NetSoc, LLC v. LinkedIn Corporation

CourtDistrict Court, S.D. New York
DecidedJanuary 14, 2020
Docket1:18-cv-12215
StatusUnknown

This text of NetSoc, LLC v. LinkedIn Corporation (NetSoc, LLC v. LinkedIn Corporation) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
NetSoc, LLC v. LinkedIn Corporation, (S.D.N.Y. 2020).

Opinion

By SRA EZ LT OD DOCUMENT UNITED STATES DISTRICT COURT ELECTRONICALLY FILED SOUTHERN DISTRICT OF NEW YORK DOC#: DATE FILED: |//y {2020 NETSOC, LLC, Plaintiff, MEMORANDUM OPINION & ORDER Vv. No. 18-CV-12215 (RA) LINKEDIN CORP., Defendant.

NETSOC, LLC, Plaintiff, No. 18-CV-12267 (RA) V. OATH INC., Defendant.

RONNIE ABRAMS, United States District Judge: Plaintiff NetSoc, LLC filed claims for patent infringement against Defendants Chegg Inc., LinkedIn Corp., Quora Inc., and Oath Inc., in four separate actions that were consolidated through claim construction.! See Dkt. 23.2 Now before the Court is Defendant LinkedIn’s motion to transfer the action against it to the Northern District of California pursuant to 28 U.S.C. § 1404(a). For the following reasons, the motion is granted.

On October 2, 2019, the action against Defendant Quora Inc. was transferred to the Northern District of California, see No. 18-CV-12250, Dkt. 72, and yesterday, the action against Chegg Inc. was dismissed on collateral estoppe! grounds, seg No. 18-CV-10262. ? Unless otherwise noted, this opinion cites submissions filed on the docket in NetSec, LLC v. LinkedIn Corp., No. 18-CV-12215.

BACKGROUND? 1. Procedural History Plaintiff filed a complaint against LinkedIn on December 26, 2018. It asserted that LinkedIn’s website infringes U.S. Patent No. 9,978,107 (the “107 Patent”) and U.S. Patent No. 7,565,344 (the “344 Patent”), which Plaintiff owns by assignment. See Dkt. 1, Compl. PP 7, 13. Both patents are described generally as “a method and system for establishing and using a social network to facilitate people in life issues.” Jd. PP 8, 14. On March 4, 2019, LinkedIn filed a motion to dismiss the complaint. See Dkt. 19. On May 24, LinkedIn filed the present motion to transfer this case to the Northern District of California pursuant to 28 U.S.C. § 1404(a). See Dkt. 35. In July, the Court stayed discovery pending resolution of these and other motions in the four actions. See Dkt. 44. In spite of the fact that it also has pending a motion to dismiss, LinkedIn has requested that the Court first resolve its motion to transfer. See Dkt. 70 (“LinkedIn maintains its position as stated during the Status Conference on August 27, 2019, that it would be procedurally proper to resolve LinkedIn’s pending Motion to Transfer . . . before reaching issues of collateral estoppel as to LinkedIn.”).4

3 The facts in this section are drawn from Plaintiff's complaint unless otherwise stated, see Dkt. 1, and are accepted as true for the purposes of this metion. See Peerless Network, Inc. v. Blitz Telecom Consulting, LLC, No. 17-CV-1725 (JPO), 2018 WL 1478047, at *1 (S.D.N.Y. Mar. 26, 2018). When reviewing a § 1404(a) motion, the Court may also consider materials outside of the pleadings. See Garcia v. Pearson Educ., Inc., No. 15-CV-7289 (KPF), 2016 WL 5921083, at *4 (S.D.N.Y. Oct. 7, 2016). Linkedin submitted several documents, including declarations from Jared Goralnick (“Goralnick Dec!.”), the Group Manager in Product Management at LinkedIn, and Vidya Chandra (“Chandra Decl.”), the Principal Product Manager at LinkedIn, which the Court refers to throughout the opinion. 4 On August 28, 2019, the Court ordered supplemental briefing as to “whether Plaintiff's claims against [LinkedIn] are barred by collateral estoppel” in light of the United States District Court of the Northern District of Texas’s July 22, 2019 decision that Plaintiff's ‘107 Patent was ineligible under 35 U.S.C. § 101. Dkt. 53; see also NetSoc, LLC v. Match Grp., LLC, No. 18-CV-1809, 2019 WL 3304704 (N.D. Tex. July 22, 2019).

Il. The Parties Plaintiff is a Texas limited liability company with its principal place of business in Harris County, Texas. See Dkt. 1, Compl. P 1. In April 2018, Emily White, the inventor of the ‘107 Patent and ‘344 Patent, assigned the rights to these patents to Plaintiff. See Dkt 35, Ex. B (Patent Assignment Cover Sheet). Plaintiff alleges that “LinkedIn maintains, operates, and administers a website at www.LinkedIn.com that infringes one or more claims of the ‘107 patent” and “of the patent.” Dkt. 1, Compl. PP 9, 15. Plaintiff specifically identifies two of LinkedIn’s services ~ “Recruiter” and “ProFinder” — as the services that infringe on these two patents. See id. PP 10- 11, 16-17. LinkedIn is a domestic corporation organized under the laws of Delaware. Plaintiff alleges that LinkedIn’s principal place of business is in New York City. See id ? 2. LinkedIn disputes this, asserting that its principal place of business is in Northern California. According to LinkedIn, it “has been located in the San Francisco Bay Area since its founding in Mountain View, California in 2003.” Goralnick Decl. P 5. Its headquarters — described as “the strategic center of LinkedIn’s business” — are presently located in Sunnyvale, California, and it has “multiple, additional large offices in the San Francisco Bay Area.” /d. As such, it employs approximately 6,500 employees in Northern California. See id. LinkedIn acknowledges that it has had an office in New York since 2011. Nonetheless, it contends that employees in that office focus only on “marketing and sales activities,” and that “TeJmployees in the San Francisco Bay Area ultimately oversee” the New York office’s work. Chandra Deci. P13. In particular, according to LinkedIn, all “operations relevant to the design, development, marketing, and function of” its services related to this patent infringement action

“reside in its Sunnyvale, Mountain View, and San Francisco offices.” Goralnick Decl. PP 7, 12; Chandra Decl. P? 7, 12. LEGAL STANDARD “For the convenience of parties and witnesses, in the interest of justice, a district court may transler any civil action to any other district or division where it might have been brought[.|” 28 U.S.C. § 1404(a). “in considering whether to grant a venue transfer, courts engage in a two-part test: (1) whether the action ‘might have been brought’ in the proposed transferee forum; and (2) whether the transfer promotes convenience and justice.” Excelsior Designs, Inc. y. Sheres, 291 F. Supp. 2d 181, 185 (E.D.N.Y. 2003) (quoting Schertenleib vy. Traum, 589 F.2d 1156, L161 (2d Cir. 1978)). “The moving party bears the burden of showing, by clear and convincing evidence, that a transfer is appropriate.” Phillips v. Reed Grp., Ltd., 955 F. Supp. 2d 201, 229 (S.D.N.Y. 2013). “District courts have broad discretion in making determinations of convenience under Section 1404(a) and notions of convenience and fairness are considered on a case-by-case basis.” D.H. Blair & Co. v. Gottdiener, 462 F.3d 95, 106 (2d Cir. 2006). DISCUSSION L. Whether the Action Might Have Been Brought in the Northern District of California “An action ‘might have been brought’ in another forum if venue would have been proper there and the detendants would have been amenable to personal jurisdiction in the transferee forum when the action was initiated.” Wang v. Phx. Satellite Television US, Inc., No. 13-CV- 218 (PKC), 2014 WL 116220, at *2 (S.D.N.Y. Jan. 13, 2014) (citation omitted). Plaintiff does not dispute that this matter “could have been brought in the Northern District of California,” Dkt.

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NetSoc, LLC v. LinkedIn Corporation, Counsel Stack Legal Research, https://law.counselstack.com/opinion/netsoc-llc-v-linkedin-corporation-nysd-2020.