Kransco Manufacturing, Inc. v. Bernhard Markwitz

On May 5, 1978, appellant, Kransco Manufacturing, Inc. (Kransco), commenced this action in the United States District Court for the Northern District of California, seeking a declaratory judgment under 28 U.S.C. §§ 2201 and 1338 that a patent owned by appellee, Bernhard Markwitz, was invalid, or if valid, had not been infringed. Appellant also sought damages for unfair competition under 28 U.S.C. § 1332 . On Markwitz’s motion, the district court dismissed the action for lack of personal jurisdiction. This appeal followed. We affirm.

The facts are undisputed. Appellant Kransco is a California corporation in the business of manufacturing and selling aquatic sporting goods including inflatable swim supports known as “Swims.” Appel-lee Markwitz is a West German citizen and resident who owns a United States patent for inflatable supports marketed under the trade name “Schwimmflugel.” These swim supports are distributed throughout the United States by BEMA U.S.A., Inc. (BEMA), a Florida corporation wholly owned by appellee Markwitz, his wife, and children. BEMA began selling the swim supports to California buyers about one year before the commencement of this suit. BEMA spends…