Sunstone Engineering, LLC v. Pepe Tools, Inc.

United States District Court for the District of Utah · March 25, 2025 · No. 2:24-cv-00334-RJS-CMR

Summary

This memorandum decision and order addresses a defendant's motion to transfer venue from the District of Utah to the Western District of Oklahoma under 28 U.S.C. § 1404(a) in a trademark and unfair competition lawsuit. The court first determines that a purported browsewrap forum-selection clause is unenforceable because the defendant never assented to it. Applying the standard venue transfer factors, the court finds that the location of the alleged infringing conduct, witness convenience, docket congestion, and cost considerations favor transfer. Consequently, the court grants the motion to transfer the case to Oklahoma.

Court
United States District Court for the District of Utah
Writing for the Court
Robert Elby
Jurisdiction
United States District Court for the District of Utah
Decision date
March 25, 2025
Docket number
2:24-cv-00334-RJS-CMR
Procedural posture
Defendant's motion to transfer venue under 28 U.S.C. §1404(a)
Standard of review
abuse of discretion
Precedential value
nonprecedential
Disposition
approved

Topics

venuecivil proceduretrademark infringementtrademark dilution

Practice areas

civil procedureintellectual property

Questions Presented

  1. Whether the browsewrap forum‑selection clause in Sunstone’s website terms is enforceable.
  2. Whether venue should be transferred to the Western District of Oklahoma under 28 U.S.C. §1404(a).

Holdings

  1. The court held that the browsewrap forum‑selection clause is not enforceable because Pepetools never assented to the terms and never used Sunstone’s website, so the clause does not affect venue.
  2. The court granted the motion and transferred the case to the Western District of Oklahoma.

Key quotations

Having reviewed the above‑mentioned factors, the court concludes transfer is appropriate in this case. Pepetools’ Motion is GRANTED, and the case is hereby transferred to the Western District of Oklahoma for all further proceedings. (end)

Factual background

Sunstone Engineering, a Utah LLC, manufactures micro‑welding devices and alleges that Pepe Tools, an Oklahoma corporation, infringed its trademarks by selling a competing device called the Helix. The parties previously had a distribution relationship that ended in 2023. Sunstone seeks trademark and unfair‑competition relief; Pepe Tools moves to transfer the case to Oklahoma.

Procedural history

Sunstone Engineering filed a trademark infringement action in the District of Utah. Defendant Pepe Tools filed a motion to transfer venue to the Western District of Oklahoma, arguing lack of a binding forum-selection clause and convenience factors. The court reviewed the motion and denied the forum-selection clause, then applied the §1404(a) factors and granted the transfer.

Remand instructions

The case is transferred to the Western District of Oklahoma for all further proceedings.

Court Document

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