A company files a federal trademark infringement suit in State C against a company incorporated in State B. The amount in controversy is $50,000. What is the basis for subject-matter jurisdiction?

• A. The claim arises under federal law, so 28 U.S.C. § 1331 applies and no minimum amount in controversy is required
• B. Subject-matter jurisdiction cannot be raised now because it was not raised earlier
• C. There must be at least $75,000 in controversy for federal-question cases
• D. Diversity jurisdiction applies because the parties are from different states

Answer: (A)

The key concept is federal-question jurisdiction: when a plaintiff’s claim arises under federal law, the federal courts have subject-matter jurisdiction under 28 U.S.C. § 1331, and there is no minimum amount-in-controversy requirement for such cases. A trademark infringement claim brought under the federal Lanham Act is a federal-question claim, so the case has federal-question jurisdiction regardless of the amount in controversy. The fact that the amount at issue is $50,000 does not defeat this basis for SMJ. While diversity could also be available since the parties are from different states, the correct basis here is federal-question jurisdiction, not diversity. Options that rely on a minimum $75,000 threshold or on timing of raising jurisdiction are incorrect.