NexLearn, LLC v. Allen Interactions, Inc.

NexLearn sued Allen in Kansas, alleging patent infringement and breach of contract. The companies had entered into a nondisclosure agreement to allow Allen to try NexLearn’s software, SimWriter®. Allen accessed SimWriter several times, then stated it was no longer interested in a deal with NexLearn, and developed its software, ZebraZapps. The agreement stated Kansas law governs the agreement. Allen, a Minnesota corporation with its principal place of business in Minnesota, argued it was not subject to Kansas jurisdiction, due to its limited contacts with the forum, which amounted to a single sale unrelated to ZebraZapps, and represented less than 1% of its five-year revenue. It argued the choice-of-law provision did not subject it to Kansas jurisdiction because NexLearn’s contract claim was supplemental to its patent claim, requiring NexLearn to establish personal jurisdiction over its infringement claim to bring its contract claim. NexLearn responded that Allen agreed to a License Agreement when it accessed SimWriter, specifying that “any dispute arising out of or related to this Agreement or the Product” must be brought in Kansas; that Allen “continually sent direct emails regarding ZebraZapps” to NexLearn employees; that Allen included Kansas in the dropdown menu on its ZebraZapps website; and summarized Allen’s activities with a trade association, which disseminated a magazine to Kansas residents that included Allen’s advertisement. The Federal Circuit affirmed dismissal for lack of jurisdiction. Allen’s website, plus its contacts with NexLearn create only an “attenuated affiliation” with Kansas, not a “substantial connection” as required for specific jurisdiction. View "NexLearn, LLC v. Allen Interactions, Inc." on Justia Law