Gro Master, Inc. v. Farmweld, Inc.

920 F. Supp. 2d 974, 2013 WL 275607, 2013 U.S. Dist. LEXIS 9417
CourtDistrict Court, N.D. Iowa
DecidedJanuary 24, 2013
DocketNo. C 12-4096-MWB
StatusPublished
Cited by2 cases

This text of 920 F. Supp. 2d 974 (Gro Master, Inc. v. Farmweld, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gro Master, Inc. v. Farmweld, Inc., 920 F. Supp. 2d 974, 2013 WL 275607, 2013 U.S. Dist. LEXIS 9417 (N.D. Iowa 2013).

Opinion

MEMORANDUM OPINION AND ORDER REGARDING DEFENDANT’S MOTION TO DISMISS OR TRANSFER

MARK W. BENNETT, District Judge.

TABLE OF CONTENTS

I.INTRODUCTION........................................................976

A. Factual Background.................................................976

B. Procedural Background..............................................977

II.LEGAL ANALYSIS......................................................978

A. Personal Jurisdiction................................................978

1. Arguments of the parties .........................................978

2. Analysis ........................................................979

a. Controlling precedent.........................................979

b. Applicable standards.........................................980

c. Application of the standards ..................................981

i. “General” jurisdiction..................................981

ii. “Specific” jurisdiction..................................981

3. Summary .......................................................984

B. Improper Venue.....................................................984

1. Arguments of the parties .........................................984

2. Analysis ........................................................985

a. Controlling precedent.........................................985

b. Venue pursuant to § 1400(b)t..................................987

i. The place of infringement and the defendant’s place of business ..........................................987

ii. The place where the defendant “resides”.................987

c. Summary....................................................989

C. Inconvenient Venue .................................................990

1. Arguments of the parties .........................................990

2. Analysis ........................................................991

a. Transfer pursuant to § 1406...................................991

b. Transfer pursuant to § 1404(a)................................991

3. Summary .......................................................994

III.CONCLUSION..........................................................994

An out-of-state corporation has brought this action for infringement of its patent for an “animal feeder with adjustment of a feed discharge opening” against another out-of-state corporation that allegedly manufactures and sells an infringing animal feeder. The defendant has moved to dismiss for lack of personal jurisdiction and improper venue or, in the alternative, for transfer of the action to an appropriate venue. The plaintiff patentholder hangs its contention that personal jurisdiction and venue are proper in this district on the defendant’s attendance as an exhibitor at the World Pork Expo in Des Moines, Iowa, in June 2012, its advertisement of its animal feeder in a national magazine, and its sale of a single animal feeder to a customer in Iowa. This case gives off a whiff of forum shopping nearly as potent as the odor emanating from a hog confinement facility.

I. INTRODUCTION
A. Factual Background

In its Complaint (docket no. 2), plaintiff Gro Master, Inc., alleges that it is a Ken[977]*977tucky corporation with its principal place of business in Omaha, Nebraska. Gro Master alleges that it is the owner of United States Patent No. 6,923,142 (the '142 patent), issued August 2, 2005, entitled “ANIMAL FEEDER WITH ADJUSTMENT OF A FEED DISCHARGE OPENING.” Gro Master also alleges that defendant Farmweld, Inc., is an Illinois corporation with its principal place of business in Teutopolis, Illinois; that Farmweld is selling and offering for sale animal feeders covered by the '142 patent in Iowa and this judicial district and throughout the United States, without an express or implied license; and that, by doing so, Farm-weld is willfully infringing the '142 patent.

In a Declaration (docket no. 19-2), filed in support of Farmweld’s Motion To Dismiss Or, Alternatively, Motion To Transfer Venue (docket no. 19), Francis A. Brummer, the chief executive officer of Farm-weld, admits that Farmweld is an Illinois corporation with its principal place of business in Teutopolis, Illinois. He avers that Farmweld is registered to do business in Illinois, but not Iowa; that Farmweld does not maintain any offices, employees, or telephone listings in Iowa; that all of Farmweld’s employees are located in Teutopolis, with the exception of a single employee located in Minnesota; that Farm-weld does not pay taxes or maintain any bank accounts in Iowa; that Farmweld does not advertise in the yellow pages in Iowa; and that Farmweld does not own any real or personal property in Iowa.

Mr. Brummer also avers that the animal feeder that is presumably the subject of Gro Master’s Complaint was developed in Teutopolis, Illinois, not in Iowa, and that all marketing and sales decisions related to the product were made at its offices in Teutopolis. He avers, further, that Farm-weld began selling the animal feeder that is presumably the subject of Gro Master’s Complaint in January 2012, that it has received orders for 632 such feeders, but that it has sold only one such animal feeder to a customer in Iowa. He also avers that it is his “understanding” that the Iowa customer has a “relationship” with Gro Master, which Gro Master does not deny. In comparison to the single sale to a customer in Iowa, Mr. Bummer avers that 592 of its animal feeders at issue have been sold to Illinois customers, and that the remaining feeders have been sold to customers in Indiana (8), Michigan (5), Mexico (22), Missouri (2), Minnesota (1), and Canada (1). Finally, Mr. Brummer avers that Gro Master’s website indicates that it has four dealers in Illinois.

In a Declaration, filed in support of Gro Master’s Resistance (docket no. 21), Marvin Wastel, the president and co-owner of Gro Master, avers, inter alia,

5. I attended the World Pork Expo held in Des Moines, Iowa, during June 6-8, 2012. Farmweld had a booth at World Pork Expo and displayed a shelf feeder which I believe infringes one or more claims of the ['142 patent], Farm-weld also had printed materials at its booth which illustrated the shelf feeder and which described the features of the shelf feeder.
6. Farmweld advertised its accused infringing shelf feeder in the September 15, 2012, magazine entitled National Hog Farmer which is a national publication.

Declaration Of Marvin Wastel, ¶¶ 5-6.

B. Procedural Background

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

Related

Indag GmbH & Co. v. IMA S.P.A
150 F. Supp. 3d 946 (N.D. Illinois, 2015)

Cite This Page — Counsel Stack

Bluebook (online)
920 F. Supp. 2d 974, 2013 WL 275607, 2013 U.S. Dist. LEXIS 9417, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gro-master-inc-v-farmweld-inc-iand-2013.