Opinion ID: 531209
Heading Depth: 2
Heading Rank: 1

Heading: Long Arm statute.

Text: 10 The Massachusetts long arm statute provides that a non-resident may be subject to the jurisdiction of the Massachusetts courts if they 11 caus[ed] tortious injury in th[e] commonwealth by an act or omission outside th[e] commonwealth ... [and] derive substantial revenue from goods used or consumed ... in th[e] commonwealth 12 Mass.Gen.L. ch. 223A Sec. 3(d). Keds alleges that Renee has committed the tort of trademark infringement in Massachusetts and claims jurisdiction based on Sec. 3(d). Keds does not claim jurisdiction based on any of the other possible grounds under the long arm statute. Renee contends that it does not do business in Massachusetts and has not committed a tort there. 13 First, we examine whether the sale to Blum by Renee could have caused tortious injury in Massachusetts. The Lanham Act prohibits 14 use in commerce [of] any reproduction, counterfeit, copy, or colorable imitation of a registered mark in connection with the sale, offering for sale, distribution, or advertising of any goods or services on or in connection with such use that is likely to cause confusion, to cause mistake, or to deceive. 15 15 U.S.C. Sec. 1114(1)(a). The tort of infringement is thus the use of a registered mark in connection with the sale of goods, without the consent of the owner, that is likely to cause confusion. It is not necessary to show actual confusion. Pignons S.A. de Mecanique v. Polaroid Corp., 657 F.2d 482, 490 (1st Cir.1981); See also Squirt Co. v. Seven-Up Co., 628 F.2d 1086, 1091 (8th Cir.1980); Soweco, Inc. v. Shell Oil Co., 617 F.2d 1178, 1186 (5th Cir.1980) cert. denied, 450 U.S. 981, 101 S.Ct. 1516, 67 L.Ed.2d 816 (1981). All that is required is a likelihood of confusion. The likelihood of confusion creates an injury. The injury in an infringement case is two-fold: to the trademark owner through loss of good will and presumably profits and to the public because of confusion caused by the similar marks. Economic injury in the form of lost sales in the forum state is sufficient to satisfy the injury requirement for jurisdiction. Buckeye Associates v. Fila Sports, Inc., 616 F.Supp. 1484, 1493 (D.Mass.1985). 16 Renee asserts that because Blum did not know that the shoes he ordered had blue kickers, he was not confused about the origin or maker of the shoes, so there was no tort. But the relevant question is not whether Blum was actually confused, but whether consumers are likely to be confused. On that issue, the court below ruled clearly and correctly. See, infra Section III. 17 Renee argues extensively that because the title of the goods it sells always passes in New York, it only does business in New York. But even assuming that the title passed outside Massachusetts, that does not prevent jurisdiction under Sec. 3(d). The long arm statute was designed to encompass exactly this type of activity. Mass.Gen.L. ch. 223A Sec. 3(d) requires an act outside of the commonwealth (the sale of the shoes) that causes injury (infringement) within the commonwealth. The key question, which must be answered in the affirmative, is whether Renee was purposely soliciting business in Massachusetts. 18 The second of the two requirements of the statute, the substantial revenue requirement, need not detain us. It is well settled under Massachusetts law that substantial revenue is not an absolute amount nor an absolute percentage of total sale. See, e.g., Heins v. Wilhelm Loh Wetzlar Optical Machinery GmbH, 26 Mass.App.Ct. 14, 522 N.E.2d 989, 994 n. 5 review denied, 402 Mass. 1105, 525 N.E.2d 678 (1988). All that is required is literal satisfaction of the statutory requirement. Heins, 26 Mass.App. at 20, 522 N.E.2d at 993. The sale of 6000 pairs of shoes for $15,000 easily meets this requirement. See, e.g., Mark v. Obear & Sons Co., 313 F.Supp. 373, 375-376 (D.Mass.1970) ($5000 in sales enough for statute). Although Renee feebly argues that it has not made any sales in/to Massachusetts including the sales to Blum, because the title passed in New York, it strains credulity to argue that soliciting sales, shipping goods, soliciting additional sales and receiving payment from an individual in Massachusetts does not involve interstate commerce. See, e.g., Heins, 522 N.E.2d at 993-994. The logical extreme of Renee's argument would be that it is not involved in interstate commerce and thus not subject to the provisions of the Act at all. 19 Renee relies heavily on Droukas v. Drivers Training Academy, Inc., 375 Mass. 149, 376 N.E.2d 548 (1978) to support its lack of jurisdiction argument. This reliance is misplaced because the issue of jurisdiction in that case was decided under Mass.Gen.L. ch. 223A Sec. 3(a)-(b) rather than under Sec. 3(d). In that case the court was trying to determine if there was general jurisdiction based on transacting business or supplying services in Massachusetts. In addition, Renee purposely availed itself of the protection of Massachusetts laws, by soliciting sales, to a greater extent than did the defendant in Droukas. 20 On a motion to dismiss under the liberal pleading rules of the Federal Rules of Civil Procedure, all Keds must do is allege injury. The district court found that Keds has done so and that decision is not clearly erroneous. Keds has alleged sufficient facts to establish jurisdiction under the Massachusetts long arm statute. Next, we determine whether such jurisdiction passes constitutional muster. 21