FEDERICO A. MORENO, District Judge.
This suit stems from Defendants' alleged unlawful agreement to produce, broadcast, and distribute Plaintiff's telenovelas
On April 8, 2011, Plaintiff's counsel allegedly sent Defendants a letter, warning them that TV Azteca was violating Plaintiff's exclusive copyrights to the telenovelas by producing them without Plaintiff's authorization. In response, Comarex and TV Azteca produced a June 17, 2011 certified document that transferred the telenovelas' copyrights back on November 3, 1998. Attached to the Plaintiff's Amended Complaint is a Venezuelan judge's order dated July 12, 2011, determining that the certified document was false and forged. Following this exchange, agents for Plaintiff and TV Azteca allegedly met in Miami around July 2011 to discuss TV Azteca's infringement of Plaintiff's copyrights.
After this meeting, the Defendants allegedly continued to broadcast the telenovelas globally, including in the United States, in violation of Plaintiff's copyrights. Plaintiff contends that TV Azteca replicated every aspect of the telenovelas, including the same plot, sequence of events, and characters. The replicas also purportedly possessed similar dialogue, pace, mood, and tone. Plaintiff submits that the alleged conspiracy is ongoing to the present day, as evidenced by Azteca International Corporation's offering of TV Azteca's "content" of the telenovelas, at the Conference in Miami, Florida in January 2018.
Plaintiff seeks damages and injunctive relief for: (I) Copyright Infringement under the Copyright Act, 17 U.S.C. § 101, et seq.; (II) Unfair Competition under Florida law; and (III) Civil Conspiracy under Florida law. TV Azteca and Comarex move to dismiss the Amended Complaint for lack of personal jurisdiction, improper venue, forum non conveniens, and under the doctrine of judicial estoppel.
Plaintiff submits that the Court has personal jurisdiction over all of the Defendants pursuant to Florida's long-arm statute because they each committed tortious acts, or alternatively, agreed to commit tortious acts in Florida. For the following reasons, the Amended Complaint is dismissed because the Court finds that Plaintiff has not met its burden of establishing specific personal jurisdiction over TV Azteca and Comarex.
On a motion to dismiss for lack of personal jurisdiction, the court accepts as true all allegations in the complaint and decides whether the plaintiff has met its burden of establishing a prima facie case of personal jurisdiction. Stubbs v. Wyndham Nassau Resort & Crystal Palace Casino, 447 F.3d 1357, 1360 (11th Cir. 2006). "[W]here the defendant challenges the court's exercise of jurisdiction over its person, the plaintiff bears the ultimate burden of establishing that personal jurisdiction is present." Oldfield v. Pueblo De Bahia Lora, S.A., 558 F.3d 1210, 1217 (11th Cir. 2009).
When determining whether personal jurisdiction exists over a defendant, courts generally partake in a two-step analysis. Verizon Trademark Servs., LLC v. Producers, Inc., 810 F.Supp.2d 1321, 1323-25 (M.D. Fla. 2011). A court may exercise personal jurisdiction over a nonresident if: (1) the forum state's long-arm statute confers jurisdiction and (2) jurisdiction would not "offend traditional notions of fair play and substantial justice." PVC Windoors, Inc. v. Babbitbay Beach Constr., N.Y., 598 F.3d 802, 807 (11th Cir. 2010) (citation and internal quotations omitted). Courts proceed to the second step only if the long-arm statute provides for jurisdiction. Id. A court must strictly construe the long-arm statute in assessing whether a plaintiff has satisfied its burden of producing affidavits, documents, or testimony that overcome a defendant's evidence challenging personal jurisdiction. Sculptchair, Inc. v. Century Arts, Ltd., 94 F.3d 623, 627 (11th Cir. 1996) (citations omitted).
Defendants TV Azteca and Comarex argue that the Verified Amended Complaint should be dismissed because the Court lacks personal jurisdiction over them. Personal jurisdiction over a nonresident defendant requires a two-part analysis. Exhibit Icons, LLC v. XP Companies, LLC, 609 F.Supp.2d 1282, 1292 (S.D. Fla. 2009). "When jurisdiction is based on a federal question arising under a statute that is silent regarding service of process, Rule 4(e) of the Federal Rules of Civil Procedure directs us to look to the state long-arm statute in order to determine the existence of personal jurisdiction." Sculptchair, Inc., 94 F.3d at 626-27. Here, the Court's subject matter jurisdiction is based on the Copyright Act—a federal law devoid of a service of process provision.
Minimum contacts in the context of specific personal jurisdiction
In this case, TV Azteca submits the declaration
The Verified Amended Complaint alleges the following connections to Florida: (1) in December 2001, Plaintiff offered the telenovelas to TV Azteca, Comarex, and Investment Media Group during a meeting with Comarex's Vice President Marcel Vinay Jr. in Coral Gables, Florida, D.E. 32 ¶ 29; (2) on several occasions between 2001 and 2010, Fraiz attended the Conference in Coral Gables, Florida and offered the telenovelas' rights to TV Azteca, id. at ¶ 31; (3) In July 2011, Fraiz and Vinay Sr. met in Miami, Florida to discuss TV Azteca's infringement of Plaintiff's copyrights, id. at ¶ 38; (4) from 2011 to the present, TV Azteca wrongfully and intentionally produced, broadcasted, and distributed the telenovelas in the United States, id. at ¶ 42; (5) the foreign channels broadcasting the telenovelas are accessible online or on cable television in Florida, id. at ¶ 43; (6) the telenovelas broadcasted through TV Azteca's subsidiaries (including Defendant Azteca America) are available online with TV Azteca's logo and remain accessible in Florida and throughout the United States, id. at ¶ 44; and (7) Azteca International Corporation offered TV Azteca's content of the telenovelas at the Conference in Miami, Florida in January 2018, id. at 1176.
The question is whether Plaintiff's proffered events are sufficient to find that TV Azteca and Comarex committed a tortious act in Florida, thereby satisfying Florida's long-arm statute.
Florida's long-arm statute is not satisfied because Plaintiff has failed to meet its burden of establishing specific personal jurisdiction. In applying Florida Statute 48.193(1)(a)(2), a person who commits a tortious act outside the state that results in harm within the state generally confers personal jurisdiction over the out-of-state entity. Elandia Int?, Inc. v. Ah Koy, 690 F.Supp.2d 1317, 1329 (S.D. Fla. 2010) (holding that personal jurisdiction over an out of state entity was proper because the defendant owed fiduciary duties to the plaintiff that were allegedly breached). See also Robinson, 74 F.3d at 257 (holding that the long-arm statute extends jurisdiction over a defendant who allegedly caused injury in Florida by negligently drafting and reviewing a will outside of Florida).
TV Azteca and Comarex
Instead, Plaintiff suggests that TV Azteca wrongfully broadcasted the telenovelas
Next, Plaintiff claims that "foreign channels" and "TV Azteca's subsidiaries" broadcasted the telenovelas that are accessible in Florida. D.E. 32 ¶¶ 43-44. Florida's long-arm statute surely does not contemplate impugning the alleged tortious acts of wholly unrelated entities—i.e. foreign channels—onto TV Azteca. Nor does Plaintiff cite to such authority. However, the question arises whether TV Azteca can be subject to specific personal jurisdiction because of the actions of its alleged subsidiaries.
A corporation that engages in substantial activity in a state, through a subsidiary, is subject to personal jurisdiction in Florida. Universal Caribbean Establishment v. Bard, 543 So.2d 447, 448 (Fla. 4th DCA 1989). To determine whether a foreign corporation is liable based ona subsidiary's substantial activity, the Court must consider the ownership of the subsidiary, the business activities of the subsidiary, and the financial relationship between the corporation and the subsidiary. Abramson v. Walt Disney Co., 132 F. App'x 273, 276 (11th Cir. 2005) (applying section 48.193(1)(a) of Florida's long-arm statute) (citing Meier v. Sun Intl Hotels, Ltd., 288 F.3d 1264, 1272-73 (11th Cir. 2002)). "To establish an agency relationship, the foreign corporation must exercise such control that the subsidiary's sole purpose for existence is to accomplish the aims of the foreign corporation and there is no evidence of separate interests. Evidence of operational control is not satisfied where the foreign corporation's policy statements merely establish goals for its subsidiaries and where the subsidiaries operate with a `high degree of autonomy.'" Id.
Accepting Plaintiff's factual allegations as true, Plaintiff claims that "TV Azteca's subsidiaries" broadcasted the telenovelas that are accessible in Florida. D.E. 32 ¶ 44. Plaintiff does not identify which of the subsidiaries it refers to, but the Court presumes they are Defendants Azteca International Corporation and Azteca Stations LLC, both allegedly incorporated in Delaware and conducting business in Florida. This allegation in the verified Amended Complaint, although ambiguous, is sufficient to state a prima facie case of jurisdiction under Florida's long-arm statute. However, the allegation was directly contradicted by Rafael Rodriguez Sanchez's declaration, wherein he explained that "Azteca America, a subsidiary of TV Azteca, operates completely independently from TV Azteca. Their headquarters are located in separate countries. They share no officers or directors, and have separate boards of directors." D.E. 39, Ex. A ¶ 20. Finally, Sanchez declared that "TV Azteca and Azteca America do not share accounts, or investments." Id. at ¶ 21. Sanchez's allegations are sufficient to shift the burden back to Plaintiff to produce evidence in support of jurisdiction. However, although Plaintiff's amended complaint is verified, Plaintiff did not provide testimony, or other evidence, to rebut TV Azteca's declaration as set forth in the personal jurisdiction burden-shifting framework.
The next inquiry is whether TV Azteca and Comarex are subject to specific personal jurisdiction because of the meetings that purportedly occurred in Florida. The Court finds that they are not. The Verified Amended Complaint alleges that: (a) in December 2001, Plaintiff offered the telenovelas to TV Azteca, Comarex, and Investment Media Group during a meeting with Vinay Jr. in Coral Gables, Florida, D.E. 32 at ¶ 29; (b) on several occasions between 2001 and 2010, Fraiz attended the Conference in Coral Gables, Florida and offered the telenovelas' rights to TV Azteca, id. at ¶ 31; (c) in July 2011, Fraiz and Vinay Sr. met in Miami, Florida to discuss TV Azteca's infringement of Plaintiff's copyrights, id. at ¶ 38; and (d) Defendant Azteca International Corporation offered TV Azteca's content of the telenovelas at the Conference in Miami, Florida in January 2018, id. at ¶ 76. In essence, over the span of seventeen years, the rights to the telenovelas were allegedly offered to TV Azteca and Comarex at the Conference and other non-Conference related meetings in Florida. Additionally, Plaintiff alleges that Fraiz and Vinay, Sr. met in Miami to discuss TV Azteca's alleged infringement of Plaintiff's copyrights.
Plaintiff's verified allegations regarding meetings that occurred in Florida are sufficient to state a prima facie case of jurisdiction under Florida's long-arm statute. Sanchez's declaration states that "TV Azteca never had any discussions or business dealings with Plaintiff LaTele in Florida or elsewhere." D.E. 39, Ex. A ¶ 24. Additionally, "TV Azteca representatives may travel sporadically to Florida [for the Conference and] . . . to meet with other international networks. These visits are neither constant nor methodical." Id. at ¶ 27. Importantly, Sanchez states that "Plaintiff [] did not offer the Novelas to TV Azteca . . . between 2001 and 2010." Id. at ¶ 28. Similarly, the declaration of Vinay, Jr. states that "Comarex has never had any discussions or business dealings with Plaintiff LaTele in Florida or elsewhere." D.E. 40 Ex. A 1121.
The allegations of Sanchez and Vinay Jr. are sufficient to shift the burden back to Plaintiff to produce evidence in support of jurisdiction. Because Plaintiff has failed to provide any evidence to counter TV Azteca and Comarex's allegations, Plaintiff has not met its burden of sufficiently alleging that the long-arm statute is satisfied under the theory that the meetings between the parties in Florida give rise to specific personal jurisdiction. Abramson, 132 F. App'x at 276 (stating that when a defendant has filed affidavits contesting jurisdiction, the plaintiff bears the burden of rebutting by affidavits or other sworn statements.).
Accordingly, the Amended Complaint is dismissed because Plaintiff has not met its burden of establishing specific personal jurisdiction under Florida's long-arm statute over TV Azteca and Comarex.
Assuming arguendo that Plaintiff has met its burden and its allegations satisfy Florida's long-arm statute, the next question is whether subjecting TV Azteca and Comarex to personal jurisdiction in this Court comports with the Due Process Clause. Where a forum seeks to assert specific personal jurisdiction over a nonresident defendant, due process requires the defendant to have "fair warning" that a particular activity may subject him to the jurisdiction of a foreign sovereign. Robinson, 74 F.3d at 258 (citing Burger King Corp. v. Rudzewicz, 471 U.S. 462, 472 (1985) (internal citation omitted)). This "fair warning" requirement is met if the defendant has purposefully directed his activities at the forum and the litigation results from alleged injuries that arise out of or relate to those activities. Id. (internal quotations and citations omitted). The defendant's contact with the forum state should give rise to a reasonable anticipation of being haled into court there. Id. (internal citations omitted). TV Azteca and Comarex
Even if Plaintiff had sustained its onus of rebutting TV Azteca and Comarex's declarations, Plaintiff's burden of establishing minimum contacts has not been met. At best, the alleged meetings in Florida are mere "solicitations" to sell the rights to the telenovelas or discuss remedies for the alleged infringement of said rights. Not only was a contract not memorialized, but there is no allegation that there were "negotiations of important terms." Sea Lift, Inc., 792 F.2d at 993. Thus, neither TV Azteca nor Comarex purposely availed themselves of the benefits and protections of Florida law and even if Florida's long arm-statute is met, these Defendants should be dismissed because exercising personal jurisdiction over them would violate due process. Accordingly, Defendants TV Azteca and Comarex are DISMISSED for lack of personal jurisdiction.
DONE AND ORDERED.