July 27, 2003

Zippo Test Applied re Jurisdiction in Trademark Case: Fourth Circuit

The Fourth Circuit Court of Appeals found no jurisidiction in Maryland in an alleged trademark infringement case. It applied the "sliding scale" model for applying Calder principles to cases arising from electronic commerce, first articulated in Zippo Manufacturing Co. v. Zippo Dot Com, Inc., 952 F. Supp. 1119 (W.D. Pa. 1997).

Thanks to TechLawAdvisor.com for the heads-up on this case.

Read more for court's language summarizing its decision on jurisdiction.

    "[I]t is relevant that [defendant/appellee] CPC's sites are "semi-interactive," in that they contain features that make it possible for a user to exchange information with the host computer. When a website is neither merely passive nor highly interactive, the exercise of jurisdiction is determined "by examining the level of interactivity and commercial nature of the exchange of information that occurs." See Zippo, 952 F. Supp. at 1126."

    Second, we find it pertinent that the overall content of CPC's web- site has a strongly local character.

    "In sum, when CPC set up its generally accessible, semi-interactive Internet website, it did not thereby direct electronic activity into Maryland with the manifest intent of engaging in business or other interactions within that state in particular. * * * Thus, while Maryland does have a strong interest in adjudicating disputes involving the alleged infringement of trademarks owned by resident corporations, and while we give due regard to [plaintiff/appellant] Carefirst's choice to seek relief in that state * * *, it nonetheless remains the case that CPC "could not [on the basis of its Internet activities] have `reasonably anticipate[d] being haled into [a Maryland] court.'" Young, 315 F.3d at 264 (quoting Calder, 465 U.S. at 790). Consequently, the website fails to furnish a Maryland contact adequate to support personal jurisdiction over CPC in the Maryland courts."

END

Posted by dougsimpson at July 27, 2003 01:51 PM | TrackBack
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