Britax Child Safety, Inc. v. Nuna Int'l B.V.
Britax Child Safety, Inc. v. Nuna Int'l B.V.
Opinion of the Court
Defendants' Motions to Dismiss, ECF No. 26-12(b)(6) denied and 12(b)(2) denied without prejudice and with leave granted to conduct jurisdictional discovery
In this patent infringement case, Plaintiff Britax Child Safety, Inc. alleges that the Defendants, Nuna International, B.V. ("Nuna B.V.") and Nuna Baby Essentials, Inc. ("Nuna B.E.") infringed its patent for a specific design of a child's car seat. The Defendants move to dismiss the Amended Complaint and argue that Nuna B.V., a Dutch company, is not subject to personal jurisdiction in this Court and that Britax has not stated a patent infringement claim. For the reasons discussed below, this Court denies Defendants' motion to the extent that Defendants seek to dismiss under Rule 12(b)(6) and denies the motion without prejudice with respect to personal jurisdiction to allow the parties to conduct jurisdictional discovery.
I. BACKGROUND
The following facts are drawn from Britax's Amended Complaint. Plaintiff Britax Child Safety, Inc. is a leader in child safety *551technology. Am. Compl. ¶ 11, ECF No. 23. Britax, which is both incorporated and principally operated in South Carolina, "designs, develops, tests, and builds...industry-leading child safety restraints, including its child safety car seats." Id. Britax has a significant investment in the protection of its innovations, including over fifty United States utility and design patents and patent applications. Id. ¶ 13.
Defendant Nuna B.V. is incorporated and principally operated in the Netherlands. Id. ¶ 3. Defendant Nuna B.E., which is incorporated and principally operated in Pennsylvania, is a wholly-owned subsidiary of Nuna B.V. Id. ¶ 4. Similar to Britax, Nuna B.V. and Nuna B.E. focus on researching and developing child safety technologies and offering child safety products. Id. ¶ 7.
Britax alleges that Defendants violated
Britax argues that Defendants infringed on claim thirteen of the '504 patent.
A child seat configured to be secured to a vehicle seat in both a rear-facing and a forward-facing orientation by a belt of the vehicle seat, the child seat comprising:
a seat base comprising a seat portion, a backrest portion, a first belt path generally at a middle of the seat portion in a forward and rearward direction, and a second belt path generally at an intersection of the seat and backrest portions, first and second lateral edges that protrude forwardly and upwardly from opposing sides of the backrest portion proximate to the second belt path, third and fourth lateral edges that protrude forwardly and upwardly from opposing sides of the seat portion proximate to the first belt path;
a pivot structure having a first pivot portion comprising a first lateral edge member and a second lateral edge member, the pivot structure attached to the backrest portion at an axis such that the pivot structure rotates between a first position and a second position pivotally about the axis, the first and second lateral edge members extending away from the backrest and substantially perpendicular to the axis, wherein in the first position, the first pivot portion is substantially adjacent to the seat base, and wherein in the second position, the first pivot portion is at least partly displaced from the seat base in order to enable the second belt path to receive the belt;
the pivot structure having a second pivot portion comprising a third lateral edge member and a fourth lateral edge member, the third and fourth lateral edge members moving between a third position proximate to the seat portion and a fourth position at least partly displaced from the seat portion in order to enable the first belt path to receive the belt,
wherein the first belt path is configured to allow a user to position the belt to be displaced by the third and fourth lateral edge members relative to the third and fourth lateral edges to secure the child seat to the vehicle seat when the child seat is in the rear-facing orientation, and *552wherein the second belt path is configured to allow the user to position the belt to be displaced by the first and second lateral edge members relative to the first and second lateral edges to secure the child seat to the vehicle seat when the child seat is in the forward-facing orientation.
Britax also argues that Defendants infringed on claim one of the '074 patent.
A child seat configured to be secured to a vehicle seat in both a rear-facing and front-facing orientation, the child seat comprising:
a seat base defining a seat portion, a backrest portion, and first and second lateral edges that protrude forwardly and upwardly from the seat and backrest portions,
wherein the seat base is configured to receive a belt of the vehicle seat in an untensioned state to secure the child seat to the vehicle seat in an untensioned configuration;
and a tensioning mechanism having a proximal end pivotally attached to the backrest portion of the seat base and a distal end comprising a sitting surface for an occupant of the child seat and an engaging surface facing opposition to the sitting surface,
wherein the tensioning mechanism is movable downwardly and forwardly to a first position substantially adjacent to the seat base and upwardly and rearwardly to a second position displaced therefrom,
wherein placing the tensioning mechanism in the second position allows the seat base to receive the belt, and movement of the tensioning mechanism from the second position to the first position presses the belt against the first and second edges and deflects a portion of the belt between first and second edges to be closer to the seat or backrest portion than portions of the belt that engage the first and second edges and thus applies tension to the belt to secure the child seat to the vehicle seat in a tensioned configuration,
wherein the seat base of the child seat is configured to receive the belt when the seat base is in both a rear-facing orientation and when the seat base is in a front-facing orientation.
Britax includes these patented features in a variety of its car seat products.
On June 16, 2017, Britax filed this action asserting two counts of patent infringement against both Nuna B.V. and Nuna B.E. under
II. LEGAL STANDARD
A. Rule 12(b)(2) Motion to Dismiss for Lack of Personal Jurisdiction
The motion to dismiss standard under Rule 12(b)(2) is as follows:
When reviewing a motion to dismiss for lack of personal jurisdiction under Federal Rule of Civil Procedure 12(b)(2), I must accept the plaintiff's allegations as true and resolve disputed facts in favor of the plaintiff. Pinker v. Roche Holdings Ltd. ,292 F.3d 361 , 368 (3d Cir. 2002). However, once a defendant has *553raised a jurisdictional defense, the plaintiff must "prove by affidavits or other competent evidence that jurisdiction is proper." See Metcalfe v. Renaissance Marine, Inc. ,566 F.3d 324 , 330 (3d Cir. 2009). If an evidentiary hearing is not held, a plaintiff "need only establish a prima facie case of personal jurisdiction."Id. A plaintiff meets this burden by "establishing with reasonable particularity sufficient contacts between the defendant and the forum state." Provident Nat. Bank v. California Fed. Sav. & Loan Assoc. ,819 F.2d 434 (3d Cir. 1987).
Campbell v. Fast Retailing USA, Inc. , No. CV 14-6752,
B. Rule 12(b)(6) Motion to Dismiss for Failure to State a Claim
In rendering a decision on a motion to dismiss, this Court must "accept all factual allegations as true [and] construe the complaint in the light most favorable to the plaintiff." Phillips v. Cnty. of Allegheny ,
III. ANALYSIS
A. Defendant Nuna B.V.'s motion to dismiss pursuant to Rule 12(b)(2) for lack of personal jurisdiction is denied without prejudice to allow the parties to conduct jurisdictional discovery.
Nuna B.V. argues that it is neither subject to personal jurisdiction in this Court under the Fourteenth Amendment Due Process Clause nor under Federal Rule of Civil Procedure 4(k)(2). See Defs.' Mot. Dismiss 10-14, ECF No. 26. Britax responds and offers three bases for this Court's jurisdiction over Nuna B.V. First, Britax argues that this Court has jurisdiction over Nuna B.V. through its agent or alter ego, Nuna B.E. See Pl.'s Opp'n Br. 7-8, ECF No. 27. Second, Britax responds that Nuna B.V. has sufficient minimum contacts of its own with Pennsylvania to confer specific personal jurisdiction. See Pl.'s Opp'n Br. 7-9. Lastly, Britax argues that Nuna B.V. is subject to personal jurisdiction in Pennsylvania under the "federal long-arm statute" contained in Federal Rule of Civil Procedure 4(k)(2). See Pl.'s Opp'n Br. 17-19. Defendant Nuna B.E. does not dispute that it is subject to personal jurisdiction in Pennsylvania. See Defs.' Mot. Dismiss 1.
Federal Rule of Civil Procedure 4(e)"authorizes personal jurisdiction over non-resident defendants to the extent permissible under the law of the state where the district court sits." Kappe Assocs., Inc. v. Chesapeake Envtl. Equip., LLC , No. 5:15-CV-02211-JFL,
A defendant may be subject to personal jurisdiction in a forum state under either general or specific jurisdiction. Lapine v. Materion Corp. , No. 5:15-CV-642,
Under the "alter ego" theory, if a subsidiary is merely the agent of a parent corporation, or if the parent corporation otherwise "controls" the subsidiary, and general or specific personal jurisdiction exists over the subsidiary, then personal jurisdiction exists over the parent. Shuker v. Smith & Nephew, PLC ,
If a plaintiff cannot establish personal jurisdiction on the basis of a defendant's contacts with the forum state, a court may still be able to exercise jurisdiction *555based on a defendant's contacts with the United States as a whole under Federal Rule of Civil Procedure 4(k)(2). To assert personal jurisdiction over a foreign defendant under Rule 4(k)(2), the following elements must be met: (1) the defendant must allege a claim arising under federal law; (2) the defendant must be beyond the jurisdictional reach of any state court of general jurisdiction; and (3) the defendant must have sufficient contacts with the United States as a whole so that the court's exercise of personal jurisdiction over the defendant comports with the due process requirements of the Constitution or other federal law. Fed. R. Civ. P. 4(k)(2) ; Skold v. Galderma Labs., L.P. ,
Britax has not produced sufficient evidence to establish personal jurisdiction over Nuna B.V. on any of these bases.
1. Britax fails to show facts that support Nuna B.V.'s control over Nuna B.E. sufficient to establish personal jurisdiction on an alter-ego theory.
Britax argues that this Court has specific jurisdiction over Nuna B.V. because an agency relationship exists between Nuna B.V. and Nuna B.E. that allows this Court to impute Nuna B.E.'s contacts with Pennsylvania to Nuna B.V.
"A subsidiary will be considered an alter ego of its parents only if the parent exercises control over the activities of the subsidiary." Oeschle v. Pro-Tech Power, Inc. , No. CIV.A. 03-CV-6875,
To determine whether a subsidiary is an agent or alter ego of its parent corporation, a court should analyze the following factors:
(1) ownership of all or most of the stock of the subsidiary, (2) common officers and directors, (3) a common marketing image, (4) common use of a trademark or logo, (5) common use of employees, (6) an integrated sales system, (7) interchange of managerial and supervisory personnel, (8) subsidiary performing business functions which the principal corporation would normally conduct through its own agents or departments, (9) subsidiary acting as marketing arm of the principal corporation, or as an exclusive distributor, and (10) receipt by officers of the related corporation of instruction from the principal corporation.
Oeschle ,
In this case, Britax fails to demonstrate that Nuna B.E. is an alter ego or an agent of Nuna B.V. In its Amended Complaint, Britax states that "on information and belief, Nuna [B.E.] and Nuna [B.V.] have agreements or act on behalf of one another regarding use of the Nuna website and the marketing, offering for sale, and sale of Nuna products." Am. Compl. ¶ 7. However, Britax lacks the specificity and detail to establish jurisdiction based on such a relationship. See Avocent Huntsville Corp. ,
Britax fails to establish prima facie an alter ego or agency relationship that would allow Nuna B.E.'s contacts with Pennsylvania to be attributed to Nuna B.V.
2. Britax has not shown that Nuna B.V. purposely availed itself of Pennsylvania so as to establish personal jurisdiction.
Britax provides evidence of Nuna B.V.'s contacts with Pennsylvania to show that it purposefully availed itself of the state. Specifically, Britax mentions that Nuna B.V. maintains a website accessible in Pennsylvania and sends emails to customers in Pennsylvania and that its sole employee visits Pennsylvania every year. But Britax has not shown that Nuna B.V. has purposefully directed its activities at Pennsylvania or that its claims arise out of these activities.
Britax argues that Nuna B.V.'s ownership of the website, and therefore the website's sales and offers for sale, establishes minimum contacts with Pennsylvania and thus personal jurisdiction over Nuna B.V. See Pl.'s Opp'n Br. 7. Nuna B.V. argues that, although it technically owns the website, it is not the operational force behind the website's customer use, offers for sale, or actual sales. See Defs.' Mot. Dismiss 5.
A "website may form the basis for specific jurisdiction if [the] defendant takes action to maximize usage of [the] website in the forum, markets [the] website in the forum, puts forum-specific content in [the] website[,] or has [a] business plan that targets users within [a] forum." Hy Cite Corp. v. Badbusinessbureau.com, LLC. ,
*557In the case at bar, Britax argues that personal jurisdiction exists in Pennsylvania over Nuna B.V. because "Nuna International owns the website marketing, offering for sale, and selling [of] Nuna's products in the United States. Nuna International uses this website to offer products to potential customers, including potential customers in the United States." Am. Compl. ¶ 7. Although a website is available to customers in the United States, Britax fails to show that Nuna B.V. has directed its website to customers in Pennsylvania.
Furthermore, Nuna B.V. argues that although it owns the website, it neither operates nor has "any involvement in the...sales via the website." Defs.' Mot. Dismiss 5. The Third Circuit Court of Appeals has found that, for purposes of personal jurisdiction, the role of the Internet and minimum contacts is evaluated by the "nature and quality of commercial activity that an entity conducts over the Internet." Ackourey v. Sonellas Custom Tailors ,
Britax fails to show that Nuna B.V. directly targeted the forum state through its website or has any control over the site to avail itself of Pennsylvania. Britax does not allege that Nuna B.V.'s website permits consumer "self-identification as a resident of [Pennsylvania]" nor does it provide a statement that shows Nuna B.V.'s sales of products to Pennsylvania residents. Gammino ,
Nor does Britax's allegation that Nuna B.V. sends promotional emails through its website to residents of this District have enough factual support to confer personal jurisdiction. See Pl.'s Opp'n Br. 3. Britax fails to show that such emails were directed to residents of Pennsylvania. See
In further support of specific jurisdiction, Britax points out that Nuna B.V.'s sole employee is in Pennsylvania eight to twenty days each year. However, based on the facts alleged, Britax's patent infringement claims do not arise from nor are they related to the employee's contact with the forum state. To show that a plaintiff's claim arises from or relates to a defendant's contact with the forum state, the plaintiff must allege prima facie that the patent infringement has some connection to such activity in Pennsylvania. See
On the present record, this Court cannot conclude that Nuna B.V.'s sole employee's actions in Pennsylvania relate to Britax's alleged infringement claims. Defendants contend that the employee travels from the Netherlands to Pennsylvania to design "purely...aesthetic aspects of the product." Defs.' Reply Br. 4. The aesthetic design of the products does not serve as a basis for Britax's patent infringement claims because the patents concern structural features of car seats. Furthermore, accepting Defendants' characterization of the facts, the employee's actions do not constitute manufacturing or use of the product. See N. Am. Philips Corp. v. Am. Vending Sales, Inc. ,
Britax has not shown that Nuna B.V. has contacts with Pennsylvania sufficient to establish personal jurisdiction.
3. Britax has not shown that Nuna B.V. has sufficient contacts with the United States to establish jurisdiction under Rule 4(k)(2).
Britax argues that Nuna B.V.'s offers for sale and actual sales of the alleged infringing product on its website are sufficient to confer Rule 4(k)(2) jurisdiction based on Nuna B.V.'s contacts with the United States as a whole. See Pl.'s Opp'n Br. 18. Britax argues that the third element to establish jurisdiction under Rule 4(k)(2), sufficient contacts with the United States as a whole, can be met by showing either specific or general jurisdiction. Britax contends that Nuna B.V.'s alleged contacts with the whole of the United States, including the website, employee's travel, sale of products to all fifty states, and granted United States patents, avails it of the United States under Rule 4(k)(2). See Pl.'s Opp'n Br. 18-19. Nuna B.V. argues that it has insufficient contacts and incorrectly argues that the third element is met only when a foreign defendant is rendered at home in the United States, i.e., where general jurisdiction exists. See Defs.' Mot. Dismiss 14.
In evaluating jurisdiction under Rule 4(k)(2), the Court should evaluate both general and specific jurisdiction, with *559the United States serving as the forum instead of a single state. See Synthes ,
Although Britax insists that Nuna B.V. makes sales to residents of the United States, the record does not distinguish whether Nuna B.V. or Nuna B.E. makes the sales. And because the present record lacks sufficient facts to find an agency relationship between Nuna B.V. and Nuna B.E., the Court cannot determine whether any sales by Nuna B.E. can be imputed to Nuna B.V. for purposes of specific jurisdiction. Nuna B.V. specifically argues that it does not sell the accused product in Pennsylvania or elsewhere in the United States. Gerhart Aff. ¶ 15, ECF No. 23, Ex. 2. Without facts demonstrating sales by Nuna B.V., and because the corporate veil is not easily pierced, the Court cannot exercise personal jurisdiction at this time.
Britax's additional argument that Nuna B.V.'s holding a United States patent confers personal jurisdiction fails. Britax fails to allege facts that show Nuna B.V.'s United States patent gives rise to or relates to claims asserting the infringement of Britax's patent. See Venmill Indus., Inc. v. ELM, Inc. ,
Given an insufficiency and failure to plead additional facts that demonstrate Nuna B.V.'s purposeful availment of the nation as a whole, Britax has not established this Court's jurisdiction over Nuna B.V. under Federal Rule of Civil Procedure 4(k)(2).
4. Britax's request for jurisdictional discovery is granted because it alleges facts that support possible contacts that would confer personal jurisdiction in the forum state.
Britax argues that jurisdictional discovery is appropriate to ascertain facts related to "development, use, and operation of Nuna International's website, offers for sale and sales of infringing products made to residents of Pennsylvania and the United States through the website, and the activities of Nuna International and its *560employee related to the design of the infringing products." Pl.'s Opp'n Br. 20. Nuna B.V. argues that Britax does not assert the possibility of other facts to bolster their argument for personal jurisdiction in Pennsylvania; rather, the mere application of law to facts remains. See Defs.' Reply Br. 7.
" 'If a plaintiff presents factual allegations that suggest 'with reasonable particularity' the possible existence of the requisite 'contacts between [the party] and the forum state,' the plaintiff's right to conduct jurisdictional discovery should be sustained.' " Neopart Transit, LLC v. CBM N.A., Inc. , No. 5:17-CV-3955,
B. Britax's Amended Complaint sufficiently states claims for patent infringement.
To state a claim under
Britax alleged that each element of its patent claims is found in Defendants' alleged infringing product and thus, Defendants infringe on the protected elements of Britax's patents. See e.Digital Corp. v. iBaby Labs, Inc. , No. 15-cv-05790-JST,
Defendants argue that Britax's claims fail to distinguish the actions of Nuna B.V. from Nuna B.E. See Defs.' Mot. Dismiss 22. However, courts have noted that a plaintiff's failure to make such a distinction is not grounds for granting a Rule 12(b)(6) motion. See WAG Acquisition, LLC v. Multi-Media, LLC , No. CIV.A. 14-1661 ES JA,
Thus, Defendants' motion to dismiss pursuant to Rule 12(b)(6) is denied because Britax plausibly stated a claim upon which relief can be granted.
IV. CONCLUSION
For the reasons set forth above, the Court denies Nuna B.V.'s motion to dismiss pursuant to Rule 12(b)(2) without prejudice and with the right to renew at the close of jurisdictional discovery. Additionally, the Court denies Defendant's motion to dismiss pursuant to Rule 12(b)(6). A separate order follows.
Because Britax concedes that Nuna B.V. is not subject to general jurisdiction in Pennsylvania, it need not be examined at this time. See Defs.' Mot. Dismiss 11; Pl.'s Opp'n Br. 10 n.7.
Nuna B.E. does not dispute that it is subject to personal jurisdiction in Pennsylvania. See Defs.' Mot. Dismiss 1.
As Defendants note, patent infringement pleadings were not always governed by the Twombly and Iqbal standard. Instead, pleadings for patent infringement cases were previously governed by Federal Rule of Civil Procedure 84, specifically, Form 18 in the Appendix of Forms. See In re Bill of Lading Transmission & Processing Sys. Patent Litig. ,
Reference
- Full Case Name
- BRITAX CHILD SAFETY, INC. v. NUNA INTERNATIONAL B.V. and Nuna Baby Essentials, Inc.
- Cited By
- 10 cases
- Status
- Published