Glycobiosciences, Inc. v. Innocutis Holdings, LLC

189 F. Supp. 3d 61, 2016 U.S. Dist. LEXIS 67884, 2016 WL 3014616
CourtDistrict Court, District of Columbia
DecidedMay 24, 2016
DocketCivil Action No. 2012-1901
StatusPublished
Cited by9 cases

This text of 189 F. Supp. 3d 61 (Glycobiosciences, Inc. v. Innocutis Holdings, LLC) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Glycobiosciences, Inc. v. Innocutis Holdings, LLC, 189 F. Supp. 3d 61, 2016 U.S. Dist. LEXIS 67884, 2016 WL 3014616 (D.D.C. 2016).

Opinion

MEMORANDUM OPINION AND ORDER

RANDOLPH D. MOSS, United States District Judge

Presently before the Court is the motion of Defendant Fidia Farmaceutici S.P.A. (“Fidia”) to dismiss portions of Plaintiff *64 Glycobiosciences’s (“Glyco”) amended complaint. See Dkt. 85. Fidia moves to dismiss Glyco’s claims for misappropriation of trade secrets in violation of D.C. Code § 36-401 et seq. (Count IV); unlawful trade practices in violation of the District of Columbia Consumer Protection Procedures Act, D.C. Code § 28-3901 et seq. (Count V); common law unfair competition (Count VI); and unjust enrichment (Count VII). According to Fidia, each of these counts must be dismissed in light of forum-selection clauses contained in two agreements between the parties. In the alternative, Fidia argues that Count V should be dismissed under Rule 12(b)(6) because Gly-co is not in a consumer-merchant relationship with Fidia.

As explained below, the Court GRANTS in part and DENIES in part Fidia’s motion. It concludes that Counts IV and VII, as well as a portion of Count VI, are covered by mandatory forum-selection clauses, and, accordingly, it dismisses those counts (or portions thereof) on the ground of forum non conveniens. In addition, although the Court concludes that the forum-sélection clauses do not cover Count V, it dismisses that count for failure to state a claim under the D.C. Consumer Protection Procedures Act.

I. BACKGROUND

The Court has previously discussed other aspects of .the background of this litigation in its opinions regarding claim construction and Defendants’ motion for judgment on the pleadings. 1 The Court does not repeat that history here, but rather focuses on those facts relevant to Fidia’s pending motion to dismiss. For purposes of that motion, the following allegations are taken as true and are construed in the light most favorable to the non-moving party. See, e.g., Hishon v. King & Spalding, 467 U.S. 69, 73, 104 S.Ct. 2229, 81 L.Ed.2d 59 (1984).

Fidia, an Italian company with a principal place of business in Abano Terme, Italy, manufactures a product called Bio-nect Gel, purportedly under U.S. Patent No. 5,925,626 (’626 patent). Dkt. 77 ¶¶ 11, 21. Glyco, a Canadian company with a principal place of business in Georgetown, Canada, is the owner of U.S. Patent No. 6,387,407 (’407 patent), which claims an “Ionic ’ Polymer Matrix (TPM’)” delivery system. Id. ¶¶ 1-3. Glyco’s IPM Wound Gel product allegedly uses this “proprietary and patented [IPM] delivery system.” Id. ¶¶ 2-3.

In June 2003, Fidia sent Glyco’s predecessor, L.A.M. Pharmaceutical, a letter asserting that IPM Wound Gel was covered by Fidia’s ’626 patent, which L.A.M. disputed. Dkt. 77-3 (Am. Compl. Éx, C); Dkt. 77 ¶ 34. Fidia’s ’626 patent expired in December 2003. Dkt. 77 ¶ 35. Fidia then challenged a European patent that corresponded to L.A.M.’s ’407 patent, but did not succeed at the trial-court level. Id. ¶ 36. Fidia threatened to appeal that adverse decision and simultaneously sought to purchase L.A.M.’s “’407 patent, the European patent EP 0859597, all of the rights under l:A.M.’s FDA 510(k) No. K020325 relating to IPM Wound Gel, and all technical information relating to the IPM Wound Gel.” Id. ¶ 37.

In order to facilitate negotiations over these assets, Fidia and L.A.M. entered into an information-sharing agreement in May 2006, under which Fidia agreed not to disclose or to use otherwise secret information about IPM Wound Gel that it obtained solely for the purpose of evaluating the proposed transaction. Dkt. 84-1 at 3. *65 The 2006 Agreement included a clause stating that “[t]his Agreement shall be governed in all respects by the laws of Italy and in case of dispute the competent forum shall be that of Padua, Italy.” Id. at 4. Fidia subsequently decided not to purchase L.A.M.’s assets. Dkt. 77 ¶ 50. Glyco alleges that notwithstanding the 2006 Agreement, Fidia used the information about IPM Wound Gel that it had obtained to improve Bionect. Id. ¶47. Glyco also alleges on information and belief that Fi-dia, in fact, never intended to purchase L.A.M.’s assets when it entered the 2006 Agreement. Id. ¶ 51.

In late 2009 or early 2010, Fidia and Glyco again entered into negotiations, this time regarding the possibility of Fidia manufacturing IPM Wound Gel for Glyco. Id. ¶ 52. The parties entered into a new information-sharing agreement in February 2010, under which Fidia again agreed not to disclose or to use otherwise secret information about IPM Wound Gel except to evaluate the proposed business relationship. 2 Dkt. 84-2 at 2. The 2010 Agreement included a clause stating that “[t]his Agreement shall be construed under and governed by the laws of U.K. In case of disputes the competent court shall be that of London, U.K.” Id. at 3. Fidia ultimately decided not to manufacture IPM Wound Gel. Dkt. 77 ¶ 56. According to Glyco, “on information and belief, [Fidia] did not enter into the ... 2010 [Ajgreement in good faith but rather to surreptitiously and deceitfully obtain updated technical information” about IPM Wound Gel. Id. ¶¶ 54, 57.

On September 2, 2015, Glyco filed an amended complaint against Fidia (and others), alleging two counts of indirect infringement of the ’407 patent (Counts I and II), false patent marking with respect to Bionect and the ’626 patent (Count III), misappropriation of trade secrets (Count IV),' unlawful trade practices (Count V)) common law unfair competition (Count VI), and unjust enrichment (Count VII). Dkt. 23. Presently before the Court is Fidia’s motion to dismiss Counts IV-VII of the amended complaint, arguing that Counts IV-VII should be dismissed pursuant to Federal Rule of Civil Procedure 12(b)(3) and, alternatively, that Count V should be dismissed under Rule 12(b)(6). 3 Dkts. 85, 86. The Court heard oral argument on the motion on May 2, 2016, see Dkt. 130, and the following day, it invited Glyco to file a surreply brief to address an issue raised for the first time in Fidia’s reply brief, see May 3, 2016 Minute Order. Glyco filed that surreply on May 16, 2016. Dkt. 136. Fidia’s motion, accordingly, is now ripe for decision.

II. ANALYSIS

A. Forum-selection Clauses

Fidia contends that under the forum-selection clauses contained in the 2006 and 2010 Agreements, Counts IV-VII must be dismissed. Fidia initially denominated its motion as a Rule 12(b)(3) motion to dismiss for improper venue. See Dkt. 86 at 5-8. As it subsequently realized, however, in

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189 F. Supp. 3d 61, 2016 U.S. Dist. LEXIS 67884, 2016 WL 3014616, Counsel Stack Legal Research, https://law.counselstack.com/opinion/glycobiosciences-inc-v-innocutis-holdings-llc-dcd-2016.