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And then, because it possesses personal jurisdiction over the first claim, asserts personal jurisdiction over the second claim.” Botefuhr , 309 F.3d at 1272. However, pendent personal jurisdiction may only be exercised if the second claim “arises out of the same nucleus of operative fact” as the first claim. Even then, however, “a district court retains discretion.” Id. at 1273. Under traditional personal jurisdiction analysis, the court must consider whether Creative Controls' website constitutes a purposeful availment of the Utah forum. By its very nature, the internet allows individuals and businesses to create a presence that is visible throughout the United States and the world. Even so, “one cannot purposefully avail oneself of ‘some forum someplace.’ ” Revell v. Lidov , 317 F.3d 467, 475 (5th Cir.2002).
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Additionally, Utah has a strong interest in the resolution of this dispute. Utah has an interest in ensuring that the copyrights owned by its citizens are not illegally infringed. Similarly, Utah has an interest in the adjudication of the unfair trade practices claims. For all of these reasons, the exercise of specific personal jurisdiction over Creative Controls is consistent with Due Process and does not violate notions of fair play and substantial justice. Kindig-It Design, a custom car shop based in Salt Lake City, Utah, filed a lawsuit against Creative Controls, Inc., a Michigan-based company that sells automotive parts and accessories, in 2014. Kindig-It Design alleged that Creative Controls had infringed on its copyrights and patents by selling products that were similar to Kindig-It Design’s products.
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At the motion to dismiss stage, Kindig need only provide factual allegations that, taken as true, indicate that Creative Controls made an offer to sell to a resident of Utah other than in the sale orchestrated by Kindig. Even viewing all well-pleaded facts in the light most favorable to Kindig, it has not satisfied its minimal burden in this regard. Under Kindig's view, every court in every state could exercise personal jurisdiction over Creative Controls simply because it maintains an interactive website. Were the court to adopt such an approach, “then the defense of personal jurisdiction, in the sense that a State has geographically limited judicial power, would no longer exist.” ALS Scan, Inc. v. Dig.
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Misunderstanding as to the source, sponsorship, approval, or certification of [the] goods.” Robert J. Debry & Assocs., P.C. V. Qwest Dex, Inc. , 144 P.3d 1079, 1081 (Utah 2006) (quoting Utah Code § 13–11a–3(1)(b) (2006) ). A. Kindig has sufficiently plead its claims for copyright infringement. The traditional tests for personal jurisdiction are readily applicable to internet-based conduct and are therefore controlling under Federal Circuit law.
I. The Court May Exercise Specific Personal Jurisdiction Over Creative Controls for Only Some of Kindig's Claims
In recent years, the world of automotive customization has gained significant popularity, with enthusiasts seeking to transform their vehicles into unique works of art. One prominent figure in this industry is Dave Kindig, the founder of Kindig-It Design. However, even in this creative realm, legal disputes can arise. This article delves into the details of the “Kindig It lawsuit,” exploring the events, controversies, and outcomes surrounding this legal battle. In Kindig-It, the plaintiff filed suit in Utah asserting that the defendant, a Michigan corporation with no physical presence in Utah, had infringed its patents by selling auto parts. Kindig alleges that Creative Controls operates websites that contain copyrighted photographs illegally copied from Kindig's website.
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Having determined that the court's jurisdiction is limited to the Copyright-Related Claims, the court will only consider the Rule 12 motion to dismiss as it relates to those claims. 2) The illegal copying of photographs on Kindig's Utah website gives rise to personal jurisdiction over Creative Controls on all claims related to the alleged copying. As explained above, Tenth Circuit law governs the question of this court's personal jurisdiction for claims unrelated to the patents.
Given the amount in controversy in this case and the limited scope of the sole remaining issue of damages, the court concludes that the additional information requested was not proportional to the needs of the case. The Kindig It lawsuit served as a cautionary tale for both businesses and clients in the automotive customization industry. It highlighted the importance of clear communication, well-defined contracts, and managing customer expectations. Industry professionals and enthusiasts alike could draw valuable insights from this legal battle to prevent similar disputes in the future. 2174, 85 L.Ed.2d 528 (1985) (internal quotation marks omitted) (quoting World – Wide Volkswagen , 444 U.S. at 292, 100 S.Ct. 580 ). The traditional tests are readily adaptable to the digital age, just as they were to technological advances like the telegraph, radio, television, and telephone.
Kindig argues that the court has personal jurisdiction over Creative Controls for the patent-related claims because Creative Controls has an interactive website. It asserts that this website “clearly evidences [Creative Controls'] intent to do business in the State of Utah” and that the website constitutes an offer to sell in Utah. Creative Controls responds that it has made no sales to Utah residents, with the exception of the sale to a party related to Kindig, and that there is no evidence that any other Utah resident has ever viewed the website.
We’ll also analyze the arguments presented by both parties and the strategies employed by their legal representatives. The lawsuit was settled in 2016, with Creative Controls agreeing to pay Kindig-It Design an undisclosed sum of money and to stop selling the infringing products. The court is puzzled by how Creative Controls can claim to be unable to determine which photographs form the basis of the copyright claims and yet allege that the images of the handles in those photographs are too small to influence any consumer. Creative Controls argues that Kindig's false advertising claim and deceptive trade practices claim (claims 5 and 6) should be dismissed because the photographs in question are not materially misleading. Specifically, it argues that “it is unlikely that any differences between door handles in the small photographs of cars and the actual Creative Controls' handles would influence any purchasing decision.” Thus, they are not capable of causing “confusion or ...
A. The court lacks specific personal jurisdiction over Creative Controls on the patent-related claims. In arguing that this court has jurisdiction, Kindig points to four distinct “contacts” that Creative Controls allegedly has to Utah. First, Creative Controls maintained a website on which customers, including any from Utah, could place orders.
Additionally, Kindig has attached the copyright registrations to the complaint. While the court agrees that attaching the actual copyrighted works to the complaint may have been helpful, Kindig's failure to do so does not merit dismissal. Kindig has provided enough information in the Complaint to meet Rule 8's requirement of “a short and plain statement of the claim showing that the pleader is entitled to relief” and to provide Creative Controls with sufficient notice of the claims. Kindig is not required, at the pleading stage of the proceedings, to attach all relevant documents to the Complaint. Furthermore, the court notes that the discovery process will easily provide Creative Controls with access to the specific copyrighted materials. Creative Controls' second alleged contact with Utah occurred approximately five years ago when Creative Controls donated to Kindig a custom parking brake for a car that Kindig was customizing.
So, they marketed and targeted their website for everyone who could access it. Whereas Creative Controls defended themselves, saying that the Kindig team had permitted them to use the pictures through a letter in exchange for a custom parking brake they donated to King-It Designs. According to an online report, Kindig-It Design filed a case against Creative Controls in 2015.
Interestingly, Kindig revealed that Creative Control’s Uthan client was a relative of one of their employee, and they placed the order in preparation for the lawsuit. B. Kindig has sufficiently pled its claims for false advertising and deceptive trade practices. 2) Kindig has sufficiently pled Creative Controls' alleged infringement. 1) Kindig's Complaint sufficiently identifies the copyrighted materials in question.
