ENOVSYS LLC v. T-Mobile USA, Inc.

CourtDistrict Court, E.D. Texas
DecidedJune 14, 2022
Docket2:21-cv-00368
StatusUnknown

This text of ENOVSYS LLC v. T-Mobile USA, Inc. (ENOVSYS LLC v. T-Mobile USA, 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
ENOVSYS LLC v. T-Mobile USA, Inc., (E.D. Tex. 2022).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF TEXAS MARSHALL DIVISION

ENOVSYS LLC, § §

§ Plaintiff, §

§ v. § CIVIL ACTION NO. 2:21-CV-00368-JRG

§ T-MOBILE USA, INC., §

§

Defendant. §

MEMORANDUM OPINION AND ORDER Before the Court is Defendant T-Mobile USA, Inc.’s (“T-Mobile” or “Defendant”) Motion to Transfer to the Central District of California (the “Motion”). (Dkt. No. 43). In the same, T- Mobile seeks to transfer the above-captioned case to the Central District of California (“CDCA”) pursuant to 28 U.S.C. § 1404(a). (Id. at 1). Having considered the Motion and the subsequent briefing and for the reasons set forth herein, the Court is of the opinion that T-Mobile’s Motion should be DENIED. I. BACKGROUND A. Procedural Background Plaintiff Enovsys LLC (“Enovsys” or “Plaintiff”) filed the above-captioned case on September 24, 2021 alleging T-Mobile infringed U.S. Patent No. 7,925,273 (the “ʼ273 Patent”), U.S. Patent No. 8,706,078 (the “ʼ078 Patent”), U.S. Patent No. 5,918,159 (the “ʼ159 Patent”), U.S. Patent No. 8,195,188 (the “ʼ188 Patent”) (collectively, the “Original Asserted Patents”). (Dkt. No. 2 ¶¶ 8, 10, 12, 14). On January 6, 2022, Enovsys filed its Amended Complaint, again alleging T-Mobile infringed the Original Asserted Patents and adding allegations of infringement regarding U.S. Patent No. 6,560,461 (the “ʼ461 Patent”) (the ʼ461 Patent together with the Original Asserted Patents, the “Asserted Patents”). (Dkt. No. 17 ¶ 16). On January 20, 2022, T-Mobile moved to dismiss Enovsys’s Amended Complaint, arguing, inter alia, that the Asserted Patents are claim ineligible subject matter prohibited by 35 U.S.C. § 101. (Dkt. No. 23). Over two months later, on March 25, 2022, T-Mobile filed the instant Motion to transfer this case to CDCA under § 1404(a).

(Dkt. No. 43). After the Court granted several unopposed motions for extensions (e.g., Dkt. Nos. 45, 49, 56), the briefing concluded on June 10, 2022. (Dkt. No. 61). B. Factual Background Enovsys is a California limited liability company with its place of business in Beverly Hills, California (in the CDCA). (Dkt. No. 17 ¶ 1). Mr. Mundi Fomukong is the sole owner of Enovsys and is the lead inventor on the Asserted Patents. (Dkt. No. 52-4 ¶ 1). Mr. Fomukong lives in the Los Angeles area. (Id. ¶ 2). T-Mobile is a Delaware corporation headquartered in Bellevue, Washington. (Dkt. No. 17 ¶ 2; Dkt. No. 43-8 ¶ 2). T-Mobile also has corporate operations in this District in Frisco, Texas. The parties dispute the significance of this location as to venue. (Dkt. No. 52 at 3; id. at 3, n.2; Dkt. No. 43 at 5, n.1; Dkt. No. 43-8 ¶ 7). According to T-Mobile’s Senior Manager, Systems Architecture at T-Mobile, Mr. Timothy Dunn, “T-Mobile’s product and engineering teams related

to the Accused Products are based in Bellevue, Washington at T-Mobile’s headquarters” and that “T-Mobile’s departments and employees responsible for sales, marketing, and financial matters related to the Accused Products are based in and located at T-Mobile’s headquarters in Bellevue, Washington.” (Dkt. No. 43-8 ¶ 5). Enovsys has been involved in earlier litigation in CDCA and this Court. In particular, in June 2006, Enovsys sued Sprint Nextel Corporation and Nextel Communications for infringement of the ʼ159 and ʼ461 Patents. (Dkt. No. 43 at 2) (citing Enovsys LLC v. Sprint Nextel Corp., 2:06-cv-3402 (C.D. Cal.) (“Sprint I”)). Shortly thereafter, Sprint I was dismissed, but was refiled later that year. (Dkt. No. 43 at 3) (citing Enovsys LLC v. Nextel Commc’ns, No. 2:06-cv-5306 (C.D. Cal.) (“Sprint II”)). In June 2011, Enovsys sued AT&T Mobility in CDCA, asserting the ʼ461 and ʼ273 Patents. (Dkt. No. 43 at 3) (citing Enovsys LLC v. AT&T Mobility, No. 2:11-cv- 5210 (C.D. Cal.)). T-Mobile’s recitation of Enovsys’s prior litigation omits a key case: Enovsys

LLC v. Verizon Commc’ns, No. 2:21-cv-315 (E.D. Tex.) (the “Verizon Case”). The Verizon Case was filed before the instant case and is currently pending before the undersigned. (Verizon Case, Dkt. No. 2). The Verzion Case is set for Markman on June 16, 2022 and trial on December 5, 2022. (Verizon Case, Dkt. No. 55). Verizon never challenged venue in that case. II. LEGAL STANDARD In evaluating a motion to transfer pursuant to § 1404(a), the Court considers the Fifth Circuit’s non-exhaustive list of private and public interest factors. In re Volkswagen AG, 371 F.3d 201, 203 (5th Cir. 2004) (“Volkswagen І”). The private interest factors include: (1) “the relative ease of access to sources of proof;” (2) “the availability of compulsory process to secure the attendance of witnesses;” (3) “the cost of attendance for willing witnesses;” and (4) “all other practical problems that make trial of a case easy, expeditious and inexpensive.” Id. The public interest factors include: (1) “the administrative difficulties flowing from court congestion;” (2)

“the local interest in having localized interests decided at home;” (3) “the familiarity of the forum with the law that will govern the case;” and (4) “the avoidance of unnecessary problems of conflict of laws.” Id. In order to support a claim for transfer under § 1404(a), a movant must demonstrate that the transferee venue is “clearly more convenient” than the current District. In re Volkswagen of Am., Inc., 545 F.3d 304, 315 (5th Cir. 2008) (“Volkswagen II”). The elevated burden to show that the transferee forum is “clearly more convenient” reflects the respect owed to the plaintiff’s choice of forum. In re Vistaprint Ltd., 628 F.3d 1342, 1344 (Fed. Cir. 2010). III. DISCUSSION The Court first addresses the private interest factors followed by the public interest factors.1 The Court finds three private interest factors weigh against transfer. All other factors are neutral. A. Private Interest Factors The Relative Ease of Access to Sources of Proof. The first private interest factor the Court analyzes is the relative ease of access to sources of proof, including documentary and other physical evidence. See Volkswagen II, 545 F.3d at 315. Notwithstanding well-known advances in technology including the digitization of data, the courts of appeals nonetheless continue to

affirm the relevance and importance of the physical location of these sources. See id. at 316; In re Genentech, Inc., 566 F.3d 1338, 1346 (Fed. Cir. 2009); In re Google LLC, No. 2022-140, 2022 WL 1613192, at *3 (Fed. Cir. May 23, 2022); In re Juniper Networks, Inc., 14 F.4th 1313, 1321 (Fed. Cir. 2021). Parties must specifically identify and locate sources of proof and explain their relevance. AGIS Software Dev. LLC v. Huawei Device USA Inc., No. 2:17-cv-513, 2018 WL 2329752, at *5 (E.D. Tex. May 22, 2018); Utterback v. Trustmark Nat’l Bank, 716 F. App’x 241, 245 n.10 (5th Cir. 2017). T-Mobile acknowledges that its sources of proof are not located in the CDCA, but rather at its headquarters in Bellevue, Washington. (Dkt. No. 43 at 4, 8) (citing Dkt. No. 43-8 ¶ 5).

T-Mobile contends that “[n]o relevant witnesses or unique sources are located within the Eastern District of Texas” (“EDTX”). (Id. at 4, 8) (citing Dkt. No. 43-8 ¶¶ 6, 7). T-Mobile contends that Enovsys has no physical address in Texas. (Dkt. No. 43 at 8). T-Mobile also identifies four individuals connected to Envosys in CDCA: Mr. Fomukong; Mr.

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ENOVSYS LLC v. T-Mobile USA, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/enovsys-llc-v-t-mobile-usa-inc-txed-2022.