Global Touch Solutions, LLC v. Toshiba Corp.

109 F. Supp. 3d 882, 2015 WL 3798085
CourtDistrict Court, E.D. Virginia
DecidedJune 15, 2015
DocketCivil Nos. 2:14CV346, 2:14CV391, 2:14CV347, 2:15CV17, 2:14CV390
StatusPublished
Cited by8 cases

This text of 109 F. Supp. 3d 882 (Global Touch Solutions, LLC v. Toshiba Corp.) is published on Counsel Stack Legal Research, covering District Court, E.D. Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Global Touch Solutions, LLC v. Toshiba Corp., 109 F. Supp. 3d 882, 2015 WL 3798085 (E.D. Va. 2015).

Opinion

OPINION AND ORDER

MARK S. DAVIS, District Judge.

I. Introductory Statement

The joinder provision of the America Invents Act (“AIA”) has had an evident impact on the procedural handling of patent infringement actions in scenarios where a plaintiff seeks to hold multiple defendants liable based on similarly designed consumer products. 35 U.S.C. § 299. To the extent joinder of alleged infringers was previously permitted in a patent case under Rule 20 of the Federal Rules of Civil Procedure, the AIA eliminated a patent holder’s ability to file a single civil action against multiple industry competitors allegedly responsible for violating the same patent or family of patents. Moreover, once cases involving various companies’ similar accused products are separately filed, the AIA expressly precludes consolidation “for trial.” Id.; see In re: Maxim Integrated Products, Inc., Patent Litigation, 867 F.Supp.2d 1333, 1335 (J.P.M.L.2012) (“[T]he AIA changed the landscape of patent litigation — particularly the filing of actions against multiple unrelated defendants and the right to a separate trial when defendants are only accused of violating the same patent.”); see also H.R. REP. 112-[887]*88798, at 54, reprinted in 2011 U.S.C.C.A.N. 67, 85 (“The [AIA] also addresses problems occasioned by the joinder of defendants (sometimes numbering in the dozens) who have tenuous connections to the underlying disputes in patent infringement suits.”).

While the practical effects of the AIA may still be unsettled in light of its relative infancy, it appears that the serial filing of separate patent infringement actions in the same court, on or about the same date, against different corporate defendants, has become the new normal in patent infringement litigation. See Norman IP Holdings, LLC v. Lexmark Int’l, Inc., No. 6:12cv508, 2012 WL 3307942, at *4 (E.D.Tex. Aug. 10, 2012) (“In response to the ALA’s joinder provision, plaintiffs now serially file multiple single-defendant (or defendant group) cases involving the same underlying patents.”). Such serial filing “presents administrative challenges for the Court and, left unchecked, wastes judicial resources by requiring common issues to be addressed individually for each case.” Id. One of the ways in which district courts have sought to temper the waste of judicial resources is by consolidating associated patent actions for pretrial matters, either invoking Federal Rule of Civil Procedure 42 for cases pending within a single district, or MDL cross-district consolidation procedures in cases pending in multiple districts. See DietGoal Innovations LLC v. Wegmans Food Markets, Inc., No. 2:13cv154, 2014 WL 2561222, at 2 (E.D.Va. June 6, 2014) (denying a motion to sever one patent case from several others after the district court had entered a sua sponte order consolidating the cases under Rule 42 for all pretrial matters); Cellport Systems, Inc. v. BMW of North America, L.L.C., No. 14-cv-1631, 2014 WL 6910293, at *1-2 (D.Colo. Dec. 9, 2014) (“Courts have held that [the AIA joinder provision] does not prevent the consolidation of cases against accused infringers for pretrial matters.” (emphasis added)); In re: Bear Creek Techs., Inc. ('722) Patent Litig., 858 F.Supp.2d 1375, 1378 (J.P.M.L.2012) (“We find that the America Invents Act does not alter our authority to order pretrial centralization of this litigation.”); In re: Maxim Integrated Products, 867 F.Supp.2d at 1335 (reiterating that while MDL consolidation remains permissible post-AIA, “the AIA’s right to separate trials should be taken into account when making the decision to centralize a given litigation, inasmuch as the AIA is the new reality in patent litigation and its right to separate trials could impact the Panel’s calculus regarding whether centralization benefits ‘the convenience of parties and witnesses’ and ‘will promote the just and efficient conduct’ of the litigation.” (quoting 28 U.S.C. § 1407(a))).

The filing of one or more motions seeking a discretionary transfer of venue in associated patent actions raises additional concerns, as the various defendants, witnesses, and sources of proof relevant to separately filed patent infringement actions will invariably be found in different districts. Balancing the complex and competing factors raised in such motions presents difficult questions, which in the pending cases include: (1) Does it serve justice and economy to split up five cases with similar allegations of infringement when at least three, and as many as eight, of the same patents are asserted against the same types of consumer products (laptops, tablets, etc.) sold by industry competitors? (2) Does refusal to transfer such cases in. an effort to keep them together create an incentive for plaintiffs to “manufacture venue” by filing numerous similar actions in the same court, around the same time, in order to increase the pressure on the Court to reject any of the defendants’ attempts to transfer an individual case? (3) Does transferring all of the similar cases to a far “better” forum, which necessarily [888]*888cannot be the “best” forum as to each individual case, best satisfy the convenience and justice factors, or does it allow defendants to forum shop? (4) Does it comport with justice to require a plaintiff who filed multiple separate actions, as required by the AIA, to not only leave its chosen forum as to those cases with the strongest transfer arguments, but to have to simultaneously litigate multiple (similar) patent cases on opposite coasts of the United States?

Grappling with these competing considerations in light of the circumstances presented in each of the five cases pending before this Court, some of which present stronger arguments for transfer than others, necessarily requires the Court to reach an imperfect resolution. However, although less than perfect, this Court’s resolution of the motions before it best comports with the § 1404(a) convenience and justice factors.

II. Factual and Procedural Background

Against such backdrop, currently before the Court are five separate patent infringement actions filed by plaintiff Global Touch Solutions, LLC, (“Plaintiff’ or “GTS”). The defendant(s) in each case are: (1) Toshiba Corporation (“Toshiba”) and its American subsidiary Toshiba American Information Systems, Inc. (“TAIS”); (2) Vizio, Inc. (‘Vizio”); (3) Apple, Inc. (“Apple”); (4) Motorola Mobility LLC (“Motorola”); and (5) Microsoft Corporation (“Microsoft”) and its subsidiary Nokia Inc. (“Nokia”).1 These five separate civil cases were initially randomly assigned to four different district judges within this district. However, because all five cases involve similar allegations, and share common patents and common asserted claims, the four cases assigned to other judges of this Court were reassigned to the undersigned judge (to whom the first case was assigned) for the purposes of economy, consistency, and fairness.

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

Related

Cite This Page — Counsel Stack

Bluebook (online)
109 F. Supp. 3d 882, 2015 WL 3798085, Counsel Stack Legal Research, https://law.counselstack.com/opinion/global-touch-solutions-llc-v-toshiba-corp-vaed-2015.