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MEMORANDUM AND ORDER OâTOOLE, District Judge. The plaintiff, High Country Investor, Inc. (âHigh Countryâ), has brought this suit against the defendant, McAdams, Inc. (âMcAdamsâ), for trademark infringement. High Country owns and operates two restaurants in Massachusetts, each called the Hilltop Steak House. McAdams, recently purchased a restaurant in Maine which, at the time, was called the Hilltop House Restaurant (âHilltop Houseâ). After purchasing the restaurant, McAdams began calling it the âHilltop Steakhouse.â Before the Court are McAdamsâs motion to dismiss the action for lack of personal jurisdiction (Docket No. 3) and High Countryâs motion for a preliminary injunction restraining McAdams from using the phrase âHilltop Steakhouseâ (Docket No. 8). For the reasons discussed below, this Court concludes that personal jurisdiction over McAdams is lacking, and the case is therefore dismissed. A. Nature of the Controversy High Country owns the Hilltop Steak House restaurants in Saugus and Brain-tree, Massachusetts, and it owns the federally registered trademarks âHilltop Steak House,â âHilltop Steak House Frank Giuf-frida,â and âHilltop.â The Hilltop Steak House in Saugus has been doing business under that name for approximately fifty years. High Country advertises its restaurants in print and on the radio, television, and Internet. According to a customer research survey commissioned by High Country, about ten percent of its customers are from out of state. Since the 1950s there has also been a âHilltopâ restaurant in Ellsworth, Maine. In 1959, Joseph Saunders purchased a restaurant known as Goodwinâs Hilltop Lunch located, it will surprise no one to learn, on top of a hill in Ellsworth. When he bought the restaurant, he changed its name to âThe Hilltopper.â In the 1960s, Saunders changed the name again, this time to âHilltop House.â McAdams, a corporation owned and operated by Troy Adams and Robert McKinney, bought the restaurant in 2001. Shortly thereafter, McAdams placed new signs on the restaurant which *101 read, âHilltop Steakhouse.â It also used the name âHilltop Steakhouseâ on wine and beer menus and on customer receipts. High Country alleges it first became aware of McAdamsâs use of the name âHilltop Steakhouseâ when it began to get phone calls from customers asking about its new restaurant in Maine. Sensing infringement of its marks and good will, High Country brought this suit. Mc-Adams asserts that since being served with the complaint, it has voluntarily taken steps to avoid infringement. âIn particular, McAdams removed the word âsteakâ from all signage for the restaurant; Mc-Adams has changed, or shortly will change all menus to remove the word âsteakâ from the restaurant name; the restaurant employees do not answer the phone with the phrase âHilltop Steakhouse;â and McAdams does not advertise with the words âHilltop Steakhouse.â â Def.âs Mem. in Oppân to a Prelim. Inj., at 5. B. Personal Jurisdiction This Court has personal jurisdiction over a defendant in a diversity case if the defendant is within the reach of the Massachusetts long-arm statute, and if the exercise of personal jurisdiction comports with the due process requirements of the Fourteenth Amendment. Ticketmaster-New York, Inc. v. Alioto, 26 F.3d 201, 204 (1st Cir.1994). The Massachusetts long-arm statute grants its courts jurisdiction over a defendant if the plaintiffs cause of action arises, among other things, from a defendant â(a) transacting any business in this commonwealth; ... [or] (c) causing tortious injury by an act or omission in this commonwealth.â Mass. Gen. Laws ch. 223A, § 3. If the plaintiffs claims arise out of tortious acts the defendant committed outside of Massachusetts, the long-arm statute grants jurisdiction if the defendant âregularly does or solicits business, or engages in any other persistent course of conduct, or derives substantial revenue from goods used or consumed or services rendered, in this commonwealth.â Id. § 3(d). McAdamsâs restaurant caters to residents and visitors in the vicinity of Ells-worth, Maine. (Ellsworth is about 250 miles from Saugus and a bit more from Braintree, farther than most people would consider driving for a steak, even a good one.) The restaurant seeks to promote business by advertising in publications aimed at Ellsworth area residents and visitors. Thus, McAdams has advertised in a booklet, âMaineâs Best Regional Guide,â published by the Ellsworth Area Chamber of Commerce. A copy of the booklet was displayed at the hearing on the present motions. It consists of 104 pages of advertisements for various businesses in the âDowneast and Acadiaâ region of Maine, along with maps and descriptions of local attractions. It is the kind of booklet that can typically be found in a rack near the registration desk of any motel. In addition, however, the Ellsworth Chamber of Commerce mails copies out of state, no doubt in an effort to stimulate tourism to the area. In 2001, more than 80,000 such booklets were distributed out of state, with about 15,000 copies being sent into Massachusetts. The booklets so distributed included a half-page ad for the McAdams restaurant, described as âHilltop Steakhouse.â McAdamsâs restaurant also has advertised in the local newspaper, the Ellsworth American. The American maintains a website, and the website has, at least on occasion, also carried an ad for the âHilltop Steakhouse.â The American website can, of course, be accessed by residents of Massachusetts. It is, however, a passive site, at least as far as restaurant advertisements are concerned. There is no direct communication, by link or otherwise, from *102 the American website to the McAdams restaurant. High Country relies on the advertisements in the Chamber of Commerce guide and the American website to support its argument that this Court has jurisdiction over McAdams under §§ 3(a), (c), and (d) of the Massachusetts long-arm statute. There do not appear to be any other âcontactsâ between McAdams and Massachusetts. The advertising contacts are insufficient to satisfy any of the cited long-arm provisions. Advertisements which happen to circulate in Massachusetts are not contact enough to amount to âtransacting any business in this commonwealthâ under § 3(a). See Droukas v. Divers Training Acad., Inc., 375 Mass. 149 , 376 N.E.2d 548, 549-51 (1978); Gunner v. Elmwood Dodge, Inc., 24 Mass.App.Ct. 96 , 506 N.E.2d 175, 176 (1987). In Gunner , the court concluded that advertisements in general trade magazines which happen to circulate in Massachusetts are not enough to constitute âtransacting businessâ within the commonwealth under § 3(a) unless they are âaimed squarely at Massachusetts targets.â See Gunner, 506 N.E.2d at 176-77 . In Gunner , a Rhode Island car dealer âpersistentlyâ directed newspaper and electronic advertising at prospective customers across the state line in Massachusetts. That is far different from what appears here. In this case, McAdamsâs ads placed in local publications cannot reasonably be understood to have been purposefully directed at Massachusetts residents, even if it was foreseeable, as it probably was, that the publications would reach some number of Massachusetts readers. See also Lyle Richards Intâl, Ltd. v. Ashworth, Inc., 132 F.3d 111, 112 (1st Cir.1997) (non-residentâs contacts with forum State must be deliberate, not merely fortuitous). McAdams also did not âcaus[e] tor-tious injury by an act or omission in this commonwealthâ as required under § 3(c). The First Circuit has described trademark infringement as âthe use of a registered mark in connection with the sale of goods, without the consent of the owner.â Keds Corp. v. Renee Intâl Trading Corp., 888 F.2d 215, 218 (1st Cir.1989). McAdamsâs use of High Countryâs trademark occurred in Maine, not in Massachusetts. The fact that the advertisements, placed locally in Maine publications by McAdams, are distributed by others in Massachusetts does not mean that McAdamsâ infringement occurred in Massachusetts. And, of course, the fact that any economic âharmâ is felt by High Country in Massachusetts does not mean that infringement occurred here. See id. High Country argues that McAdamsâs advertising activities are analogous to those of the defendants in Northern Light Tech., Inc. v. Northern Lights Club, 97 F.Supp.2d 96 (D.Mass.2000) and Digital Equip. Corp. v. AltaVista Tech., Inc., 960 F.Supp. 456 (D.Mass.1997), who were found to have committed tortious injury in Massachusetts by âsendingâ information into the commonwealth through the Internet. However, the defendantâs on-line activities and contacts with Massachusetts in those cases were markedly different from the McAdamsâ limited advertising, sent to Massachusetts by others. In Digital Equipment, the plaintiff and defendant had entered into a licensing agreement which was to be governed by Massachusetts law. 960 F.Supp. at 463 . The defendantâs use of the plaintiffs trademark on its web site merely brought the defendant âover the lineâ to render personal jurisdiction appropriate. Id. Additionally, a visitor to the defendantâs web site could preview and purchase the defendantâs product on-line. Id. at 460 . Thus, Massachusetts residents could engage in transactions with *103 the defendant directly through the Internet. In Northern Light, the plaintiff and defendant both were Internet-based companies, and the dispute was over the defendantâs use of the web site address www.northernlights.com. 97 F.Supp.2d at 104-06 . As in Digital Equipment, the defendantâs web site was not âpassiveâ and it sought âto entice users either to post their own link on the site or to advertise on the site.â Northern Light, 97 F.Supp.2d at 105 . The defendantâs web site also offered its visitors a search tool which was confusingly similar to the Internet search capabilities offered by the plaintiffs web site. The significant fact in both cases was that the defendants were actually engaging in on-line commerce through a web-based interface and therefore could be considered to be engaging in activity on and through their web sites. The on-line advertisement for Mc-Adamsâs restaurant does not resemble the on-line activities of the defendants in Northern Light or Digital Equipment. First, McAdams is not using the Internet to sell its products or services to Massachusetts Internet users. Second, the web site advertisement is wholly passive and does not enable Massachusetts residents to interact with McAdams. The only way a Massachusetts resident can interact with McAdams is by traveling to Ellsworth, Maine. With respect to § 3(d) of the long-arm statute, a Massachusetts court has jurisdiction over a defendant whose tor-tious acts occur outside of Massachusetts and cause harm within the commonwealth only if the defendant engages in a regular pattern of business in Massachusetts. There is no evidence here of âregularâ solicitation of business in Massachusetts or of âany other persistent course of conductâ aimed at Massachusetts residents. Cf. Gunner, 506 N.E.2d at 175-77 (car dealership which routinely and deliberately sought customers in Massachusetts through direct mailings, daily advertisements in Massachusetts newspapers, and regular ads on Massachusetts radio stations met requirements of § 3(d)). Again, Digital Equipment, is inapposite. In that case, the defendantâs web site met § 3(d)âs requirements because it sold advertising space and software directly through the site. See 960 F.Supp. at 467 . In contrast, McAdamsâs on-line advertisement did not sell anything directly to Massachusetts residents. Even if McAdamsâs activities could be thought to meet the requirements of the long-arm statute, the contacts are not sufficient to satisfy the requirements of due process. Under International Shoe Co. v. State of Washington, 326 U.S. 310 , 66 S.Ct. 154 , 90 L.Ed. 95 (1945), a court has personal jurisdiction over a defendant only if the defendant has had either âcontinuous and systematicâ contacts with the forum state, id. at 317 , 66 S.Ct. 154 , or if the defendant has had sufficient âminimum contactsâ with the forum state so that âmaintenance of the suit does not offend âtraditional notions of fair play and substantial justice.â â Id. at 316 , 66 S.Ct. 154 (citation omitted). As pointed out above, McAdamsâs activities in Massachusetts do not rise to the level of being âcontinuous and systematic.â A defendant has sufficient minimum contacts with a forum state if it âpurposefully avails itself of the privilege of conducting activities within the forum State, thus invoking the benefits and protections of its laws.â Hanson v. Denckla, 357 U.S. 235, 253 , 78 S.Ct. 1228 , 2 L.Ed.2d 1283 (1958). The alleged wrongful acts by a non-resident defendant must be âpurposefully directedâ at the forum State. Asahi Metal Indus. Co., Ltd. v. Superior Court of California, 480 U.S. 102, 112 , 107 S.Ct. 1026 , 94 L.Ed.2d 92 (1987). See also Hasbro *104 Inc. v. Clue Computing, Inc., 994 F.Supp. 34, 44 (D.Mass.1997) (âThe purposeful availment test articulated ... in Asahi, and applied by the courts in trademark infringement cases, requires that the defendantâs contact with the forum state not be due to happenstance.â). McAdamsâs advertisements do not sufficiently target Massachusetts and its residents to satisfy these standards. C. Conclusion McAdamsâs contacts with Massachusetts are insufficient to permit this Court to exercise personal jurisdiction over it. Mc-Adamsâs motion to dismiss is GRANTED, and this Court is without authority to pass on the preliminary injunction. The action is DISMISSED. It is SO ORDERED.
Case Information
- Court
- D. Mass.
- Decision Date
- August 13, 2002
- Status
- Precedential