Opinion ID: 781750
Heading Depth: 5
Heading Rank: 1

Heading: Nationwide distribution agreement between DM and Ryco

Text: 44 The record reflects that DM entered into a distribution contract with Ryco Distribution Partners (Ryco) in which DM sought nationwide distribution of its records throughout the United States, its territories, commonwealth, possessions.... Relying upon Tobin, Bridgeport asserts that this nationwide distribution agreement is sufficient for a finding of purposeful availment. 45 In Tobin, the Court indeed found purposeful availment based on the existence of a nationwide distribution agreement. Saliently, the territory in the Tobin distribution agreement was defined as the United States of America, its territories and possessions, and Puerto Rico. Tobin, 993 F.2d at 543. Although in Tobin we mentioned a number of factors supporting our finding of purposeful availment, the primary emphasis of the opinion is on the deliberate decision [Duphar made] to market ritodrine in all 50 states, as opposed to seeking only a regional distribution agreement. Id. We found purposeful availment, even though Duphar did nothing in particular to purposefully avail itself of the Kentucky market as distinguished from any other state in the union. Id. at 544. 46 In the instant action, DM does not explicitly admit that it affirmatively required Ryco to distribute its records throughout the foregoing territory. However, DM does admit, via deposition testimony of DM's president Mark Watson, that his understanding was that DM's recordings would be distributed nationwide, in all 50 states pursuant to the parties' agreement. J.A. 71. The language in the DM-Ryco agreement is nearly identical to that in Tobin, and viewing the facts in a light most favorable to Appellants, the Court finds that the foregoing supports a prima facie purposeful availment finding. 11 47