Cellectis S.A. v. Precision Biosciences, Inc.

858 F. Supp. 2d 376, 2012 WL 1556489, 2012 U.S. Dist. LEXIS 61868
District Court, D. Delaware·Decided May 3, 2012·No. Civ. No. 11-173-SLR·Published·Cited by 10 cases

Opinion

MEMORANDUM OPINION

SUE L. ROBINSON, District Judge.

I. INTRODUCTION

Pending before the court are various motions filed by the parties to this business dispute. Plaintiff Cellectis, S.A. (“Cellectis”) has moved to enjoin certain litigation filed by defendant Precision Biosciences, Inc. (“Precision”) against Cellectis in North Carolina, and Precision has moved to transfer the above captioned litigation to North Carolina or, in the alternative, to stay the litigation pending reexamination of the patent in suit. (D.I. 7, 16) The court has jurisdiction to hear these motions pursuant to 28 U.S.C. § 1338. Venue is appropriate pursuant to 28 U.S.C. § 1400(b). For the reasons that follow, the court grants Cellectis’ motion to enjoin and denies Precision’s motion to transfer.

II. BACKGROUND

A. The Parties

Cellectis is a publicly-traded biotechnology company in the field of genome engineering, particularly in the use of meganucleases as innovative tools to enable targeted modifications to DNA. Cellectis was founded in 1999 (D.I. 8 at 2) and, although incorporated and headquartered in France, it “has business relationships with companies all over the U.S. and throughout the world.” (D.I. 23 at 4; see also D.I. 1 at ¶ 1)

Precision is a privately-held biotechnology company that also has as its focus the development and commercialization of engineered endonucleases. It was founded in 2006 and is a Delaware corporation with its principal place of business in North Carolina. (D.I. 1 at ¶ 2; D.I. 10 at ¶ 2; D.I. 8 at 2)

B. The Parties’ Litigation History

In March of 2008, Cellectis sued Precision in the United States District Court for the Eastern District of North Carolina for infringement of U.S. Patent Nos. 6,610,545 (“the '545 patent”) and 7,309,605 (“the '605 patent”). See Cellectis S.A. v. Precision BioSciences, Inc., Civ. No. 5:08-119-H (E.D.N.C.) (“North Carolina I”). The '545 and '605 patents each issued from an application first filed by Institut Pasteur in 1992. Subsequent to the initiation of suit, Precision requested, and was granted, inter partes reexamination of the '545 and '605 patents. Precision filed a motion to stay North Carolina I, which motion was granted in August 2010 at the close of fact discovery. (D.I. 23 at 6) The United States Patent and Trademark Office (“PTO”) has since rejected the claims of the '545 and '605 patents and an appeal is currently pending before the Board of Patent Appeals and Interferences.

On March 1, 2011 at 5:59 a.m., as soon as U.S. Patent No. 7,897,372 (“the '372 patent”) issued and was publicly available from the PTO’s website, Cellectis filed the instant litigation against Precision for infringement of the '372 patent.1 Later that same day, Precision filed a declaratory judgment action on the '372 patent in North Carolina (“North Carolina II”). Precision has filed its answer to the amended complaint in the instant litiga[378] tion, and a scheduling order has been approved by the court. (D.I. 27, 33)

III. STANDARD OF REVIEW

Since the Act of 1897, when Congress first enacted what is now 28 U.S.C. § 1400(b),2 any civil action for patent infringement could be brought in the judicial district in which the defendant was incorporated. Indeed, until 1990, the words “inhabitant” (used prior to 1948) and “resident” (used since 1948), as those words relate to corporate venue in patent infringement cases, were limited to “the state of incorporation only.” Fourco Glass Co. v. Transmirra Products Corp., 353 U.S. 222, 226, 77 S.Ct. 787, 1 L.Ed.2d 786 (1957); see also VE Holding Corp. v. Johnson Gas Appliance Co., 917 F.2d 1574, 1578 (Fed.Cir.1990). In 1990, the Federal Circuit in VE Holding interpreted the 1988 amendment to the general venue statute, 28 U.S.C. § 1391(c), as supplementing the specific provisions of § 1400(b). More specifically, § 1391 was amended to broaden the general venue provision for corporations:3

(c) For purposes of venue under this chapter, a defendant that is a corporation shall be deemed to reside in any judicial district in which it is subject to personal jurisdiction at the time the action is commenced.

(emphasis added) The Federal Circuit held that the emphasized language above clearly indicated that § 1391(c), on its face, applied to § 1400(b), “and thus redefine[d] the meaning of the term ‘resides’ in that section.” 917 F.2d at 1578. Thus, as recognized by the Federal Circuit, “[v]enue, which connotes locality, serves the purpose of protecting a defendant from the inconvenience of having to defend an action in a trial court that is either remote from the defendant’s residence or from the place where the acts underlying the controversy occurred.... The venue statutes achieve this by limiting a plaintiffs choice of forum to only certain courts from among all those which might otherwise acquire personal jurisdiction over the defendant.” Id. at 1576 (citation omitted).

Free access — add to your briefcase to read the full text and ask questions with AI

Cellectis S.A. v. Precision Biosciences, Inc., 858 F. Supp. 2d 376, 2012 WL 1556489, 2012 U.S. Dist. LEXIS 61868 (D. Del. 2012).

858 F. Supp. 2d 376 (Cellectis S.A. v. Precision Biosciences, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

MEC Resources, LLC v. Apple, Inc.
269 F. Supp. 3d 218 (D. Delaware, 2017)
C. R. Bard, Inc. v. Angiodynamics, Inc.
156 F. Supp. 3d 540 (D. Delaware, 2016)
Nexans Inc. v. Belden Inc.
966 F. Supp. 2d 396 (D. Delaware, 2013)
Mitel Networks Corp. v. Facebook, Inc.
943 F. Supp. 2d 463 (D. Delaware, 2013)
Trustco Bank v. Automated Transactions LLC
933 F. Supp. 2d 668 (D. Delaware, 2013)
Smart Audio Technologies, LLC v. Apple, Inc.
910 F. Supp. 2d 718 (D. Delaware, 2012)
Cellectis S.A. v. Precision Biosciences, Inc.
881 F. Supp. 2d 609 (D. Delaware, 2012)
Cellectis S.A. v. Precision Biosciences
883 F. Supp. 2d 526 (D. Delaware, 2012)