Gucci America, Inc. v. Wang Huoqing
Facts: As is known to us all that Gucci is a corporation producing high- quality luxury goods. To prevent being plagiarized, Gucci registered twenty- one trademarks as their properties, setting up a bunch of shops in America, some of them are in California as well. Despite their great effort in protecting their trademarks, in 2011, they still find a Chinese resident who named Wang Huoqing selling counterfeit Gucci goods on the internet. The goods which he sell use Gucci’s trademark but it is not from Gucci product line and the quality of them is not as good as the real one, therefore, this terrible sale is really harmful for Gucci’s reputation. So, Gucci hired an private investigator to purchase a wallet from his website as a presented evidence for plagiarism and also fields a lawsuit which is trademark infringement to against Wang Huoqing in a federal district court in California to ask for compensation and prohibit more infringement. While, Wang Huoqing did not show up at that day, then, Gucci asked the court to enter a default judgment, however, the court need to determine whether it has personal jurisdiction over Wang Huoqing
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The reason why I think so is that according to the courts, the non-resident must do some actual activities which are really harmful for the corporation, and the corporation must have presented evidence to show that it is an actual transaction, this is why Gucci hired a private investigator to go buy an inventory in his website. Gucci did a very nice job on it. What’s more, Gucci’s claim is reasonable because if they don’t care about this penalty, more and more people would plagiarize their products, letting alone care about their quality, which would do harm for their reputation in a long run. Last but not least , a state law allows the state to exercise jurisdiction over an out-of-state defendant, so, Gucci has law power to enter a default