Celgard, LLC v. Sk Innovation Co., Ltd. , 792 F.3d 1373 ( 2015 )


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  •   United States Court of Appeals
    for the Federal Circuit
    ______________________
    CELGARD, LLC,
    Plaintiff-Appellant
    v.
    SK INNOVATION CO., LTD.,
    Defendant-Appellee
    ______________________
    2014-1807
    ______________________
    Appeal from the United States District Court for the
    Western District of North Carolina in No. 3:13-cv-00254-
    MOC-DSC, Judge Max O. Cogburn, Jr.
    ______________________
    Decided: July 6, 2015
    ______________________
    MARTIN RICHARD LUECK, Robins, Kaplan, Miller &
    Ciresi, LLP, Minneapolis, MN, argued for plaintiff-
    appellant.  Also represented by ANDREW DOUGLAS
    HEDDEN, JAMIE R. KURTZ; BRYAN J. VOGEL, New York, NY.
    J. MICHAEL JAKES, Finnegan, Henderson, Farabow,
    Garrett & Dunner, LLP, Washington, DC, argued for
    defendant-appellee.   Also represented by CHARLES
    THOMAS COLLINS-CHASE, HALA S. MOURAD; CORTNEY
    SCOTT ALEXANDER, Atlanta, GA; CHARLES HYUK SUH,
    Reston, VA.
    ______________________
    2                    CELGARD, LLC   v. SK INNOVATION CO., LTD.
    Before NEWMAN, REYNA, and WALLACH, Circuit Judges.
    REYNA, Circuit Judge.
    Celgard, LLC appeals the dismissal of its patent in-
    fringement suit by the United States District Court for
    the Western District of North Carolina for lack of person-
    al jurisdiction. The district court determined it lacked
    personal jurisdiction over SK Innovation Co., Ltd. (“SKI”)
    under either a purposeful-direction theory or a stream-of-
    commerce theory. For the reasons set forth below, we
    affirm the dismissal.
    I. BACKGROUND
    A. THE PARTIES AND THEIR BUSINESSES
    Celgard is a developer and manufacturer of battery
    membranes. The membranes Celgard develops are used
    to separate chemical cell components in lithium-ion
    batteries, preventing contact between the positive and
    negative electrodes.    Celgard developed a separator
    technology that uses a ceramic composite coating that
    helps prevent electrical shorting. Celgard obtained a
    patent for the ceramic-coated separator technology, Unit-
    ed States Patent No. 6,432,586 (“ ’586 patent”). This
    technology is used in rechargeable batteries in several
    emerging industries, including electronic vehicles (“EV”)
    and consumer electronic (“CE”) devices such as laptops
    and cellular phones. Celgard is headquartered in Char-
    lotte, North Carolina.
    SKI is a manufacturer of separators for use in lithi-
    um-ion batteries. SKI mainly supplies the separators to
    third-party manufacturers. But SKI also manufactures
    batteries that include the separators it produces. SKI’s
    principal place of business is in Seoul, Korea. All of SKI’s
    design, manufacturing, and sales operations are based in
    Korea.
    CELGARD, LLC   v. SK INNOVATION CO., LTD.                  3
    B. PROCEDURAL HISTORY
    In April 2013, Celgard sued SKI for infringement of
    the ’586 patent in the Western District of North Carolina.
    Celgard alleged in the complaint that SKI’s separators
    infringed the ’586 patent. Celgard sought to establish the
    district court’s jurisdiction based on allegations that SKI
    purposefully directed activities at the forum state through
    sales and offers for sale of its accused separators to resi-
    dents of North Carolina. J.A. 66. The complaint did not
    specify to whom the offers or sales were made.
    SKI moved to dismiss the complaint for lack of per-
    sonal jurisdiction on the basis of an absence of evidence
    that SKI ever sold or offered for sale the accused products
    in North Carolina. J.A. 129–31. In support of its motion,
    SKI provided a sworn declaration from a senior manager
    of SKI, stating that all of SKI’s sales are to customers
    outside of the United States. J.A. 111. The declarant
    stated that SKI had no knowledge of any established sales
    channels in North Carolina for its battery separators, and
    that SKI had no control over where or to whom SKI’s
    customers subsequently sold or distributed batteries
    incorporating SKI’s separators. Id. SKI, through the
    declarant, agreed to be subject to specific personal juris-
    diction in New York State. J.A. 113.
    Celgard opposed SKI’s motion. In its opposition, Cel-
    gard continued to assert that SKI was subject to personal
    jurisdiction under a purposeful-direction theory, based on
    offers for sale to a customer in North Carolina. J.A. 146.
    Celgard argued that jurisdiction was proper under a
    stream-of-commerce jurisdictional theory, based on al-
    leged sales by SKI to third-party manufacturers of CE
    devices who, in turn, offer the devices for sale in North
    Carolina. Id. Celgard also filed an alternative motion for
    jurisdictional discovery related to sales and offers for sale
    of the accused products in North Carolina. J.A. 307.
    4                     CELGARD, LLC   v. SK INNOVATION CO., LTD.
    The district court granted Celgard’s motion to conduct
    jurisdictional discovery. J.A. 85. It also denied SKI’s
    motion to dismiss for lack of personal jurisdiction without
    prejudice to SKI’s right to renew its motion following
    jurisdictional discovery. J.A. 108. During jurisdictional
    discovery, Celgard deposed SKI’s 30(b)(6) witness, sub-
    poenaed numerous third parties, and obtained discovery
    from EV distributor Kia Motors of America (“KMA”) and
    CE manufacturers Dell and Apple. Appellant’s Br. 10; cf.
    J.A. 704, 725. Neither party requested a jurisdictional
    hearing, and the court did not conduct one.
    After the close of jurisdictional discovery, SKI re-
    newed its motion to dismiss for lack of personal jurisdic-
    tion. SKI argued that jurisdictional discovery failed to
    establish jurisdiction on the basis of sales or offers for sale
    of the accused products in North Carolina, or that SKI
    directed any activities to that state. J.A. 701–03. SKI
    further argued that Celgard could not base jurisdiction on
    a stream-of-commerce theory because Celgard produced
    no evidence that any of SKI’s accused products had been
    present in North Carolina. J.A. 704. Celgard opposed
    SKI’s renewed motion to dismiss.
    SKI’s motion came before a magistrate judge, who
    recommended that SKI’s motion to dismiss be granted
    and that the case be dismissed for lack of personal juris-
    diction. J.A. 8. The magistrate judge explained that
    jurisdictional discovery “revealed precious little, if any
    contacts between SKI and North Carolina.” J.A. 4. The
    magistrate judge found that there was no evidence of SKI
    having sold or offered to sell its products into the forum
    state. J.A. 7. Further, none of SKI’s products had been
    found in North Carolina. The magistrate judge also found
    that there was no evidence that SKI had made any sales
    or offers to sell in North Carolina. J.A. 7. Thus, the
    magistrate judge concluded that there was no basis to
    exercise personal jurisdiction over SKI under either a
    CELGARD, LLC   v. SK INNOVATION CO., LTD.                5
    purposeful-direction or stream-of-commerce theory. J.A.
    7.
    Celgard moved for reconsideration of the magistrate
    judge’s recommendation. The magistrate judge denied
    Celgard’s motion for reconsideration.      After Celgard
    objected to the magistrate judge’s recommendation and
    the denial of its motion for reconsideration, the district
    court judge adopted the magistrate judge’s recommenda-
    tion and dismissed the case for lack of personal jurisdic-
    tion. J.A. 16.
    Celgard appeals the dismissal for lack of personal ju-
    risdiction. We have jurisdiction pursuant to 
    28 U.S.C. § 1295
    (a)(1).
    I. DISCUSSION
    On appeal, Celgard contends two types of contacts es-
    tablish personal jurisdiction in North Carolina. First,
    Celgard argues a “purposeful direction” jurisdictional
    theory, under which the advertisements of two Kia auto-
    mobile dealers located in North Carolina, which suggest
    that the 2015 Kia Soul EV would be available for pur-
    chase in North Carolina in late 2014, confer personal
    jurisdiction upon the district court. Second, Celgard
    advances a “stream of commerce” theory, relying on SKI’s
    sales in the CE market to original equipment manufac-
    turers (“OEMs”) who distribute the products nationwide,
    including in North Carolina.
    A. GOVERNING LAW
    We review a district court’s determination on personal
    jurisdiction without deference, applying our own law
    when a patent question exists. Grober v. Mako Prods.,
    Inc., 
    686 F.3d 1335
    , 1346 (Fed. Cir. 2012) (citations omit-
    ted).
    Our determination of whether a defendant is subject
    to specific personal jurisdiction in the forum state in-
    6                     CELGARD, LLC   v. SK INNOVATION CO., LTD.
    volves two inquiries: first, whether the forum state’s long-
    arm statute permits service of process and, second,
    whether the assertion of jurisdiction is consistent with
    due process. Elecs. for Imaging, Inc. v. Coyle, 
    340 F.3d 1344
    , 1349 (Fed. Cir. 2003).
    Due process requires that the defendant have suffi-
    cient “minimum contacts with [the forum state] such that
    maintenance of the suit does not offend traditional no-
    tions of fair play and substantial justice.” Int’l Shoe Co. v.
    Washington, 
    326 U.S. 310
    , 316 (1945) (quotation marks
    and citation omitted). We determine whether the due
    process requirement for specific personal jurisdiction is
    met by considering (1) whether the defendant purposeful-
    ly directed its activities at residents of the forum state, (2)
    whether the claim arises out of or relates to the defend-
    ant’s activities with the forum state, and (3) whether
    assertion of personal jurisdiction is reasonable and fair.
    Grober, 686 F.3d at 1346 (quoting Elecs. for Imaging, 
    340 F.3d at 1350
    ). The plaintiff bears the burden of affirma-
    tively establishing the first two elements of the due
    process requirement. Elecs. for Imaging, 
    340 F.3d at 1350
    . If the plaintiff meets its burden, the burden shifts
    to the defendant to prove that personal jurisdiction is
    unreasonable. 
    Id.
     “The first two factors correspond with
    the ‘minimum contacts’ prong” of International Shoe, “and
    the third factor corresponds with the ‘fair play and sub-
    stantial justice’ prong.” Inamed Corp. v. Kuzmak, 
    249 F.3d 1356
    , 1360 (Fed. Cir. 2001).
    The parties dispute whether Celgard must prove the
    existence of personal jurisdiction under a prima facie
    standard or a preponderance of the evidence standard.
    Celgard contends that it need only make a prima facie
    showing of jurisdiction because the district court did not
    hold an evidentiary hearing. SKI disagrees, arguing that
    the burden is one of a preponderance of the evidence
    because the parties conducted extensive jurisdictional
    discovery and no jurisdictional hearing was necessary.
    CELGARD, LLC   v. SK INNOVATION CO., LTD.                7
    The district court agreed with Celgard and applied the
    prima facie standard.
    We agree with the district court. When the district
    court’s determination of personal jurisdiction is based on
    affidavits and other written materials, and no jurisdic-
    tional hearing is conducted, the plaintiff usually bears
    only a prima facie burden. Elecs. for Imaging, 
    340 F.3d at 1349
    . On the other hand, we have explained that the
    preponderance standard applies where the parties con-
    duct jurisdictional discovery but no jurisdictional hearing
    was necessary because the parties indicated to the district
    court that the jurisdictional facts were not in dispute.
    Pieczenik v. Dyax Corp., 
    265 F.3d 1329
    , 1334 (Fed. Cir.
    2001).
    In this case, jurisdictional discovery was conducted
    and the district court did not conduct a jurisdictional
    hearing, but we see no indication that the parties agreed
    that the jurisdictional facts were not in dispute. Because
    the parties do not agree on the jurisdictional facts, the
    exception in Pieczenik does not apply. As such, Celgard
    must make a prima facie showing of jurisdiction. Under
    the prima facie burden, the district court must resolve all
    factual disputes in the plaintiff’s favor in evaluating the
    jurisdictional question. See, e.g., Deprenyl Animal Health,
    Inc. v. Univ. of Toronto Innovations Found., 
    297 F.3d 1343
    , 1347 (Fed. Cir. 2002).
    The parties do not contest whether jurisdiction was
    proper under North Carolina’s long-arm statute. Hence,
    we consider only the due process inquiry as it relates to
    Celgard’s purposeful-direction and stream-of-commerce
    theories.
    B. Celgard’s Purposeful-Direction Theory
    Celgard’s purposeful-direction theory of jurisdiction is
    based only on SKI’s involvement in the EV market.
    Celgard contends that SKI has purposefully directed its
    8                   CELGARD, LLC   v. SK INNOVATION CO., LTD.
    activities to North Carolina residents through a joint
    venture, allegedly with “Kia,” to develop batteries for the
    2015 Kia Soul EV. Appellant’s Br. 23. Celgard argues
    that the joint venture demonstrates the 2015 Kia Soul EV
    was actively marketed in North Carolina. This marketing
    activity is allegedly shown by the advertisements of the
    two Kia dealers that suggest that the Soul EV would be
    coming soon to dealerships in North Carolina. According
    to Celgard, these ads constitute offers for sale under 
    35 U.S.C. § 271
    (a), supporting jurisdiction in North Carolina.
    Celgard contends that it is irrelevant that the ads were
    placed by the dealers, and not by SKI, because when a
    defendant exploits the “typical industry medium” to reach
    customers, it has purposefully directed activities to the
    forum, establishing jurisdiction. Appellant’s Br. 25 (quot-
    ing Momenta Pharm., Inc. v. Amphastar Pharm., Inc., 
    841 F. Supp. 2d 514
    , 520–21 (D. Mass. 2012)).
    SKI responds that Celgard cannot show that SKI pur-
    posefully directed activity toward North Carolina because
    it was the dealers, not SKI or KIA, who made the state-
    ments that the Soul EVs were soon to arrive in North
    Carolina. SKI argues that to succeed on its purposeful-
    direction theory of jurisdiction, Celgard must show that
    the dealers were either SKI’s alter ego or its agents. SKI
    claims that Celgard makes no effort to show the dealers
    are SKI’s alter ego, and that Celgard has not provided
    evidence as to agency since SKI does not have any rela-
    tionship with the Kia dealers or a right to control them.
    SKI points out that it has no joint-venture agreement
    with KMA; the agreement is with KMC, KMA’s parent
    corporation. SKI argues that Celgard has not shown a
    chain of imputation from the dealers to KMA to KMC to
    SKI, as would be necessary to show jurisdiction under an
    agency theory. SKI also contends that Celgard has failed
    to show that SKI has any relationship at all with the
    dealers.
    CELGARD, LLC   v. SK INNOVATION CO., LTD.                  9
    We agree with SKI that personal jurisdiction cannot
    be established based on any SKI activity directed toward
    North Carolina. There is no record evidence that SKI
    purposefully directed its activities, related to the Kia Soul
    EV or otherwise, toward the forum state. Thus, we next
    consider whether the activities of another party, which
    acted on SKI’s behalf, could be imputed to SKI, and thus
    establish jurisdiction over SKI
    For purposes of specific personal jurisdiction, the con-
    tacts of a third-party may be imputed to the defendant
    under either an agency or alter ego theory. In order to
    establish jurisdiction under the agency theory, the plain-
    tiff must show that the defendant exercises control over
    the activities of the third-party. See, e.g., Daimler AG v.
    Bauman, 
    134 S. Ct. 746
    , 759 n.13 (2014) (“[A] corporation
    can purposefully avail itself of a forum by directing its
    agents or distributors to take action there.”). In Red Wing
    Shoe, we rejected the notion that an agency relationship
    existed between the defendant and its licensees because
    the defendant did not exercise control over the licensees.
    Red Wing Shoe Co., Inc. v. Hockerson-Halberstadt, Inc.,
    
    148 F.3d 1355
    , 1362 (Fed. Cir. 1998). Alternatively, a
    plaintiff may establish personal jurisdiction under an
    alter ego theory. In Nuance, we found that the out-of-
    state corporate defendant purposefully availed itself of
    the forum state through an entity acting as its alter ego.
    Nuance Commc’ns, Inc. v. Abbyy Software House, 
    626 F.3d 1222
    , 1232–33 (Fed. Cir. 2010). The in-state, named
    defendant sold the software of a sister company in the
    forum state. The named defendant operated as the alter
    ego of the sister company, as shown by both entities being
    commonly owned and not transacting at arms-length, and
    by nearly all of the named defendant’s profits flowing
    back to the sister company. 
    Id.
    Here, Celgard does not point to any evidence on the
    record establishing that the dealers were operating either
    as SKI’s agents or alter egos. The record does not show
    10                   CELGARD, LLC   v. SK INNOVATION CO., LTD.
    any attempt by SKI to purposefully direct or control the
    activities of the dealers in North Carolina. As such,
    Celgard has not shown the requisite control for jurisdic-
    tion to be premised on the acts of agents. Similarly,
    Celgard has not alleged facts sufficient to base jurisdic-
    tion on the acts of an alter ego. The joint venture agree-
    ment is insufficient to establish jurisdiction under an
    alter ego theory because the agreement is between SKI
    and KMC, a company that is based in Korea. While KMC
    is the parent company of KMA, there is no evidence that
    KMA or the two Kia dealers were aware of the joint
    venture agreement, or that the advertisements were in
    any way related to the joint venture. Nor is there any
    evidence of common control of the Kia dealers and SKI, or
    any flow of profits from the former to the latter. Put
    simply, there is no evidence of any relationship between
    SKI and the North Carolina Kia dealers. Absent such
    evidence, Celgard cannot establish personal jurisdiction
    by arguing that SKI was directing its activities to North
    Carolina through the Kia dealers there.
    We conclude that, the posting of the internet pages by
    the North Carolina dealers were unilateral actions taken
    by third parties unrelated to SKI. The Supreme Court
    has forbidden the exercise of jurisdiction over a defendant
    on the basis of unilateral acts of third-parties. In Hanson
    v. Denckla, the Supreme Court explained that the “unilat-
    eral activity of those who claim some relationship with a
    nonresident defendant cannot satisfy the requirement of
    contact with the forum State” because it is essential that
    the defendant take actions purposefully availing him or
    her of the privileges and benefits of the forum state. 
    357 U.S. 235
    , 253-54 (1958) (citing Int’l Shoe, 
    326 U.S. at 319
    ).
    This purposeful-availment requirement is tied to the
    principle that a defendant should be able to reasonably
    foresee litigation in the forum state. Burger King Corp. v.
    Rudzewicz, 
    471 U.S. 462
    , 474 (1985) (citing World-Wide
    Volkswagen Corp. v. Woodson, 
    444 U.S. 286
    , 295 (1980);
    CELGARD, LLC   v. SK INNOVATION CO., LTD.                 11
    Hanson, 
    357 U.S. at 253
    ).         Indeed, the purposeful-
    availment requirement ensures that a foreign defendant
    will not be unexpectedly “haled into a jurisdiction solely
    as a result of . . . the unilateral activity of . . . a third
    person.” Id. at 475. Thus, the unilateral advertising
    activities of the Kia dealers do not support the exercise of
    jurisdiction over SKI in North Carolina.
    Celgard has failed to allege facts that allow it to meet
    its burden under a purposeful-availment theory of juris-
    diction. We hold that the district court was correct in
    declining to exercise jurisdiction over SKI based on any
    activity of SKI directed at the forum state, the joint
    agreement between SKI and KMC, or the unilateral
    actions of the two Kia dealers.
    C. Celgard’s Stream-of-Commerce Theory
    Celgard asserts an alternative, stream-of-commerce
    theory of personal jurisdiction over SKI. This theory is
    based on SKI’s participation with CE manufacturers to
    use their established distribution channels to avail SKI of
    the North Carolina market. Celgard points out that
    neither this court, nor the Supreme Court, has decided
    whether stream-of-commerce jurisdiction requires merely
    placing goods into the stream of commerce with the
    expectation that they would be purchased in the forum
    state, or if “something more” is required, i.e., the purpose-
    ful direction of activities toward the forum. Appellant’s
    Br. 26–27.
    Celgard argues that, under either formulation of the
    stream-of-commerce theory, minimum contacts to satisfy
    due process are established whenever a defendant pur-
    posefully uses an established distribution channel that
    brings the defendant’s products into the forum. According
    to Celgard, personal jurisdiction exists if the plaintiff can
    show that (1) the defendant purposefully takes advantage
    of the channel; and (2) the channel reaches the forum
    state. Celgard contends that SKI satisfies these require-
    12                   CELGARD, LLC   v. SK INNOVATION CO., LTD.
    ments because it sells separators to other companies, with
    established distribution channels, that incorporate the
    infringing separators into CE devices that are sold in
    North Carolina as a result of those channels. Celgard
    alleges that its tests show that separators have been
    found in batteries in CE devices purchased in North
    Carolina that are consistent with SKI separators. Appel-
    lant’s Br. 13–14.
    SKI acknowledges that neither this court nor the Su-
    preme Court have answered whether mere placement into
    the stream of commerce is sufficient to establish jurisdic-
    tion, or if “something more” (activities directed at the
    forum state) is required. Appellee’s Br. 30. SKI contends
    there is no jurisdiction under either test. SKI alleges that
    Celgard failed to identify a single accused product in
    North Carolina. SKI points out that while Celgard as-
    serts that tests of products purchased in North Carolina
    are consistent with the use of SKI separators, Celgard
    does not show that the tested products use the ceramic
    coated separator required by the ’586 patent. Moreover,
    Celgard acknowledges that SKI is not the sole supplier for
    the manufacturers that supply batteries to Apple and
    Dell.
    Celgard replies that SKI’s biggest customers provide a
    “significant portion” of batteries to Apple and Dell, and
    that these companies sell their products in North Caroli-
    na. Reply Br. 7–8. Celgard argues that, when combining
    these facts with the results of its tests, the only reasona-
    ble inference is that SKI’s accused products have made
    their way into North Carolina. Celgard further argues
    that this evidence, coupled with SKI’s inability to show
    that its products were not in North Carolina, meets the
    prima facie burden, because it is more likely than not that
    SKI’s accused products were present in large quantities in
    North Carolina.
    CELGARD, LLC   v. SK INNOVATION CO., LTD.                13
    The precise requirements of the stream-of-commerce
    theory of jurisdiction remain unsettled. Whether mere
    placement into the stream of commerce is sufficient to
    establish jurisdiction, or whether intent that the products
    reach the forum is required, can be traced to Asahi Metal
    Industry Co. v. Superior Court of California, Solano
    County, 
    480 U.S. 102
     (1987). Justice Brennan, joined by
    three other justices, opined that mere foreseeability that
    the defendant’s product would wind up in the forum state
    was sufficient to establish jurisdiction. To Justice Bren-
    nan, due process is satisfied when the defendant places a
    product into the stream of commerce while being “aware
    that the final product is being marketed in the forum
    State.” 
    Id. at 117
     (Brennan J., concurring in part). Due
    process is satisfied because the defendant directly benefits
    from “the retail sale of the final product in the forum
    State” and indirectly benefits from the “laws that regulate
    and facilitate commercial activity.” 
    Id.
     Justice O’Connor
    wrote separately and was joined by three justices. Justice
    O’Connor contended that something more than the fore-
    seeability of entry of the defendant’s products into the
    forum state was required because that low threshold does
    not guarantee that due process’ purposeful-availment
    requirement is met. According to Justice O’Connor a
    “substantial connection . . . between the defendant and
    the forum State” must arise out of the activities of the
    defendant that are “purposefully directed toward the
    forum State.” 
    Id. at 112
     (citations and quotation marks
    omitted). Merely placing “a product into the stream of
    commerce, without more, is not an act of the defendant
    purposefully directed toward the forum State.” 
    Id.
     (em-
    phasis added).
    The Supreme Court recently reconsidered the re-
    quirements for establishing jurisdiction under a stream-
    of-commerce theory in McIntyre Machinery, Ltd. v. Nicas-
    tro, 
    131 S. Ct. 2780
     (2011). Again, the Court did not reach
    consensus on whether something more than foreseeability
    14                   CELGARD, LLC   v. SK INNOVATION CO., LTD.
    is required. Writing for a plurality of the Court, Justice
    Kennedy held that jurisdiction over the defendant was
    improper under a stream-of-commerce theory because the
    defendant had not purposefully availed himself of the
    forum state’s laws. Specifically, the jurisdictional facts
    did not “reveal an intent to invoke or benefit from the
    protection of” the laws of the forum state. 
    Id. at 2791
    .
    This court also has declined to take a position on the
    requirements of a stream-of-commerce jurisdictional test
    because the resolution of the cases did not require us to do
    so. AFTG-TG, LLC v. Nuvoton Tech. Corp., 
    689 F.3d 1358
    , 1364–65 (Fed. Cir. 2012) (discussing cases). Simi-
    larly, in this case, we do not need to resolve the question
    as the results of the case are the same under either for-
    mulation of the stream-of-commerce test.
    Celgard is not able to meet the more flexible foreseea-
    bility standard articulated by Justice Brennan in Asahi.
    As Justice Brennan explained, due process is satisfied
    under the foreseeability standard when the defendant is
    aware that the product is being marketed in the forum
    state. Asahi, 
    480 U.S. at 117
     (Brennan J., concurring in
    part). The defendant’s knowledge gives rise to both the
    direct benefit from the retail sale of the defendant’s
    product and the indirect benefits related to the laws
    enabling commerce in the forum state. 
    Id.
     Celgard has
    not provided evidence that SKI was aware that its ac-
    cused separators were marketed in North Carolina. The
    record evidence shows only that SKI sells its products to
    OEMs, who then sell completed batteries to CE manufac-
    tures that resell them in the United States. There is no
    evidence establishing that SKI’s products actually enter
    the forum state. Celgard’s evidence shows only that tests
    of separators from batteries taken from CE devices pur-
    chased in North Carolina are not inconsistent with SKI’s
    separators. Those tests do not rule out that other manu-
    facturers’ separators do not have similar composition or
    that the separators were certainly manufactured by SKI.
    CELGARD, LLC   v. SK INNOVATION CO., LTD.               15
    Indeed, Celgard is unable to demonstrate that its own
    separators are present in North Carolina.
    Celgard’s evidence fails to show that SKI’s separators
    actually have been found in North Carolina, much less
    that SKI can foresee that its separators will make their
    way there. Celgard’s inability to show that SKI can
    foresee that its separators will make their way to North
    Carolina also necessarily implies that SKI did not also
    have “something more,” a purposeful availment of the
    privileges and laws of North Carolina, as required by
    Justice O’Connor’s formulation of the stream-of-commerce
    test. 
    Id. at 112
     (plurality opinion). We hold that the
    district court correctly declined to exercise jurisdiction
    under a stream-of-commerce theory.
    CONCLUSION
    The district court correctly declined to exercise per-
    sonal jurisdiction over SKI under either a purposeful-
    direction theory or a stream-of-commerce theory. We note
    that Celgard is not without remedy, as SKI consented to
    be subject to jurisdiction in New York. Accordingly, we
    affirm the district court’s dismissal of the complaint
    without prejudice.
    AFFIRMED