Abbyy’s Foreign Entities Dodge California Lawsuit

Posted on | December 10, 2009 | No Comments

2010-1100 Nuance v. Abbyy Software

ND/CA 08-cv-02912

Judge Jeffrey White

Patentee Nuance appeals from the order and judgment dismissing defendants Abbyy Production (a Russian entity) and Abbyy Software (a Cypriot entity) for failure to properly serve and for lack of personal jurisdiction.  The case continues against other Abbyy entities.

Service: Nuance conceded that it did not follow the Hague Convention on service through diplomatic channels, but claimed (pointing the the State Department website) that Russia had ceased cooperating with the US on service.  [Oddly, the Court found that Nuance's statement about the lack of Russian cooperation was "without authority," although I checked the State Department website today and it DID confirm Nuance's position.]  Nuance did serve the Russian entity by personal service (in Moscow) and on the US subsidiary–although the Court did not expressly address why these methods were improper, it apparently concluded that service via Russia's Central Authority was the only proper method.

Jurisdiction:  Nuance pointed to a number of public statements by the foreign Abbyy entities about opening offices in California and entering the US market etc., and that Abbyy (in the collective) had sold software in and through California.  The Court does not appear to have considered agency or "stream of commerce" jurisdictional theories, but instead focused on a lack of evidence on which to pierce the corporate veil.  Essentially concluding that the use of US-based subsidiaries insulated the foreign entities, the Court found that Nuance had failed to set forth even a prima facie basis for personal jurisdiction.

Because the Court's opinion doesn't provide much factual detail on the dispute, I have also included Nuance's opposition brief.

2010-1100 Order on Motion to Dismiss

2010-1100 Opp to Motion

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