Atlantic Legal Foundation Calls for Supreme Court Review, Citing Jurisdictional Concerns in Trademark Dispute

Takeaway: The Atlantic Legal Foundation is urging the U.S. Supreme Court to overturn a Ninth Circuit decision in a trademark dispute, asserting that its jurisdiction standard, reliant on nationwide shipping, undermines due process and harms online sellers and consumers.

The Atlantic Legal Foundation is urging the U.S. Supreme Court to overturn a Ninth Circuit decision allowing jurisdiction based on nationwide shipping in a trademark dispute, asserting that the ruling undermines due process, promotes forum shopping, and harms online sellers and consumers. The nonprofit emphasizes the need for the Supreme Court to address a circuit split, calling the Ninth Circuit’s standard for personal jurisdiction over online sellers “lax” and arguing that it creates incentives for injustice.

The case involves a trademark suit filed by Herbal Brands Inc., and the Atlantic Legal Foundation contends that the Ninth Circuit’s decision deviates from Supreme Court principles and facilitates nationwide forum shopping. A group of Amazon storefronts has petitioned the Supreme Court, arguing for a review to clarify jurisdiction standards based on nationwide shipping. The Atlantic Legal Foundation underscores the urgency of resolving the circuit split on personal jurisdiction principles for online sellers in the rapidly growing domain of e-commerce, pointing out potential adverse effects on sellers and consumers. The nonprofit highlights the importance of preventing forum shopping, maintaining that it violates due process and harms consumers.