Extra-Judicial Patent Enforcement That Affects Activities in Forum State Creates Personal Jurisdiction

In SnapRays v. Lighting Defense Group, No. 2023-1184 (Fed. Cir. May 2, 2024), because use of Amazon’s automatic patent enforcement procedure affected activities in the forum state, the Federal Circuit reversed and remanded a dismissal for lack of personal jurisdiction over the patent owner in a declaratory judgment action.

Lighting Defense Group (LDG) initiated Amazon’s patent enforcement procedure to allege that certain SnapRays (d/b/a SnapPower) products infringed U.S. Patent No. 8,668,347. SnapPower, a Utah company, sought declaratory judgment of noninfringement in the District of Utah. But the district court concluded that LDG lacked sufficient contacts with Utah because it directed its enforcement activities toward Amazon in Washington.

The Federal Circuit reversed. The Court applied a three-factor test for personal jurisdiction: (1) whether the defendant purposefully directed its activities at residents of the forum; (2) whether the claim arises out of or relates to the defendant’s activities with the forum; and (3) whether assertion of personal jurisdiction is reasonable and fair. The Court explained that patent owners using Amazon’s procedure who “target a forum state by identifying listings for removal that, if removed, affect the marketing, sales or other activities in that state” satisfy all three factors. Emphasizing the automatic nature of Amazon’s takedown process, the Court found it necessarily affected SnapPower’s activities in Utah.