Belden Technologies, Inc. v. LS CORP.

626 F. Supp. 2d 448, 2009 U.S. Dist. LEXIS 50931, 2009 WL 1703093
CourtDistrict Court, D. Delaware
DecidedJune 17, 2009
DocketCiv. 08-823-SLR
StatusPublished
Cited by18 cases

This text of 626 F. Supp. 2d 448 (Belden Technologies, Inc. v. LS CORP.) is published on Counsel Stack Legal Research, covering District Court, D. Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Belden Technologies, Inc. v. LS CORP., 626 F. Supp. 2d 448, 2009 U.S. Dist. LEXIS 50931, 2009 WL 1703093 (D. Del. 2009).

Opinion

MEMORANDUM OPINION

SUE L. ROBINSON, District Judge.

I. INTRODUCTION

On October 31, 2008, plaintiff Belden Technologies, Inc. (“Belden”) initiated this suit against defendants LS Corp., LS Cable Ltd., LS Cable America, Inc., Superior Essex Inc., and Superior Essex Communications LP for infringement of United States Patent Nos. 7,339,116 B2 (“the '116 patent”); 7,135,641 B2 (“the '641 patent”); 6,596,944 B1 (“the '944 patent”); and 6,074,503 (“the '503 patent”). (D.I. 1) Belden filed an amended complaint on December 5, 2008, alleging infringement of the same patents, but dropping Superior Essex Inc. and Superior Essex Communications LP as defendants. (D.I. 5) The court has subject matter jurisdiction over this action pursuant to 28 U.S.C. §§ 1331 and 1338(a).

On January 28, 2009, defendants filed a motion to dismiss for lack of personal jurisdiction, improper venue, and insufficiency of service of process pursuant to Rules 12(b)(2), (3), and (5) of the Federal Rules of Civil Procedure. (D.I. 11) Defendants allege that LS Cable Ltd. and LS Cable America, Inc. are not subject to personal jurisdiction in Delaware. (D.I. 12) Defendants also contend that venue is improper in Delaware because LS Cable Ltd. and LS Cable America, Inc. do not “reside” in Delaware. (Id.) Defendants further allege that Belden’s attempt to serve process on LS Cable Ltd. was inadequate. (Id.)

Plaintiff filed its answering brief on March 16, 2009, requesting that the court deny the motions. (D.I. 17) Plaintiff alternatively requests that the court allow jurisdictional discovery. (Id.) Defendants filed a reply brief on April 23, 2009, renewing their previous arguments. (D.I. 23)

For the reasons that follow, the court denies defendants’ motion to dismiss for insufficiency of service of process and denies without prejudice defendants’ motions to dismiss for lack of personal jurisdiction and improper venue in order to allow jurisdictional discovery.

II. BACKGROUND 1

Belden, a Delaware corporation with its principal place of business in St. Louis, Missouri, owns the '116, '641, '944, and '503 patents. 2 (D.I. 5 at ¶ 1) LS Cable Ltd. is a corporation organized under the laws of the Republic of Korea with its principal place of business in Korea. (Id. at ¶ 3; D.I. 12 at 2-3) LS Cable Ltd. is the world’s third largest cable manufacturer. (D.I. 17 at 2) LS Cable America, Inc. is a New Jersey corporation with its principal place of business in New Jersey. (D.I. 5 at ¶ 4; D.I. 12 at 3)

Plaintiff seeks relief from defendants’ alleged infringement of four of plaintiffs *453 patents “relating to inventions in the field of data and communications cable.” (D.I. 17 at 2) According to plaintiff, LS Cable Ltd. and LS Cable America, Inc. “have ongoing business relationships with numerous regional distributors in the United States and have entered into multi-million dollar contracts with large United States corporations to supply and service their cable products within Delaware and throughout the United States.” (Id.) Furthermore, plaintiff alleges that defendants have embarked on an aggressive marketing effort to distribute their products throughout the United States. (Id. at 2, 14)

In December 2006, LS Cable Ltd. entered into a three-year agreement to supply $34 million worth of automotive cable to Yazaki North America, a leader in the field of automotive cable. (Id. at 3; D.I. 18, ex. C) In January 2007, LS Cable Ltd. contracted to export $50 million worth of high-voltage cables to Connecticut Light & Power Co., the largest electricity company in Connecticut and the supplier of high voltage transmission lines to all of New England. (D.I. 17 at 3; D.I. 18, ex. D) In April 2008, LS Cable Ltd. entered into a United States distribution and cable warranty agreement with Signamax Connectivity Systems (“Signamax”). (D.I. 17 at 4; D.I. 18, ex. U) Plaintiff claims that Signamax “has a nationwide network of distributors and ... [representatives] ... through which [defendants regularly and systematically solicit sales and customers in Delaware.” (D.1.17 at 4)

Defendants created a Delaware holding company, U.S. HoldCo, to acquire Superi- or Essex Inc. (“Superior Essex”), a Delaware corporation, in June 2008. (Id. at 3, 4) At the time of the acquisition, Superior Essex was the world’s largest producer of magnet wire and a leader in the North American cable market. (Id. at 2; D.I. 18, ex. B at 1) Superior Essex is currently before this court on a similar patent infringement suit initiated by plaintiff. See Belden Technologies, Inc. v. Superior Essex, Inc., Civ. No. 08-063 (D. Del. filed Jan. 29, 2008).

In July 2008, LS Cable Ltd. contracted to supply $40 million worth of extra high voltage cables and accessories to U.S. Platte River Power Authority. (D.I. 17 at 3; D.I. 18, ex. E) Plaintiff claims that LS Cable Ltd. “courts smaller players in the United States Cable market (including Delaware) over the internet.” (D.I. 17 at 4)

III. STANDARDS OF REVIEW

A. Personal Jurisdiction

Rule 12(b)(2) directs the court to dismiss a case when the court lacks personal jurisdiction over the defendant. Fed.R.Civ.P. 12(b)(2). When reviewing a motion to dismiss pursuant to Rule 12(b)(2), a court must accept as true all allegations of jurisdictional fact made by the plaintiff and resolve all factual disputes in the plaintiffs favor. Traynor v. Liu, 495 F.Supp.2d 444, 448 (D.Del.2007). Once a jurisdictional defense has been raised, the plaintiff bears the burden of establishing, with reasonable particularity, that sufficient minimum contacts have occurred between the defendant and the forum to support jurisdiction. See Provident Nat’l Bank v. Cal. Fed. Sav. & Loan Ass’n, 819 F.2d 434, 437 (3d Cir.1987). To meet this burden, the plaintiff must produce “sworn affidavits or other competent evidence,” since a Rule 12(b)(2) motion “requires resolution of factual issues outside the pleadings.” Time Share Vacation Club v. Atlantic Resorts, Ltd., 735 F.2d 61, 67 n. 9 (3d Cir.1984).

To establish personal jurisdiction, the plaintiff must produce facts sufficient to satisfy two requirements by a preponderance of the evidence, one statutory and one constitutional. See id. at 66; Reach & *454 Assocs. v. Dencer, 269 F.Supp.2d 497, 502 (D.Del.2003).

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Bluebook (online)
626 F. Supp. 2d 448, 2009 U.S. Dist. LEXIS 50931, 2009 WL 1703093, Counsel Stack Legal Research, https://law.counselstack.com/opinion/belden-technologies-inc-v-ls-corp-ded-2009.