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UNITED STATES DISTRICT COURT EASTERN DISTRICT OF NEW YORK JACKIE HANOVER A/K/A JACKIE JAXX and IVAN HARRY A/K/A DâIVAN, 24-CV-6637 (ARR) (RML) Plaintiffs, OPINION & ORDER -against- ONE COMMUNICATIONS (GUYANA) Inc. and TENNICIA DE FREITAS A/K/A NEKEITA, Defendants. . Plaintiffs, Jackie Hanover and Ivan Harry, are two musicians who own a copyright in the composition and recording of the song âGuyana.â Defendant One Communications is a Guyanese corporation that, during a marketing event designed to celebrate its change of name, infringed upon plaintiffsâ copyright by holding an unauthorized and unlicensed performance of plaintiffsâ work. That marketing event was held in Guyana and broadcast over the internet to users worldwide. Plaintiffs have brought suit against defendants for copyright infringement, tortious interference with business relations, and unjust enrichment. First Amended Complaint (âFACâ), ECF No. 11.1 One Communications now moves to dismiss the FAC for lack of personal jurisdiction, pursuant to Fed. R. Civ. P. 12(b)(2). For the reasons set forth below, I agree with One Communications that I lack personal jurisdiction, and GRANT its motion to dismiss without leave to amend. BACKGROUND 1 Plaintiffs amended their complaint on October 21, 2024, in response to One Communicationsâ proposed motion to dismiss for lack of personal jurisdiction. Id. at 1. I. Parties Plaintiffs are two musicians, Jackie Hanover and Ivan Harry. Ms. Hanover resides in and is a citizen of Guyana. FAC ¶ 4. Mr. Harry is a citizen of the United States and Guyana, id. ¶ 6, and resides in Brooklyn, New York, Decl. of Ivan Harry ¶ 4, ECF No. 23-9. Defendant Tennicia De Freitas is a musician who performs under the stage names Nekeita and Tennicia. FAC ¶ 27. Ms. De Freitas is a citizen and resident of Guyana. Id. ¶ 29. Defendant One Communications, formerly Guyana Telephone and Telegraph Company (âGTTâ), is a telecommunications company that is incorporated and headquartered in Guyana. Id. ¶ 8. According to the declaration of its Deputy CEO, Richard Stanton, all of One Communicationsâ âapproximately 500 employees are located in Guyana,â and One Communications does not have any offices or own real estate in the United States. Decl. of Richard Stanton ¶¶ 3, 5, ECF 22-2. One Communications is not registered to do business in any jurisdiction other than Guyana, nor is it licensed to provide telecommunications services in New York or the United States. Id. ¶ 4. One Communications does not advertise its services on any United States television or radio network, nor does it do so in any print media with a significant circulation in the United States. Id. ¶ 12. Plaintiffs allege that One Communications âprovides . . . service[s] used by consumers within the United States.â FAC ¶ 10. First, One Communications provides the âInternational Passport,â which permits One Communications customers to access cellphone services (calls, texts, and internet) while located outside of Guyana. Id. at 11; Stanton Decl. ¶¶ 14â15. Those services, known as âroaming services,â Stanton Decl. ¶ 15 are accomplished in the United States through One Communicationsâ contracts with Verizon, FAC ¶ 23. One Communicationsâ customers may continue to access cellphone services using Verizonâs network and infrastructure. Stanton Reply Decl. ¶¶ 6â8, ECF 24-1. Second, One Communications operates an âe-commerceâ payment processing application named Mobile Money Guyana (âMMGâ), which permits consumers to pay merchants. FAC ¶ 13. MMG is âavailable for downloadâ to customers located within New York and the United States, through cellphone application providers that provide applications for download, such as the Apple App Store, Samsung Galaxy Store, and Google Play Store. Id. ¶ 14. Third, One Communications offers the eTopUp application, which permits its users to purchase cellphone services (calls, text, and internet) for cellphone accounts operated by One Communications. Hanover Decl. ¶ 21, ECF No. 23-11.2 Plaintiffs allege that, â[u]pon information and belief, a target market of One Communications is the large Guyanese and West Indian population in New York,â and that the New York market is âas large as or larger than One Communications customer base in Guyana.â FAC ¶¶ 21â22. According to plaintiffs, One Communicationsâ primary source of revenue is derived from âpremium rate services from the United States.â Id. ¶ 25. In support of that contention, Plaintiffs have submitted One Communicationsâ Wikipedia page, which states that One Communications primary source of revenue came from premium rate numbers dialed to phone-sex lines from the United States. Hanover Decl. Ex. F, ECF No. 23-17 (Wikipedia page, citing a newspaper article published in 1996 from The Montreal Gazette). II. The Protected Work In 1997, Mr. Harry wrote and produced the song âOh Guyana,â which he registered with the United States Copyright Office under registration number SR0000234738. Id. ¶ 36. 2 One Communications contend that the TopUp and MMG applications are respectively owned and operated by an independent third-party and One Communicationsâ wholly-owned subsidiary. Stanton Reply Decl. ¶¶ 14, 20. Plaintiffs contend that those services are provided directly by One Communications. FAC ¶ 13; Hanover Decl. ¶ 21. In 2016, Ms. Hanover wrote and produced the song âGuyanaâ (the âSongâ), which contained âsome elementâ of Mr. Harryâs song âOh Guyana,â with his express consent. Id. ¶¶ 40â41. Ms. Hanover and Mr. Harry agreed to be âjoint ownersâ of the copyright for the Song, with Ms. Hanover owning 75% of the copyright and Mr. Harry owning 25% of the copyright. Id. ¶ 42. Plaintiffs registered the composition and recording of the Song with the American Society of Composers and with the United States Copyright Office. Id. ¶¶ 43â46. III. The Infringing Conduct On or about September 6, 2024, One Communications held a ârebranding ceremonyâ to celebrate its name-change from GTT to One Communications. Id. ¶ 49.3 The rebranding event publicized the name-change only, it did not promote any particular product sold by One Communications. Stanton Reply. Decl. ¶ 5 (declaration of One Communicationsâ Deputy CEO). One Communications hired Ms. De Freitas to perform plaintiffsâ Song during the ceremony, and she performed that Song in front of a live audience in Georgetown, Guyana. FAC ¶¶ 51â52. One Communications broadcast the ceremony, including Ms. De Freitasâ performance of the Song, over television and radio stations in Guyana. Id. ¶ 54. In addition, the performance was displayed over the internet on a third-party website (Facebook), and was accessed by viewers in the United States. Id. ¶ 54â57; Johnson Decl. at ¶ 16, ECF No. 23-1. One Communications and Ms. De Freitas did not obtain permission or a license to use plaintiffsâ Song. FAC ¶ 60. In addition, One Communicationsâ use of plaintiffsâ Song interfered with Ms. Hanoverâs âprospective business relationshipâ with E-Networks Inc., âa key rival of 3 The name-change occurred sometime in September 2024. Stanton Decl. at ¶ 7. One Communications also publicized its new name through other marketing events that occurred in Guyana and on its website and social media pages. Id. at ¶ 8. One Communications,â to license Ms. Hanoverâs âmusic catalog that includes the Song Guyana.â Id. ¶ 70. STANDARD OF REVIEW On a motion to dismiss for lack of personal jurisdiction, the âplaintiff bears the burden of showing that the court has jurisdiction over the defendant.â In re Magnetic Audiotape Antitrust Litig., 334 F.3d 204, 206 (2d Cir. 2003). However, âthe plaintiff need only make a prima facie showingâ of personal jurisdiction, which can be demonstrated through âaffidavits and supporting materials, containing an averment of facts that, if credited, would suffice to establish jurisdiction.â Whitaker v. Am. Telecasting, Inc., 261 F.3d 196, 208 (2d Cir. 2001) (quotation marks omitted and alterations adopted). In deciding a motion to dismiss for lack of personal jurisdiction, I âmay consider materials outside the pleadings, including affidavits and other written materials.â Jonas v. Est. of Leven, 116 F. Supp. 3d 314, 323 (S.D.N.Y. 2015). The allegations in the complaint must be taken âas true to the extent they are uncontroverted by [the movantâs] affidavits.â NuMSP, LLC v. St. Etienne, 462 F. Supp. 3d 330, 341 (S.D.N.Y. 2020) (quotation marks omitted). The non-movantâs prima facie showing âmust include an averment of facts that, if credited by the ultimate trier of fact, would suffice to establish jurisdiction over the [movant].â In re Terrorist Attacks on Sept. 11, 2001, 714 F.3d 659, 673 (2d Cir. 2013) (quotation marks omitted). If the parties present conflicting affidavits, âall factual disputes are resolved in the plaintiffâs favor.â Id. However, I need not âdraw argumentative inferences in the plaintiffâs favor . . . [or] accept as true a legal conclusion couched as a factual allegation.â Id. (quotation marks omitted). DISCUSSION I. New York Statutes Personal jurisdiction is generally governed by the law of the state in which the court sits and by the limits of due process. ChloĂ© v. Queen Bee of Beverly Hills, LLC, 616 F.3d 158, 163â 64 (2d Cir. 2010). That inquiry involves a two-part analysis. First, I must determine whether the long-arm statute of New York, the forum state, permits the exercise of personal jurisdiction. Whitaker v. Am. Telecasting, Inc., 261 F.3d 196, 208 (2d Cir. 2001). âIf the exercise of jurisdiction is appropriate under that statute, the court must decide whether such exercise comports with the requisites of due process.â Id. âThe Supreme Court has recognized three distinct bases for exercising personal jurisdiction over an out-of-forum defendant in accordance with the dictates of due process: general jurisdiction, specific jurisdiction, and consent.â Fuld v. Palestine Liberation Org., 82 F.4th 74, 86 (2d Cir. 2023), cert. granted, 145 S. Ct. 610 (2024). General jurisdiction permits âa court to hear any and all claims against a defendant,â whereas specific jurisdiction permits a court to hear claims âthat arise out of or relate to the defendantâs forum contacts.â Id. at 86â87. Finally, a court may exercise authority over a defendant that âhas validly consented to personal jurisdiction . . . even in the absence of general or specific jurisdiction.â Id. at 88. Plaintiffs contend that New York law permits personal jurisdiction over One Communications under all three bases, and that the exercise of such jurisdiction comports with due process. For the reasons set forth below, I disagree and conclude that New York law does not authorize personal jurisdiction. A. General Personal Jurisdiction âBecause of the breadth of general jurisdiction under New York law, New York courts have referred to the due process limits of the U.S. Constitution to outline the contours of their general jurisdiction.â Saeed v. ASML US, LLC, No. 24-CV-5176, 2024 WL 4635368, at *2 (S.D.N.Y. Oct. 30, 2024); see also Aybar v. Aybar, 37 N.Y.3d 274, 287, 289 (2021). Although general jurisdiction extends to âany and all claims brought against a defendant,â a court âmay exercise general jurisdiction only when a defendant is essentially at home in the State.â Ford Motor Co. v. Montana Eighth Jud. Dist. Ct., 592 U.S. 351, 358 (2021) (quotation marks omitted). â[E]xcept in a truly âexceptionalâ case, a corporate defendant may be treated as âessentially at homeâ only where it is incorporated or maintains its principal place of business.â Brown v. Lockheed Martin Corp., 814 F.3d 619, 627 (2d Cir. 2016) (quoting Daimler AG v. Bauman, 571 U.S. 117, 139 n.19 (2014)). As plaintiffsâ own complaint acknowledges, One Communications is incorporated and headquartered in Guyana. FAC ¶ 8. Although plaintiffs contend that One Communications presents the âexceptional caseâ in which I may exercise general jurisdiction notwithstanding the defendantâs foreign domiciliary, I disagree. Brown, 814 F.3d at 627. Plaintiffsâ sole argument in support of that contention is that One Communications conducts significant business in New York and âdirectly sellsâ its products to customers in New York. Pl. Opp. at 13â15, 20, ECF No. 23.4 Even assuming the truth of those allegations, âsystematic and continuousâ business activity is âextraordinarily unlikely to add up to an exceptional caseâ in which a corporation is found to be at home in a state where it is neither incorporated or maintains its principal place of business. Brown, 814 F.3d at 629 (2d Cir. 2016) (quotation marks omitted). For general jurisdiction over an out-of-state corporation to be proper, New York must essentially have been a âsurrogate principal place of business.â Id. Plaintiffs do 4 More specifically, One Communications (1) partnered with New York companies to provide the âInternational Passport serviceâ (roaming cellphone services) and (2) provided its payment applications to customers located within New York. FAC ¶¶ 10â15. not allege or aver any facts that contradict One Communicationsâ affidavit that it does not have any offices, employees, agents, or property in New York or elsewhere in the United States. Stanton Decl. ¶¶ 5â6.5 Courts have rejected general jurisdiction even in cases where the defendantâs contacts were far more substantial. See, e.g., Saeed, 2024 WL 4635368, at *2 (finding allegations that defendant âdoes substantial business in New York . . . and has three large offices hereâ insufficient to establish general jurisdiction over defendant); Al-Ahmed v. Twitter, Inc., 553 F. Supp. 3d 118, 125 (S.D.N.Y. 2021) (allegations that defendantâs âsecond largest corporate headquartersâ and âover ten percent of [its] employeesâ were located in New York insufficient to establish general jurisdiction over sister-state corporation). Accordingly, One Communications is not subject to general jurisdiction in New York. B. Consent Plaintiffs further argue that, under the Supreme Courtâs decision in Mallory v. Norfolk S. Ry. Co., 600 U.S. 122 (2023), One Communications is subject to personal jurisdiction because it âis doing business that requires it to have an agent for service of process in state,â and has thereby âconsent[ed] toâ personal jurisdiction âin exchange for the benefit of doing businessâ in New York. Pl. Opp. at 8, 9. Plaintiffsâ contention is meritless. As a preliminary matter, Mallory did not address general jurisdiction. 600 U.S. at 138. Instead, it addressed personal jurisdiction by âexpress or implied consent.â Id. Regardless, 5 Although the FAC alleges that âOne Communications uses Verizon as an agent . . . for its provision of telecommunication services in the United State,â FAC ¶ 23, I need not credit a âlegal conclusion couched as a factual allegation,â In re Terrorist Attacks on Sept. 11, 2001, 714 F.3d at 673. Plaintiffs do not identify any facts indicating that Verizon âacted in New York for the benefitâ of One Communications, or that One Communications exercised âsome control overâ Verizon. Hau Yin To v. HSBC Holdings, PLC, 700 F. Appâx 66, 68 (2d Cir. 2017) (describing the facts needed â[t]o establish an agency relationship for jurisdictional purposesâ) (quotation marks omitted). Mallory is wholly inapposite, as the Courtâs decision was limited to âthe state law and facts before [it].â Id. at 136. Namely, Pennsylvania law provides that an out-of-state corporation âmay not do business in this Commonwealth until it registers withâ the state, and âis explicitâ that such registration âshall permit state courts to exercise general personal jurisdiction over a registered foreign corporation.â Id. at 134. The Mallory Court determined that such business registration statutes, which permit jurisdiction over the corporation âas a condition of doing business there,â âcomport with the Due Process Clause.â Id. at 133. Thus, a defendant who registers in accordance with Pennsylvaniaâs statute has consented to its jurisdiction. Id. By contrast, New York law is unequivocally clear. As the New York Court of Appeals has determined, âunder . . . New York law, a foreign corporation does not consent to general jurisdiction in [New York] merely by complying with the Business Corporation Lawâs registration provisions.â Aybar, 37 N.Y.3d at 290 (emphasis added). Although New York could condition the transaction of business within its borders upon consent to general jurisdiction, it has elected not to do so. Id. (explaining that the lack of consent-by-registration ârests solely on New York law groundsâ and does not implicate federal due process principles). Accordingly, One Communications has not consented to jurisdiction in New York.6 C. Specific Jurisdiction Plaintiffs also contend that I may exercise specific jurisdiction over One Communications pursuant to two provisions of New Yorkâs long arm statute, N.Y.C.P.L.R § 302. Pl. Opp. At 18â 6 In any event, One Communications has not registered to do business in New York, nor has it appointed an agent for service of process in New York. Stanton Decl. ¶ 5; Summons Executed, ECF No. 17 (declaring that One Communications was served at its âhead officeâ in Guyana). Indeed, plaintiffs do not allege or aver that One Communications took either action. Plaintiffs merely argue that because One Communications âis doing business in New York,â it was required to register for business and appoint an instate agent for service of process. Pl. Opp. at 9. 19. First, plaintiffs assert that One Communications is subject to § 302(a)(1), which permits jurisdiction over a non-domiciliary that âtransacts any business within the state or contracts anywhere to supply goods or services in the state.â Second, plaintiffs assert that One Communications is subject to § 302(a)(3)(ii), which permits jurisdiction over a non-domiciliary that âcommits a tortious act without the state causing injury to person or property within the state . . ., if he . . . expects or should reasonably expect the act to have consequences in the state and derives substantial revenue from interstate or international commerce.â 1. § 302(a)(1) Under N.Y.C.P.L.R. § 302(a)(1), âa court must decide (1) whether the defendant âtransacts any businessâ in New York and, if so, (2) whether this cause of action âaris[es] fromâ such a business transaction.â Best Van Lines, Inc. v. Walker, 490 F.3d 239, 246 (2d Cir. 2007). Plaintiffs assert that One Communicationsâ rebranding event itself constitutes a âtransaction of businessâ in New York under § 302(a)(1). Pl. Opp. at 18â19. I fail to see how that is the case. The infringement occurred in Guyana, by a Guyanese singer (Ms. De Freitas), under contract with a Guyanese company (One Communications). Although internet users located in New York may have viewed One Communicationsâ broadcast of the performance over Facebook, âthe mere availability of the site to users in New York, standing alone, does not amount to transacting business in the state for purposes of section 302(a).â Megna v. Biocomp Labâys Inc., 166 F. Supp. 3d 493, 498 (S.D.N.Y. 2016). The complaint does not allege, nor is there any evidence that, One Communications âtransact[ed] businessâ with New York residents through the broadcast. Viewers were not charged a fee to watch the broadcast, nor did One Communications sell any products to New York residents through the broadcast. Freeplay Music, Inc. v. Cox Radio, Inc., 2005 WL 1500896, at *7 (S.D.N.Y. June 23, 2005) (âIt stretches the meaning of âtransacting businessâ too far to subject defendants to personal jurisdiction . . . merely for operating a website . . . without some evidence or allegation that commercial activity in that state actually occurred or was actively sought.â). Simply put, jurisdiction requires more than plaintiffsâ bare allegation that New York residents viewed the infringing performance. See Capitol Recs., LLC v. VideoEgg, Inc., 611 F. Supp. 2d 349, 359â60 (S.D.N.Y. 2009) (concluding that â[t]he âsheer availabilityâ of allegedly infringing video files on [defendantâs] websiteâ was âinsufficient to support jurisdiction under Section 302(a)(1),â where âvideos were available free of charge and irrespective of the viewerâs localeâ); Virgin Enterprises Ltd. v. Virgin Eyes LAC, No. 08-CV-8564, 2009 WL 3241529, at *4 (S.D.N.Y. Sept. 30, 2009) (âThe mere fact that the website was available for anyone (specifically, a New York resident) to view, is insufficient to sustain jurisdiction.â (quotation marks omitted)). Plaintiffs also assert that One Communications âtransact[s] businessâ in New York due to (1) its operation of a payment processing application, Mobile Money Guyana, that is available to and heavily used by New York residents and (2) its operation of the âInternational Passport service,â which provides cellphone connectivity to One Communications customers located in New York pursuant to a contract with Verizon. Pl. Opp. at 18; see also FAC at ¶¶ 23â24 (alleging that Verizon was One Communicationsâ âagent and or facilitator for its provision of telecommunication services in the United States,â and that Verizon is located within New York). However, even assuming the truth of those allegations and that they sufficiently establish that One Communications âhas transacted business,â plaintiffs fail to identify an âarticulable nexus . . . between the claim[s] assertedâ and those business transactions. Megna, 166 F. Supp. 3d at 497. To satisfy the nexus prong of N.Y.C.P.L.R. § 302(a)(1), âthe claim asserted must arise from th[e] business activity, . . . so that there is a direct relation between the cause of action and the in-state [business] conduct.â Edwardo v. Roman Cath. Bishop of Providence, 66 F.4th 69, 76 (2d Cir. 2023) (quotation marks and citation omitted). Although plaintiffs contend that âthe rebranding event pertains to . . . the various services and products [One Communications] provides in New York,â Pl. Opp. at 18â19, plaintiffsâ complaints and affidavits do not support that conclusory assertion. Plaintiffsâ claims are based on a single event that occurred in Guyanaâthe performance and broadcast of plaintiffsâ songâwhich celebrated One Communicationsâ name change from GTT. FAC at ¶ 49. Notably, plaintiffs do not provide any facts which suggest that the ceremony and its broadcast (a) promoted products purportedly available to or used by New York customers, (b) were specifically directed at promoting One Communications or its products to New York consumers, or (c) had any relationship to One Communicationsâ roaming agreements with Verizon.7 In essence, plaintiffs rest on the untenable premise that, because One Communications infringed upon plaintiffsâ song during a rebranding event, plaintiffsâ infringement claims arise from or relate to any and all business transactions undertaken by One Communications. New Yorkâs long-arm nexus requirement demands more than such a âtangential relationship.â SolĂ© Resort, S.A. de C.V. v. Allure Resorts Mgmt., LLC, 450 F.3d 100, 104 (2d Cir. 2006). In conclusion, plaintiffs âmake[] no claim that any of the infringing materials were copied or uploaded in New York, that the infringement was directed or committed by any of 7 The declaration of One Communicationsâ Deputy CEO states that the ceremony was designed âonly to celebrate and publicize [One Communicationsâ] new nameâ and made no mention of the services that plaintiffs contend are accessible by New York customers. Stanton Reply Decl. ¶ 5. Plaintiffs do not provide any allegations or evidence that contradicts those statements. defendantâs New York personnel, or that the claim arose out of any of the . . . business activities that defendant conducted in New York.â Creative Photographers, Inc. v. Grupo Televisa, S.A.B. (âCreative Iâ), No. 23-CV-7106, 2024 WL 1533189, at *9 (S.D.N.Y. Apr. 8, 2024) (quotation marks omitted). Plaintiffs have therefore failed to make a prima facie case of personal jurisdiction under § 302(a)(1). Id. 2. § 302(a)(3)(ii) To establish jurisdiction under N.Y.C.P.L.R. § 302(a)(3), the alleged tortious conduct must have âcaus[ed] injury within [New York].â Here, One Communications allegedly caused âthe unauthorized performanceâ of plaintiffsâ copyrighted song during a corporate rebranding event in Guyana that was also broadcast on internet platforms in the United States. FAC ¶¶ 52, 54. Plaintiffs assert that the âlocation of injury [for] a copyright infring[ement]â that âoccurs via the internet is the residence or place of business of the copyright owner.â Pl. Opp. at 19. Thus, according to plaintiffs, § 302(a)(3)âs locus of injury requirement is satisfied because (1) Mr. Harry resides in New York; and (2) plaintiffsâ agents for licensing performance and broadcast rights (ASCAP and plaintiffâs manager, Ian Johnson) each maintain their principal place of business in New York. Pl. Opp. at 20. However, it is well-settled that âresidence or domicile of the injured party within [New York] is not a sufficient predicate for jurisdictionâ under section 302(a)(3). Fantis Foods, Inc. v. Standard Importing Co., 49 N.Y.2d 317, 326 (1980). Thus, the Second Circuit has repeatedly ârejected as insufficient . . . allegations of remote or consequential injuries such as lost commercial profits which occur in New York only because the plaintiff is domiciled or doing business here.â Troma Ent., Inc. v. Centennial Pictures Inc., 729 F.3d 215, 218 (2d Cir. 2013) (quotation marks omitted). Although the New York Court of Appeals has concluded that, in âcopyright infringement cases involving the uploading of copyrighted printed literary work onto the Internet,â âthe situs of injuryâ is âthe residence or location of the principal place of business of the copyright holder,â the court was careful to cabin its holding to the circumstances before it. Penguin Grp. (USA) Inc. v. Am. Buddha, 16 N.Y.3d 295, 301â02 (2011). Because the injury occasioned by uploading is so widely dispersed, and the place of uploading largely âinconsequential,â âthe out-of-state location of the infringing conductââthe other possible situs of injuryââcarries less weight in the jurisdictional inquiry.â Id. at 305. As the Second Circuit has explained, Penguin demands âallegations of a form of infringement that works an injury that is virtually impossible to localize,â absent which the âplace where the plaintiffâs business is lost or threatened exerts a significant gravitational influence on the jurisdictional analysis.â Troma, 729 F.3d at 220 (quotation marks omitted). Accordingly, courts in this circuit have narrowly cabined Penguin âas controlling only in digital piracy cases.â Morningstar Films, LLC v. Nasso, 554 F. Supp. 3d 525, 535 (E.D.N.Y. 2021) (collecting cases); Freeplay Music, LLC v. Dave Arbogast Buick-GMC, Inc., No. 16-CV-442, 2017 WL 449913, at *5â7 (S.D.N.Y. Jan. 18, 2017) (noting that the âtype of âdigital piracyâ at issue in Penguinâ is limited to cases in which the âdefendant uploaded the copyrighted material so that third parties could download unlicensed versions,â and that such digital piracy is distinguishable from cases in which the defendant used unlicensed music in their online advertising). Here, plaintiffs allege that One Communications (1) failed to license their music for a performance held in Guyana by a Guyanese company and (2) interfered with plaintiffsâ potential licensing relationship with one of One Communicationsâ rival corporations, E-Networks Inc., which is assumedly also located in Guyana. FAC ¶¶ 64â74.8 It is clear that the locus of the tortious conduct was âdiscreteâ and âgeographically circumscribedâ to Guyana, regardless of the fact that One Communications distributed the live performance to viewers across the internet. Troma, 729 F.3d at 220. In order to assert personal jurisdiction, plaintiffs must therefore âallege facts demonstrating a non-speculative and direct New York-based injury to [their] intellectual property rights,â harming their âcontinuing value.â Id. Plaintiffsâ assertion that Mr. Harry and their agents are located in New York does not establish a New York-based injury, as âmere economic injury within the stateâ or âsimple economic losses that [plaintiffsâ] New York-based business sufferedâ are insufficient to satisfy § 302(a)(3). Troma, 729 F.3d at 218, 220â21 (noting that a plaintiff cannot rely upon âallegations of remote or consequential injuries such as lost commercial profits which occur in New York only because the plaintiff is domiciled or doing business hereâ (quotation marks omitted)). Instead, plaintiffs must allege that the harm was localized to New Yorkâthat they lost sales in the New York market or lost customers that are New York customers. See JCorps Intâl, Inc. v. Charles & Lynn Schusterman Fam. Found., 828 F. Appâx 740, 744 (2d Cir. 2020) (noting that a âNew York-based injury means the loss of New York-based customers . . . or some other similar harm to in-state businessâ (emphasis added)); Darby Trading Inc. v. Shell Intâl Trading & Shipping Co., 568 F. Supp. 2d 329, 336 (S.D.N.Y. 2008) (âWhile . . . lost sales or customers can satisfy the injury within New York requirement under Section 302(a)(3)(ii), those lost sales must be in the New York market, and those lost customers must be New York customers.â (quotation marks omitted)). 8 Plaintiffs provide no details about E-Networksâ operations other than to describe it as a âkey rivalâ of One Communications. FAC ¶ 70 Plaintiffsâ conclusory assertions of harm to their intellectual property rights or lost profits are plainly insufficient. See Morningstar Films, 554 F. Supp. 3d at 536 (collecting cases); see also JCorps Intâl, 828 F. Appâx at 744 (allegation that defendant lost New York customers insufficient where plaintiff did not âindicate how the [d]efendantsâ actions caused [plaintiff] to lose those New York-based [customers], who those [customers] were, when the harm occurred,â etc.). Here, the only losses alleged by plaintiffs with any particularity are lost licensing arrangements with One Communications and E-Networks, Inc. However, plaintiffs cannot rely upon the loss of those licensing arrangements to establish injury in New York because both entities are Guyanese-based customers, not New York-based customers. Similarly meritless is plaintiffsâ argument that they were injured in New York because One Communications was ârequired to negotiate with and secure an agreement with Plaintiffsâ agent and or manager in New York.â Pl. Opp. at 23. Courts in this circuit have repeatedly found âallegations that a defendant uploaded a New York residentâs copyrighted works to the internet without paying a licensing fee [does] not suffice to establish an in-state injury.â Creative Photographers, Inc. v. Grupo Televisa, S.A.B. (âCreative IIâ), No. 23-CV-7106, 2025 WL 388401, at *12 (S.D.N.Y. Feb. 4, 2025) (collecting cases). Accordingly, plaintiffs have failed to identify a sufficient basis for personal jurisdiction.9 II. FEDERAL STATUTES Finally, plaintiffs assert that personal jurisdiction is proper under Fed. R. Civ. P. 4(k)(2), which permits personal jurisdiction over a foreign defendant where plaintiff establishes that â(1) the claim arises under federal law; (2) the defendant is not subject to jurisdiction in any stateâs 9 As explained below, even assuming that C.P.L.R. § 302(a)(3)(ii) authorized jurisdiction based on a New York âinjury,â personal jurisdiction would not comport with due process under the circumstances here. See, infra Part II. courts of general jurisdiction; and (3) the exercise of jurisdiction is consistent with the U.S. Constitution and laws.â George Moundreas & Co. SA v. Jinhai Intelligent Mfg. Co. Ltd., No. 20- CV-2626, 2021 WL 168930 at *11 (S.D.N.Y. Jan. 18, 2021). One Communications concedes that the first two elements are met, but that the exercise of jurisdiction would violate due process. Def. Mot. at 17, ECF No. 22-1. Under the Rule 4(k)(2) analysis, I must first consider whether the defendant âhas sufficient minimum contacts with the United States as a whole,â and then determine whether the âassertion of personal jurisdiction is reasonable under the circumstances of the particular case.â George Moundreas, 2021 WL 168930 at *11 (quotation marks omitted). Plaintiffs must either establish general jurisdictionâthat the contacts sufficiently establish that the defendant is at home in the United Statesâor specific jurisdictionâthat the âsuit either arises out of, or is related to, [defendantâs] contacts with the United States.â Porina v. Marward Shipping Co., 521 F.3d 122, 128 (2d Cir. 2008). A. General Jurisdiction One Communications is not âat homeâ in New York, or the United States generally. As demonstrated by the declaration of its Deputy CEO, One Communications is headquartered and incorporated in Guyana, and has no employees, office, or real estate in the United States. Stanton Decl. at ¶¶ 3â6. Accordingly, due process does not permit general jurisdiction over One Communications. See Daimler, 571 U.S. at 139, 141 (holding that due process requires the âforeign corporationâs in-forum contactsâ to be more than âcontinuous and systematic,â they must be âso continuous and systematic as to render it essentially at home in the forum,â and directing courts to pay âheed to the risks to international comityâ (quotation marks omitted and alterations adopted)).10 B. Specific Jurisdiction Nor would specific jurisdiction be proper. Plaintiffs first assert that One Communications has extensive contacts with the United States due to One Communications provision of cellphone connectivity services (International Passport) and payment processing applications (Mobile Money Guyana) to customers located in the United States. Those contacts are the same âbusiness transactionsâ under which plaintiffs attempt to premise jurisdiction under New Yorkâs long-arm statute. Due process imposes similar limitations, as specific jurisdiction requires the suit to âarise[] out of . . . defendantâs contacts . . . with the forum,â Daimler, 571 U.S. at 127, and a defendant âcannot be made to answer in this forum with respect to matters unrelated to the forum connections,â Waldman v. Palestine Liberation Org., 835 F.3d 317, 341 (2d Cir. 2016) (quotation marks omitted). As discussed above, there is no articulable relationship between plaintiffsâ copyright infringement claim and One Communicationsâ provision of services to customers located in New York. Because plaintiffs merely allege that One Communications conducted similar transactions in the United States more broadly, there likewise is no relationship between One Communicationsâ provision of those services and its infringement of plaintiffsâ copyright. See Charles Schwab Corp. v. Bank of Am. Corp., 883 F.3d 68, 84 (2d Cir. 2018) (âCourts typically require that the plaintiff show some sort of causal relationship between a defendantâs U.S. 10 The âdue process analysis in the personal jurisdiction context is basically the same under both the Fifth and Fourteenth Amendments,â and under either Amendment, general personal jurisdiction is proper only if the defendant is âessentially at homeâ in the forum. Fuld v. Palestine Liberation Org., 82 F.4th 74, 81 (2d Cir. 2023) (quotation marks omitted), cert. granted, 145 S. Ct. 610 (2024). contacts and the episode in suit.â); Walden v. Fiore, 571 U.S. 277, 284 (2014) (noting that specific jurisdiction must be premised on the defendantâs âsuit-related conductâ). Second, plaintiffs again assert that the performance and broadcast themselves constitute contacts with the United States, as Mr. Harry resides in the United States and the Facebook broadcast was viewed by internet users located in the United States. Pl. Opp. at 19, 23. As plaintiffs acknowledge, âthe conduct that forms the basis for the controversyââthe infringing performance and broadcastâ âoccur[ed] entirely out-of-forumâ in Guyana. Licci ex rel. Licci v. Lebanese Canadian Bank, SAL, 732 F.3d 161, 173 (2d Cir. 2013); FAC ¶ 52. Accordingly, One Communications is subject to personal jurisdiction only if it âexpressly aimed its conduct at the forum.â Id. Mr. Harryâs residence in the United States does not confer jurisdiction, as âmere injury to a forum resident is not a sufficient connection to the forum.â Walden, 571 U.S. at 290 (âThe proper question is not where the plaintiff experienced a particular injury or effect but whether the defendantâs conduct connects him to the forum in a meaningful way.â (emphasis added)). For similar reasons, plaintiffs cannot premise jurisdiction on the allegation that internet users in the United States viewed One Communicationsâ broadcast of the infringing performance, as âthat is precisely the sort of unilateral activity of a third party that cannot satisfy the requirement of contact with the forum.â Walden, 571 U.S. at 291 (2014). Notably, plaintiffs have not alleged or offered any evidence that the broadcast âtargeted American visitors,â Creative II, 2025 WL 388401 at *14, or was âexpressly aimedâ at the United States, Charles Schwab, 883 F.3d at 87.11 Plaintiff cannot simply allege that the United States has a large 11 For example, plaintiffs offer statements related to the rebranding event that were published in a Guyanese Newspaper and in a Facebook post, in which One Communicationsâ executives announce that One Communications âoperate[s] in four markets in the regionâ and is ânow a Guyanese community from which One Communications derives significant business, FAC ¶¶ 21â23, as that fact does not indicate that One Communications targeted the broadcast to reach those United States customers specifically. As noted above, plaintiffs do not contest defendantâs affidavits that the performance and broadcast did not mention the United States, New York, or any services that One Communications provides to customers in the United States. See Stanton Reply Decl. ¶ 5. At bottom, plaintiffs allege merely that One Communications broadcast the infringing performance on Facebook to viewers located worldwide, and that some unknown number of viewers located in the United States viewed the broadcast. However, it is well-established that the âmere accessibility of the defendantsâ websites in the forum cannot by itself establish the necessary minimum contacts.â Triple Up Ltd. v. Youku Tudou Inc., 235 F. Supp. 3d 15, 23 (D.D.C. 2017) (quotation marks omitted and alterations adopted), affâd, No. 17-7033, 2018 WL 4440459 (D.C. Cir. July 17, 2018). Accordingly, the broadcast did not create sufficient contacts with the United States. C. Fair Play and Substantial Justice Even assuming that there existed sufficient contacts between One Communications and the United States, One Communications has sufficiently met its burden of establishing that jurisdiction would offend âtraditional notions of fair play and substantial justice.â Intâl Shoe Co. v. State of Wash., Off. of Unemployment Comp. & Placement, 326 U.S. 310, 316 (1945); see also ChloĂ©, 616 F.3d at 165 (noting that the defendant bears the burden of demonstrating unreasonableness). That analysis requires me to consider â(1) the burden that the exercise of regional brand.â Hanover Decl. at ¶¶ 6â9. However, neither statement indicates that the rebranding event was targeted at the United States, or indeed, make any mention of the United States. jurisdiction will impose on the defendant; (2) the interests of the forum [nation] in adjudicating the case; (3) the plaintiffâs interest in obtaining convenient and effective relief; (4) the [international] judicial systemâs interest in obtaining the most efficient resolution of the controversy; and (5) the shared interest of the [nations] in furthering substantive social policies.â Metro. Life Ins. Co. v. Robertson-Ceco Corp., 84 F.3d 560, 568 (2d Cir. 1996). First, â[t]here would, of course, be a substantial burden imposed on [One Communications],â Kernan v. Kurz-Hastings, Inc., 175 F.3d 236, 244 (2d Cir. 1999), as it is headquartered in Guyana and has no employees in the United States, Stanton Decl. ¶¶ 5â6. Accordingly, the first factor strongly favors One Communications. See Asahi Metal Indus. Co. v. Superior Ct. of California, Solano Cnty, 480 U.S. 102, 114 (1987) (âThe unique burdens placed upon one who must defend oneself in a foreign legal system should have significant weight in assessing the reasonableness of stretching the long arm of personal jurisdiction over national borders.â). Second, although the United States has an interest in enforcing its copyright laws, see Capitol Recs., LLC v. VideoEgg, Inc., 611 F. Supp. 2d 349, 365 (S.D.N.Y. 2009) (noting that âNew York has a substantial interest in protecting the intellectual property rights of copyright owners in the stateâ), that interest is only minimally implicated under the facts alleged here. âThe acts and omissions that serve as the basis for [plaintiffsâ] suit occurred in [Guyana],â as the infringing performance occurred in Guyana and was broadcast from Guyana over Facebook. Metro. Life Ins. Co., 84 F.3d at 574. Plaintiffs purported injuries are also localized to Guyana, as they involve lost licensing arrangements of their work with One Communications and E- Networks, both of which are Guyanese companies. FAC ¶ 43. Moreover, â[t]he U.S. Copyright Act does not have extraterritorial application, and district courts do not have subject matter jurisdiction over infringement occurring outside of the United States.â Levitin v. Sony Music Ent., 101 F. Supp. 3d 376, 384 (S.D.N.Y. 2015). Thus, the live performance of plaintiffsâ song in Guyana is likely governed by Guyanese law, and application of United States copyright law is likely limited to One Communicationsâ worldwide broadcast of that performance and its mere access by users in the United States. See id. Third, litigation in the United States will not further plaintiffsâ interests in convenient and effective relief. Ms. Hanover, who owns 75% of the copyright and is the primary copyright holder of the Song, âreside[s] in and is a citizen of Guyana.â FAC ¶ 4. I fail to understand how it is more convenient for herâa non-resident of the United Statesâto litigate her claims in this forum rather than Guyana. Although Mr. Harry apparently resides in the United States, id. ¶ 48, his interest in litigating the case in New York is outweighed by Ms. Hanoverâs residence in Guyana. The FAC alleges only one lost opportunity to license the Song (other than from One Communications itself): namely, Ms. Hanoverâs âprospective business relationshipâ to license her music catalogue to E-Networks Inc. Id. ¶ 70. Notably, plaintiffs have not alleged or averred that E-Networks Inc. is located in, or has any relationship with, the United States.12 Fourth, the efficient administration of justice also favors One Communications. âIn evaluating this factor, courts generally consider where witnesses and evidence are likely to be located.â Metro. Life Ins. Co., 84 F.3d at 574. One Communications has no employees located in the United States, and the infringing performance and broadcast occurred and were planned in Guyana. Stanton Decl. ¶¶ 5â6. Due to those undisputed facts, it appears that virtually all of the documents and witnesses relevant to the present case are located in Guyana. 12 Plaintiffsâ sole allegation regarding E-Networksâ operationsâthat it is a âkey rivalâ of One Communicationsâstrongly suggests that E-Networks is a Guyanese company. FAC ¶ 70 Fifth, the shared interest of nations in furthering substantive social policies does not weigh for or against jurisdiction in the United States over Guyana. Taken together, the due process factors indicate that exercising jurisdiction over One Communications would be unreasonable. Thus, âthe exercise of jurisdiction is [not] consistent with the U.S. Constitution and laws,â and I may not appropriately exercise personal jurisdiction over One Communications pursuant to Rule 4(k)(2). George Moundreas, 2021 WL 168930 at *11. III. Failure to Serve Ms. De Freitas Finally, I note that plaintiffs have named Ms. De Freitas as a defendant. The Federal Rules require service upon a defendant âwithin 90 days after a complaint is filed.â Fed. R. Civ. P. 4(m). More than six months have passed since plaintiffs initiated this case, and plaintiffs have not yet filed a proof of service upon Ms. De Freitas. See Summons Issued, ECF No. 5. I therefore order plaintiffs to show good cause for their failure to serve Ms. De Freitas, absent which I will order dismissal of all claims against her without prejudice. Fed. R. Civ. P. 4(m); see Meilleur v. Strong, 682 F.3d 56, 61 (2d Cir. 2012) (âIn the Rule 4(m) context, a district court abuses its discretion when . . . it dismisses a complaint sua sponte for lack of service without first giving notice to the plaintiff and providing an opportunity for her to show good cause for the failure to effect timely service.â). CONCLUSION For the reasons set forth above, plaintiffs have failed to establish a prima facie case of personal jurisdiction over One Communications.13 Nor is jurisdictional discovery proper, as 13 I note that plaintiffs make vague references to the existence of personal jurisdiction over One Communicationsâ corporate parent, Atlantic Tele-Network International, Inc., which is headquartered and incorporated in the United States. However, a parent corporationâs actions plaintiffs have failed to make a âcolorable basis for personal jurisdiction, which could be established with further development of the factual record.â Leon v. Shmukler, 992 F. Supp. 2d 179, 195 (E.D.N.Y. 2014). Given plaintiffsâ acknowledgement that One Communications is headquartered and incorporated in Guyana and has no offices, employees, or property in the United States, general jurisdiction cannot be established by proof that One Communications derives significant revenue from its business with the Guyanese community in the United States. Likewise, plaintiffs have offered no further allegations, or even arguments, that One Communicationsâ infringing conduct relates to any contacts One Communications had with New York or the United States. I therefore GRANT the motion to dismiss for lack of personal jurisdiction. Plaintiffs have already amended their complaint, and further amendment would be futile. See McCarthy v. Dun & Bradstreet Corp., 482 F.3d 184, 200 (2d Cir. 2007) (noting that leave to amend âshall be freely given when justice so requires,â but that a district court may deny leave to amend where amendment would be futile (quoting Fed. R. Civ. P. 15(a)). I therefore deny leave to amend. However, the dismissal is without prejudice. See Vanek v. Samsung EMS Co., No. 23-CV-3127, 2024 WL 4894344, at *2 (S.D.N.Y. Nov. 26, 2024) (noting that âa dismissal based on . . . lack of personal jurisdiction is a dismissal without prejudiceâ). cannot be imputed to assert jurisdiction over its subsidiaries. See Holland America Line Inc. v. WĂ€rtsilĂ€ North America, Inc., 485 F.3d 450, 459 (9th Cir. 2007) (holding that a parent corporationâs contacts may not be imputed to its subsidiary).
Case Information
- Court
- E.D.N.Y
- Decision Date
- March 28, 2025
- Status
- Precedential