Case On Point
American Girl, LLC v. Zembrka
(U.S. Ct. of App. for the 2d Cir. 2024)
American Girl manufactures and sells iconic dolls. It sued Zembrka, a Chinese company, for counterfeiting and trademark infringement. On its website, Zembrka advertised and accepted orders for identical dolls bearing American Girl's trademarks. The district court issued a temporary restraining order barring defendant from continuing these activities. When defendant learned of the restraining order, it cancelled pending orders and refunded customer payments. Zembrka then moved to dismiss American Girl's complaint on the grounds that the court lacked personal jurisdiction over it since it never actually shipped merchandise into New York.
The district court granted the motion to dismiss. The applicable New York statute permitted the court to exercise jurisdiction over a defendant that "transacts any business within the state or contracts anywhere to supply goods or services in the state." The Court of Appeals reversed, holding that Zembrka "purposefully availed itself of the privilege of conducting activities within New York and, thus, transacted business." The Court of Appeals also rejected defendant's argument that the court's asserting personal jurisdiction over it would violate the due process clause of the United Constitution, commenting "Zembrka ran the risk of being haled into court by offering for sale allegedly counterfeit items for which New York customers could order and pay."
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