Stormhale, Inc. v. Baidu.com, Inc., 2009 WL 4884159 (S.D.N.Y. 2009)

Stormhale brought a copyright infringement action against the Chinese web search provider Baidu.com in the Southern District of New York. Baidu moved to dismiss the complaint on the grounds that the court lacked personal jurisdiction.

New York State’s long arm statute, NYCPLR 301, allows a court to exercise jurisdiction a corporation if it “engaged in such a continuous and systematic course of doing business in New York as to warrant a finding of its presence in the jurisdiction.” Stormhale argued that the standard was met because Baidu listed itself on NASDAQ, made filing with the SEC, and hired local counsel and accountants to assist with the listing. The Court rejected the arguments and found that it could not exercise  personal jurisdiction over Baidu:

Stormhale’s argument fails as a matter of law. The Second Circuit has explained that “the prevailing caselaw accords foreign corporations substantial latitude to list their securities on New York-based stock exchanges and to take the steps necessary to facilitate those listings (such as making SEC filings and designating a depository for their shares) without thereby subjecting themselves to New York jurisdiction for unrelated occurrences.” Wiwa v. Royal Dutch Petroleum Co., 226 F.3d 88, 97 (2d Cir.2000) copyright action. (citations omitted). Baidu’s mere listing on NASDAQ and ancillary contacts with New York related to that listing do not allow the Court to exercise personal jurisdiction over Baidu in a copyright action.