SAFECAST LIMITED v. Microsoft Corporation

CourtDistrict Court, W.D. Texas
DecidedJuly 5, 2023
Docket6:22-cv-00983
StatusUnknown

This text of SAFECAST LIMITED v. Microsoft Corporation (SAFECAST LIMITED v. Microsoft 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
SAFECAST LIMITED v. Microsoft Corporation, (W.D. Tex. 2023).

Opinion

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

SAFECAST LIMITED, § Plaintiff § § W-22-CV-00983-ADA -vs- § § MICROSOFT CORP., § Defendant § § §

ORDER GRANTING DEFENDANT’S MOTION TO TRANSFER Before the Court is Defendant Microsoft Corporation’s (“Microsoft”) Motion to Transfer Venue to the Southern District of New York. ECF No. 24. Plaintiff SafeCast Limited (“SafeCast”) opposes the motion. ECF No. 32. Microsoft filed a reply to further support its motion. ECF No. 36. After careful consideration of the parties’ briefs and the applicable law, the Court GRANTS Microsoft’s motion to transfer venue to the Southern District of New York. I. FACTUAL BACKGROUND In its complaint, SafeCast claims Microsoft infringes U.S. Patent No. 9,392,302 (“the ’302 patent” or “the asserted patent”), which is directed to “[s]ystem for providing improved facilities in time-shifted broadcasts.” ECF No. 1 ¶ 12. SafeCast is a private limited company registered in England with its principal place of business in England. Id. ¶ 1. Microsoft is a corporation organized under the laws of the state of Washington. Id. ¶ 2. Microsoft’s principal place of business is in Redmond, Washington. Id. According to SafeCast, Microsoft sells advertising products, including through its subsidiary Xandr, that infringe the asserted patent. Id. ¶ 15. The Court will refer to these products as the “accused products.” After responding to SafeCast’s complaint, Microsoft filed this motion to transfer. ECF No. 24. Microsoft does not argue that the Western District of Texas (“WDTX”) is an improper venue for this case; instead, it argues that the Southern District of New York (“SDNY”) is a more convenient forum, pointing to the location of potential witnesses and the relevant records in New

York. Id. at 1. SafeCast contends that this case should remain in the WDTX. ECF No. 32. II. LEGAL STANDARD In patent cases, motions to transfer under 28 U.S.C. § 1404(a) are governed by the law of the regional circuit—here, the Fifth Circuit. In re TS Tech USA Corp., 551 F.3d 1315, 1319 (Fed. Cir. 2008). 28 U.S.C. § 1404(a) provides in part 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 . . . ” 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 § 1404(a) is whether a civil action “‘might have been

brought’ in the 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) (footnote omitted). The private interest 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. Courts evaluate

these factors based on the situation which existed at the time of filing, rather than relying on hindsight knowledge of the defendant’s forum preference. Hoffman v. Blaski, 363 U.S. 335, 343 (1960). The moving party has the burden to prove that a case should be transferred for convenience. Volkswagen II, 545 F.3d at 314. The burden is not simply that the alternative venue is more convenient, but that it is clearly more convenient. Id. at 314–15. While “clearly more convenient” is not the same as the “clear and convincing” standard, the moving party must still show more than a mere preponderance. Quest NetTech Corp. v. Apple, Inc., No. 2:19-cv-118, 2019 WL 6344267, at *7 (E.D. Tex. Nov. 27, 2019). Yet, the Federal Circuit has clarified that, for a court to hold that a factor favors transfer, the movant need not show an individual factor clearly favors transfer. In

re Apple Inc., 979 F.3d 1332, 1340 (Fed. Cir. 2020). III. DISCUSSION The threshold determination in the § 1404(a) analysis is whether this case could initially have been brought in the destination venue—the SDNY. Microsoft argues that the threshold determination is met, and SafeCast agrees. ECF No. 24 at 6; ECF No. 32 at 2 n.2. Because Microsoft has a regular and established place of business in the SDNY and acts of infringement were committed in that district, the Court concludes that this action could have been brought in the SDNY. The Court now analyzes the private and public interest factors to determine whether the SDNY is a clearly more convenient forum than the WDTX. The Private Interest Factors The Cost of Attendance and Convenience for Willing Witnesses The most important factor in the transfer analysis is the convenience of the witnesses. In re Genentech, Inc., 566 F.3d 1388, 1342 (Fed. Cir. 2009). According to Fifth Circuit law, if the distance between a current venue and a proposed venue is more than 100 miles, the inconvenience to witnesses increases in direct relationship to the additional distance they must travel if the matter

is transferred. Volkswagen II, 545 F.3d at 317. But it is unclear when the 100-mile rule applies, as the Federal Circuit has stated that courts should not apply the rule “rigidly” in cases where witnesses would be required to travel a significant distance no matter what venue they testify in. In re Apple, 979 F.3d at 1342 (discussing witnesses traveling from New York) (citing Volkswagen II, 545 F.3d at 317). “[T]he inquiry should focus on the cost and inconvenience imposed on the witnesses by requiring them to travel to a distant forum and to be away from their homes and work for an extended period of time.” In re Google, LLC, No. 2021-170, 2021 WL 4427899, at *4 (Fed. Cir. Sept. 27, 2021). According to the Federal Circuit, time is a more important metric than distance. Id. However, the Federal Circuit has also held that when willing witnesses will have to

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Related

Hoffman v. Blaski
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SAFECAST LIMITED v. Microsoft Corporation, Counsel Stack Legal Research, https://law.counselstack.com/opinion/safecast-limited-v-microsoft-corporation-txwd-2023.