Marvel Worldwide, Inc. v. Kirby (S.D.N.Y. 2010)

Two children of a comic book illustrator sent a series of copyright grant termination notices to Marvel Comics. Marvel contended that the illustrator’s drawings were works made for hire, and as such, the children were not able to terminate the grants. After unsuccessful negotiations, Marvel brought suit seeking a declaratory judgment finding that the works were made for hire. The two children moved to dismiss the New York action arguing that the court lacked personal jurisdiction, and filed a second suit in the Central District of California.

New York’s long arm statute provides that a party is subject to personal jurisdiction if it “transacts any business in the state or contracts anywhere to provide goods or services in the state” if the cause of action arises from the transactions or business. CPLR 302(1). The S.D.N.Y. (McMahon, J.) found that the two children had transacted business in the state by virtue of sending the termination notices. According to the Court:

Defendants dispatched a multitude of self-executing Termination Notices to Marvel entities and licensees in New York in September 2009. This constitutes “transacting business” under section 302(a)(1). By virtue of having mailed the transaction notices to Marvel [the two Kirbys who live in California] “project[ed] themselves into New York and the local stream of commerce.” John Wiley & Sons, Inc., 2009 WL 1766003 at *5.

Cross posted at Exclusive Rights.