Graphics Properties Holdings, Inc. v. Asus Computer International

70 F. Supp. 3d 654, 2014 WL 4949589, 2014 U.S. Dist. LEXIS 137065
CourtDistrict Court, D. Delaware
DecidedSeptember 29, 2014
DocketC.A. No. 13-864-LPS
StatusPublished
Cited by7 cases

This text of 70 F. Supp. 3d 654 (Graphics Properties Holdings, Inc. v. Asus Computer International) is published on Counsel Stack Legal Research, covering District Court, D. Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Graphics Properties Holdings, Inc. v. Asus Computer International, 70 F. Supp. 3d 654, 2014 WL 4949589, 2014 U.S. Dist. LEXIS 137065 (D. Del. 2014).

Opinion

MEMORANDUM OPINION

STARK,' U.S. District Judge:

Pending before the Court is Defendants ASUS Technology Pte Ltd. (“ASUS Singapore”) and ASUSTek Computer Inc.’s (“ASUS Taiwan,” collectively the “Foreign Defendants”) motion to dismiss for lack of personal jurisdiction and improper venue. (D.I. 25) For the reasons discussed below, the Court will deny the Foreign Defendants’ motion.

PROCEDURAL BACKGROUND

I. The 2012 Action (C.A. No. 12-210-LPS)

Plaintiff Graphics Properties Holdings, Inc. (“GPH”) filed an action against ASUS Computer International (“ASUS California”), ASUS Singapore, and ASUS Taiwan on February 1, 2012. (C.A. No. 12-210 D.I. 1) GPH filed an Amended Complaint on March 27, 20.12. (Id. at D.I. 8) In its Amended Complaint, GPH asserted U.S. Patent Nos. 5,896,119 (the “ '119 patent”), 6,816,145 (the “ '145 patent”), and 8,144,158 (the “ '158 patent”) against all three defendants. The defendants collectively moved to dismiss the action for lack of jurisdiction or, in the alternative, to transfer. (Id. at D.I. 11)

On October 11, 2012, the Court heard oral argument on the motion and denied [658]*658the motion as to ASUS California with respect to Plaintiffs allegations of infringement of the '145 and '158 patents, (Id. at D.I. 30) In all other respects, the motion remained pending. (Id.) The Court ordered that the parties propose a schedule for jurisdictional discovery and supplemental briefing as to all three defendants. (Id.) Before the parties filed the proposed jurisdictional discovery schedule, they reached agreement for GPH to dismiss the Foreign Defendants and to pursue jurisdictional discovery only against ASUS California. (Id. at D.I. 31, 31-1) Jurisdictional discovery moved forward as to ASUS California, and the parties completed supplemental briefing. On November 19, 2013, the parties entered into an agreement whereby ASUS California withdrew its motion to transfer and GPH dismissed certain claims. (Id. at D.I. 171) The parties’ actions mooted the Court’s prior opinion.

II. The 2013 Action (C.A. No. 13-864-LPS)

On May 17, 2013, GPH filed a second action against ASUS California, ASUS Taiwan and ASUS Singapore. (D.I. 1) GPH amended this complaint on July 19, 2013. (D.I. 7) In this Amended Complaint, GPH asserted that ASUS tablets, including the Nexus 7, infringe U.S. Patent Nos. 6,650,-327 (the “ '327 patent”) and 5,717,881 (the “ '881 patent”). The Foreign Defendants filed their motion to dismiss for lack of personal jurisdiction on December 31, 2013. (D.I. 25)

FACTUAL BACKGROUND

ASUS Taiwan is a Taiwanese corporation with its principal place of business in Taiwan. (C.A. 12-210 D.I. 14 at ¶2) The accused products are designed and manufactured in Taiwan or China. (Id. at ¶ 8) ASUS Taiwan does not directly sell the accused products in Delaware. (Id. at ¶ 9) Instead, it sells title to the products to ASUS Singapore in Taiwan or China. (Id. at ¶ 10)

ASUS Singapore is a Singaporean corporation that is 100% owned by ASUS Taiwan and has its principal place of business in Singapore. (See D.I. 29 Ex. 4 at 101; C.A. No. 12-210 D.I. 15 at ¶ 2) ASUS Singapore does not directly sell the accused products in Delaware either. (C.A. No. 12-210 D.I. 15 at ¶ 9) Instead, the accused products sold in the United States are first sold by ASUS Singapore to ASUS California. (Id. at D.I. 16 at ¶ 9)

ASUS California is 100% owned by ASUS Taiwan. (See D.I. 29 Ex. 4 at 100) ASUS California generally receives products from ASUS Singapore at ports or airports in California. (C.A. No. 12-210 at ¶ 10) ASUS California then sells the products to resellers throughout the United States, including Delaware. (See, e.g., D.I. 29 ¶ 6) ASUS California does not contest jurisdiction in Delaware.

LEGAL STANDARDS

Pursuant to Federal Rule of Civil Procedure 12(b)(2), a party may move to dismiss a case based on the court’s lack of personal jurisdiction over that party. Determining the existence of personal jurisdiction requires a two-part analysis — one statutory and one constitutional.1 First, the court analyzes the long-arm statute of the state in which the court is located. See IMO Indus., Inc. v. Kiekert AG, 155 F.3d [659]*659254, 259 (3d Cir.1998). Next, the court must determine whether exercising jurisdiction over the defendant in this state comports with the Due Process Clause of the Constitution. See id. Due Process is satisfied if the court finds the existence of “minimum contacts” between the non-resident defendant and the forum state, “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, 66 S.Ct. 154, 90 L.Ed. 95 (1945) (internal quotation marks omitted).

When a defendant moves to dismiss a lawsuit for lack of personal jurisdiction, the plaintiff bears the burden of showing the basis for jurisdiction. See Power Integrations, Inc. v. BCD Semiconductor, 547 F.Supp.2d 365, 369 (D.Del.2008). If no evidentiary hearing has been held, a plaintiff “need only establish a prima facie case of personal jurisdiction.” O’Connor v. Sandy Lane Hotel Co., 496 F.3d 312, 316 (3d Cir.2007). A plaintiff “presents a prima facie case for the exercise of personal jurisdiction by establishing with reasonable particularity sufficient contacts between the ■ defendant and the forum state.” Mellon Bank (E) PSFS, Nat’l Ass’n v. Farino, 960 F.2d 1217, 1223 (3d Cir.1992). On a motion to dismiss for lack of personal jurisdiction, “the plaintiff is entitled to have its allegations taken as true and all factual disputes drawn in its favor.” Miller Yacht Sales, Inc. v. Smith, 384 F.3d 93, 97 (3d Cir.2004). A court is always free to revisit the issue of personal jurisdiction if it later is revealed that the facts alleged in support of jurisdiction are in dispute. See Metcalfe v. Renaissance Marine, Inc., 566 F.3d 324, 331 (3d Cir.2009).

DISCUSSION

I. The Delaware Long-Arm Statute

The Delaware long-arm statute, in relevant part, states that:

(c) As to a cause of action brought by any person arising from any of the acts enumerated in this section, a court may exercise personal jurisdiction over any nonresident, or a personal representative, who in person or through an agent:
(1) Transacts any business or performs any character of work or service in the State; ...

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Bluebook (online)
70 F. Supp. 3d 654, 2014 WL 4949589, 2014 U.S. Dist. LEXIS 137065, Counsel Stack Legal Research, https://law.counselstack.com/opinion/graphics-properties-holdings-inc-v-asus-computer-international-ded-2014.