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FOR IMMEDIATE RELEASE
Internet Law Firm Successfully Defends California ISP against Trademark Infringement Charges in Maryland. U.S. District Court Judge says No Personal Jurisdiction based on Web site
April 12, 2001 – (Washington, D.C.) In an 11- page opinion, United States District Court Chief Judge J. Frederick Motz ruled today that a California based Internet Service Provider (ISP) is not subject to the personal jurisdiction of the Maryland federal courts simply as a result of its Web site. In granting the defendant’s Motion to Dismiss the case, Judge Motz stated, “Without a more solid showing of links to Maryland, a California company cannot be haled into court here simply because it established a Web site that uses a protected mark and that accepts inquiries from would-be customers.” “This ruling clarifies the murky area of Web site jurisdiction,” said Harvey S. Jacobs, Esq., of Jacobs & Associates, the Washington, D.C. Internet Law Firm representing the defendant. “This case will be cited by Web site owners across America for the proposition that moderately interactive Web sites are not sufficient to subject them to lawsuits in all 50 states.” Jacobs added. According to Donna Johnson, Esq. of Jacobs & Associates, who argued the case on the brief, "This decision is a victory for small businesses in all sectors of our economy. The Court rightly affirmed our position that the mere existence of a Web site, which does little more than advertise services and provide a means for would-be customers to contact the business owner, does not give rise to the type of minimum contacts required by the Constitution to subject that business to jurisdiction in any state where the Web site is viewable. To have held otherwise would have jeopardized the ability of entrepreneurs to take the initial steps to launch their small businesses, which are an increasingly valuable component of the American economy. " The case for federal trademark infringement and other state counts was brought in Maryland federal court by American Information Corp., a Maryland ISP holding a service mark for the word “AINET” against American Infometrics, Inc., a California ISP which had registered and had been continually using the domain name AINET.COM for several years prior to the Plaintiff’s service mark registration. The California company presented uncontroverted evidence that it never had a place of business, customers, licenses, or certifications in Maryland, nor had it ever solicited customers in Maryland, nor had any of its employees, officers, agents or directors ever traveled to Maryland to conduct company business. The Court flatly rejected the Maryland ISP’s argument that the California company’s Web site alone creates specific jurisdiction stating, “An entirely passive Web site cannot create jurisdiction in Maryland simply because it is theoretically available to web users in Maryland and everywhere else.“ Citing 4th Circuit Court of Appeals precedent, the District Court ruled that because the California ISP’s Web site does not specifically target Maryland customers and does not permit customers to interact with the web site except to submit their contact information or to inquire about available services or jobs, it was not a sufficient basis to subject the California company to jurisdiction in Maryland. Judge Motz clearly answers the question of Web-based jurisdiction as follows: “Maintenance of a Web site that permits basic inquiries through a form and accepts job applications does not establish minimum contacts sufficient for personal jurisdiction, in the absence of any evidence that any resident of the forum state has ever contracted with or even contacted the company.” Copies of today’s opinion are available at the Jacobs & Associates’ Web site, by contacting Amarilys Tamariz at (202) 457-0100 or via e-mail at jacobs@internet-law-firm.com. Jacobs & Associates is an Internet Law Firm in Washington, DC, which assists business owners and others with Internet law issues, trademark, copyright, contract and corporate matters. - ### -
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Contact: Katherine Hutt 703-938-4540 or
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