Marble VOIP Partners LLC v. Zoom Video Communications, Inc.

CourtDistrict Court, N.D. California
DecidedJuly 20, 2023
Docket4:23-cv-03619
StatusUnknown

This text of Marble VOIP Partners LLC v. Zoom Video Communications, Inc. (Marble VOIP Partners LLC v. Zoom Video Communications, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Marble VOIP Partners LLC v. Zoom Video Communications, Inc., (N.D. Cal. 2023).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF KANSAS

MARBLE VOIP PARTNERS LLC,

Plaintiff,

v. Case No. 22-CV-2247-JAR-ADM

ZOOM VIDEO COMMUNICATIONS, INC.,

Defendant.

MEMORANDUM AND ORDER This matter is before the Court on Defendant Zoom Video Communications, Inc.’s (“Zoom”) Motion to Transfer Venue pursuant to 28 U.S.C. § 1404(a) (Doc. 49), seeking transfer of this patent infringement case to the Northern District of California. Plaintiff Marble VOIP Partners LLC (“Marble”) opposes the motion. The matter is fully briefed, and the Court is prepared to rule. For the reasons explained below, and after considering all the relevant factors, the Court grants Zoom’s motion and transfers this case to the Northern District of California. I. Background Marble filed suit against Zoom in June 2022, accusing Zoom Phone and Zoom Meetings (the “Accused Products”) of infringement of United States Patent No. 7,376,129 (the “ ‘129 Patent”), entitled “Enabling Collaborative Applications Using Session Initiation Protocol (“SIP”) Based Voice over Internet Protocol Networks (“VoIP”).”1 The ‘129 Patent provides, inter alia, “a core framework for enabling applications to use [SIP]-based [VoIP],” in essence, moving SIP support from individual applications to the operating system, which would recognize and

1 Doc. 27-1. highlight “clickable” SIP links in different programs for the user.2 Marble is a limited liability company incorporated under Texas law with a principal place of business in Carrollton, Texas. Marble describes itself as a “non-practicing entity,” which is not registered to do business in Kansas and has no offices or employees in this District. Zoom is a Delaware corporation headquartered in San Jose, California, where it employs approximately 1,200 employees. Since

January 2023, Zoom has not had an office in Kansas; before it closed, Zoom’s office in this District focused on sales. After this Court denied Zoom’s motion to dismiss on ineligibility grounds,3 Zoom moved to transfer this action to the Northern District of California on convenience grounds under § 1404(a). According to Zoom, the case should be transferred because Marble has no connection to the District of Kansas; Zoom’s accused products were designed and engineered in Northern California and abroad; Zoom’s relevant witnesses and documents regarding the design, development, and production of its accused products are all located in Northern California; and virtually all potential third-party witnesses, e.g., engineers, are located in Northern California or China. In support, Zoom provides the Declaration of its Technical Lead, Dennis Durling.4

Marble opposes Zoom’s request, and argues that it has not established that transfer is strongly favored. II. Legal Standards In patent cases, motions to transfer under 28 U.S.C. § 1404(a) are governed by the law of the regional circuit.5 The statute provides that, “[f]or the convenience of parties and witnesses,

2 Id. at 2:30–38; 10:1, 13, 22, 23. 3 Doc. 41. 4 Doc. 49-1. 5 In re TS Tech USA Corp., 551 F.3d 1315, 1319 (Fed. Cir. 2008). in the interest of justice, a district court may transfer any civil action to any other district or division where it might have been brought.”6 “The district court has broad discretion under § 1404(a) to adjudicate motions to transfer based on a case-by-case review of convenience and fairness.”7 The Tenth Circuit instructs district courts to consider the following discretionary factors when determining whether to transfer a case:

[P]laintiff’s choice of forum; the accessibility of witnesses and other sources of proof, including the availability of compulsory process to insure attendance of witnesses; the cost of making the necessary proof; questions as to the enforceability of a judgment if one is obtained; relative advantages and obstacles to a fair trial; difficulties that may arise from congested dockets; the possibility of the existence of questions arising in the area of conflict of laws; the advantage of having a local court determine questions of local law; and[ ] all other considerations of a practical nature that make a trial easy, expeditious and economical.8

The party moving to transfer a case bears the burden to show that transfer is appropriate under § 1404(a).9 The movant must also “demonstrate that the balance of factors ‘strongly favors’ a transfer of venue under § 1404(a).”10 “Merely shifting the inconvenience from one side to the other, however, obviously is not a permissible justification for a change of venue.”11 III. Analysis Pursuant to § 1404(a), a court has the discretion to transfer a case if: (1) the transferee court is one where plaintiff could have filed suit originally, and (2) the convenience of the parties

6 28 U.S.C. § 1404(a). 7 Key Constr., Inc. v. W. Surety Co., No. 22-1247-DDC, 2023 WL 2187291, at *4 (D. Kan. Feb. 23, 2023) (citing Chrysler Credit Corp. v. Country Chrysler, Inc., 928 F.2d 1509, 1516 (10th Cir. 1991)). 8 Emp’rs Mut. Cas. Co. v. Bartile Roofs, Inc., 618 F.3d 1153, 1167 (10th Cir. 2010) (quoting Chrysler Credit Corp., 928 F.2d at 1516 (internal quotation marks omitted)). 9 Id. (citing Scheidt v. Klein, 956 F.2d 963, 965 (10th Cir. 1992)). 10 Id. at 1167 n.13 (collecting cases). 11 Id. at 1167 (quoting Scheidt, 956 F.2d at 966). and witnesses and the interest of justice favor transfer.12 The Court concludes that both prongs have been satisfied. A. Suit could have been filed in transferee court The putative transferee court, the Northern District of California, is one where Marble could have filed suit originally. “The ‘where it might have been brought’ language . . .

incorporates the requirements of jurisdiction and proper venue.”13 Here, because Zoom resides in the Northern District of California and alleged acts of infringement were committed in that district, the transferee district satisfies both the personal jurisdiction and venue requirements for patent cases.14 B. Balance of factors favors transfer If a case could have originally been filed in the transferee district, the Court considers whether transfer would serve the interest of justice and would be convenient for the parties and witnesses.15 The Court evaluates the relevant discretionary factors outlined above to determine whether Zoom has met its burden of demonstrating that the facts here strongly favor transfer of

venue. As discussed below, the Court concludes that they do. 1. Plaintiff’s Choice of Forum

Marble has chosen Kansas as the forum for its patent action against Zoom. A plaintiff’s choice of forum is rarely disturbed.16 “The plaintiff’s choice of forum receives less deference,

12 28 U.S.C. § 1404(a). 13 Mid Kan. Fed. Sav. & Loan Ass’n of Wichita ex rel. Resol. Tr. Corp. v. Orpheum Theater Co., 810 F. Supp. 1184, 1188–89 (D. Kan. 1992) (citing Hoffman v. Blaski, 363 U.S. 335, 342–44 (1960)). 14 See 28 U.S.C. § 1400

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Marble VOIP Partners LLC v. Zoom Video Communications, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/marble-voip-partners-llc-v-zoom-video-communications-inc-cand-2023.