Samsara Inc. v. Motive Technologies Inc.

CourtDistrict Court, D. Delaware
DecidedAugust 14, 2024
Docket1:24-cv-00084
StatusUnknown

This text of Samsara Inc. v. Motive Technologies Inc. (Samsara Inc. v. Motive Technologies Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Samsara Inc. v. Motive Technologies Inc., (D. Del. 2024).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF DELAWARE

SAMSARA INC., ) ) Plaintiff, ) ) v. ) C.A. No. 24-84 (MN) ) MOTIVE TECHNOLOGIES, INC., ) ) Defendant. )

MEMORANDUM OPINION

John W. Shaw, Karen E. Keller, Nathan R. Hoeschen, Emily DiBenedetto, Lindsey M. Gellar, SHAW KELLER LLP, Wilmington, DE; Ellisen S. Turner, P.C., Ali-Reza Boloori, KIRKLAND & ELLIS LLP, Los Angeles, CA; Joseph A. Loy, P.C., Joshua L. Simmons, P.C., KIRKLAND & ELLIS LLP, New York, NY; Jeanne M. Heffernan, P.C., KIRKLAND & ELLIS LLP, Austin, TX – attorneys for Plaintiff

Daniel M. Silver, Daniel J. Brown, MCCARTER & ENGLISH, LLP, Wilmington, DE; Joseph G. Petrosinelli, C. Bryan Wilson, Angela Pyo, Jack H. Danon, WILLIAMS & CONNOLLY LLP, Washington, DC – attorneys for Defendants

August 14, 2024 Wilmington, Delaware IKA, U.S. DISTRICT JUDGE: Before the Court is the motion (D.I. 25) of Defendant Motive Technologies, Inc. (“Defendant” or “Motive”) to transfer this case to the Northern District of California pursuant to 28 U.S.C. § 1404(a). For the reasons set forth below, the Court GRANTS Defendant’s motion.! I. BACKGROUND A. The Parties Plaintiff Samsara Inc. (Plaintiff? or “Samsara”) is a Delaware corporation with its principal place of business in San Francisco, California. (D.I. 23 § 11). Samsara is a technology company that offers hardware dashboard cameras for motor vehicles along with software applications that use artificial intelligence to critique behind-the-wheel driver behavior and improve driver safety. (Ud. 7, 37). Defendant Motive is also a Delaware corporation with its principal place of business in San Francisco, California. (/d. § 12). Like Samsara, Motive competes in the market for driver safety and fleet management technology. (/d. □□ 5, 8). According to the Amended Complaint, Motive engaged in a scheme to steal Samsara’s proprietary technology over the course of nearly five years, including by copying Samsara’s product designs, marketing strategies, and other patented technical elements of its business. (/d. JJ 1, 2, 9). Motive allegedly achieved this by, among other things, directing its employees to register for and digitally access Samsara’s products using customer accounts with fictitious names or on behalf of fake entities, manipulating Samsara’s customer support team by posing as other Samsara customers, and soliciting Samsara’s employees to defect to Motive. (Ud. ff 2-5). The Amended Complaint asserts Motive infringed three of Samsara’s patents and violated other statutory and common law. (/d. 9] 125-233).

Because the Court agrees that this case should be transferred, it declines to rule on the parties’ other motions discussed herein, which remain pending. (See D.I. 29, 38, 47).

B. Procedural History On January 24, 2024, Samsara initiated this action by filing a complaint against Motive asserting claims for patent infringement, false advertising under the Lanham Act, 15 U.S.C. § 1125(a), fraud under California statutory and common law, Cal. Civ. Code §§ 1709 et seq., violation of the Computer Fraud and Abuse Act, 18 U.S.C. § 1030, and violation of California’s

Unfair Competition Law (“UCL”), Cal. Bus. & Prof. Code §§ 17200 et seq. (D.I. 1 (“the Original Complaint”)). Shortly after, on February 8, Samsara filed a companion complaint with the U.S International Trade Commission (“ITC”) pertaining to the alleged infringement of the same patents at issue here. (D.I. 27, Ex. C). The ITC instituted an investigation on March 12 (“the ITC Investigation”). (D.I. 34, Ex 1). On February 15, 2024, Motive filed a complaint in federal court in the Northern District of California, initiating an action captioned Motive Technologies, Inc. v. Samsara Inc., No. 24-902 (JD) (N.D. Cal.) (“the California Action”). (D.I. 27, Ex. D). In the California Action, Motive asserts near-mirror claims against Samsara for patent infringement, false advertising, fraud, misappropriation of trade secrets, defamation, and intentional interference with business relations.

(Id.). On February 28, 2024, Motive moved to dismiss the Original Complaint for failure to state a claim pursuant to Federal Rule of Civil Procedure 12(b)(6) and simultaneously moved to transfer the case to the North District of California pursuant to 28 U.S.C. § 1404(a). (D.I. 15). That same day, pursuant to an arbitration clause (“Arbitration Clause”) contained in Samsara’s commercial Terms of Service agreement (“Terms” or “TOS”), (D.I. 27, Ex. B § 19.1),2 Motive initiated an

2 The parties vigorously dispute whether the TOS created an enforceable contract. If it did, Motive says, the parties would be beholden to the TOS’s Arbitration Clause, which states that “[a]ny dispute arising from or relating to these Terms or Customer’s use of the Products . . . shall be finally and exclusively settled by confidential arbitration in San arbitration before the Judicial Arbitration and Mediation Services, Inc. (“JAMS”) seeking a declaratory judgment that Samsara’s claims must proceed in arbitration and that Motive is not liable for the claims asserted in this Court and before the ITC (“the JAMS Arbitration”). (D.I. 34, Ex 2 at 1).

On March 20, 2024, rather than answer Motive’s motion to dismiss and transfer, Samsara filed an amended complaint in this action (“the Amended Complaint”). (D.I. 23). The Amended Complaint added two new claims to the seven claims asserted in the Original Complaint: a false advertising claim under the UCL; and a false advertising claim under the Delaware Deceptive Trade Practices Act (“DDTPA”), 6 Del. Code §§ 2351 et seq. (D.I. 23 ¶¶ 221-233). On April 3, 2024, Motive again moved to transfer the case to the Northern District of California and, in the alternative, dismiss the Amended Complaint. (D.I. 25). Motive also filed a motion to stay this action due to the pendency of the ITC Investigation pursuant to 28 U.S.C. § 1659(a). (D.I. 29). On April 17, 2024, Samsara opposed the motions to transfer, dismiss, and stay. (D.I. 31,

33). On April 24, Motive filed reply briefs on all three motions. (D.I. 35, 36). On May 1, Samsara

Francisco, California . . . in accordance with the Arbitration Rules and Procedures of [JAMS]. (‘JAMS Rules’).” TOS § 19.1. And even if the Arbitration Clause is invalid, argues Motive, the parties are bound to litigate this dispute pursuant to the TOS’s forum selection clause (“the Forum Selection Clause”), which stipulates that, “[s]ubject to the agreement to arbitrate set forth herein, exclusive jurisdiction and venue for actions arising from or related to these Terms or Customer’s use of the Products will be the state and federal courts located in San Francisco County, California” and “will be governed by the laws of the State of California.” TOS § 20. Because the Court concludes that this action should be transferred under the traditional Jumara analysis, it declines to rule on whether the TOS created an enforceable contract, whether the parties are bound by the Arbitration Clause or Forum Selection Clause, and whether it is the JAMS arbiter or a federal court that has the authority to interpret the preliminary issue of arbitrability under the TOS. moved to strike Motive’s reply on the motion to stay and alternatively requested permission to file a sur-reply. (D.I. 38).

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