Bluestone Innovations, LLC v. LG Electronics, Inc.

940 F. Supp. 2d 310, 2013 WL 1655660
CourtDistrict Court, E.D. Virginia
DecidedApril 12, 2013
DocketCivil Action Nos. 2:12cv503-HCM-LRL, 2:12cv510-HCM-DEM, 2:12cv532-HCM-LRL, 2:12cv545-HCM-LRL
StatusPublished
Cited by9 cases

This text of 940 F. Supp. 2d 310 (Bluestone Innovations, LLC v. LG Electronics, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bluestone Innovations, LLC v. LG Electronics, Inc., 940 F. Supp. 2d 310, 2013 WL 1655660 (E.D. Va. 2013).

Opinion

OPINION AND ORDER

HENRY COKE MORGAN, JR., Senior District Judge.

All four of the captioned cases are patent infringement actions brought by the same plaintiff regarding the same technology. This particular matter is before the Court on Defendants LG Electronics, Inc. and LG Electronics U.S.A., Ine.’s (collectively, “LGE”) Motion to Transfer Venue Pursuant to 28 U.S.C. § 1404(a), Doc. 73, and Defendants Acer Inc. and Acer America Corporation’s (collectively, “Acer”) Motion to Transfer Venue Pursuant to 28 U.S.C. § 1404(a), Doc. 81. LGE’s Motion has been joined by Defendant VIZIO, Inc. (“VIZIO”) and by Defendants Best Buy Co., Inc., Best Buy Stores, L.P., and Best-Buy.com, LLC (collectively, “Best Buy”). Docs. 76, 79. Because all four cases have been consolidated for pretrial purposes, see Doc. 11, and all Defendants seek transfer to the Northern District of California, the Court has considered the Motions and Joinders together. On March 25, 2013, the Court convened a hearing and ruled from the bench. The Court GRANTED Defendants’ Motions and now issues this Opinion and Order setting forth the reasons for its ruling in further detail.

I. Background

A. The Patent

On December 19, 2000, the United States Patent and Trademark Office (“USPTO”) issued Patent No. 6,163,557 (the “Patent” or the “'557 Patent”).1 The listed inventors were Clarence J. Donnrowicz, Linda T. Romano, and David. P. Bour (collectively, “Inventors”) of Xerox Palo Alto Research Center (“PARC”). Doc. 1 (“Compl.”); see also Doc. 73 at 5; Pat. No. '557.2 PARC is located in Palo Alto, California, within the Northern District of California. Id. The Inventors reside within the Northern District of California. Doc. 73 at 9, Ex. [312]*312U. Upon issuance, the Patent was assigned to Xerox Corporation of Stamford, Connecticut. Doc. 81, Ex. J. The Patent was eventually acquired by Bluestone Innovations Holdings, LP, on May 25, 2010, and immediately assigned to Bluestone Innovations Texas, LLC. Id. Finally, on September 4, 2012, the Patent was assigned to Bluestone Innovations, LLC (“Plaintiff’). Id. The Patent is “subject to an exclusive field of use license held by a third party for any Optical Media Storage Device or Component.” Compl. ¶ 8.3

The Patent covers an invention related to light emitting diodes (“LEDs”). Pat. No. '557.4 Plaintiff seeks to enforce the Patent against Acer, Best Buy, LGE, and VIZIO (collectively, “Defendants”), claiming that certain televisions and monitors that they sell or manufacture, which utilize LEDs, infringe the Patent. See, e.g., Compl. ¶ 10.

B. Similar Litigation

Plaintiff is also suing LED manufacturers for infringing the '557 Patent in the Northern District of California. See Blue-stone Innovations LLC v. Epistar Corp. et al, Case No. 3:12cv-00059-SI (N.D.Cal. filed May 26, 2010) (the “Related Litigation”). While the case was initially brought against multiple defendants, only two remain: Nichia Corporation and Nichia America Corporation (collectively, “Nichia”). Id. The parties have just completed their first case management conference and are in the early stages of discovery. Id.

C. The Parties

1. Bluestone Innovations, LLC

Since 2009, Plaintiff has been a Virginia limited liability company with its office in Reston, Virginia, where it employs five people. While Plaintiff has created other corporate entities solely for the purpose of litigation in Texas and Florida, it appears that Plaintiff is legitimately at home in Virginia. Compl. ¶ 1; see Doc. 90 at 3.5 As far as ties to the Patent, Plaintiff has only been the assignee of the Patent since September 4, 2012, a week before filing the Complaints in these cases.6 See Doc. 81, Ex. J; see, generally, Compl. Bluestone Innovations Texas, LLC, a Texas entity affiliated with Plaintiff, held the patent for over two years prior to Plaintiffs becoming the assignee. Id.

2. Defendants7

All Defendants are either American companies, or alien parents of American companies, that sell, distribute, and market consumer electronic devices in the United States. Acer’s American entity is a California corporation with its principal place of business in San Jose, California, within the Northern District of California; Acer’s alien parent entity is a Taiwanese corporation with its principal place of busi[313]*313ness in Hsiehih, Taiwan. Best Buy is composed of three entities: two Minnesota corporations and one Virginia limited partnership; all three entities have their principal places of business in Richfield, Minnesota. LGE’s American entity is a Delaware corporation with its principal place of business in Englewood Cliffs, New Jersey; LGE’s alien parent entity is a South Korean corporation with its principal place of business in Seoul, South Korea. LGE also informs the Court that it maintains a sales office in the Northern District of California. Doc. 73 at 5. Finally, VIZIO is a California corporation having a principal place of business in Irvine, California, which falls within the Central District of California.

D. Procedural History

Plaintiff filed its Complaints against LGE and Best Buy on September 11, 2012, Docs. 1 of 2:12cv503 and 2:12ev545, and against Acer and VIZIO on September 13, 2012, Docs. 1 of 2:12cv510 and 2:12cv532.8 In each Complaint, Plaintiff alleges that Defendants infringed the Patent with either televisions or computer monitors that are LED backlit. Id. On October 2, 2012, all four cases were consolidated before this Court. Doc. 11. LGE moved to transfer venue to the Northern District of California on January 24, 2013. Doc. 73. VIZIO and Best Buy joined LGE’s Motion, and briefing was completed on February 11, 2013. See Docs. 74 (LGE’s Mem. in Supp.), 75 (Request for Hearing), 76 (VIZIO’s Joinder), 77 (Plaintiffs Opp’n), 79 (Best Buy’s Joinder), and 80 (LGE’s Reply in Supp.). Acer moved independently to transfer venue—also to the Northern District of California. Doc. 81. Briefing on Acer’s Motion was completed on March 4, 2013. See Docs. 82 (Acer’s Mem. in Supp.), 83 (Acer’s Decl. in Support), 89 (Plaintiffs Opp’n), 90 (Acer’s Reply in Supp.).

II. Legal Standards

“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). "[I]n considering whether to transfer venue, a district court must make two inquiries: (1) whether the claims might have been brought in the transferee forum, and (2) whether the interest of justice and convenience of the parties and witnesses justify transfer to that forum." Pragmatus AV, LLC v. Facebook, Inc.,

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Cite This Page — Counsel Stack

Bluebook (online)
940 F. Supp. 2d 310, 2013 WL 1655660, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bluestone-innovations-llc-v-lg-electronics-inc-vaed-2013.