Fitbit, Inc v. Koninklijke Philips N.V.

District Court, N.D. California·Decided August 26, 2020·No. 4:20-cv-02371·Unknown

Opinion

Case No. 20-cv-02371-PJH Plaintiff,

v. ORDER GRANTING MOTION TO DISMISS AND GRANTING MOTION KONINKLIJKE PHILIPS N.V., et al., TO TRANSFER Defendants. Re: Dkt. No. 20

Before the court is defendants Koninklijke Philips N.V. (“Philips”) and Philips North America LLC (“PNA” and together with Philips, “defendants”) motions to dismiss and transfer. The matter is fully briefed and suitable for resolution without oral argument. Having read the parties’ papers and carefully considered their arguments and the relevant legal authority, and good cause appearing, the court rules as follows. On April 8, 2020, plaintiff Fitbit, Inc. (“Fitbit” or “plaintiff”) filed the complaint (“Compl.”) in this patent action asserting two causes of action: (1) infringement of U.S. Patent No. 7,145,462 (the “’462 patent”) and (2) infringement of U.S. Patent No. 8,868,377 (the “’377 patent”). Dkt. 1. Defendant Philips is a Dutch corporation with its principal place of business in Amsterdam, The Netherlands. Id. ¶ 2. Defendant PNA is a Delaware corporation with its principal place of business in Andover, Massachusetts and is a wholly owned subsidiary of Philips. Id. ¶ 3. Both Fitbit and Philips are technology companies in the business of producing The ’462 patent, entitled “System and Method for Automatically Generating an Alert Message with Supplemental Information,” generally claims a system and method for an automated monitoring and response system that is capable of automatically generating an alert message and providing supplemental information to the responder. Id. ¶¶ 7, 18. Plaintiff alleges that Philips makes, uses, offers for sale, sells, and/or imports certain products into the United States, such as the Philips Lifeline system and subscription service that infringe on several claims of the ’462 patent. Id. ¶ 22. The ’377 patent, entitled “Portable Monitoring Devices and Methods of Operating Same,” is generally directed to portable activity monitoring devices to calculate activity by having the device coupled to the body of the user, having at least one tri-axial accelerometer to generate sensor data, and calculating and displaying activity points corresponding to the physical activity of the user. Id. ¶¶ 8, 39. Plaintiff alleges that Philips makes, uses, offers for sale, sells, and/or imports certain products into the United States, such as the Philips Snoring Relief Band, that directly infringes on the ’377 patent. Id. ¶ 42. In addition to the present action, plaintiff and defendants are engaged in several patent lawsuits across the country. PNA has filed suit against Fitbit in the District of Massachusetts, Philips N. Am. LLC v. Fitbit, Inc., No. 19-cv-11586-IT (D. Mass.), asserting infringement of several PNA patents. Philips and PNA jointly requested a patent infringement investigation at the International Trade Commission (“ITC”) on patents not at issue in the Massachusetts action. Certain Wearable Monitoring Devices, Systems, and Components Thereof, ITC Investigation No. 337-TA-1190. In April 2020, Fitbit filed a declaratory relief action regarding the patents in the ITC action in the Northern District of California, Fitbit, Inc. v. Koninklijke N.V., No. 20-cv-2246-RS, which Judge Seeborg recently transferred to the District of Massachusetts. Dkt. 20-3. In the present case, defendant Philips move to dismiss Fitbit’s claims pursuant to Federal Rule of Civil Procedure 12(b)(2) for lack of personal jurisdiction and transfer to the District of Massachusetts pursuant to 28 U.S.C. § 1631. In the alternative, Philips defendants move to dismiss portions of Fitbit’s claims pursuant to Rule 12(b)(6). A. Legal Standard 1. Rule 12(b)(2) A federal court may dismiss an action under Federal Rule of Civil Procedure 12(b)(2) for lack of personal jurisdiction. Because plaintiff brings patent infringement claims, the court applies Federal Circuit precedent to the personal jurisdiction analysis. Autogenomics, Inc. v. Oxford Gene Tech. Ltd., 566 F.3d 1012, 1016 (Fed. Cir. 2009) (citation omitted). When resolving a motion to dismiss under Rule 12(b)(2) on written materials, the court accepts uncontroverted facts in the complaint as true and resolves conflicts in affidavits in plaintiff’s favor. Avocent Huntsville Corp. v. Aten Int’l Co., 552 F.3d 1324, 1329 (Fed. Cir. 2008) (citing Elecs. for Imaging, Inc. v. Coyle, 340 F.3d 1344, 1349 (Fed. Cir. 2003)). “Federal courts ordinarily follow state law in determining the bounds of their jurisdiction over persons.” Daimler AG v. Bauman, 571 U.S. 117, 125 (2014); see Fed. R. Civ. P. 4(k)(1)(a). California’s long arm statute permits exercise of personal jurisdiction to the fullest extent permissible under the U.S. Constitution, Cal. Code Civ. Proc. § 410.10, therefore “our jurisdictional analysis collapses into a single determination of whether the exercise of personal jurisdiction comports with due process.” Avocent, 552 F.3d at 1329. Due process requires that the defendant “have certain minimum contacts with it such that the maintenance of the suit does not offend traditional notions of fair play and substantial justice.” Int’l Shoe Co. v. Washington, 326 U.S. 310, 316 (1945) (internal quotation marks omitted) (citations omitted). Under the “minimum contacts” analysis, a court can exercise either “general or all-purpose jurisdiction,” or “specific or conduct-linked jurisdiction.” Daimler, 571 U.S. at 121–22 (citing Goodyear Dunlop Tires Operations, S.A. v. Brown, 564 U.S. 915, 919 (2011)). In the absence of general jurisdiction, a court may exercise specific jurisdiction claims pending before the court—that is, if the cause of action “arises out of” or has a substantial connection with that activity. Hanson v. Denckla, 357 U.S. 235, 250–53 (1958); see also Goodyear, 564 U.S. at 924–25. The inquiry into whether a forum state may assert specific jurisdiction over a nonresident defendant focuses on the relationship among the defendant, the forum, and the litigation. Walden v. Fiore, 571 U.S. 277, 283– 84 (2014) (citation omitted). To determine whether a defendant’s contacts with the forum state are sufficient to establish specific jurisdiction, the Federal Circuit employs a three-part test: “(1) whether the defendant ‘purposefully directed’ its activities at residents of the forum; (2) whether the claim ‘arises out of or relates to’ the defendant’s activities with the forum; and (3) whether assertion of personal jurisdiction is ‘reasonable and fair.’” Xilinx, Inc. v. Papst Licensing Gmbh & Co. KG, 848 F.3d 1346, 1353 (Fed. Cir. 2017) (quoting Inamed v. Kuzmak, 249 F.3d 1356, 1360 (Fed. Cir. 2001)). Plaintiff “bears the burden of affirmatively establishing the first two elements of the due process requirement.” Celgard, LLC v. SK Innovation Co., 792 F.3d 1373, 1378 (Fed. Cir. 2015) (citing Elecs. for Imaging, 340 F.3d at 1350). If plaintiff meets the burden, the burden shifts to defendants to prove that personal jurisdiction is unreasonable. Id. (citing Elecs. for Imaging, 340 F.3d at 1350). 2. Motion to Transfer “For the convenience of parties and

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Fitbit, Inc v. Koninklijke Philips N.V., (N.D. Cal. 2020).

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