Gucci America Inc. vs. Wang Huoqing
1. Reason for Lawsuit – Gucci America is pressing charges against Wang Huoqing for selling counterfeit goods adorned with the Gucci trademark on Wang Huoqing’s websites
2. Identity & Argument of Parties – Gucci America Inc. is an international retailer of high quality luxury goods and has 21 federally registered trademarks. Wang Huoquing is a resident of the People’s Republic of China and operates numerous retail websites.
3. The Lower Court’s Decision – The court must determine whether it had personal jurisdiction of Wang Huoquing based on Internet sales.
1. Since the defendant failed to show up to court is he subject to default judgment?
2. Does Gucci America Inc. have personal jurisdiction over Wang Huoqing based on the Internet sales?
3. Do the allegations and evidence presented by plaintiffs show purposeful availment on the part of Defendant Wang Huoqing?
Personal jurisdiction is appropriate where an entity is conducting business over the Internet and has offered for sale and sold its products to forum [California] residents.
If Gucci had not presented evidence that Wang Huoqing had made one actual sale through his Website to a resident, the court would not have had personal jurisdiction over Wang Huoqing. In this case, the sales history served as proof of purposeful availment from Wang Huoqing. Without it, Gucci would not have been able to place such an easy accusation.
The U.S. District Court for the Northern District of California holds that it has personal jurisdiction over the foreign defendant, Wang Huoqing. The court has then entered a default judgment against Wang Huoqing and grants Gucci an injunction.