The U.S. Supreme Court on Tuesday refused to hear a petition from China-based e-commerce company Zembrka, which sought clarity on whether a “virtual presence” in a state meets the jurisdictional threshold for “minimum contacts.” The decision leaves unresolved a growing divide among federal circuits over the application of this jurisdictional test in e-commerce cases.
Zembrka is battling a trademark counterfeiting and infringement lawsuit filed by doll maker American Girl LLC. The case has been closely watched as a potential benchmark for determining when online sellers can be sued in states where they do not physically operate.
Second Circuit’s Ruling
The controversy stems from a September decision by the Second Circuit, which revived American Girl’s lawsuit after a Manhattan federal court had dismissed it for lack of personal jurisdiction. The Second Circuit ruled that Zembrka’s virtual transactions—despite later cancellations—constituted sufficient minimum contacts under New York law.
