Sunday, October 14, 2012

Pavlovich v. Superior Court (2002) (DVD decryption software)


a.       Facts- Π is a company that encrypts DVDs for motion picture corporations, located in Cal. Δ is computer engineer located in Texas. Δ developed a code that defeated Π’s encryption software. Δ had a “feeling it was illegal” and “heard of a company that encrypts DVDs”. Π then sued for injunctive relief for infringement. Δ argued that Jx is improper, Π responded by saying Δ’s harm was done in CA.
b.      Procedural History- Trial Ct held Jx was proper, Cal Sup Ct reversed
c.       Issue- Whether knowledge of [potential] harm is sufficient to establish “express aiming” for Jx purposes
d.      Holding- No, knowledge of [potential] harm is NOT enough to satisfy “express aiming” requirements to establish Jx
                                                              i.      Dissent: By intentionally uploading decryption code on site, Δ was NOT targeting a specific person or corp, but an entire industry. Δ also knew that these industries were in CA, thus Δ “knew” that his acts would have harm in CA
e.       Rule- To exercise Jx over a non-resident Δ, Π must show contacts that establish “expressly aimed” conduct towards the forum State
f.       Rationale- Two ways to establish personal Jx:
                                                              i.      Merely asserting that a Δ “knew or should have known” harm would be done in forum State is NOT enough
                                                            ii.      Π must point to contacts that establish “expressly aimed” conduct towards the forum State
g.      Notes-
                                                              i.      Ct applied the Effects Test (3 part test)
1.      Intentional tortious action –He intentionally made the site
2.      Harm in forum State- harm was felt in CA
3.      Δ has knowledge that harm would be felt in forum State- But did he have knowledge that the harm would be felt in CA?
                                                            ii.      It was questionable whether he knew that a company would sue him in CA

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