Nitride Semiconductors Co., Ltd. v. Lite-On Technology Corporation

CourtDistrict Court, W.D. Texas
DecidedFebruary 7, 2022
Docket6:21-cv-00183
StatusUnknown

This text of Nitride Semiconductors Co., Ltd. v. Lite-On Technology Corporation (Nitride Semiconductors Co., Ltd. v. Lite-On Technology Corporation) 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
Nitride Semiconductors Co., Ltd. v. Lite-On Technology Corporation, (W.D. Tex. 2022).

Opinion

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

NITRIDE SEMICONDUCTORS CO., LTD., § Plaintiff § § W-21-CV-00183-ADA -vs- § § LITE-ON TECHNOLOGY CORPORATION, § LITE-ON TECHNOLOGY USA, INC., LITE- § ON, INC., LITE-ON TRADING USA, INC., § Defendants

MEMORANDUM OPINION AND ORDER Came on for consideration Defendants Lite-On Technology Corporation, Lite-On Technology USA, Inc., Lite-On, Inc., and Lite-On Trading USA, Inc.’s (collectively, “Defendants” or “Lite-On”) Motion to Transfer or Stay (the “Motion”). ECF No. 18. Plaintiff Nitride Semiconductors Co., Ltd. (“Plaintiff” or “Nitride”) opposes Defendants’ Motion. ECF No. 28. After review of the briefing and relevant law, the Court GRANTS-IN-PART and DENIES-IN-PART Defendants’ Motion. I. BACKGROUND A. The Parties Plaintiff Nitride is a Japanese company with its principal place of business at 115-7, Itayajima, Akinokami, Seto-cho, Naruto-shi, Tokushima 771-0360, Japan. ECF No. 1 ¶ 13. Defendant Lite-On Technology Corporation is a Taiwanese corporation. ECF No. 16 ¶ 14. Defendant Lite-On Technology USA, Inc., is a Delaware corporation. Id. ¶ 15. Defendants Lite-On, Inc. and Lite-On Trading USA, Inc. are both California companies, with their principal place of business in Milpitas, California. Id. ¶¶ 16, 20. Lite-On, Inc. maintains a sales office in Austin, Texas. Id. ¶ 19. Digi-Key Corporation (“Digi-Key”) is a distributor of Lite-On’s electronic products and components. ECF No. 18 at 5. Digi-Key is located in Thief River Falls, Minnesota and is not a party to this case. However, Nitride previously filed a lawsuit against Digi-Key concerning related accused products in the District of Minnesota on September 22, 2017. Id. at 3; see Nitride Semiconductors Co., Ltd. v. Digi-Key Corporation, Civ. Action No. 17-cv-04359-JRT-LIB

(D. Minn.). B. The Asserted Patent Nitride alleges that Lite-On’s A1GaN-based UV LED products, or products containing its A1GaN-based UV LEDs, infringe Claims 2 and 9 of U.S. Patent No. 6,861,270 (the “’270 Patent”). ECF No. 1 ¶¶ 33-52. The ’270 Patent is entitled “Method for Manufacturing Gallium Nitride Compound Semiconductor and Light Emitting Element.” Id. Nitride asserts that Lite- On’s exemplary LED products identified as LTPL-G35UV275GC-E, LTPL-G35UV275GR-E, LTPL-C034UVH365, and LTPL-C034UVH385 infringe the ’270 Patent. ECF No. 28 at 3.

C. Procedural History Nitride filed a patent infringement action against Digi-Key on September 22, 2017, asserting that certain products manufactured by RayVio Corporation (“RayVio”) and distributed by Digi-Key infringed the ’270 Patent. See Nitride Semiconductors Co., Ltd. v. Digi-Key Corporation, Civ. Action No. 17-cv-04359-JRT-LIB (D. Minn.) (the “Minnesota Case”). That lawsuit was stayed pending resolution of a previously filed case between Nitride and RayVio in the District Court for the Northern District of California. See Nitride Semiconductors Co., Ltd. v. Digi-Key Corporation, Civ. Action No. 17-cv-02952 (N.D. Cal.) (the “RayVio Case”). The RayVio Case ended in a default judgment against RayVio. Accordingly, the United States

District Court for District of Minnesota (the “Minnesota Court”) lifted the stay in the Minnesota Case and granted Nitride leave to file an amended complaint to assert additional products distributed by Digi-Key, including certain Lite-On product and LED products manufactured by three other manufacturers. Thereafter, on February 26, 2021, Nitride filed suit in this court against Lite-On. ECF No. 1 (the “WDTX Case”). Lite-On then sought transfer of the WDTX Case pursuant to the first-

to-file rule or 28 U.S.C. § 1404(a) for all Defendants, both foreign and domestic, to the District Court of Minnesota. ECF No. 18 at 1. Soon after this Motion was filed, Nitride covenanted not to sue Digi-Key for infringement of the ’270 Patent with respect to the Lite-On products accused in the Minnesota Case. ECF No. 28 at 5. Nitride and Digi-Key then filed a stipulation of dismissal of the accused Lite-On products that the Minnesota Court entered on October 4, 2021. See Nitride Semiconductors Co., Ltd. v. Digi-Key Corporation, Civ. Action No. 17-cv-04359-JRT- LIB, ECF No. 134 (D. Minn.). The first-filed Minnesota Case is currently scheduled for trial on June 1, 2022. See Nitride Semiconductors Co., Ltd. v. Digi-Key Corporation, Civ. Action No. 17-cv-04359-JRT-

LIB, ECF No. 93 (D. Minn.). The Minnesota court held the claim construction hearing on November 5, 2021, and a claim construction order is presumably forthcoming. Fact discovery and expert discovery are already complete. Id. The WDTX Case is on the eve of claim construction with a proposed trial date of January 24, 2023. II. LEGAL STANDARD

A. 28 U.S.C. § 1404 In patent cases, motions to transfer under 28 U.S.C. § 1404(a) are governed by the law of the regional circuit. In re TS Tech USA Corp., 551 F.3d 1315, 1319 (Fed. Cir. 2008). 28 U.S.C. § 1404(a) provides that, “[f]or the convenience of parties and witnesses, . . . a district court may transfer any civil action to any other district or division where it might have been brought or to any district or division to which all parties have consented.” Id. “Section 1404(a) is intended to place discretion in the district court to adjudicate motions for transfer according to an ‘individualized, case-by-case consideration of convenience and fairness.’” Stewart Org., Inc. v. Ricoh Corp., 487 U.S. 22, 29 (1988) (quoting Van Dusen v. Barrack, 376 U.S. 612, 622 (1964)).

The preliminary question under Section 1404(a) is whether a civil action “might have been brought” in the transfer destination venue.” In re Volkswagen, Inc., 545 F.3d 304, 312 (5th Cir. 2008) (hereinafter “Volkswagen II”). If the destination venue would have been a proper venue, then “[t]he determination of ‘convenience’ turns on a number of public and private interest factors, none of which can be said to be of dispositive weight.” Action Indus., Inc. v. U.S. Fid. & Guar. Co., 358 F.3d 337, 340 (5th Cir. 2004). The private factors include: “(1) the relative ease of access to sources of proof; (2) the availability of compulsory process to secure the attendance of witnesses; (3) the cost of attendance for willing witnesses; and (4) all other practical problems that make trial of a case easy, expeditious and inexpensive.” In re Volkswagen

AG, 371 F.3d 201, 203 (5th Cir. 2004) (hereinafter “Volkswagen I”) (citing Piper Aircraft Co. v. Reyno, 454 U.S. 235, 241 n.6 (1982)). The public factors include: “(1) the administrative difficulties flowing from court congestion; (2) the local interest in having localized interests decided at home; (3) the familiarity of the forum with the law that will govern the case; and (4) the avoidance of unnecessary problems of conflict of laws of the application of foreign law.” Id.

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Nitride Semiconductors Co., Ltd. v. Lite-On Technology Corporation, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nitride-semiconductors-co-ltd-v-lite-on-technology-corporation-txwd-2022.