Adaptix, Inc. v. HTC Corp.

937 F. Supp. 2d 867, 2013 WL 1314413, 2013 U.S. Dist. LEXIS 44265
CourtDistrict Court, E.D. Texas
DecidedMarch 28, 2013
DocketCase No. 6:12-cv-121
StatusPublished
Cited by9 cases

This text of 937 F. Supp. 2d 867 (Adaptix, Inc. v. HTC Corp.) is published on Counsel Stack Legal Research, covering District Court, E.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Adaptix, Inc. v. HTC Corp., 937 F. Supp. 2d 867, 2013 WL 1314413, 2013 U.S. Dist. LEXIS 44265 (E.D. Tex. 2013).

Opinion

MEMORANDUM OPINION AND ORDER

MICHAEL H. SCHNEIDER, District Judge.

Before the Court is Defendants’ motion to transfer venue1 (Doc. No. 35). Having fully considered the parties’ arguments, the undisputed facts, and the applicable law, the Court GRANTS the motion and ORDERS this action be transferred to the United States District Court for the Northern District of California.

I. BACKGROUND

This litigation involves alleged patent infringement of two related patents: U.S. Patent Nos. 6,947,748 (the '748 patent) and 7,454,212 (the '212 patent). In general, the patents cover technology related to the 4G LTE communications standard. Plaintiff accuses Defendants of infringing the patents based on the sale and use of two HTC products: the Rezound and Thunderbolt smartphones.

Adaptix is a Delaware corporation with its principal place of business in Carrolton, Texas.2 HTC Corporation is a Taiwanese corporation with its principal place of business in Taiwan. HTC America is a Wash[871]*871ington Corporation with its principal place of business in Bellevue, Washington. HTC Corporation is the parent company of HTC America (collectively, HTC). Verizon is a Delaware corporation with its principle place of business in Basking Ridge, New Jersey.

Defendants argue that Plaintiffs claims against them should be transferred to the Northern District of California pursuant to 28 U.S.C. § 1404(a). Plaintiff opposes transfer and urges that Defendants cannot show that the Northern District of California is a clearly more convenient forum.

II. LEGAL STANDARD

“For the convenience of parties and witnesses, in the interest of justice, a district court may transfer any civil action to any other district or division where it might have been brought.” 28 U.S.C. § 1404(a). A threshold inquiry is whether the suit “might have been brought” in the proposed transferee venue. In re Volkswagen of Am., Inc., 545 F.3d 304, 312 (5th Cir.2008) (en banc) (Volkswagen II). Once a defendant satisfies that burden, the Court weighs certain factors to determine if transfer is warranted. Volkswagen II, 545 F.3d at 314 n. 9; see also Gulf Oil Corp. v. Gilbert, 330 U.S. 501, 507-08, 67 S.Ct. 839, 91 L.Ed. 1055 (1947). The moving party must show good cause by demonstrating the transferee venue is clearly more convenient. Volkswagen II, 545 F.3d at 314. Otherwise, a plaintiffs choice of venue must be respected because that choice places the burden on the defendant to demonstrate why venue should be transferred. Id. at 315 n. 10.

When deciding whether to transfer an action, the Court balances the private interests of the litigants and the public’s interest in the fair and efficient administration of justice. Volkswagen II, 545 F.3d at 315; In re TS Tech. USA Corp., 551 F.3d 1315, 1320 (Fed.Cir.2008). The relevant factors are divided between these private and public interests. Gilbert, 330 U.S. at 508, 67 S.Ct. 839. “The private interest factors are: (1) the relative ease of access to sources of proof; (2) the availability of compulsory process to secure the attendance of witnesses; (3) the cost of attendance for willing witnesses; and (4) all other practical problems that make trial of a case easy, expeditious and inexpensive.” Volkswagen II, 545 F,3d at 315 (quotation omitted). “The public interest factors are: (1) the administrative difficulties flowing from court congestion; (2) the local interest in having localized interests decided at home; (3) the familiarity of the forum with the law that will govern the case; and (4) the avoidance of unnecessary problems of conflict of laws or in the application of foreign law.” Id. (quotation omitted). These factors are not exhaustive, and no single factor is dispositive. Id.

III. DISCUSSION

a. Jurisdiction in the Transferee Forum

The first question the Court must address when considering a motion to transfer venue under 28 U.S.C. § 1404(a) is whether the suit originally could have been filed in the destination venue, here, the Northern District of California. Volkswagen II, 545 F.3d at 312. The movants bear the burden of establishing personal jurisdiction and venue as to all defendants in the transferee forum. See Chirife v. St. Jude Med., Inc., No. 6:08-CV-480, 2009 WL 1684563, at *1 (E.D.Tex. June 16, 2009). This determination is made as the circumstances existed at the time of filing. See Hoffman v. Blaski, 363 U.S. 335, 343, 80 S.Ct. 1084, 4 L.Ed.2d 1254 (1960).

Plaintiff argues that Defendants have not satisfied their burden to demonstrate that this case could originally have been [872]*872filed in the Northern District of California. Defendants argue that (1) they have demonstrated sufficient contacts with the Northern District of California to establish that this case could have been filed there, and (2) Defendants have consented to jurisdiction in the Northern District of California by filing this action.

“Any civil action for patent infringement may be brought in the judicial district where the defendant resides, or where the defendant has committed acts of infringement and has a regular and established place of business.” 28 U.S.C. § 1400(b). But the relevant inquiry is whether jurisdiction and venue existed at the time this action was filed. See Hoffman v. Blaski, 363 U.S. 335, 344, 80 S.Ct. 1084, 4 L.Ed.2d 1254 (1960). Thus, post-filing consent to jurisdiction in the transferee forum is irrelevant to the transfer analysis. Id.

As a foreign entity, HTC Corporation venue is proper in any district. 28 U.S.C. § 1391(c)(3). HTC America, Inc. has a facility in San Francisco that focuses on design issues for HTC mobile products. The facility employs 21 people. Accordingly, the Court finds HTC America’s contacts to the Northern District of California sufficient to confer jurisdiction and venue.

Verizon has offices and personnel throughout the United States, including at its facility in Walnut Creek, California. Verizon also sells its LTE-related products and services nationwide. Accordingly, the Court finds Verizon’s contacts to the Northern District of California sufficient to confer jurisdiction and venue.

A. Private Interest Factors

1. The Relative Ease of Access to Sources of Proof

The first private interest factor is the relative ease of access to sources of proof.

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937 F. Supp. 2d 867, 2013 WL 1314413, 2013 U.S. Dist. LEXIS 44265, Counsel Stack Legal Research, https://law.counselstack.com/opinion/adaptix-inc-v-htc-corp-txed-2013.