Optimum Power Solutions LLC v. Apple, Inc.

794 F. Supp. 2d 696, 2011 U.S. Dist. LEXIS 70585, 2011 WL 2584433
CourtDistrict Court, E.D. Texas
DecidedFebruary 22, 2011
DocketCase 6:10cv61
StatusPublished
Cited by8 cases

This text of 794 F. Supp. 2d 696 (Optimum Power Solutions LLC v. Apple, Inc.) 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.

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Optimum Power Solutions LLC v. Apple, Inc., 794 F. Supp. 2d 696, 2011 U.S. Dist. LEXIS 70585, 2011 WL 2584433 (E.D. Tex. 2011).

Opinion

MEMORANDUM OPINION AND ORDER

LEONARD DAVIS, District Judge.

Defendants’ Motion to Transfer Venue to the Northern District of California Under 28 U.S.C. § 1404(a) (Docket No. 46) is before the Court. Having considered the parties’ written submissions, the Court GRANTS the motion and TRANSFERS this case to the Northern District of California.

BACKGROUND

Optimum Power Solutions LLC (“OPS”) asserts a single patent against Apple Inc., Dell Inc., Hewlett Packard Company (“HP”), Lenovo (United States) Inc., and Sony Electronics, Inc. OPS was formed in Frisco, Texas, in the Eastern District of Texas, a few weeks before bringing this suit. Although OPS’s principal place of business is in Frisco, Texas, it has no employees or documents in Texas. OPS’s parent company, Acacia, who acquired the patent and transferred it to OPS, is located in Newport Beach, California.

Apple’s principal place of business is Cupertino, CA, in the Northern District of California. HP’s principal place of business is in Palo Alto, California, also in the Northern District of California. Sony’s principal place of business is in San Diego, California, in the Southern District of California. Dell is located in Round Rock, Texas, in the Western District of Texas. Lenovo is located in Morrisville, North Carolina.

The patent’s inventor and one prosecuting attorney are located in the Northern District of California. Other prosecuting attorneys are located in Virginia. Acacia *700 acquired the patent from Zilog, Inc., a company in the Northern District of California that allegedly continues to have a financial interest in the patent and a license in the patent. At least two other entities in the Northern District of California have licenses to the patent. The licensees are likely to have witnesses or documents relevant to damages.

OPS’s infringement contentions implicate components manufactured by several third parties. Of these third parties, Intel, Intersil Corporation, and Volterra Semiconductor Corporation are located in California. Another implicated third party, Texas Instruments (“TI”) is headquartered in Dallas, Texas. Analog Devices, Inc. is located in Massachusetts. Finally, On Semiconductor is headquartered in Phoenix, Arizona and has offices in Plano and Austin, Texas. All of these entities are likely to have documents and witnesses relevant to infringement.

APPLICABLE LAW

Defendants argue that they are entitled to transfer under 28 U.S.C. § 1404(a). Section 1404(a) provides that “[f]or the convenience of parties and witnesses, 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.” The first inquiry when analyzing a case’s eligibility for 1404(a) transfer is “whether the judicial district to which transfer is sought would have been a district in which the claim could have been filed.” In re Volkswagen AG, 371 F.3d 201, 203 (5th Cir.2004) (“In re Volkswagen I ”).

Once that threshold inquiry is met, courts analyze both public and private factors relating to the convenience of parties and witnesses as well as the interests of particular venues in hearing the case. See Humble Oil & Ref. Co. v. Bell Marine Serv., Inc., 321 F.2d 53, 56 (5th Cir.1963); In re Nintendo Co., Ltd., 589 F.3d 1194, 1198 (Fed.Cir.2009); In re TS Tech USA Corp., 551 F.3d 1315, 1319 (Fed.Cir.2009). The private 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. In re Volkswagen I, 371 F.3d at 203; In re Nintendo, 589 F.3d at 1198; In re TS Tech, 551 F.3d at 1319. The public 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. In re Volkswagen I, 371 F.3d at 203; In re Nintendo, 589 F.3d at 1198; In re TS Tech, 551 F.3d at 1319.

The plaintiffs choice of venue is not a factor in this analysis. In re Volkswagen of Am., Inc., 545 F.3d 304, 314-15 (5th Cir.2008) (“In re Volkswagen II”). Rather, the plaintiffs choice of venue contributes to the defendant’s burden in proving that the transferee venue is “clearly more convenient” than the transferor venue. In re Volkswagen II, 545 F.3d at 315; In re Nintendo, 589 F.3d at 1200; In re TS Tech, 551 F.3d at 1319. Furthermore, though the private and public factors apply to most transfer cases, “they are not necessarily exhaustive or exclusive,” and no single factor is dispositive. In re Volkswagen II, 545 F.3d at 314-15.

The Relative Ease of Access to Sources of Proof

Despite technological advances that certainly lighten the relative inconvenience of transporting large amounts of documents across the country, this factor *701 is still a part of the transfer analysis. In re Volkswagen II, 545 F.3d at 316. Courts analyze this factor in light of the distance that documents, or other evidence, must be transported from their existing location to the trial venue. See id. This factor will turn upon which party, usually the accused infringer, will most probably have the greater volume of documents relevant to the litigation and their presumed location in relation to the transferee and transferor venues. See, e.g., In re Volkswagen II, 545 F.3d at 314-15; In re Nintendo, 589 F.3d at 1199; In re Genentech, Inc., 566 F.3d 1338, 1345 (Fed.Cir.2009). However, documents that have been moved to a particular venue in anticipation of a venue dispute should not be considered. In re Hoffmann-La Roche Inc., 587 F.3d 1333, 1336-37 (Fed.Cir.2009).

The Availability of Compulsory Process to Secure the Attendance of Witnesses

This factor will weigh more heavily in favor of transfer when more third-party witnesses reside within the transferee venue.

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794 F. Supp. 2d 696, 2011 U.S. Dist. LEXIS 70585, 2011 WL 2584433, Counsel Stack Legal Research, https://law.counselstack.com/opinion/optimum-power-solutions-llc-v-apple-inc-txed-2011.