In Re EMC Corporation

677 F.3d 1351, 82 Fed. R. Serv. 3d 456, 102 U.S.P.Q. 2d (BNA) 1539, 2012 WL 1563920, 2012 U.S. App. LEXIS 9159
CourtCourt of Appeals for the Federal Circuit
DecidedMay 4, 2012
Docket19-2337
StatusPublished
Cited by140 cases

This text of 677 F.3d 1351 (In Re EMC Corporation) is published on Counsel Stack Legal Research, covering Court of Appeals for the Federal Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re EMC Corporation, 677 F.3d 1351, 82 Fed. R. Serv. 3d 456, 102 U.S.P.Q. 2d (BNA) 1539, 2012 WL 1563920, 2012 U.S. App. LEXIS 9159 (Fed. Cir. 2012).

Opinion

ORDER

DYK, Circuit Judge.

Petitioners EMC Corp., Decho Corp., and Iomega Corp. (collectively, “EMC”) seek a writ of mandamus to direct the United States District Court for the Eastern District of Texas to sever and transfer the claims against them to the United States District Court for the District of Utah. Petitioners Carbonite Inc. (“Carbonite”), Iron Mountain Inc. and Iron Mountain Information Management, Inc. (collectively, “Iron Mountain”), GoDaddy.com, Inc. (“GoDaddy”), and Pro Softnet Corp. (“Pro Softnet”) join in EMC’s petition, seeking to have the claims against them severed and transferred to federal district courts in Massachusetts, Arizona, and California. We grant the petition in part and direct the district court to determine whether the claims “aris[e] out of the same transaction, occurrence, or series of transactions or occurrences,” Fed.R.Civ.P. 20(a), under the correct legal standard.

I

Petitioners are eight of eighteen companies named as defendants in a single complaint filed by Oasis Research LLC (“Oasis”) in the Eastern District of Texas. Oasis asserted the method claims from four patents, U.S. Patent Nos. 5,771,354; 5,901,228; 6,411,943; and 7,080,051 (claim 9 only), all of which deal with off-site computer data storage. Specifically, the patents claim methods for allowing home computer users to remotely connect to an online service system for purposes of external data and program storage and additional processing capacities in exchange for a fee.

The defendants in this case are all alleged to offer services that provide online backup and storage for home or business computer users. See Complaint at 7-12, Oasis Research, LLC v. ADrive LLC, No. 4:10-cv-435 (E.D.Tex. Aug. 30, 2010), ECF No. 1. In particular, petitioners are alleged to offer online backup and storage through web sites such as www.mozy.com and www.atmosonline.com (EMC); www. carbonite.com (Carbonite); baekup.ironmountain.com (Iron Mountain); www. godaddy.com/gdshop/email/vsdb_landing. asp (Go-Daddy); and www.idrive.com (Pro Softnet). Id. at 8, 9,11,12.

Petitioners sought orders to sever and transfer the claims against them to more appropriate venues, arguing that because there was no concert of action, the claims against them did not arise out of the same transaction or occurrence, as required by Rule 20 of the Federal Rules of Civil Procedure. Oasis argued that although the asserted “patents cover a broad range of technologies, the accused infringement in this case is limited to online backup/storage services,” and that “each defendant offers a similar commercial online backup/storage service” such that “[t]he steps taken to provide those services are covered by the asserted method claims of the patents-in-suit.” Plaintiff Oasis Research, LLC’s Opposition to Defendants’ Venue and Jurisdiction Related Motions at 1, Oasis Research, LLC v. ADrive LLC, No. 4:10-cv-435 (E.D.Tex. Dec. 3, 2010), ECF No. 133.

The magistrate .judge found nothing improper about maintaining these claims in one action in the Eastern District of Texas, for “[cjlaim validity, claim construction, and the scope of the four patents ... are questions common to all Defendants in this case.” Oasis Research, LLC v. Adrive, LLC, No. 4:10-CV-435, 2011 WL 3099885, at *3 (E.D.Tex. May 23, 2011). Moreover, *1354 the claims “arfóse] out of the same transaction, occurrence, or series of transactions or occurrences,” according to the magistrate judge, because the accused services were “not dramatically different.” Id. at *2. Finally, the magistrate judge stated that “granting Defendants’ motions to sever and transfer would be the division of a single action into seven different lawsuits scattered across the country.” Id. at *4. The district court adopted these findings and conclusions. Oasis Research, LLC v. Adrive, LLC, No. 4:10-CV-435, 2011 WL 3103972 (E.D.Tex. July 25, 2011).

II

A

We first turn our attention to this court’s jurisdiction. The remedy of mandamus is available in extraordinary situations “to correct a clear abuse of discretion or usurpation of judicial power.” In re Calmar, Inc., 854 F.2d 461, 464 (Fed.Cir. 1988). A party seeking a writ bears the burden of proving that it has no other means of obtaining the relief desired, see Mallard v. U.S. Dist. Court, 490 U.S. 296, 309, 109 S.Ct. 1814, 104 L.Ed.2d 318 (1989), and that the right to issuance of the writ is “clear and indisputable,” Allied Chem. Corp. v. Daiflon, Inc., 449 U.S. 33, 35, 101 S.Ct. 188, 66 L.Ed.2d 193 (1980) (per curiam).

It is well established that mandamus is available to contest a patently erroneous error in an order denying transfer of venue. See In re Apple, Inc., 602 F.3d 909 (8th Cir.2010); In re Nintendo Co., 589 F.3d 1194 (Fed.Cir.2009); In re Hoffmann-La Roche Inc., 587 F.3d 1333 (Fed. Cir.2009); In re Genentech, Inc., 566 F.3d 1338 (Fed.Cir.2009); In re TS Tech USA Corp., 551 F.3d 1315 (Fed.Cir.2008); In re Volkswagen of Am., Inc., 545 F.3d 304 (5th Cir.2008) (en banc).

We must here address as a matter of first impression whether mandamus can be an appropriate means to test a district court’s discretion in ruling on motions to sever and transfer. While transfer motions are governed by regional circuit law, see In re Link-A-Media Devices Corp., 662 F.3d 1221, 1222-23 (Fed.Cir.2011), motions to sever are governed by Federal Circuit law because joinder in patent cases is based on an analysis of the accused acts of infringement, and this issue involves substantive issues unique to patent law. We thus apply Federal Circuit law to determine the availability of mandamus, and to the underlying issue of whether the motion to sever should be granted. In other comparable circumstances we have applied Federal Circuit law. See, e.g., Manildra Milling Corp. v. Ogilvie Mills,. Inc., 76 F.3d 1178, 1182 (Fed.Cir.1996) (meaning of “prevailing party”); Reebok Int’l Ltd. v. J. Baker, Inc., 32 F.3d 1552, 1555 (Fed.Cir.1994) (preliminary injunctions); Beverly Hills Fan Co. v. Royal Sovereign Corp., 21 F.3d 1558, 1564-65 (Fed.Cir.1994) (personal jurisdiction). Application of our law is particularly appropriate since, as discussed below, Congress has recently adopted a special statute governing joinder in patent cases. Nonetheless, in developing our own law, we frequently look to the law of our sister circuits for guidance.

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677 F.3d 1351, 82 Fed. R. Serv. 3d 456, 102 U.S.P.Q. 2d (BNA) 1539, 2012 WL 1563920, 2012 U.S. App. LEXIS 9159, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-emc-corporation-cafc-2012.