Maritz, Inc. v. Cybergold, Inc.
Maritz, Inc. v. Cybergold, Inc., 947 F. Supp. 1328 (E.D. Mo. 1996), was a personal jurisdiction case in which the United States District Court for the Eastern District of Missouri ruled that operator of website, for which server was located in California, was subject to personal jurisdiction in Missouri under "commission of a tortious act" provision of Missouri's long-arm statute, §506.500 RSMo. The case was brought before the court by Marits, Inc. alleging that the Cybergold's use of mark for advertising internet site was a trademark infringement. Cybergold moved to dismiss the suit for lack of personal jurisdiction, but the court found that the operational nature of the Internet based service provided a connection for Cybergold to be sued in Missouri. Background Factual background Cybergold Inc., the defendant, was a California based corporation. The company created a website, www.cybergold.com, to promote its upcoming Internet service. The service consisted in maintain a mailing list of internet users who were willing to receive mailing in areas of their particular interest. Some of those users could be located in the state of Missouri. Cybergold provided to the users in its mail list an electronic mailbox and was planning forward advertisements for products and services that matched the users' interests to those electronic mailboxes. Cybergold business model considered to charge advertisers and to provide users with incentives to view the advertisements. At the time of the law suit, the service was not yet operational. The plaintiff asserted that Cybergold's website acted as a state-wide advertisement for CyberGold's forthcoming internet service and that through this website CyberGold was actively soliciting advertising customers from Missouri. Cybergold had no other contacts with the state of Missouri. Maritz, Inc., the plaintiff, was a Missouri based corporation. It offered an identical online service through its own website at www.goldmail.com. Maritz apparently announced its "GoldMail" online marketing services prior to Cybergold's operation of its competing website. Since Cybergold has set up its website, the website was accessed through internet users located in Missouri at least 311 times – 180 of the 311 times were by Maritz and its employees. Proceeding background Maritz brought the action before its home forum of Missouri alleging that California-based Cybergold was engaged in trademark infringement and unfair competition in violation of Section 43(a) of the Lanham Act, 15 U.S.C. § 1125(a) by using the mark "CyberGold", which was confusingly similar to its mark "GoldMail" for identical online services. Cybergold filed a motion to dismiss for lack of personal jurisdiction and improper venue pursuant to the Federal Rule of Civil Procedure 12(b)(2). Issues Whether the court of Missouri had personal jurisdiction on the basis that Cybergold's use of alleged mark on its online services, which can be reached by consumers in Missouri through Internet. Holding The court denied Cybergold's motion to dismiss for lack of personal jurisdiction and improper venue, finding that the Missouri Court had personal jurisdiction over the case. Court's reasoning Whether the Court can exercise personal jurisdiction over defendant requires a two-part inquiry.