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Companies concerned about being haled into court on the basis of internet contacts should review the recent Texas appellate court decision in Novamerican Steel, Inc. v. Delta Brands, Inc. 2007 WL 2325835 (Tex. App. – Dallas 2007, n.p.h.) In Novamerican, the Dallas Court of Appeals indicated that informational websites generally are not a sufficient basis for establishing personal jurisdiction.
DBI, a Texas company, sold a heavy gauge rotary shear to NTS, which is incorporated in Delaware. NTS is owned by Novamerican, a Canadian corporation. Neither NTS nor Novamerican had offices or employees in Texas, and neither company directly advertised or distributed marketing materials in Texas. The companies, however, did maintain a company Internet website. DBI filed a lawsuit in Texas state court claiming that NTS and Novamerican unlawfully used its design for the rotary shear and misappropriated its trade secrets... |
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