Article: First Circuit specifies, as matter of first impression, circumstances under which Lanham Act grants subject matter jurisdiction over extraterritorial conduct by foreign defendants under effects test.

Cecil McBee is an American Jazz musician. A Japanese company, Delica Co., Ltd. (Delica) chose that name for its adolescent female clothing products beginning in 1984. Delica maintains an internet website for its products, and sales exceed $100 million per year. The company, however, also has a policy not to sell "Cecil McBee" products in the U.S. McBee was able to buy $2,500 worth of "Cecil McBee" products in Japan through investigators, and had them shipped to the U.S. He then sued Delica for false endorsement and dilution pursuant to the Lanham Act, 15 U.S.C. Section 1051. The district court dismissed the Lanham Act claims for lack of subject matter jurisdiction.

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