TAURO, District Judge.
This action arises out of allegations that Defendants' websites contain material which infringes upon copyrights and trademarks owned by Plaintiff. Plaintiff brings suit for copyright infringement, unfair competition, trademark infringement, and deceptive trade practices. Presently at issue is Defendants' Motion to Dismiss the Amended Complaint [#13]. For the following reasons, Defendants' Motion to Dismiss the Amended Complaint is DENIED.
Plaintiff Berklee College of Music ("Berklee"), a Massachusetts corporation with its principal place of business in Massachusetts, is "one of the foremost education institutes for the study of music in the world."
Berklee operates a website, www.berklee.edu, which provides information to current and potential students.
The Berklee websites contain course descriptions for various music classes offered by Berklee ("Berklee Content") for which Berklee maintained a valid copyright since July 29, 2008.
Defendant Music Industry Educators, Inc. ("MIE") is a Florida corporation with its principal place of business in Florida.
In late June 2008,
The MIE websites are continuously available to Massachusetts residents.
The host server for the MIE websites is located in Florida and the back-up server is located in Illinois.
John Terrell, a Florida resident, is the majority owner, corporate officer, and president of MIE.
In September 2009, Plaintiff filed suit for copyright infringement, unfair competition, trademark infringement, and deceptive trade practices under M.G.L. c. 93A. Defendants then moved to dismiss this action for lack of personal jurisdiction and improper venue. Defendants also seek to dismiss the 93A claim on a theory of federal law preemption and failure to allege with particularity that the wrongful conduct primarily and substantially occurred in Massachusetts.
On a motion to dismiss for lack of personal jurisdiction under Fed.R.Civ.P. Rule 12(b)(2), Plaintiff ultimately bears the burden of establishing jurisdiction.
A federal court, sitting in diversity, may only exercise jurisdiction over a defendant when the requirements of both the forum's long arm statute and the Constitution are satisfied.
The relevant inquiry in this case, therefore, is whether a Massachusetts court may exercise personal jurisdiction over Defendants consistent with constitutional due process. Specifically, the Constitution requires that Defendants have sufficient minimum contacts with Massachusetts "such that maintenance of the suit does not offend `traditional notions of fair play and substantial justice.'"
Specific jurisdiction exists only where the "cause of action arises directly out of, or relates to, the defendants' forumbased contacts."
This court finds that specific jurisdiction exists as to MIE because the alleged infringing information was taken from a website located in Massachusetts, the infringing material was later transmitted back into Massachusetts, and these actions were almost certain to cause tortious injury in Massachusetts.
To begin, it is clear that the underlying claim is related to MIE's forum-state activities. The alleged infringing material was taken from Berklee's websites in Massachusetts. Also, since "injury from trademark infringement occurs within the forum in which the trademark owner is located,"
Furthermore, it is well-established that the relatedness prong is satisfied when, as is asserted here, the alleged wrong arises out of the publication of a website "continuously available to Massachusetts residents and causing tortious injury in Massachusetts."
It is also clear that Defendants purposefully availed themselves of the privilege of doing business in Massachusetts. The "threshold of purposeful availment is lower" when "the case involves torts that create causes of action in a forum state (even torts caused by acts done elsewhere)" because "the defendant's purpose may be said to be the targeting of the forum state and its residents."
In judging the reasonableness of asserting personal jurisdiction, the First Circuit considers five Gestalt factors: (1) the defendant's burden in appearing in court; (2) the forum state's interest in hearing the suit; (3) the plaintiff's convenience and interest in effective relief; (4) the judicial system's interest in obtaining the most effective resolution of the controversy; and (5) the common interests of all interested states in promoting substantive social policies.
The weight of the Gestalt factors strongly supports a finding of personal jurisdiction over MIE. First, this court need not give much consideration to MIE's burden of appearing in court in Massachusetts since MIE, through its alleged tortious conduct, knowingly assumed the risk of being required to do so.
Second, Massachusetts has an interest in protecting copyrights and trademarks belonging to corporations within the Commonwealth and in "obtaining jurisdiction over a defendant who causes tortious injury within its borders."
Third, Berklee's convenience and interest in effective relief would be best served by litigation in this forum since its "witnesses, executives, website servers, and employees are all located in Massachusetts."
Fourth, litigation in a forum where Plaintiff may readily access resources necessary to efficiently conclude the matter and bring those who misuse intellectual property to justice serves the interest of the judicial system in obtaining the most effective resolution of the controversy.
For the reasons detailed above, this court finds that personal jurisdiction exists as to MIE.
In Marks v. Polaroid Corporation, the First Circuit held that a corporate officer may be subject to personal jurisdiction based on the infringing acts of his employer if he is a "moving, active, conscious force behind the infringement."
It is clear to this court that Defendant Terrell is the force behind the alleged infringement in this case. Terrell founded MIE and was its sole corporate officer. His home address was listed as MIE's principal place of business. Today, Terrell remains president and sole corporate officer of MIE. The domain name for musicindustryeducators.com, one of the websites containing the alleged infringing material, is also registered to Terrell's home address. Since the only other employees of MIE were two individuals no more than tangentially involved in the alleged scheme, the weight of responsibility for MIE's alleged infringing actions therefore appears to fall squarely on Terrell's shoulders. Accordingly, this court finds that extending specific personal jurisdiction to Terrell is proper.
This court finds that venue is proper as to both Defendants. Venue for trademark and unfair competition cases is governed by 28 U.S.C. § 1391(b), which provides that 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...." The text of 28 U.S.C. § 1391(c) goes on to explain that, for the purposes of § 1391, "a defendant that is a corporation shall be deemed to reside in any judicial district in which it is subject to personal jurisdiction at the time the action is commenced." Thus, because this court holds specific personal jurisdiction over MIE, venue is also proper as to MIE.
Venue is also proper as to Defendant Terrell. "Courts have uniformly held that venue is proper whenever personal jurisdiction may be obtained under the applicable state long-arm statute thereby collapsing the two concepts into one."
Defendants move to dismiss the Chapter 93A deceptive trade practices claim under Fed.R.Civ.P. Rule 12(b)(6), arguing that the claim is preempted by federal law, and, alternatively, that Berklee failed to satisfy the particularity requirement for pleading by omitting a specific allegation that the wrongful conduct occurred primarily and substantially in Massachusetts.
Defendants allege, in vague terms, that Plaintiff's 93A claim is preempted by federal law. This court construes Defendants to be arguing that this claim is subject to "field" preemption.
Field preemption arises when Congress intends for federal law to "occupy the field" of regulation and for state law to not operate in that same field.
As Plaintiff argues, field preemption is not an appropriate grounds for dismissal of its 93A claim. Plaintiff's copyright allegations, which underlie the Chapter 93A claim, are not preempted by federal law in this case. Although copyright claims are generally subject to field preemption,
Defendants also argue that the Amended Complaint does not meet the requisite pleading standards. Under Fed. R.Civ.P. Rule 12(b)(6), it is incumbent upon the court to "accept the complaint's
The Amended Complaint also satisfactorily alleges the elements of a claim under M.G.L. c. 93A § 11,
For the foregoing reasons, Defendant's Motion to Dismiss Amended Complaint is DENIED.
AN ORDER HAS ISSUED.
After reviewing the Parties' submissions, this court hereby orders that Defendants' Motion to Dismiss Amended Complaint [#13] is DENIED.
IT IS SO ORDERED.