LG.Philips LCD Co. v. Chi Mei Optoelectronics, Corp.

551 F. Supp. 2d 333, 2008 U.S. Dist. LEXIS 34993
CourtDistrict Court, D. Delaware
DecidedApril 29, 2008
DocketCivil Action Nos. 06-726 JJF, 07-357-JJF
StatusPublished
Cited by1 cases

This text of 551 F. Supp. 2d 333 (LG.Philips LCD Co. v. Chi Mei Optoelectronics, Corp.) 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
LG.Philips LCD Co. v. Chi Mei Optoelectronics, Corp., 551 F. Supp. 2d 333, 2008 U.S. Dist. LEXIS 34993 (D. Del. 2008).

Opinion

MEMORANDUM OPINION

FARNAN, District Judge.

Presently before the Court are Defendant Chi Mei Optoelectronics Corporation’s Motion to Dismiss for Lack of Personal Jurisdiction and for Insufficiency of Process (D.I.19), Plaintiff LG.Philips LCD Co., LTD.’s Alternative Motion for Leave to Use Discovery or, in the Further Alternative, to Conduct Jurisdictional Discovery (D.I.80), Plaintiff LG.Philips LCD Co., LTD.’s Motion for Rule 11 Sanctions and Sanctions Pursuant to 28 U.S.C. § 1927 (D.I.86), Defendant Chi Mei Optoelectron-ics Corporation’s Motion to Dismiss for Lack of Personal Jurisdiction and Insufficiency of Service of Process (D.I.131), and Defendant Chi Mei Optoelectronics Corporation’s Motion to Dismiss for Lack of Personal Jurisdiction and Insufficiency of Service of Process (D.I.176). For the reasons discussed, Defendant’s Motions to Dismiss (D.1.19, D.1.131 and D.1.176) will be denied, Plaintiffs Motion for Sanctions (D.I.86) will be denied, and Plaintiffs Alternative Motion for Leave to Use Discovery or, in the Further Alternative, to Conduct Jurisdictional Discovery (D.I.80) will be denied as moot.

BACKGROUND

I. Procedural Background

On December 1, 2006, LG.Philips LCD Co., LTD. (“LPL”) filed a Complaint for Patent Infringement against Defendants Chi Mei Optoelectronics Corporation (“CMO”), AU Optronics Corporation (“AUO”), AU Optronics Corporation America (“AUO America”), Tatung Company, Tatung Company of America, Inc., and ViewSonic Corporation (“ViewSonic”), alleging infringement of three of LPL’s United States patents relating to Liquid Crystal Display (“LCD”) technology. On February 15, 2007, LPL delivered a copy of the Summons and Complaint for Patent Infringement and Demand for Jury Trial on the Delaware Secretary of State in accordance with the provisions of the Delaware long-arm statute, 10 Del. C. § 3104. On February 16, 2007, LPL’s counsel sent to CMO’s attention by registered mail, return receipt requested, a notice letter with copies of the Summons, Complaint and Demand for Jury Trial, as served upon the Delaware Secretary of State, as well as the exhibits to the Complaint.

On April 6, 2007, after requesting an extension of time to respond to LPL’s Complaint (D.I.16), CMO timely filed the instant Motion to Dismiss (D.I.19), alleging insufficient service of process and contesting personal jurisdiction. On June 18, *336 2007, after responding to CMO’s Motion to Dismiss, LPL filed an Alternative Motion for Leave to Use Discovery or, in the Further Alternative, to Conduct Jurisdictional Discovery (DJ.80), requesting the Court allow LPL to use jurisdictional discovery obtained in the matter of Commissariat a l'Energie Atomique v. Samsung Electronics Co., et al., Case No. 03-484-MPT, to further establish CMO’s jurisdictional contacts. On June 19, 2007, LPL filed a Motion for Rule 11 Sanctions and Sanctions Pursuant to 28 U.S.C. § 1927 (D.I.86) based on CMO’s filing of an allegedly frivolous Motion to Dismiss (D.I.19). On August 22, 2007, CMO filed a Motion to Dismiss LPL’s Additional Counterclaims (D.I.131), which were filed on August 7, 2007, again alleging insufficient service of process and contesting personal jurisdiction. On April 1, 2008, CMO filed a Motion to Dismiss LPL’s Additional Counterclaims (D.I.176), which were filed March 13, 2008, again alleging insufficient service of process and contesting personal jurisdiction.

II. Factual Background

Plaintiff LPL is a corporation organized under the laws of the Republic of Korea, with its principal place of business in Seoul, Korea. (D.I. 1 at ¶ 4.) LPL designs, develops, manufactures and produces LCD modules, a type of flat panel display incorporated into LCD portable computers, LCD computer monitors and LCD televisions. (Id. at ¶ 3, 22.)

CMO is a Taiwanese corporation organized and existing under the laws of Taiwan. (D.I. 20 at 4.) Its principal place of business is in Sinshih Township, Tainan County in southern Taiwan. (Id.) CMO is the fourth largest LCD module maker in file world, and manufactures LCD products in Taiwan and China, including LCDs and/or LCD modules that allegedly infringe upon the patents-in-suit. (D.I. 57 at 1.)

North American sales of LCD monitors account for 31 percent of purchases worldwide, and North American sales of LCD televisions account for over 26 percent of the worldwide market. (D.I. 62, Ex. 30 at 13, 88; D.I. 64, Ex. 46 at 258.) Industry reports for the Fourth Quarter of 2006 indicate that CMO supplies 12 percent of the worldwide market for LCD monitors, and supplies over 18 percent of the worldwide market for LCD televisions. (D.I. 64 at Exs. 46-47.)

CMO’s modules are sold to original equipment manufacturers (“OEMs”) such as Samsung, Dell, 1 IBM, Hewlett Packard, NEC-Mitsubishi, and ViewSonic, (D.I. 57 at 2; D.I. 62 at Ex. 24), and incorporated into computer monitors which are then sold to consumers by numerous retailers, including Best Buy, CompUSA, Circuit City, Wal-Mart, Sears, Staples, and OfficeMax, both online over the internet, and at chain retail stores throughout the United States, including Delaware. (D.I. 57 at 2, 12; D.I. 78 at 4.) LPL has presented evidence of at least six purchases of products incorporating CMO products in Delaware prior to the filing of the Complaint in this action. (D.I.58, D.I.59.) LPL has also presented additional evidence of multiple sales of devises incorporating CMO products by Office Depot and CDW Corp. in Delaware between July 2002 and March 2005. (D.I. 60 at Exs. 2, 3.)

CMO owns 100 percent of the shares of CMO Japan, which owns 100 percent of the shares of CMO’s subsidiary, Chi Mei *337 Optoelectronics USA, Inc., which is a Delaware corporation with its principal place of business in San Jose, California. (D.I. 57 at 5.) After the Complaint in this action was filed, CMO became a partner in a joint venture company called iZ3d, a Delaware company with its principal place of business in California. (Id. at 6.)

CMO has no operations in Delaware, no employees or agents who work in Delaware, has never executed a contract in Delaware, or contracted with any party to manufacture, buy, sell or distribute products or services in Delaware. (D.I. 78 at 6.) CMO has never been registered or licensed to transact business in Delaware, does not own, lease or otherwise possess any real or personal property in Delaware, and CMO’s products and services cannot be purchased or obtained through CMO’s internet website, which is operated and hosted for CMO in Taiwan. (D.I. 20 at 5.)

In May 2003, Commissariat a l’Energie Atomique (“CEA”) filed an action against Chi Mei Optoelectronics Corporation (“CMO”) and others in the District of Delaware, Commissariat a L’Energie Ato-mique v. Chi Mei Optoelectronics Corp., et al, Case No. 04-484-KAJ (D.Del.)(filed May 19, 2003) (“the CEA case”), alleging infringement of patents relating to LCD modules. CMO moved to dismiss for lack of personal jurisdiction, and the court granted this motion on September 22, 2003.

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551 F. Supp. 2d 333, 2008 U.S. Dist. LEXIS 34993, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lgphilips-lcd-co-v-chi-mei-optoelectronics-corp-ded-2008.