App Dynamic Ehf v. Vignisson , 87 F. Supp. 3d 322 ( 2015 )


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  •                             UNITED STATES DISTRICT COURT
    FOR THE DISTRICT OF COLUMBIA
    APP DYNAMIC EHF,
    Plaintiff,
    v.                                          Civil Action No. 14-1504 (JEB)
    ERLING ORMAR VIGNISSON,
    Defendant.
    MEMORANDUM OPINION
    While this case arises from an otherwise commonplace business relationship gone sour,
    the parties are not the typical ones to enter this Courthouse’s doors. On one side stands Plaintiff
    App Dynamic ehf, an Icelandic computer-startup company; on the other is Defendant Erling
    Ormar Vignisson, a former employee and an Icelandic citizen living in Sweden. Their falling
    out has precipitated this suit alleging, inter alia, breach of contract, an invalid U.S. copyright
    registration, and fraud on the U.S. Copyright Office. In moving to dismiss, Defendant raises
    three different grounds for jettisoning the case: lack of personal jurisdiction, lack of subject-
    matter jurisdiction, and failure to state a claim. The Court need look no farther than the first to
    grant the Motion.
    I.      Background
    According to the Complaint, which the Court must credit at this stage, App Dynamic was
    founded by Pratik Kumar and his wife as an Icelandic computer-software-development company
    that produces applications for both Apple and Microsoft operating systems. See Compl., ¶¶ 3, 9.
    In 2008, Kumar began to develop his first application, called Remote Jr. See id., ¶¶ 10-11. The
    1
    initial version, 1.3, was released in April 2009; Kumar continued to develop the application and
    released a second version, 2.0, two months later. Id., ¶¶ 12-13.
    In August of 2009, he hired Vignisson to handle tasks related to Remote Jr., such as
    marketing, updating website content, providing customer services, and creating updated graphics
    and user-interface elements. Id., ¶ 15. A third version, 2.2, was subsequently released during
    Vignisson’s employment on November 10, 2009. Id., ¶ 22. The two men “agreed that Kumar
    would exclusively own any work created by Defendant related to Remote Jr.™ in performance
    of his duties, along with any rights, such as copyright, to those works.” Id., ¶ 15. Defendant
    would receive 20% of the profits as compensation, and this agreement was finalized with a
    handshake. Id. Such memorialization, impressively, seems to be the rule in Iceland.
    In April 2010, when Vignisson’s work performance did not meet Kumar’s standards,
    Defendant was fired. Id., ¶ 27. Kumar requested that Vignisson deliver the master graphic and
    icon files of the app in return for payment through the end of April, and the parties agreed to this
    with another good, old-fashioned handshake. Id. Defendant, however, did not turn over the
    master files and instead wrote Kumar an email claiming that he Vignisson was a copyright owner
    of Remote Jr. and demanding additional compensation. Id., ¶¶ 28-29.
    On June 16, 2011, using these master files, Vignisson registered U.S. Copyright
    Registration No. VA1-805-490 entitled “Remote Jr. – iPhone Application Design.” Id., ¶¶ 33-
    35, 43. On the registration form, Defendant claimed that he was the copyright owner, did not
    limit his claim, listed the date of first publication as the date that version 2.2 was released, and
    certified that all statements were correct. Id., ¶¶ 36-38, 42.
    On April 26, 2012, Vignisson next sent Apple a cease-and-desist letter, demanding that it
    stop the sales of Remote HD, a later version of the application that Kumar had developed. Id., ¶¶
    2
    30-31, 44. He threatened further action against the company if it did not comply and attached his
    new U.S. copyright registration. Id., ¶¶ 44-45. In March 2014, Vignisson sued Plaintiff and
    Kumar in the District Court of Reykjaness, Iceland, for allegedly infringing Defendant’s new
    U.S. copyright over Remote Jr. Id., ¶ 48. The suit was dismissed on December 17, 2014. See
    Opp., Exh. J (Verdict of the District of Reykjanes in case no. E330/2014) at 9.
    Plaintiff has responded by filing this action, which alleges the following:
    Count I: Breach of contract relating to the oral agreements wherein Defendant assigned
    copyright interests to Kumar. See Compl., ¶ 54.
    Count II: Declaratory judgment that Plaintiff is the copyright owner of the works claimed
    in U.S. Copyright Registration No. VA 1-805-490. Id., ¶ 62.
    Count III: Declaratory judgment that such U.S. copyright registration is invalid. Id., ¶¶
    65-66, 68.
    Count IV: Declaratory judgment that Defendant committed fraud upon the U.S.
    Copyright Office when he knowingly falsified material information on his application, which he
    intended the office to rely upon in granting the copyright registration. Id., ¶ 74.
    Vignisson has now filed a Motion to Dismiss. In a rather unorthodox practice, which the
    Court does not endorse, he filed three separate Memoranda supporting his Motion, one making
    each of the following arguments: (1) the Court lacks subject-matter jurisdiction under Federal
    Rule of Civil Procedure 12(b)(1); (2) it further lacks personal jurisdiction over Defendant under
    Rule 12(b)(2); and (3) Count II of the Complaint does not state a claim upon which relief may be
    granted under Rule 12(b)(6).
    3
    II.       Legal Standard
    As the Court addresses only the question of personal jurisdiction, it will articulate just
    that standard. Under Rule 12(b)(2), a defendant may move to dismiss a suit if the court lacks
    personal jurisdiction over him. Personal jurisdiction determines the court’s “authority over the
    parties . . . , so that the court’s decision will bind them.” Ruhrgas AG v. Marathon Oil Co., 
    526 U.S. 574
    , 577 (1999). The plaintiff bears the burden of establishing that such jurisdiction exists.
    See FC Inv. Grp. LC v. IFX Markets, Ltd., 
    529 F.3d 1087
    , 1091 (D.C. Cir. 2008). In deciding
    whether the plaintiff has shown a factual basis for personal jurisdiction over a defendant, the
    court resolves factual discrepancies in favor of the plaintiff. See Crane v. N.Y. Zoological
    Soc’y, 
    894 F.2d 454
    , 456 (D.C. Cir. 1990). When personal jurisdiction is challenged, “the
    district court has considerable procedural leeway in choosing a methodology for deciding the
    motion.” 5B Charles A. Wright & Arthur R. Miller et al., Federal Practice and Procedure §
    1351 (3d ed. 2004). The court may rest on the allegations in the pleadings, collect affidavits and
    other evidence, or even hold a hearing. See id.
    III.      Analysis
    In analyzing the present Motion, the Court first sets forth some general principles
    regarding personal jurisdiction and then considers the government-contacts exception. After
    concluding that it has no jurisdiction under the facts alleged, the Court subsequently addresses
    whether jurisdictional discovery is appropriate and ends by examining the consequences of a
    finding of no jurisdiction here.
    A. Personal Jurisdiction
    Personal jurisdiction may take the form of general or specific jurisdiction. General
    jurisdiction exists where a non-resident defendant maintains sufficiently systematic and
    4
    continuous contacts with the forum state, regardless of whether those contacts gave rise to the
    claim in the particular suit. See Helicopteros Nacionales de Columbia, S.A. v. Hall, 
    466 U.S. 408
    , 414-15 (1984). In this case, Plaintiff makes no allegation (in either the Complaint or its
    Opposition) that Vignisson has had any “systematic and continuous contacts” with this forum.
    This Court, therefore, cannot exercise general jurisdiction over him.
    This leaves the possibility of specific jurisdiction. “In contrast to general, all-purpose
    jurisdiction, specific jurisdiction is confined to adjudication of issues deriving from, or connected
    with, the very controversy that establishes jurisdiction.” Goodyear Dunlop Tires Operations,
    S.A. v. Brown, 
    131 S. Ct. 2846
    , 2851 (2011) (internal quotation marks omitted). In other words,
    specific jurisdiction exists where a claim arises out of the non-resident defendant’s contacts with
    the forum. See Helicopteros, 
    466 U.S. at
    414 n.8; see also United States v. Ferrara, 
    54 F.3d 825
    ,
    828 (D.C. Cir. 1995). “A plaintiff seeking to establish specific jurisdiction over a non-resident
    defendant must establish that specific jurisdiction comports with the forum’s long-arm statute
    and does not violate due process.” FC Inv. Grp., 
    529 F.3d at 1094-95
     (internal citation omitted).
    It turns out, however, that the Court need not weigh the due-process implications here
    because resolution of the jurisdictional question hinges on the District’s long-arm statute. That
    statute, which has been given an “‘expansive interpretation’” in the District of Columbia, Helmer
    v. Doletskaya, 
    393 F.3d 201
    , 205 (D.C. Cir. 2004) (citation omitted), enables a court to exercise
    personal jurisdiction over a non-resident defendant where a claim arises from his transacting any
    business in the District. See 
    D.C. Code § 13-423
    (a)(1). Plaintiff argues that Vignisson
    “transact[ed] business” here by “intentionally and fraudulently register[ing] a U.S. Copyright . . .
    with the U.S. Copyright Office located in the District of Columbia.” Compl., ¶ 6. This, App
    Dynamic concludes, subjects him to jurisdiction here.
    5
    B. Government-Contacts Exception
    Defendant does not deny that his copyright registration constitutes a “contact” with the
    District of Columbia, but he nonetheless contends that an exception to the transacting-business
    prong of the District’s long-arm statute protects him. He cites the so-called “government-
    contacts principle,” which provides that entry into the District by non-residents for the sole
    purpose of contacting federal governmental agencies cannot serve as a basis for personal
    jurisdiction. See Alkanani v. Aegis Def. Srvs. LLC, 
    976 F. Supp. 2d 13
    , 25 (D.D.C. 2014);
    Freiman v. Lazur, 
    925 F. Supp. 14
    , 24 (D.D.C. 1996) (citing Envtl. Research Int’l, Inc. v.
    Lockwood Greene Engineers, Inc., 
    355 A.2d 808
     (D.C. 1976)). This exception derives from the
    “unique character of the District as the seat of the national government,” and it recognizes that
    there is a “correlative need for unfettered access to federal departments and agencies for the
    entire national citizenry.” Envtl. Research, 
    355 A.2d at 813
    . To rule otherwise “would pose a
    threat to free public participation in government” and “would threaten to convert the District of
    Columbia into a national judicial forum.” 
    Id.
    Plaintiff rejoins that the government-contacts exception does not apply here because
    “fraudulent petitions to the federal government are not protected by the government contacts
    exception.” Opp. at 16. Although such an “exception to the exception” does exist, it is
    considerably narrower than App Dynamic believes. In fact, in its most recent articulation by the
    D.C. Court of Appeals, the fraud exception is limited to those petitions that use “the government
    as an instrumentality of fraud, and thereby cause[] unwarranted government action against
    another . . . .” Companhia Brasileira Carbureto De Calcio v. Applied Indus. Materials Corp., 
    35 A.3d 1127
    , 1134 (D.C. 2012) (Companhia II) (internal citations omitted). The background to
    this D.C.C.A. opinion may prove useful at this point.
    6
    Companhia originated as a federal action brought here by Brazilian corporations against
    American corporations based outside of the District of Columbia. See Companhia Brasileira
    Carbureto De Calcio v. Applied Indus. Materials Corp., 
    640 F. 3d 369
    , 370 (D.C. Cir. 2011)
    (Companhia I). The Brazilian plaintiffs alleged that the American defendants had submitted
    fraudulent petitions to the U.S. International Trade Commission, located here in Washington,
    which had led to the ITC’s imposing duties on the Brazilian plaintiffs’ products. 
    Id.
     The district
    court dismissed the plaintiffs’ suit for lack of personal jurisdiction under the government-
    contacts exception. 
    Id.
    On appeal, the D.C. Circuit acknowledged that the “scope of the government contacts
    exception is unsettled [ ] under the D.C. Court of Appeals’ precedent.” 
    Id. at 371-72
    . The
    Circuit also noted that since the D.C.C.A. “is of course the controlling authority for interpretation
    of D.C. law, and that court promulgated the government contacts exception,” it was “appropriate
    to certify to the D.C.C.A.” the following question:
    Under District of Columbia law, does a petition sent to a federal
    government agency in the District provide a basis for establishing
    personal jurisdiction over the petitioner when the plaintiff has
    alleged that the petition fraudulently induced unwarranted
    government action against the plaintiff?
    
    Id. at 371
    .
    The D.C.C.A. answered the certified question in the affirmative. The exception it set
    forth is a narrow one: a non-resident “who uses the government as an instrumentality of fraud,
    and thereby causes unwarranted government action against another, forfeits the protection of the
    government contacts exception.” Companhia II, 
    35 A.3d at 1134
     (emphasis added). Put another
    way, those who enter the District “to fraudulently induce unwarranted government action against
    others, and succeed in doing so,” will not “be able to avoid defending their actions in this
    7
    jurisdiction by cloaking themselves in the government contacts doctrine.” 
    Id. at 1133
    . It is
    noteworthy, for our purposes, that the D.C.C.A. emphasized the provoking of government action
    against another; it did not premise jurisdiction on the mere filing of a fraudulent petition.
    Reading the fraud exception in this circumscribed manner is in keeping with that court’s
    reasoning. In laying the foundation of the doctrine, it noted the “legitimate concern that
    recognizing a fraud exception to the government contacts principle could expose the District to
    an ‘unrelenting wave’ of litigation . . . largely negat[ing] the government contacts exception.”
    
    Id.
     at 1134 (citing Nichols, 783 F. Supp. at 243, and Companhia I, 
    640 F.3d at 373
    ). The court
    thus emphasized that “[c]ases in which this fraud exception applies should be rare indeed . . . . It
    will not be sufficient to allege that the petitioner presented an unbalanced view of the issue or
    even that he made a false statement.” 
    Id.
     In addition, “[u]nsupported allegations that a
    defendant has fraudulently induced unwarranted government action against the plaintiff will not
    be sufficient to invoke the fraud exception.” 
    Id.
     at 1134-35 (citing Nichols, 783 F. Supp. at 243-
    44).
    Courts in this district have followed this mandate, holding that the contours of this “very
    narrow fraud exception” are “crystal clear” in requiring both using the government as an
    instrumentality of fraud and thereby causing “unwarranted government action against another.”
    Morgan v. Richmond Sch. of Health and Tech., Inc., 
    857 F. Supp. 2d 104
    , 109 (D.D.C. 2012)
    (holding fraud exception to government-contacts doctrine inapplicable where no allegations that
    government agency committed any actions against plaintiff); see also Shaheen v. Smith, 
    994 F. Supp. 2d 77
    , 86 (D.D.C. 2013) (holding narrow fraud exception inapplicable because
    government agency – the SEC – did not take any action against plaintiff as result of defendants’
    actions).
    8
    App Dynamic nonetheless maintains that this case fits within the fraud exception because
    Vignisson made multiple misrepresentations to the “Copyright Office with the goal of ensuring
    that the Copyright Office issued a copyright registration to Defendant in a form that Defendant
    could use against Plaintiff.” Opp. at 18. After the Office registered Vignisson’s copyright
    application, moreover, he “began to affirmatively wield the copyright in attempts to harm
    Plaintiff and Plaintiff’s business relationships.” 
    Id. at 19
    .
    This is not enough. The fraud exception is limited to petitions to a federal government
    agency that fraudulently induce “unwarranted government action against the plaintiff.”
    Companhia II, 
    35 A.3d at 1130, 1134-35
     (emphasis added); see also Companhia I, 
    640 F.3d at 371
    . The fatal flaw here – despite Defendant’s allegedly unbecoming conduct – is that there is
    nothing in the record that suggests that the U.S. Copyright Office took any unwarranted action
    against Plaintiff. Had the Office, for example, imposed a duty upon it for the Remote HD app or
    forced Apple to stop sales of the app, this might be a different situation. In the instant case,
    however, the only actions taken against Plaintiff thus far have been by Defendant; the Copyright
    Office has done no more than register the copyright. App Dynamic’s allegation of fraud,
    therefore, does not fall within the exception announced in Companhia, and the government-
    contacts doctrine applies to bar personal jurisdiction.
    C. Jurisdictional Discovery
    Plaintiff alternatively argues that if the Court is not inclined to find personal jurisdiction,
    it should nonetheless permit jurisdictional discovery. See Opp. at 20-21. App Dynamic
    generally cites EV-Fadl v. Cent. Bank of Jordan, 
    75 F.3d 668
    , 676 (D.C. Cir. 1996), to argue that
    “[a] plaintiff faced with a motion to dismiss for lack of personal jurisdiction is entitled to
    9
    reasonable discovery, lest the defendant defeat the jurisdiction of a federal court by withholding
    information on its contacts with the forum.” 
    Id. at 676
    .
    “It is well established that the ‘district court has broad discretion in its resolution of
    [jurisdictional] discovery problems.’” FC Inv. Grp., 
    529 F.3d at 1093
     (quoting Naartex, 722
    F.2d at 788). The standard for permitting jurisdictional discovery is “quite liberal.” Diamond
    Chem. Co. v. Atofina Chems., Inc., 
    268 F. Supp. 2d 1
    , 15 (D.D.C. 2003). This Circuit has held
    that “if a party demonstrates that it can supplement its jurisdictional allegations through
    discovery, then jurisdictional discovery is justified.” GTE New Media Srvs. Inc. v. BellSouth
    Corp., 
    199 F.3d 1343
    , 1351 (D.C. Cir. 2000).
    “Although discovery should be granted freely, it can be denied when the plaintiff has
    failed to present facts that could establish jurisdiction.” Acker v. Royal Merchant Bank &
    Finance Co., No. 98-392, 
    1999 WL 1273476
    , at *5 (D.D.C. Feb. 10, 1999) (citing Caribbean
    Broad. Sys., Ltd. v. Cable & Wireless PLC, 
    148 F.3d 1080
    , 1089-90 (D.C. Cir. 1998)). “[I]n
    order to get jurisdictional discovery a plaintiff must have at least a good faith belief that such
    discovery will enable it to show that the court has personal jurisdiction over the defendant.”
    Caribbean Broad, 
    148 F.3d at 1090
    . “[M]ere conjecture or speculation” that discovery could
    lead to personal jurisdiction is insufficient for a court to permit it. See FC Inv. Grp., 
    529 F.3d at 1094
    . “Therefore, a plaintiff must include some facts about what additional discovery could
    produce.” Shaheen, 994 F. Supp. 2d at 89. “Where there is no showing of how jurisdictional
    discovery would help plaintiff discover anything new, ‘it [is] inappropriate to subject
    [defendants] to the burden and expense of discovery.’” Atlantigas Corp. v. Nisource, 
    290 F. Supp. 2d 34
    , 53 (D.D.C. 2003) (citing COMSAT Corp. v. Finshipyards S.A.M., 
    900 F. Supp. 515
    , 524 n.4 (D.D.C. 1995)).
    10
    In this case, App Dynamic contends it is entitled to discovery because “Defendant has
    traveled many times to the U.S.” Opp. at 20-21. Kumar admits, however, that he “do[es] not
    know specifically where in the U.S. [Defendant] has been, or what he has done while there.”
    Opp., Exh. A (Declaration of Pratik Kumar), ¶ 4. Vignisson responds that this hardly establishes
    a good-faith belief that, as a resident of Sweden, he “stealthily has the type of continuous and
    systematic” presence in the District necessary for general jurisdiction. See Reply at 10-11 (citing
    Alkanani, 976 F. Supp. at 21. Defendant further argues that App Dynamic has no basis to
    believe that he had other contacts with the District regarding this intellectual property – beyond
    the aforementioned communications with the Copyright Office – such that “Plaintiff’s claims can
    be said to arise out of such contacts as required for specific jurisdiction.” Id. (emphasis added).
    Additionally, Defendant submitted a second declaration acknowledging studies in Florida and
    travel to the U.S. on vacation and for conferences, but denying travel to the District of Columbia
    and visits regarding Remote Jr. See Reply, Exh. A (Second Declaration of Erling Vignisson), ¶¶
    6-8.
    Vignisson’s position carries the day since App Dynamic has not demonstrated how
    discovery would help establish jurisdiction. Plaintiff has not alleged a single potential contact or
    pointed to any fact that, if discovered, would “indicate that a court in the District of Columbia
    might . . . assert jurisdiction” over Vignisson. Caribbean Broad, 
    148 F.3d at 1089
    . Its request to
    seek “jurisdictional discovery of other, unalleged contacts between [Defendant] and the District
    of Columbia” is “based on mere conjecture or speculation.” NBC-USA Housing, Inc., Twenty-
    Six v. Donovan, 
    741 F. Supp. 2d 55
    , 61 (D.D.C. 2010) (citing FC Inv. Grp., 
    529 F.3d at 1093
    ).
    Requesting jurisdictional discovery because Plaintiff believes Defendant has traveled to this
    country “many times” does not constitute the required “detailed showing of what discovery it
    11
    wishes to conduct or what result it thinks such discovery would produce.” United States v.
    Philip Morris Inc., 
    116 F. Supp. 2d 116
    , 130 n.16 (D.D.C. 2000). Travel “many times” to this
    country includes possible travel to not only the District of Columbia, but also to 50 states and
    additional territories, spanning almost 4 million square miles.
    Plaintiff rejoins by citing GTE New Media, where the court permitted jurisdictional
    discovery even though the record before the court was “plainly inadequate,” and there was
    “absolutely no merit to [the plaintiff’s] bold claim” of jurisdiction. 
    199 F.3d at 1351-52
    .
    Such reliance is misplaced. Although the court permitted discovery despite an “inadequate”
    record, the plaintiffs there at least cited what specific information and facts they would target to
    establish jurisdiction. 
    Id. at 1349-51
    . Discovery was also permitted because there existed
    confusion regarding the actions of the parent company versus those of its subsidiaries, and
    jurisdictional discovery could help analyze which company made what contacts and where. 
    Id. at 1352
    .
    Plaintiff here, in contrast, offers no specifics of any facts that could establish jurisdiction.
    Cf., e.g., Diamond Chem., 
    268 F. Supp. 2d at 15-16
     (allowing discovery because plaintiffs
    pointed to specific activity of companies that would show managerial control, flow of funds, and
    knowledge of and participation in conspiracy); Davis v. Grant Park Nursing Home, LP, 
    639 F. Supp. 2d 60
    , 74-75 (D.D.C. 2009) (permitting jurisdictional discovery of specific documents that
    would reveal alleged exertion of control between defendant corporations); In re Fort Totten
    Metrorail Cases, 
    756 F. Supp. 2d 132
    , 138 (D.D.C. 2010) (permitting jurisdictional discovery of
    additional information on sales data and defendant’s knowledge about use of its products).
    Although Plaintiff asserts that jurisdictional discovery should be “freely given,” its
    request is insufficient and constitutes nothing more than a “speculative fishing expedition.”
    12
    Shaheen, 994 F. Supp. 2d at 89. As this Circuit recently held, “To nonetheless allow Plaintiff to
    conduct jurisdictional discovery would require this Court to construe this Circuit’s admittedly
    liberal jurisdictional discovery standard in such a way as to render it meaningless.” NBC-USA,
    
    741 F. Supp. 2d at 61
    . This Court thus declines the request.
    D. Consequences
    Although App Dynamic never raised the issue, the Court last addresses the consequences
    of its ruling. Assuming arguendo that no personal jurisdiction exists over Vignisson anywhere
    in the United States, does that mean that no U.S. court could ever review the validity of a U.S.
    Copyright Office registration procured by a fraudulent filing? As it turns out, this is the wrong
    question. The authority to invalidate or cancel Defendant’s copyright registration lies with the
    Copyright Office itself.
    The Register of Copyrights is vested with the exclusive and comprehensive authority to
    set regulations consistent with copyright statutes. See 
    17 U.S.C. § 701
    (a) (“All administrative
    functions and duties under this title, except as otherwise specified, are the responsibility of the
    Register of Copyrights . . . .”); 
    17 U.S.C. § 702
     (“The Register of Copyrights is authorized to
    establish regulations not inconsistent with law for the administration of the functions and duties
    made the responsibility of the Register under this title.”). Title 
    37 C.F.R. § 201
    , et seq. defines
    the procedures to cancel a copyright, and nowhere in those regulations is judicial cancellation
    discussed. It appears, instead, that cancellations are limited to the Copyright Office alone. See
    
    37 C.F.R. § 201.7
    (a) (“Cancellation is an action taken by the Copyright Office whereby [] the
    registration is eliminated on the ground that the registration is invalid under the applicable law
    and regulations . . . .”).
    Caselaw on this issue is scarce, but the Ninth Circuit has also held:
    13
    [T]here is an administrative process for cancellation, albeit ill-
    defined, in the Copyright Office. Referral . . . is therefore
    appropriate for the Register of Copyrights to determine to what
    extent administrative cancellation remedies are available to third
    parties who seek registration cancellation. In sum, this case
    requires the resolution of an issue within the jurisdiction of an
    administrative body exercising statutory and comprehensive
    regulatory authority over a national activity that requires
    expertise and uniformity in administration.
    Syntek Seminconductor Co., Ltd. v. Microchip Tech. Inc., 
    307 F.3d 775
    , 782 (9th Cir. 2002).
    Additionally, the Third Circuit recently held that the district court had erred in ordering a
    cancellation of a copyright registration “because there is no statutory indication whatsoever that
    courts have such authority,” and, indeed, “there is substantial indication that courts do not have
    such authority.” Brownstein v. Lindsay, 
    742 F.3d 55
    , 75 (3d Cir. 2014). The Third Circuit,
    however, did emphasize that “[t]his does not mean that courts have no place in the cancellation
    process and that aggrieved parties are without recourse to the courts”; although “courts may not
    directly cancel copyright registrations, courts have an oversight role in the administrative
    functions of the Copyright Office.” 
    Id. at 76
    . “Thus, aggrieved parties may challenge an
    unfavorable decision by the Copyright Office in a cancellation matter by challenging its decision
    in court under the APA.” 
    Id.
    The Third Circuit further noted that “[i]t goes without saying that courts are authorized to
    police copyright registrations through authorship and infringement claims” because “a
    registration does not secure or create a copyright, as a right, or guarantee success on the merits of
    a claim . . . .” 
    Id., at 76-77
    . Additionally, the court made clear, it was
    in no way holding that courts are incapable of invaliding underlying
    copyrights. While the two concepts are undoubtedly related, the
    distinction matters. Holding that federal courts have the authority
    to cancel registrations would essentially be declaring that the
    judicial branch has the authority to order a legislative branch agency
    that is not a party to the litigation to take an affirmative action . . . .
    14
    Courts have no authority to cancel copyright registrations because
    that authority resides exclusively with the Copyright Office.
    
    Id. at 77
    .
    Plaintiff may thus pursue its dispute regarding registration through the Copyright Office.
    And, of course, an Icelandic court would presumably have the authority to determine the validity
    of App Dynamic’s contract and copyright claims. Plaintiff, therefore, may seek appropriate
    relief in the proper fora should it so desire.
    IV.      Conclusion
    For the foregoing reasons, the Court grants Defendant’s Motion to Dismiss for lack of
    personal jurisdiction and denies Plaintiff’s request for jurisdictional discovery.
    /s/ James E. Boasberg
    JAMES E. BOASBERG
    United States District Judge
    Date: April 10, 2015
    15
    

Document Info

Docket Number: Civil Action No. 2014-1504

Citation Numbers: 87 F. Supp. 3d 322

Judges: Judge James E. Boasberg

Filed Date: 4/10/2015

Precedential Status: Precedential

Modified Date: 1/13/2023

Authorities (21)

Helmer, John v. Doletskaya, Elena , 393 F.3d 201 ( 2004 )

GTE New Media Services Inc. v. BellSouth Corp. , 199 F.3d 1343 ( 2000 )

Hassan El-Fadl v. Central Bank of Jordan , 75 F.3d 668 ( 1996 )

Caribbean Broadcasting System, Ltd. v. Cable & Wireless PLC , 148 F.3d 1080 ( 1998 )

Kent B. Crane v. New York Zoological Society , 894 F.2d 454 ( 1990 )

FC Investment Group LC v. IFX Markets, Ltd. , 529 F.3d 1087 ( 2008 )

In Re Fort Totten Metrorail Cases , 756 F. Supp. 2d 132 ( 2010 )

Companhia Brasileira Carbureto De Calcio—CBCC v. Applied ... , 35 A.3d 1127 ( 2012 )

Environmental Research International, Inc. v. Lockwood ... , 355 A.2d 808 ( 1976 )

Companhia Brasileira Carbureto De Calicio v. Applied ... , 640 F.3d 369 ( 2011 )

united-states-of-america-appellantcross-appellee-v-virginia-l-ferrara , 54 F.3d 825 ( 1995 )

NBC-USA HOUSING, INC. TWENTY-SIX v. Donovan , 741 F. Supp. 2d 55 ( 2010 )

Davis v. Grant Park Nursing Home LP , 639 F. Supp. 2d 60 ( 2009 )

COMSAT Corp. v. Finshipyards S.A.M. , 900 F. Supp. 515 ( 1995 )

Ruhrgas Ag v. Marathon Oil Co. , 119 S. Ct. 1563 ( 1999 )

Goodyear Dunlop Tires Operations, S. A. v. Brown , 131 S. Ct. 2846 ( 2011 )

Freiman v. Lazur , 925 F. Supp. 14 ( 1996 )

Atlantigas Corp. v. Nisource, Inc. , 290 F. Supp. 2d 34 ( 2003 )

Diamond Chemical Co. v. Atofina Chemicals, Inc. , 268 F. Supp. 2d 1 ( 2003 )

United States v. Philip Morris Inc. , 116 F. Supp. 2d 116 ( 2000 )

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