Nevada Federal District Court Stays Discovery Based On Lack Of Jurisdiction Over Foreign Website Operator


On May 15, the U.S. District Court for the District of Nevada granted a motion to stay discovery pending adjudication of the motion to dismiss on the grounds that it likely lacked personal and specific jurisdiction over the foreign operator of a passive website that conducted no act in Nevada other than the use of an allegedly infringing trademark, notwithstanding the website’s marketing claims of a significant U.S. presence. Best Odds Corp. v. iBus Media Ltd., No. 13-2008, slip op. (D. Nev. May 15, 2014). The court’s “peek” at the defendant’s pending motion to dismiss arguments led to the conclusion that it lacked personal jurisdiction over defendant despite plaintiff’s allegation, among others, that the defendant’s media kit stated that its website has a “significant U.S. presence” because that statement did not “approximate physical presence.” The court further concluded that it lacked specific jurisdiction, holding that the foreign operator’s site was passive and the operator did not purposefully direct its activities at the forum state or consummate a transaction within the forum state. The court rejected the plaintiff’s argument that the website was not passive because it allowed users to access third party travel websites to make reservations in the United States.

Written by:

Published In:

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© BuckleySandler LLP | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.