Coastal Video Communications, Corp., v. The Staywell Corporation

59 F.Supp.2d 562 (E.D.Va 1999)

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Nature of the Case

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Facts

P is a Virginia corporation engaged in the business of producing employee handbooks, video training programs, posters, and interactive CD-ROM courses. P sells these products to companies throughout the United States. One of D's products is an employee handbook titled 'Defending Your Safety Zone: Back Protection.' D is a Delaware corporation with its principal place of business in California. D publishes patient education, health promotion, safety, and injury prevention training materials. D publishes 'Safety Zone: Using Natural Limits to Protect Your Back,' for which it holds U.S. Copyright Registration Number TX 3 208 886. On January 26, 1999, D sent P a cease and desist letter, notifying { that the 'Defending Your Safety Zone' handbook was an infringement of D's 'Safety Zone' copyright. P filed the instant action, seeking a declaration that the handbook, 'Defending Your Safety Zone: Back Protection,' does not infringe on copyrighted material contained in Ds 'Safety Zone' handbook. D filed a motion to dismiss for lack of personal jurisdiction. P has produced affidavits that D sells its products to managed care organizations, more than seventy percent of hospitals in the United States, and to more than 100,000 physicians, nurses, and health educators in private practice and hospitals. D also sells its products to customers in fifty countries on six continents. D has also sold and distributed products in Virginia in the past and currently. D mailed product catalogs to individuals in Virginia, as recently as Winter, 1998. D has also sent mailings to Virginia residents at their homes and business addresses containing order forms for Krames products and free product samples. D also has distributed and sold products to at least three hospitals located in Virginia: Chesapeake General Hospital, Virginia Beach General Hospital, and Sentara Norfolk General Hospital. There is no indication that D's 'Safety Zone' publication was ever purchased by any of these hospitals. Furthermore, apart from allegations that the 'Defense of the Safety Zone' publication is available for sale through the website and catalog and generic 'products' have been sold in Virginia, there is no indication in the affidavits provided by plaintiff that any copies of D's 'Safety Zone' publication were actually sold in Virginia. D is qualified to do business in Virginia and maintains a registered agent in Virginia. D's World Wide Web site advertises over 850 D products and allows customers to order products directly over the Web by completing order forms online. D’s website also provides an 'Ask Krames' service by which potential customers may e-mail questions about Krames products and services to the company. D offers the 'Safety Zone' product over its website. There is also a separate site for Staywell. Staywell's website states that it is the 'premier provider of integrated health improvement and behavior change programs.' According to the site, Staywell is the exclusive creator and publisher of American Red Cross health and safety training programs and manuals. These materials are distributed by more than 1,300 local American Red Cross chapters around the country, including, presumably, those located in Virginia. Staywell publishes student course books, instructor training materials, videos, and slides for American Red Cross courses in First Aid, CPR, Aquatics, and mission-related caregiving, such as child care, babysitting, and HIV/AIDS. The site lists a toll-free number to call with inquiries about Staywell products. Visitors to the site may download a free demonstration of a Staywell/Krames on-line 'On Demand Patient Education Program.' The Staywell site also lists job opportunities available with the company and permits interested individuals to send a resume to the company over the Internet, as well as provides an e-mail address and fax number to contact the company concerning employment opportunities.