Intellectual Ventures I LLC v. Checkpoint Software Technologies Ltd.

797 F. Supp. 2d 472, 2011 U.S. Dist. LEXIS 66824, 2011 WL 2490645
CourtDistrict Court, D. Delaware
DecidedJune 22, 2011
DocketCiv. 10-1067-LPS
StatusPublished
Cited by32 cases

This text of 797 F. Supp. 2d 472 (Intellectual Ventures I LLC v. Checkpoint Software Technologies Ltd.) 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
Intellectual Ventures I LLC v. Checkpoint Software Technologies Ltd., 797 F. Supp. 2d 472, 2011 U.S. Dist. LEXIS 66824, 2011 WL 2490645 (D. Del. 2011).

Opinion

MEMORANDUM OPINION

STARK, District Judge.

Pending before the Court is Defendants’ motion to transfer venue to the Northern District of California, brought pursuant to 28 U.S.C. § 1404(a). (D.I. 35) For the reasons set forth below, Defendants’ motion is DENIED.

The Parties

Plaintiff, Intellectual Ventures I LLC (“IV”), is a limited liability company that organized under the laws of Delaware on November 9, 2010. (D.I. 36 at 2) IV filed this patent infringement suit against Defendants on December 8, 2010. (Id. at 2) IV’s principal place of business is in Bellevue, Washington. (Id. at 3) It also has an office in northern California, within the Northern District of California. (Id. at 3)

IV’s parent company is Intellectual Ventures Management, LLC, which is also based in Bellevue, Washington. (Id. at 3) Further, IV is an indirectly wholly-owned subsidiary of Invention Investment Fund I, LP (the “Fund”). (D.I. 60 at 3) The *476 Fund is a limited partnership formed in Delaware on June 30, 2003. (Id. at 3)

There are four patents-in-suit: U.S. Patent Nos. 5,987, 610; 6,073, 142; 6,460, 050; and 7,506, 155. (D.I. 36 at 2) The Fund acquired the four patents-in-suit in 2006 and 2007 and, at the time of acquisition, placed these patents in four Delaware entities that were indirectly owned by the Fund. (D.I. 60 at 3) After IV was organized as a Delaware LLC in November 2010, the four entities that had held the patents-in-suit were merged into IV. (D.I. 60 at 4) Generally, IV alleges that Defendants infringe the patents-in-suit by making, using, selling, importing and/or offering for sale certain antivirus and internet security products. (D.I. 1)

Defendant Check Point Software Technologies Inc. (“Check Point”) is incorporated in Delaware and has its principal place of business in Redwood City, California (in the Northern District of California). (Id. at 4) Its parent, Defendant Check Point Software Technologies Ltd. (“Check Point Israel”), is incorporated in Israel and has its principal place of business in Israel. (Id. at 5) Check Point’s allegedly infringing technology was developed outside of Delaware. (Id. at 5) The parties debate whether it was developed in California (D.I. 80 at 9 n. 14) or in Israel and Sweden (D.I. 60 at 4-5), but they are in agreement there was no development activity in Delaware. Check Point had annual revenues of $1.09 billion in 2010 and employs 2,200 individuals worldwide. (Id. at 5)

Defendant Trend Micro, Incorporated (U.S.A.) (“Trend Micro USA”) is incorporated in California and has its principal place of business in Cupertino, California (in the Northern District of California). (D.I. 36 at 4) Its parent, Defendant Trend Micro Incorporated (“Trend Micro Japan”), is incorporated in Japan, where it also has its principal place of business. (Id. at 4) Trend Micro USA’s allegedly infringing technology was developed in Taiwan, China, and Cupertino. (D.I. 36 at 4; D.I. 60 at 6) In 2010, Trend Micro USA and Trend Micro Japan had combined revenues of more than $1.0 billion and employed more than 4,400 individuals worldwide. (D.I. 60 at 6)

Defendant McAfee, Inc. (“McAfee”) is incorporated in Delaware and has its principal place of business in Santa Clara, California (in the Northern District of California). (D.I. 36 at 5) Its allegedly infringing technology was developed outside of Delaware. (D.I. 36 at 5) In 2010, McAfee reported annual revenues of more than $2.0 billion and employed 6,100 people worldwide. (D.I. 60 at 6)

Finally, Defendant Symantec Corporation (“Symantec”) is incorporated in Delaware and has its principal place of business in Mountain View, California (in the Northern District of California). (D.I. 36 at 5) Symantec’s allegedly infringing technology was developed outside of Delaware. (Id. at 6) At least some of its products were developed in Ontario and the United Kingdom. (D.I. 60 at 5) In 2010, Symantec reported annual revenues of $6.0 billion, operated in over 40 countries, and employed 18,500 employees. (Id. at 5)

All of the Defendants’ accused products have been sold in Delaware. However, none of the parties has an office or any employees in Delaware.

Section 1404(a)

Defendants’ request arises under 28 U.S.C. § 1404(a), which provides: “For the convenience of the parties and witnesses, in the interests of justice, a district court may transfer any civil action to any other district or division where it might have been brought.” Specifically, Defendants jointly ask that the Court transfer this action to the United States District Court for the Northern District of California.

*477 Applicable Legal Standards

Section 1404(a), as the Third Circuit has explained, “was intended to vest district courts with broad discretion to determine, on an individualized, case-by-case basis, whether convenience and fairness considerations weigh in favor of transfer.” Jumara v. State Farm Ins. Co., 55 F.3d 873, 883 (3d Cir.1995); see also Stewart Org., Inc. v. Ricoh Corp., 487 U.S. 22, 29, 108 S.Ct. 2239, 101 L.Ed.2d 22 (1988); Cypress Semiconductor Corp. v. Integrated Circuit Sys., Inc., 2001 WL 1617186, at *2 (D.Del. Nov. 28, 2001) (“Congress intended through § 1404 to place discretion in the district court to adjudicate motions to transfer according to an individualized, case-by-case consideration of convenience and the interests of justice.”). The Third Circuit has also emphasized that “the plaintiffs choice of venue should not be lightly disturbed.” Jumara, 55 F.3d at 879. As a result, “a transfer is not to be liberally granted.” Shutte v. Armco Steel Corp., 431 F.2d 22, 25 (3d Cir.1970) (internal quotation marks omitted).

Consequently, the burden rests squarely on the party seeking a transfer “to establish that a balancing of proper interests weighs in favor of the transfer.” Id.; see also Jumara, 55 F.3d at 879. That burden is a heavy one: “unless the balance of convenience of the parties is strongly in favor of defendant, the plaintiffs choice of forum should prevail.” Shutte, 431 F.2d at 25 (internal quotation marks omitted) (emphasis in original); see also CNH Am. LLC v. Kinzenbaw, 2009 WL 3737653, at *2 (D.Del. Nov. 9, 2009); ADE Corp. v. KLA-Tencor Corp., 138 F.Supp.2d 565, 567-68 (D.Del.2001). It follows that “transfer will be denied if the factors are evenly balanced or weigh only slightly in favor of the transfer.” Angiodynamics, Inc. v.

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797 F. Supp. 2d 472, 2011 U.S. Dist. LEXIS 66824, 2011 WL 2490645, Counsel Stack Legal Research, https://law.counselstack.com/opinion/intellectual-ventures-i-llc-v-checkpoint-software-technologies-ltd-ded-2011.