Bluestone Innovations Texas, L.L.C. v. Formosa Epitaxy Inc.

822 F. Supp. 2d 657, 2011 U.S. Dist. LEXIS 112566, 2011 WL 4591922
CourtDistrict Court, E.D. Texas
DecidedSeptember 30, 2011
Docket6:10-cv-00171
StatusPublished
Cited by5 cases

This text of 822 F. Supp. 2d 657 (Bluestone Innovations Texas, L.L.C. v. Formosa Epitaxy Inc.) 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
Bluestone Innovations Texas, L.L.C. v. Formosa Epitaxy Inc., 822 F. Supp. 2d 657, 2011 U.S. Dist. LEXIS 112566, 2011 WL 4591922 (E.D. Tex. 2011).

Opinion

MEMORANDUM OPINION AND ORDER

T. JOHN WARD, District Judge.

Pending before the court are defendants Formosa Epitaxy, Inc.’s (“ForEpi”), Tek- ' core Co., Ltd.’s (“Tekcore”), and Walsin Lihwa Corp.’s (“Walsin”) (collectively, “Defendants”) motions to dismiss plaintiff Bluestone Innovations Texas, L.L.C.’s (“Bluestone”) amended complaint for lack of personal jurisdiction (Dkt. Nos. 41, 47, and 98). For the following reasons, the court GRANTS defendants Tekcore’s and Walsin’s motions to dismiss (Dkt. Nos. 47 and 98). The court, however, DENIES defendant ForEpi’s motion to dismiss (Dkt. No. 41) because the court has concluded that it may exercise personal jurisdiction over ForEpi pursuant to Rule 4(k)(2). Finally, the court GRANTS Defendants’ motions to strike Plaintiffs surreply to Defendants’ supplemental reply brief (Dkt. Nos. 124, 125, and 126) because the court did not grant Plaintiff permission to file a supplemental surreply brief. See Dkt. No. 109.

I. FACTUAL AND PROCEDURAL BACKGROUND

On May 26, 2010, Bluestone filed suit against Defendants, 1 alleging infringement of United States Patent No. 6,163,557 (the *660 “ '557 Patent”) entitled “Fabrication of Group III-V Nitrides on Mesas.” With regard to jurisdiction and venue, Bluestone alleges that ForEpi, Tekcore, and Walsin are foreign corporations existing under the laws of Taiwan with principal places of business located in Taiwan. Bluestone alleges that Defendants are subject to this court’s personal jurisdiction, pursuant to due process and/or the Texas Long Arm Statute, due at least to their substantial business in this forum, including at least a portion of the infringements alleged herein. Bluestone alleges that Defendants are subject to the court’s general jurisdiction because they regularly do or solicit business, engage in other persistent courses of conduct, and/or derive substantial revenue from goods and services provided to individuals in Texas. 2 Bluestone further alleges that Defendants are subject to the court’s specific jurisdiction because Defendants, directly and/or through intermediaries, have advertised, offered to sell, sold, and/or distributed infringing products, and/or have induced the sale and use of infringing products within this district.

II. LEGAL STANDARD

Federal Circuit law controls personal jurisdiction issues in patent cases. Patent Rights Prot. Grp., LLC v. Video Gaming Techs., Inc., 603 F.3d 1364, 1368 (Fed.Cir.2010) (citing Akro Corp. v. Luker, 45 F.3d 1541, 1543 (Fed.Cir.1995)); Beverly Hills Fan Co. v. Royal Sovereign Corp., 21 F.3d 1558, 1564 (Fed.Cir.1994). A federal court may exercise personal jurisdiction over a foreign defendant only if (1) the long-arm statute creates personal jurisdiction over the foreign defendant, and (2) the exercise of personal jurisdiction over that defendant is consistent with the due process guarantees of the U.S. Constitution. See Patent Rights Prot. Grp., LLC, 603 F.3d at 1368-69; see also Gundle Lining Constr. Corp. v. Adams Cnty. Asphalt, Inc., 85 F.3d 201, 204 (5th Cir.1996). The Texas long-arm statute extends to the full extent permitted by the Due Process Clause of the U.S. Constitution. Religious Tech. Ctr. v. Liebreich, 339 F.3d 369, 373 (5th Cir.2003). The sole inquiry in this case, therefore, is whether the exercise of personal jurisdiction would violate the Due Process Clause of the U.S. Constitution. Red Wing Shoe Co., Inc. v. Hockerson-Halberstadt, Inc., 148 F.3d 1355, 1358 (Fed.Cir.1998).

Thus, to establish that this court has personal jurisdiction over Defendants, Bluestone must show that: (1) Defendants have purposefully availed themselves of the benefits and protections of the forum state by establishing minimum contacts with the forum state; and (2) the exercise of jurisdiction over Defendants does not offend traditional notions of fair play and substantial justice. Int’l Shoe Co. v. Washington, 326 U.S. 310, 316-20, 66 S.Ct. 154, 90 L.Ed. 95 (1945); Burger King Corp. v. Rudzewicz, 471 U.S. 462, 474-77, 105 S.Ct. 2174, 85 L.Ed.2d 528 (1985). Once a defendant challenges personal jurisdiction, the plaintiff bears the burden of producing facts showing that the defendant is subject to personal jurisdiction. See McNutt v. Gen. Motors Acceptance Corp., 298 U.S. 178, 189, 56 S.Ct. 780, 80 L.Ed. 1135 (1936). There are two types of ‘minimum contacts’: those that give rise to specific personal jurisdiction and those that give rise to general personal jurisdiction. See J. McIntyre Mach., Ltd. v. Nicastro (“McIntyre"), — U.S. -, 131 S.Ct. 2780, 2787-88, 180 L.Ed.2d 765 *661 (2011); see also Red Wing Shoe Co., 148 F.3d at 1359.

General jurisdiction exists when a nonresident defendant’s contacts with the forum state are substantial, continuous, and systematic. Helicopteros Nacionales de Colombia, S.A. v. Hall, 466 U.S. 408, 414-19, 104 S.Ct. 1868, 80 L.Ed.2d 404 (1984). Random, fortuitous, or attenuated contacts are not sufficient to establish general jurisdiction. Red Wing Shoe Co., 148 F.3d at 1359. “There is also a more limited form of submission to a State’s authority for disputes that ‘arise out of or are connected with the activities within the state.’ ” McIntyre, 131 S.Ct. at 2787-88 (quoting Int’l Shoe Co. v. Washington, 326 U.S. 310, 316, 66 S.Ct. 154, 90 L.Ed. 95 (1945)). Where a defendant “ ‘purposefully avails itself of the privilege of conducting activities within the forum State, thus invoking the benefits and protections of its laws,’ ... it submits to the judicial power of an otherwise foreign sovereign to the extent that power is exercised in connection with the defendant’s activities touching on the State.” Id. (quoting Hanson v. Denckla, 357 U.S. 235, 253, 78 S.Ct. 1228, 2 L.Ed.2d 1283 (1958)).

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822 F. Supp. 2d 657, 2011 U.S. Dist. LEXIS 112566, 2011 WL 4591922, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bluestone-innovations-texas-llc-v-formosa-epitaxy-inc-txed-2011.