2011),[1] was a case in which United States Court of Appeals for the Second Circuit reversed the decision of the United States District Court for the Southern District of New York, which had granted American Buddha's motion to dismiss Penguin Group (USA) Inc. ("Penguin")'s copyright infringement action for lack of personal jurisdiction.

[2] Although the Internet was a complicating factor in this case, from the court's point of view, it did not play a role in determining the situs of injury because only copyright infringement by American Buddha was alleged, not the downloading of the copied material by any individual who could be located anywhere, including New York.

The district court "was ultimately persuaded by a line of cases recognizing 'the well-established principle requiring a direct injury in New York' and rejecting jurisdiction based on purely derivative economic injury suffered in-state solely because of the location of the plaintiff's business in-state.

[2] Penguin appealed to the United States Court of Appeals for the Second Circuit who then faced the question, "whether, for the purposes of New York's Long-Arm Statute, the situs of injury in copyright infringement cases is the location of the infringing conduct or the location of the plaintiff and, perhaps, the copyright.

More specifically, only the third requirement of § 302(a)(3)(ii)[5] was in dispute: "whether American Buddha's allegedly copyright-infringing conduct in Oregon or Arizona cause the requisite injury in New York.

[10] Moreover, although this holding involves copyright infringement over the Internet, it is possible that it could contribute to "an expansion of jurisdiction for other types of intellectual property cases.