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USA to Brazil: You can’t tell Brazilian companies what they can and cannot do!
A few weeks back we mentioned the whole Zynga Vostu fight that was going down and how Zynga had brought Google owned company Orkut into the whole thing by suing them as well. Today, the US court basically said “You can’t tell your countries companies what they can and cannot do!” as our title says.
The US court said that despite the fact “Brazil has an important interest in enforcing its copyright laws” they don’ get to do so “Zynga—which chose the U.S. forum first—now seeks to enforce an injunction it obtained abroad that would paralyze this Court’s ability to decide this case.”
Shocker that the US courts pick this case to move quickly, when someone in trying to undermine their jurisdication.
The funny party is near the end of the 8 page legal notice when the US judge, Edward Davila, that basically, even though he just trashed the Brazil court, he has no intent to trash the Brazil court.
It deserves strong emphasis that a TRO would not enjoin the Brazilian court at all. Nor does a TRO from this Court cast doubt on or express any opinion about the wisdom of the Brazilian proceedings. Rather, a TRO would enjoin Zynga…from flouting this Court’s jurisdiction. The fact that the flouting mechanism involves foreign courts is incidental.
It is going to be interesting to see these two courts fight over this though, we may have more coverage in future posts.
Oh yeah and the only company Zynga took legal action against was a company headquarted in Brazil, Orkut.
This is the full court order:
20110811 Davila Orderhttp://www.scribd.com/embeds/62140643/content?start_page=1&view_mode=list