Seven Networks, LLC v. Google LLC

315 F. Supp. 3d 933
CourtDistrict Court, E.D. Texas
DecidedJuly 19, 2018
DocketCIVIL ACTION NO. 2:17-CV-00442-JRG
StatusPublished
Cited by23 cases

This text of 315 F. Supp. 3d 933 (Seven Networks, LLC v. Google LLC) 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
Seven Networks, LLC v. Google LLC, 315 F. Supp. 3d 933 (E.D. Tex. 2018).

Opinion

RODNEY GILSTRAP, UNITED STATES DISTRICT JUDGE

Before the Court is Google LLC's ("Google") Second Renewed Motion to Dismiss or, in the Alternative, Transfer under 28 U.S.C. § 1406 for Improper Venue. (Dkt. No. 125) ("the Motion"). Having considered the Motion, the Court is of the opinion that it should be DENIED for the reasons contained herein.

I. PROCEDURAL BACKGROUND

SEVEN Networks, LLC, ("SEVEN") filed suit against Google on May 17, 2017, alleging, inter alia , patent infringement. (Dkt. No. 1). On August 8, 2017, Google filed a Motion to Dismiss under Rule 12(b)(3). (Dkt. No. 25). In response, SEVEN filed the Amended Complaint that is the subject of the present motion. (Dkt. No. 34). On September 12, 2017, Google filed a Renewed Motion to Dismiss ("Second Motion to Dismiss"), again under Rule 12(b)(3). In response, along with its opposition to the Second Motion to Dismiss, SEVEN filed a Contingent Motion for Leave to Conduct Venue Discovery. (Dkt. No. 77).

On December 22, 2017, the Court entered a Venue Discovery Order, which directed the parties to conduct discovery on Google's venue motions by February 22, 2018, and directed Google to refile its venue motions no later than two weeks after the close of venue discovery. (Dkt. No. 107). The Court then granted the Parties'

*938motion to extend venue discovery to March 1, 2018. (Dkt. No. 115). Following the close of venue discovery, Google filed the instant Motion and a related Motion to Transfer Venue to the Northern District of California. (Dkt. Nos. 125, 126). The Court held a hearing on the instant Motion on June 1, 2018. (Dkt. No. 186).

II. APPLICABLE LAW

In today's post- TC Heartland world, venue law in patent cases continues its development. See generally In re Cray Inc. , 871 F.3d 1355 (Fed. Cir. 2017) ; In re Micron Tech., Inc. , 875 F.3d 1091 (Fed. Cir. 2017) ; In re HTC Corp. , 889 F.3d 1349 (Fed. Cir. 2018) ; In re BigCommerce, Inc. , 890 F.3d 978 (Fed. Cir. 2018) ; In re ZTE (USA) Inc. , 890 F.3d 1008 (Fed. Cir. 2018) ; and In re Intex Recreation Corp. , No. 2018-131, 2018 WL 3089215 (Fed. Cir. June 13, 2018).

Venue in patent infringement actions is defined by 28 U.S.C. § 1400(b). There is no doubt that any analysis of venue under 28 U.S.C. § 1400(b)"begin[s] with the language of the statute." In re BigCommerce , 890 F.3d at 982 (citing Mallard v. U.S. Dist. Court for the S. Dist. of Iowa , 490 U.S. 296, 300, 109 S.Ct. 1814, 104 L.Ed.2d 318 (1989) ). Section 1400(b) of Title 28, United States Code states:

Any 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.

The Federal Circuits' first, and most general, guidance on how a district court should approach this venue statute was provided by In re Cray, 871 F.3d 1355. There, the Federal Circuit struck down this Court's suggested test as "not sufficiently tethered to this statutory language" and for "fail[ing] to inform each of the necessary requirements of the statute." Id. at 1362. The Circuit continued:

In deciding whether a defendant has a regular and established place of business in a district, no precise rule has been laid down and each case depends on its own facts. The "requirements" listed above and discussed below inform whether there exist the necessary elements, but do not supplant the statutory language. We stress that the analysis must be closely tied to the language of the statute.

Id. Accordingly, district courts must hew closely to an analysis which is guided by the language of the statute.1

Beyond this admonition, the Federal Circuit provided additional guidance on what it believed to be the major requirements of the statutory language; these lodestars guide district courts in their application of the statute to case specific facts. Specifically, the Federal Circuit held that " § 1400(b) requires that 'a defendant has' a 'place of business' that is 'regular' and 'established.' All of these requirements must be present." Id. These requirements were further refined: "the first requirement is that there must be a physical place in the district"; "[t]he second requirement ... is that the place must be a regular and established place of business"; and "the third requirement ... is that the regular and established place of business must be the place of the defendant." Id. at 1362-63 (internal quotation marks omitted). Having *939set forth a three-part test2 for the application of the statute, the Federal Circuit then examined each identified requirement in greater detail.

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315 F. Supp. 3d 933, Counsel Stack Legal Research, https://law.counselstack.com/opinion/seven-networks-llc-v-google-llc-txed-2018.