E.D. Pa. Dismisses PELOTON Complaint for Review of TTAB Decision Due to Lack of Personal Jurisdiction

Peloton Cold Brew filed a civil action for review of an adverse TTAB decision, under Section 1071(b) of the Trademark Act. [Complaint here]. The Board had entered judgment against Cold Brew as a discovery sanction [here], ordering cancellation of Cold Brew's registration for the mark PELOTON for "beverages made of coffee." The district court concluded that personal jurisdiction over Defendant Peloton Interactive was lacking, and so it dismissed the complaint. Peloton Cold Brew, Inc. v. Peloton Interactive, Inc., Civil Action No. 21-3579 (E.D. Pa. August 2, 2022).

As the Supreme Court has stated, “Federal courts ordinarily follow state law in determining the bounds of their jurisdiction over persons.” Daimler AG v. Bauman, 571 U.S. 117, 125 (2014). The Pennsylvania long-arm statute authorizes its courts to exercise personal jurisdiction to "the fullest extent allowed under the Constitution of the United States."

The court observed that there are two types of personal jurisdiction - general and specific. Plaintiff Cold Brew relied on general jurisdiction, which requires that a corporation's "affiliations with the state are so 'continuous and systematic' as to render [it] essentially at home in the forum state." The district court agreed with that defendant that the court lacked general jurisdiction over it.

The Supreme Court ... has determined that general jurisdiction over a corporate defendant under the Constitution is limited except in exceptional cases to the places where it is “fairly regarded as at home.” Daimler, 571 U.S. at 137 and 139 n.19. The two places, the paradigm fora, are the state of defendant’s incorporation and the state where defendant has its principal place of business.

Defendant Peloton Interactive, Inc. is a Delaware corporation with a principal place of business in New York. The court observed that, even if defendant has stores and warehouse, as plaintiff claimed, that is not enough to establish an exceptional case.

The court went on to consider specific jurisdiction, which requires that (1) defendant has purposely directed specific activities into the forum, (2) plaintiff's claim arises out of or is related to one of those activities, and (3) the assertion of jurisdiction comports with fair play and substantial justice.

Plaintiffs seeks review of the decision of the Trademark Trial and Appeal Board which cancelled Plaintiff's [registration]. The Trademark Trial and Appeal Board is located and acted in Virginia. That is the state where specific jurisdiction lies. Nothing concerning the adjudication in Virginia arose out of or related to defendant’s activities in Pennsylvania. Consequently, plaintiff cannot establish specific jurisdiction in this court.

And so the court dismissed the complaint.

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Text Copyright John L. Welch 2022.