a substantial amount of the injury from the alleged wrongdoing is likely to occur in Pennsylvania. Thus, we conclude that the cause of action arises out. of Dot Corn’s forum-related activities under the authority of both Tefal and Indianapolis Colts, supra.
Finally, Dot Com argues that the exercise of jurisdiction would be unreasonable in this case. We disagree. There can be no question that Pennsylvania has a strong interest in adjudicating disputes involving the alleged infringement of trademarks owned by resident corporations. We must also give due regard to the Plaintiffs choice to seek relief in Pennsylvania.
Kulko,
B. Venue Under 28 U.S.C. § 1391
Defendant argues that, under the law of this Circuit, venue is only proper in trademark cases in the judicial district in which “a substantial part of the events or omissions
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giving rise to the claim occurred.” In support of this proposition, Defendant cites
Cottman Transmission Systems, Inc. v. Martino,
Venue in this case is governed by 28 U.S.C. § 1391(b), the relevant portion of which provides:
(b) A civil action wherein jurisdiction is not founded solely on diversity of citizenship may, except as otherwise provided by law, be brought only in (1) a judicial district where any defendant resides, if all defendants reside in the same State, (2) a judicial district in which a substantial part of the events or omissions giving rise to the claim occurred, or a substantial part of the property that is the subject of the action is situated, or (3) a judicial district in which the defendant may be found if there is no district in which the action may otherwise be brought.
28 U.S.C. § 1391(b). Subsection (e) further provides that a corporate defendant is “deemed to reside in any judicial district in which it is subject to personal jurisdiction at the time the action is commenced.” 28 U.S.C. § 1391(c). Dot Com is the only defendant in this case and it is a corporation. Thus, under the plain language of 28 U.S.C. § 1391(b)(1), our previous discussion of personal jurisdiction is dispositive of the venue issue. Contrary to Dot Corn’s contention, Cottman does not command a different result.
Cottman
involved a suit by a Pennsylvania corporation against a former Michigan franchisee and his wholly owned corporation for trademark infringement arising out of the continued use of the plaintiffs trademark after termination of the franchise agreement. The suit was brought in the Eastern District of Pennsylvania. Both defendants were Michigan residents and the corporation did business exclusively in Michigan. In the district court, the plaintiff relied exclusively on 28 U.S.C. § 1391(b)(2) to establish venue. The district court found venue proper, reasoning that a “substantial part of the events or omissions giving rise to the claim occurred” in Pennsylvania.
Cottman Transmission v. Metro Distributing,
The fact that the Third Circuit analyzed Cottman under the standard in § 1391(b)(2) does not mean that it applies to every trademark case. In fact, at oral argument, Dot Com conceded that if its reading of Cottman were the law, it would effectively render § 1391(b)(1) inapplicable to trademark cases and require the plaintiff to always satisfy § 1391(b)(2) in order to lay venue. If the Third Circuit had intended to create such a radical departure from the plain language of § 1391, it would have said so.
Since venue has been properly laid in this District, we cannot dismiss the action under 28 U.S.C. § 1406(a).
Jumara v. State Farm Inc. Co.,
IV. CONCLUSION
We conclude that this Court may appropriately exercise personal jurisdiction over the Defendant and that venue is proper in this judicial district.
Notes
. Domain names serve as a primary identifier of an Internet user.
Panavision Intern., L.P. v. Toeppen,
. A “site” is an Internet address that permits the exchange of information with a host computer. Bensusan Restaurant Corp. v. King, 937 F.Supp 295 (S.D.N.Y.1996). The "Web” or “World Wide Web” refers to the collection of sites available on the Internet. Id.
. Dot Com has registered these domain names with Network Solutions, Inc. which has contracted with the National Science Foundation to provide registration services for Internet domain names. Once a domain name is registered to one user, it may not be used by another.
. For example, a typical message heading might appear as:
Subject: subject of the message
From: name of person posting message
Date: date posted
Message-Id: identifying#@news.zippo.com
Reference: reference#
Organization: Zippo
Newsgroups: news groups to which sender has subscribed
The italicized text represents a generic description of specific information appearing in the message.
. See, generally, Robert A. Bourque and Kerry L. Konrad, Avoiding Jurisdiction Based on Internet Web Site, New York Law Journal (Dec. 10, 1996); David Bender, Emerging Personal Jurisdiction Issues on the Internet, 453 PLI/Pat 7 (1996); Comment, Richard S. Zembek, Jurisdiction and the Internet: Fundamental Fairness in the Networked World of Cyberspace, 6 Alb.L.J.Sci. & Tech. 339 (1996).
. ''Shareware” is software which a user is permitted to download and use for a trial period, after which the user is asked to pay a fee to the author for continued use.
CompuServe,
. Defendant has cited to:
Gehling v. St. George’s School of Medicine, Ltd.,
