Convergence Technologies (USA), LLC v. Microloops Corp.

711 F. Supp. 2d 626, 2010 U.S. Dist. LEXIS 46155, 2010 WL 1931743
District Court, E.D. Virginia·Decided May 11, 2010·No. 1:09cv1256·Published·Cited by 17 cases

Opinion

MEMORANDUM OPINION

T.S. Ellis, III, District Judge.

A threshold motion in this multi-defendant patent infringement suit seeks severance or dismissal of the claim against one of the defendants and transfer of the claims against the remaining defendants to the Northern District of California pursuant to 28 U.S.C. § 1404(a). For the reasons that follow, the motion to dismiss the claim against one of the defendants must be granted for lack of service of process, and the claims against the remaining defendants are appropriately transferred to the Northern District of California for the convenience of the parties and witnesses, and in the interest of justice.

I. 1

Plaintiff Convergence Technologies (USA) (“Convergence”) is a limited liabili *629 ty company with its principal place of business in Reston, Virginia. It is owned and controlled by Convergence Technologies Limited, a Hong Kong-based corporation. Convergence is the sole owner, by assignment, of United States Patent No. 7,422,-053 (“the '053 patent”), which claims (i) an apparatus heat transfer device, described as a vapor augmented heatsink with a multi-wick structure, and (ii) a method by which the heat transfer device is manufactured.

Convergence has sued four defendants for infringement — a manufacturer of the putatively infringing product and three alleged distributors and resellers of that product. Defendant Microloops Corporation (“Microloops”), the manufacturer of the putatively infringing product, is a Taiwanese corporation with its principal place of business in Taoyuan Hsien, Taiwan in the Republic of China. In addition to its Taiwan headquarters, Microloops maintains a U.S. sales office in Lancaster, Pennsylvania. Defendant Sapphire Technology Limited (“Sapphire”) is a Chinese corporation with its principal place of business in Hong Kong. Defendant Hewlett-Packard Company (“HP”) is a Delaware corporation with its principal place of business in Palo Alto, California. Defendant Dynatron Corporation (“Dynatron”) is a California corporation with its principal place of business in Fremont, California. Notably, Palo Alto and Fremont are cities located within the Northern District of California. All defendants are represented by the same counsel. 2

On November 9, 2009, Convergence filed a complaint alleging infringement of the '053 patent against Microloops, Sapphire, and HP. Prior to the filing of a responsive pleading, Convergence on December 15, 2009, filed an amended complaint, adding Dynatron as defendant. In the amended complaint, Convergence alleges that Microloops manufactures and sells “vapor chambers” that infringe the apparatus claims of the '053 patent using a method also claimed by the '053 patent. The amended complaint further alleges that Sapphire, HP, and Dynatron infringe the '053 patent by incorporating the vapor chambers manufactured by Microloops into their own products, which are sold in the United States, “including substantial sales in Virginia.” Compl. ¶¶ 4-7. Specifically, Sapphire allegedly uses Microloops’s vapor chambers in its computer graphics card products, while HP and Dynatron allegedly use Microloops’s vapor chambers in their computer server component products.

The case docket reflects that a summons was issued by the Clerk of the Court on November 9, 2009, for service of the complaint on Microloops, Sapphire, and HP. Following the filing of the amended complaint and the addition of Dynatron as a defendant, additional summonses issued for service of the amended complaint on all four defendants. With respect to service, Convergence represents that it requested a waiver of service on all defendants pursuant to Rule 4(d), Fed.R.Civ.P. Yet, the record clearly reflects, based on an uncontroverted affidavit by defendants’ counsel, that no defendant waived service of process. Consistent with this, the docket contains neither (i) a return of summons or proof of service of the complaint or amended complaint on any defendant, nor (ii) an executed waiver of service by any defen *630 dant. Nonetheless, it appears that Convergence formally served HP and Dynatron — the two California defendants' — -in March 2010, shortly before the 120-day service period expired. See Rule 4(m), Fed.R.Civ.P. Convergence has not, however, effected service on Microloops or Sapphire.

HP and Dynatron each filed an answer to the complaint on April 1, 2010. Both answers assert that personal jurisdiction over all defendants is lacking, and that the Eastern District of Virginia is not a proper venue in which to bring suit. Moreover, HP and Dynatron counterclaimed under the Declaratory Judgment Act, seeking a declaration that the '053 patent is invalid. Neither Microloops nor Sapphire has filed an answer.

On April 1, 2010, defendants jointly filed a motion for severance of the patent infringement claim against Sapphire from the patent infringement claims against the other defendants, or alternatively for dismissal of Sapphire for insufficient service of process, and for transfer of the severed or remaining defendants — namely Micro-loops, HP, and Dynatron — to the Northern District of California. The parties filed numerous affidavits in support of their respective positions on defendants’ motion, and the issues were fully briefed and argued at a May 7, 2010 hearing, at which time the matter was resolved by a Bench ruling.

II.

Analysis properly begins with the motion to dismiss the claim against Sapphire for failure to effect service of process, for resolution of that motion may render the severance motion moot and significantly affect the analysis of the transfer motion. 3

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Convergence Technologies (USA), LLC v. Microloops Corp., 711 F. Supp. 2d 626, 2010 U.S. Dist. LEXIS 46155, 2010 WL 1931743 (E.D. Va. 2010).

711 F. Supp. 2d 626 (Convergence Technologies (USA), LLC v. Microloops Corp.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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