Opticurrent v. Bitfenix Co. Ltd.

CourtDistrict Court, E.D. Texas
DecidedFebruary 25, 2022
Docket2:21-cv-00159
StatusUnknown

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

Bluebook
Opticurrent v. Bitfenix Co. Ltd., (E.D. Tex. 2022).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF TEXAS MARSHALL DIVISION

OPTICURRENT, LLC, § § Plaintiff, § § v. § Case No. 2:21-cv-00159-JRG-RSP § BITFENIX CO. LTD., § § Defendant. §

MEMORANDUM OPINION Before the Court is the Motion to Transfer, filed by Defendant Bitfenix Co. Ltd.. Dkt. No. 22.1 Defendant moves the Court, pursuant to 28 U.S.C. § 1404(a), to transfer the above-captioned matter to the Northern District of California (“NDCA”). Id. at 5.2 Defendant is a Taiwanese company with no presence in California, while Plaintiff is a Texas company also with no presence in California. I. BACKGROUND On June 10, 2021, Plaintiff Opticurrent, LLC filed the present lawsuit accusing Defendant of infringing U.S. Pat. No. 6,958,623 (“‘623 Patent”). Dkt. No. 1. This is not, however, the first instance the ‘623 Patent has been asserted in Eastern District of Texas. See Opticurrent v. Power Integrations, 2:16-cv-325-JRG (E.D. Tex.) (“Opticurrent I”); Opticurrent, LLC v. Mouser Electronics, 2:16-cv-01180-JRG (E.D. Tex.) (“Opticurrent I”). In Opticurrent I, defendant Power Integrations (PI”) successfully moved the Court to transfer the case to NDCA. Opticurrent I, Dkt.

1 On December 12, 2021, Defendant filed the Motion. Dkt. No. 22. On December 17, 2021, Plaintiff filed its response. Dkt. No. 32. On December 27, 2021, Defendant filed its reply. Dkt. No. 33. On January 3, 2022, Plaintiff filed its sur- reply. Dkt. No. 34. 2 Citations are to document numbers and page numbers assigned through ECF. No. 68, (E.D. Tex. May 26, 2017). It is worth noting that prior to transfer, the Court held a lengthy hearing and entered claim constructions for the disputed terms in ‘623 Patent. Opticurrent I, Dkt. No. 58 (E.D. Tex. Apr. 18, 2017). That transferred case proceeded to a jury trial, a final judgment was entered, and is currently on appeal before the Federal Circuit. Meanwhile, Opticurrent II was

stayed pending the outcome of the transferred Opticurrent I case. Plaintiff alleges that “Defendant has made, used, imported, sold, or offered for sale the Whisper Series 550W power supply unit product which incorporates one or more of Power Integrations, Inc.’s products that have been adjudged as infringing claim 1 of the ‘623 Patent.” Dkt. No. 1 at 7. In other words, Plaintiff contends that Defendant has incorporated a PI product in a manner that it considers to be infringing the ‘623 Patent.

II. LEGAL STANDARD If venue is proper in the district where a case was originally filed, a federal district court may transfer the case “[f]or the convenience of parties and witnesses” to “any other district or division where it might have been brought.” 28 U.S.C. § 1404(a). Section 1404(a)‘s threshold inquiry is whether the case could initially have been brought in the proposed transferee forum. In re Volkswagen AG, 371 F.3d 201, 202-03 (5th Cir. 2004) (“Volkswagen I”). The question of whether a suit “might have been brought” in the transferee forum encompasses subject matter jurisdiction, personal jurisdiction, and propriety of venue. See id at 203. Only if this statutory requirement is met should the Court determine whether convenience warrants a transfer of the case. See Volkswagen I, 371 F.3d at 203; In re Volkswagen of Am., Inc., 545 F.3d 304, 312 (5th

Cir. 2008) (“Volkswagen II”). The burden to prove that a case could have been brought in the transferee forum falls on the party seeking transfer. See Volkswagen II, 545 F.3d at 315; Humble Oil & Ref. Co. v. Bell Marine Serv., Inc., 321 F.2d 53, 56 (5th Cir. 1963). If that inquiry is satisfied, the Court determines whether transfer is proper by analyzing and weighing various private and public interest factors. Id.; accord In re Nintendo Co., Ltd, 589, F.3d 1194, 1198 (Fed. Cir. 2009); In re Apple Inc., 979 F.3d 1332, 1338 (Fed. Cir. 2020) (applying Fifth Circuit law). The private interest factors are “(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.” Volkswagen II, 545 F.3d at 315 (quoting Volkswagen I, 371 F.3d at 203). The public interest factors are “(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 [or in] the application of foreign law.” Id. (quoting Volkswagen I, 371 F.3d at 203) (alterations in original). The factors are neither exclusive nor exhaustive, and no one factor is dispositive. Id. The burden to prove that a case should be transferred for convenience falls squarely on the

moving party. See id. Although the plaintiff’s choice of forum is not a separate factor, respect for the plaintiff’s choice of forum is encompassed in the movant’s elevated burden to “clearly demonstrate” that the proposed transferee forum is “clearly more convenient” than the forum in which the case was filed. Id. at 314-15; Apple, 979 F.3d at 1338. While “clearly more convenient” is not necessarily equivalent to “clear and convincing,” the moving party “must show materially more than a mere preponderance of convenience, lest the standard have no real or practical meaning.” Quest NetTech Corp. v. Apple, Inc., No. 2:19-cv-118, 2019 U.S. Dist. LEXIS 206019, 2019 WL 6344267, at *7 (E.D. Tex. Nov. 27, 2019). In considering a transfer under § 1404(a), the Court may consider undisputed facts outside of the pleadings but must draw all reasonable inferences and resolve factual disputes in favor of the non-movant. See Vocalife LLC v. Amazon.com, Inc., No. 2:19-cv-00123, 2019 U.S. Dist. LEXIS 205696, 2019 WL 6345191, at *2 (E.D. Tex. Nov. 27, 2019); cf. Trois v. Apple Tree Auction Cent. Inc., 882 F.3d 485, 492-93 (5th Cir. 2018) (reviewing a transfer under § 1406); Ambraco, Inc. v. Bossclip B.V., 570 F.3d 233, 238

(5th Cir. 2009) (reviewing enforcement of a forum-selection clause). III. ANALYSIS A. Threshold Inquiry Under § 1404 Under § 1404, the Court must initially address whether this case could have been brought in the proposed transferee forum. See Volkswagen I, 371 F.3d at 203 (“[W]e have suggested that the first determination to be made is whether the judicial district to which transfer is sought would

have been a district in which the claim could have been filed.”); Volkswagen II, 545 F.3d at 312 (“The preliminary question under § 1404(a) is whether a civil action ‘might have been brought’ in the destination venue.”). At best, the parties gave this issue cursory attention. Defendant, however, failed to articulate whether the Northern District of California is a proper transferee forum. In the Motion, Defendant states “Opticurrent has taken the position that ‘Defendant is not a resident of the United States and may be sued in any district, including this District.’ Accordingly, Opticurrent could have brought this action in the transferee district, and the threshold inquiry is satisfied.” Dkt. No. 22 at 11–12 (citation omitted).

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