RAH Color Technologies LLC v. Quad/Graphics, Inc.

CourtDistrict Court, N.D. Illinois
DecidedJanuary 16, 2018
Docket1:17-cv-04931
StatusUnknown

This text of RAH Color Technologies LLC v. Quad/Graphics, Inc. (RAH Color Technologies LLC v. Quad/Graphics, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
RAH Color Technologies LLC v. Quad/Graphics, Inc., (N.D. Ill. 2018).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION

RAH COLOR TECHNOLOGIES, LLC, ) ) Plaintiff, ) ) Case No. 17 C 4931 v. ) ) QUAD/GRAPHICS, INC., ) ) Defendant. )

MEMORANDUM OPINION AND ORDER

AMY J. ST. EVE, District Court Judge: On June 30, 2017, Plaintiff RAH Color Technologies, Inc. (“RAH”) filed this patent infringement lawsuit against Defendant Quad/Graphics, Inc. (“Quad”). Subsequently, Quad filed a motion to dismiss under Federal Rule of Civil Procedure 12(b)(3), or, in the alternative, a motion to transfer venue to the United States District Court for the Eastern District of Wisconsin – located in Milwaukee, Wisconsin – pursuant to 28 U.S.C. § 1404(a). For the following reasons, the Court denies Quad’s Rule 12(b)(3) motion to dismiss, but, in its discretion, grants Quad’s motion to transfer venue to the Eastern District of Wisconsin pursuant to 28 U.S.C. § 1404(a). Last, the Court denies RAH’s Motion for Leave to Amend the Complaint without prejudice to its renewal in the Eastern District of Wisconsin. BACKGROUND

RAH is a limited liability company organized under the laws of the Commonwealth of Virginia maintaining an office in Alexandria Virginia. RAH owns numerous United States patents generally related to the field of color management and Dr. Richard A. Holub, the named inventor, manages RAH and is RAH’s sole member. Quad is a Wisconsin corporation with its principal place of business in Sussex, Wisconsin, a northwest suburb of Milwaukee. RAH alleges that as part of its business, Quad uses printer hardware and software that utilize color measurement and management techniques that, alone or in combination, infringe various claims of the patents-in-suit. LEGAL STANDARDS

I. Motion to Dismiss under Rule 12(b)(3) “[W]hile the substance of a venue challenge in a patent case will turn on § 1400(b), subject matter that is controlled by Federal Circuit law, the Federal Rules – as opposed to a patent-unique statute – provide the procedural vehicle for such a challenge.” Boston Sci. Corp. v. Cook Grp. Inc., ___F.Supp.3d ___, No. CV 15-980-LPS-CJB, 2017 WL 3996110, at *4 (D. Del. Sept. 11, 2017). Therefore, the Court follows Seventh Circuit law as it pertains to the procedural requirements of Rule 12(b)(3). Id. (“venue motions are procedural – and therefore governed by the law of the regional circuit.”). “Under Rule 12(b)(3), which allows for dismissal for improper venue, the district court assumes the truth of the allegations in the plaintiff’s

complaint, unless contradicted by the defendant’s affidavits.” Deb v. SIRVA, Inc., 832 F.3d 800, 809 (7th Cir. 2016). In other words, “[w]hen ruling on a motion to dismiss for improper venue, the district court is not ‘obligated to limit its consideration to the pleadings [or to] convert the motion to one for summary judgment’ if the parties submit evidence outside the pleadings.” Faulkenberg v. CB Tax Franchise Sys., LP, 637 F.3d 801, 809-10 (7th Cir. 2011) (citation omitted). The plaintiff bears the burden of establishing proper venue in the context of a Rule 12(b)(3) motion, although the plaintiff’s burden in defending a Rule 12(b)(3) motion is low because courts resolve factual conflicts in the plaintiff’s favor. See id. at 810; Johnson v. Creighton Univ., 114 F. Supp. 3d 688, 696 (N.D. Ill. 2015); Allstate Life Ins. Co. v. Stanley W. Burns, Inc., 80 F. Supp. 3d 870, 875 (N.D. Ill. 2015). II. Transfer Venue under 28 U.S.C. § 1404(a) “In 1948, Congress enacted the federal change of venue statute, codified at 28 U.S.C. § 1404, to allow a district court to transfer an action filed in a proper, though not necessarily

convenient, venue to a more convenient district.” Research Automation, Inc. v. Schrader- Bridgeport Int’l Inc., 626 F.3d 973, 977 (7th Cir. 2010). Specifically, “[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.” 28 U.S.C. § 1404(a). Under § 1404(a), the moving party bears the burden of establishing that (1) venue is proper in the transferor district, (2) venue and jurisdiction would be proper in the transferee district, and (3) the transfer will serve the convenience of the parties and witnesses and is in the interest of justice. See Coffey v. Van Dorn Iron Works, 796 F.2d 217, 219-20 (7th Cir. 1986). “The weighing of factors for and against transfer necessarily involves a large degree of subtlety and

latitude, and, therefore, is committed to the sound discretion of the trial judge.” Id. at 219; see also DeKeyser v. Thyssenkrupp Waupaca, Inc., 860 F.3d 918, 923 (7th Cir. 2017). (“28 U.S.C. § 1404(a) gives a district court discretion to transfer a civil action to any other district or division where it might have been brought if the transfer is ‘for the convenience of parties and witnesses, [and] in the interest of justice.’”). ANALYSIS

I. Rule 12(b)(3) Motion to Dismiss for Improper Venue The patent venue statute states that “[a]ny civil action for patent infringement may be brought in the judicial district where the defendant resides, or where the defendant has committed acts of infringement and has a regular and established place of business.” 28 U.S.C. § 1400(b). In May 2017, the United States Supreme Court clarified that for purposes of the patent venue statute, a domestic corporation resides only in the state of its incorporation. TC Heartland LLC v. Kraft Foods Grp. Brands LLC, 137 S. Ct. 1514, 1520 (2017); see also In re Micron Tech., Inc., 875 F.3d 1091, 1094 (Fed. Cir. 2017). Here, it is undisputed that Defendant Quad

resides in Wisconsin, and thus the Court turns to the second clause of § 1400(b) and relies upon Federal Circuit law governing § 1400(b). See In re Cray Inc., 871 F.3d 1355, 1360 (Fed. Cir. 2017). As highlighted above, under the Federal Rules of Civil Procedure and Seventh Circuit law, in the context of a Rule 12(b)(3) motion, the Court assumes the truth of the allegations in RAH’s Complaint unless these allegations are contradicted by Quad’s affidavits. See Deb, 832 F.3d at 809.

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RAH Color Technologies LLC v. Quad/Graphics, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/rah-color-technologies-llc-v-quadgraphics-inc-ilnd-2018.