Question:
Chanel, Inc. is a corporate entity duly organized under the laws of the state of New York, with its principal place of business in New York City. Chanel is engaged in the business of manufacturing and distributing throughout the world various luxury goods, including handbags, wallets, and numerous other products under the federally registered trademark “Chanel” and monogram marks. Chanel filed a lawsuit in the U. S. district court in Maryland against defendant Ladawn Banks, a resident of Florida. Chanel alleged that Banks owned and operated the fully interactive website www.lovenamebrands.com, through which she sold handbags and wallets bearing counterfeit trademarks identical to the registered Chanel marks. The goods at issue in this case were sold over the Internet to a resident of Maryland. The court had to address the issue of whether Maryland had personal jurisdiction under its long arm statute over the Florida defendant Banks. Does the Maryland court have personal jurisdiction over the Florida defendant? Did defendant Banks act ethically in this case? Chanel, Inc. v. Banks, 2010 U. S. Dist. Lexis 135374 (United States District Court for Maryland, 2010)