Maxell, Ltd. v. Amperex Technology Limited

CourtDistrict Court, W.D. Texas
DecidedApril 20, 2022
Docket6:21-cv-00347
StatusUnknown

This text of Maxell, Ltd. v. Amperex Technology Limited (Maxell, Ltd. v. Amperex Technology Limited) is published on Counsel Stack Legal Research, covering District Court, W.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Maxell, Ltd. v. Amperex Technology Limited, (W.D. Tex. 2022).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF TEXAS WACO DIVISION

MAXELL HOLDINGS, LIMITED, Plaintiff, ee AMPEREX TECHNOLOGY LTD., Defendant.

MEMORANDUM OPINION & ORDER DENYING ATL’S MOTION TO DISMISS OR, IN THE ALTERNATIVE, TRANSFER OR STAY [ECF No. 10] Came on for consideration this date is Defendant Amperex Technology Limited’s (“ATL’s”) Motion to Dismiss or, in the Alternative, Transfer or Stay, filed September 2, 2021. ECF No. 10 (the “Motion”). Plaintiff Maxell Holdings, Limited (“Maxell”) filed an opposition on November 5, 2021, ECF No. 35, to which ATL replied on November 22, 2021, ECF No. 42. After careful consideration of the Motion, the Parties’ briefs, and the applicable law, the Court DENIES ATL’s Motion. I. BACKGROUND In March 2020, Maxell contacted ATL and alleged that ATL’s lithium-ion battery (“LIB”) products infringe its U.S. Patent Nos. 8,691,446, 9,077,035, 9,166,251, and 9,350,019 (collectively, the “Asserted Patents”). ECF No. 10-1 7, 8; see Amperex Technology Limited v. Maxell, Ltd., No. 2:21-cv-08461-KM-MF, ECF No. 12 § 25 (D.N.J.) (“ATL Am. Compl.”). According to ATL, from May 2020 until February 2021, ATL and Maxell engaged in discussions regarding the Asserted Patents, including licensing discussions. ECF No. 10-1 § 9; see ATL Am. Compl. { 26. By March 26, 2021, no resolution was reached between the parties. ECF No. 1 □ 9. On April 6, 2021, ATL filed a declaratory judgment action (the “DJ Action’’) in the U-S District Court for New Jersey, seeking a judgment that ATL does not infringe the Asserted Patents.

Amperex v. Maxell, No. 2:21-cv-08461-KM-MF (D.N.J.) (the “NJ Docket”). Two days later, Maxell filed this Actionwith a complaint essentially mirroring the alleging that ATL infringes the Asserted Patents. ECF No. 1 (the “Complaint”). Maxell is a Japanese corporation with its principal place of business in Japan. See ECF No. 1 ¶ 11. ATL is a Chinese corporation with its principal place of business in Hong Kong, SAR

China. Id. ¶ 12. According to Maxell, “ATL designs, manufactures, sells, and markets rechargeable LIB cells, packs, and systems for companies worldwide. Its LIB products are used in a variety of products such as laptop computers, smart phones, digital media players, digital cameras and camcorders, cordless tools, and various consumer electronics.” Id. ¶ 16. ATL purportedly holds itself out as “the world’s leading producer and innovator of lithium-ion batteries.” See id. ¶ 17. The Complaint alleges that “[t]he claims of the Asserted Patents cover ATL’s LIBs, their components, and processes related to the same”; the Complaint refers to these as the “Accused Products” or “Infringing LIBs.” ECF No. 1 ¶ 62. The Complaint states that the Accused Products are incorporated in various consumer devices and it explicitly identifies five exemplary battery

cells “among the Infringing LIBs,” utilized in devices from Google, Dell, DJI, and Huawei. Id. Those exemplary cells are identified by cell number: 465867, 575577N, 785075, 633360, and 2798B7 (the “Exemplary Accused Products”). Id. On April 15, 2021, ATL sought relief from the District of New Jersey (the “DNJ”), asking it to enjoin Maxell from prosecuting this Action. NJ Docket, ECF No. 7. On June 8, 2021, Maxell specially appeared in the DJ Action to request dismissal of ATL’s amended complaint. NJ Docket, ECF No. 53. In that motion, Maxell requested that the DNJ: decline to exercise jurisdiction because the DJ Action was an improper anticipatory suit; dismiss the DJ Action for lack of personal jurisdiction and/or improper service; or transfer the DJ Action to this Court under 28 U.S.C. §1404(a).On September 2, 2021, ATL filed its Motion in this Action. On September 27, 2021, the DNJ issued an opinion finding the DJ Action to be an improper anticipatory suit, denying ATL’s motion to enjoin this Action, transferring the DJ Action to this Court, and denying all of Maxell’s grounds for dismissal.SeeAmperexTech.Ltd. v. Maxell, Ltd.,

No. 21-08461 (KM) (MF), 2021 U.S. Dist. LEXIS 184253 (D.N.J. Sep. 27, 2021) (the “DJ Transfer Order”). The Parties continued to brief ATL’s Motion herewhile ATL petitioned the U.S. Court of Appeals for the Federal Circuit for a writ of mandamus reversing the DJ Transfer Order. On January 14, 2022, the Federal Circuit denied the mandamus petition, finding that the DNJ did not abuse its discretion in transferring the DJ Action. See In re Amperex Tech., No. 2022-105, 2022 U.S. App. LEXIS 1124 (Fed. Cir. Jan. 14, 2022).1 That opinion did not, however, reach the question of whether the DNJ properly analyzed the convenience transfer factors under § 1404(a). Id. at *6–*7. On January 25, 2022, after ATL’s bid for mandamus was denied, the Parties agreed to

consolidate this Action and the DJ Action “for all purposes, including trial” and the Court entered an order to that effect. See ECF No. 57. The Parties did not suggest how, if at all, consolidation would affect ATL’s pending Motion. That Motion is now ripe for judgment. This Court’s discussion of that Motion follows.

1 ATL also appealed from the DJ Transfer Order’s denial of ATL’s request for injunctive relief. ATL dropped that appeal soon after the Federal Circuit denied its petition for mandamus. See Order, Amperex Technology Limited v. Maxell, Ltd., No. 22-1017, ECF No. 30 (Fed. Cir. Jan. 21, 2022). II. PERSONAL JURISDICTION A. Legal Standard Federal Rule of Civil Procedure 12(b)(2) requires a court to dismiss a claim if the court does not have personal jurisdiction over the defendant. The plaintiff has the burden of establishing jurisdiction. Patterson v. Aker Sols. Inc., 826 F.3d 231, 233 (5th Cir. 2016). When a court assesses a non-resident defendant's challenge to personal jurisdiction without holding an evidentiary

hearing, the plaintiff bears the burden of presenting “sufficient facts” for a prima facie case of personal jurisdiction. Thiam v. T-Mobile USA, Inc., No. 4:19-CV-00633, 2021 WL 1550814, at *1 (E.D. Tex. Apr. 20, 2021); Celgard, LLC v. SK Innovation Co., Ltd., 792 F.3d 1373, 1378 (Fed. Cir. 2015). The court accepts as true allegations in the plaintiff’s complaint, except when they are contradicted by the defendant’s affidavits. Thiam, 2021 WL 1550814, at *1. However, “genuine, material conflicts” between the facts in the parties’ affidavits and other evidence are construed in the plaintiff's favor. Id. In matters unique to patent law, Federal Circuit law—rather than the law of the regional circuit—applies. See In re Cray, 871 F.3d 1355, 1360 (Fed. Cir. 2017) (citing Midwest Indus., Inc. v.Karavan Trailers, Inc., 175 F.3d 1356, 1359 (Fed. Cir. 1999)). Whether this Court has personal

jurisdiction is just such an issue, so Federal Circuit law governs the substantive questions of law. Autogenomics, Inc. v. Oxford Gene Tech. Ltd., 566 F.3d 1012, 1016 (Fed. Cir. 2009). Establishing in personam jurisdiction in a federal question case is a two-step inquiry (at least when the implicated federal statute does not provide for service of process). First, a court asks whether a defendant is subject to the jurisdiction of a state court of general jurisdiction under state law. Fed. Rule Civ. Proc. 4(k)(1)(A). This requires measuring the reach of the long-arm statute of the state in which the federal court sits. Daimler AG v. Bauman, 571 U.S. 117, 125 (2014). Second, the court asks if the exercise of personal jurisdiction would exceed the limitations of due process. Id.Since the Texas long-arm statute extends to the limits of due process, see BMC Software Belg., N.V. v. Marchand, 83 S.W.3d 789, 795 (Tex.

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Maxell, Ltd. v. Amperex Technology Limited, Counsel Stack Legal Research, https://law.counselstack.com/opinion/maxell-ltd-v-amperex-technology-limited-txwd-2022.