Jurisdiction Declined in Internet Case for Lack of Connection

The US Fourth Circuit Court of Appeal in Carefirst of Maryland, Inc. v. Carefirst Pregnancy Centers, Inc. recently declined to exercise jurisdiction in Maryland over an Illinois defendant for Internet-based activities. The plaintiff, a Maryland corporation, owned rights to the CAREFIRST trade-mark, including a federal trade-mark registration. The defendant, an Illinois non-profit corporation, obtained a number of domain names, some of which had CAREFIRST as part of the name. Users of these domain names were diverted to the defendant_s web site where the name CAREFIRST appeared throughout. The plaintiff sued the defendant in Maryland for infringement and dilution of trade-mark. The Court affirmed the decision of the trial court to decline personal jurisdiction over the defendant. Observing that a defendant must have done something more than merely place information on the Internet, the Court stated that the defendant must act with the "manifest intent" of reaching targets located in the state in question, and that intent is to be determined solely from the character of the web site at issue. First, it was a relevant factor that the defendant_s web sites were "semi-interactive," i.e., containing features that made it possible for a user to exchange information with the host computer. As such, the exercise of jurisdiction was determined "by examining the level of interactivity and commercial nature of the exchange of information that occurs." The evidence did not indicate a sufficient level of commercial activity. Secondly, it was also a relevant factor that the defendant_s sites were of a local nature, designed to assist Chicago-area residents. The Court further rejected the plaintiff_s argument that employment of a Maryland company as a web site host was sufficient to confer jurisdiction over the defendant. For the decision, see: http://laws.findlaw.com/4th/021137p.html. Summary by: Peter Wang