Slack Technologies, Inc. v. Phoji, Inc.

District Court, N.D. California·Decided August 13, 2020·No. 3:20-cv-01509·Unknown

Opinion

SLACK TECHNOLOGIES, INC., Case No. 20-cv-01509-EMC

Plaintiff, ORDER GRANTING DEFENDANT’S v. MOTION TO DISMISS

PHOJI, INC., Docket No. 21 Defendant.

Plaintiff Slack Technologies, Inc. has sued Defendant Phoji, Inc., seeking a declaration that it does not infringe Phoji’s ‘149 patent. Currently pending before the Court is Phoji’s motion to dismiss for lack of personal jurisdiction. Having considered the parties’ briefs and accompanying submissions, as well as the oral argument of counsel, the Court hereby GRANTS Phoji’s motion to dismiss. Slack’s request for jurisdictional discovery is denied. Phoji is a Software as a Service (“SaaS”) company. It has a “cloud-based web app that enables users to create custom photo-based emojis.” Christensen Decl. ¶ 4. Phoji’s product practices the invention claimed in the ‘149 patent. There appears to be no material dispute that, in or about June 2019, Phoji – which is based in Minneapolis, Minnesota – reached out to Slack – which is based on San Francisco, California – via letter. In the letter, Phoji informed Slack that it owns the ‘149 patent and that it was “‘approaching companies that may have a business interest in licensing Phoji’s patent portfolio.’” Compl. ¶ 16. Phoji also asserted that “‘[t]he utilization and deployment of the Slack Emoji . . . make us believe that Slack would find it beneficial to license Phoji, Inc. intellectual property.’” about October 2019, asserting that “‘Slack infringes the claims of the ‘149 patent’” and enclosing a partial claim chart in support. Compl. ¶ 17. Subsequently, between October 14, 2019, and February 20, 2020, Phoji and Slack exchanged more than a dozen communications (both oral and written) about alleged infringement of the ‘149 patent. See Compl. ¶¶ 18-32. For example: • In December 2019, Phoji sent a letter to Slack stating that “it can demonstrate Slack’s past and ongoing infringement of the ‘149 patent caused it substantial damages,” and, “[w]hile Phoji is open to reasonable negotiations,” “further inflexible responses [on the part of Slack] will leave us with little choice but to consider alternative paths to address Slack’s infringement of the ‘149 patent.” Chen Decl., Ex. A (letter); see also Compl. ¶ 21. • In January 2020, Phoji sent an email to Slack stating that “there is great value for both of our organizations if we resolve this [dispute] in a partnership and with a License Agreement”; moreover, “there is significant negative impact to both organizations if there is a formal legal process.” Chen Decl., Ex. B (email); see also Compl. ¶ 30. • In February 2020, Phoji sent a letter to Slack, stating that it “is committed to taking the necessary steps to protect its valuable intellectual property rights” and asking whether Slack was “interested in a business solution and avoiding the exposure and costs if Phoji is forced to litigate its infringement claims.” Chen Decl., Ex. C (letter); see also Compl. ¶ 31. In the letter, Phoji enclosed a claim chart to support its claim of infringement. See Compl. ¶ 31; Chen Decl., Ex. C. Apparently, the parties did not reach any resolution as Slack filed its declaratory judgment complaint on February 28, 2020. In its complaint, Slack asserts that the communications described above are not the only contacts that Phoji has had with California. Specifically, Slack alleges that Phoji distributes its mobile app through two California-based businesses, Google and Apple. Slack also alleges that • mCordis. mCordis is a marketing company. According to Slack, “Phoji is a charter member of mCordis’s The Connected Marketer Institute, which helps ‘brand marketers and marketing technology providers understand and adopt new strategies to serve connected individuals, in real-time, at scale.’” Compl. ¶ 48. As a charter member, Slack alleges that Phoji attended the Connected Marketer Institute Summit in San Francisco on January 23 and 24, 2017. See Compl. ¶ 45 (showing a Phoji Facebook post stating, “Phoji is excited to be attending the Connected Marketer Summit in San Francisco on January 23 and 24”). • Identity Praxis, Inc. Slack alleges that, on May 24, 2016, Identity Praxis and mCordis managing partner, Michael Becker, posted an interview with Jon Christensen, CEO of Phoji, on Identity Praxis’s website. See Compl. ¶ 49 (https://identitypraxis.com/2016/05/24/an-interview-with-phoji/). • Seatninja; Stone Brewing World Bistro & Gardens; and Jamba Juice. According to Slack, Phoji’s website features examples of its product being used in two advertisements: one featuring Jamba Juice and the other featuring both Seatninja and Stone Brewing. See Compl. ¶¶ 50-51 (http://phojiapp.com/). Both advertisements mention California locations. See Compl. ¶ 50 (Jamba Juice advertisement stating “Stop by Escondido Promenade”); Compl. ¶ 51 (Seatninja advertisement stating “Strone Brewing World Bistro & Gardens – Liberty Station – San Diego”). Finally, Slack alleges that Mr. Christensen traveled to California in January 2020 to conduct business. See Compl. ¶ 46. In response to the above allegations, Phoji has submitted a declaration from Mr. Christensen addressing Phoji’s contacts with the above-named companies. In his declaration, Mr. Christensen also denies traveling to California in January 2020 to conduct business. A. Legal Standard A defendant may move to dismiss based on lack of personal jurisdiction pursuant to Federal Rule of Civil Procedure 12(b)(2). In determining whether there is personal jurisdiction over a defendant in a patent case, Federal Circuit law applies. See Nuance Commc'ns, Inc. v. Abbyy Software House, 626 F.3d 1222, 1230 (Fed. Cir. 2010) (“The law of the Federal Circuit, rather than that of the regional circuit in which the case arose, applies to determine whether the district court properly declined to exercise personal jurisdiction over an out-of-state accused infringer.”). This is true even where the patent action is one for a declaratory judgment that there is no infringement or that the patent is invalid. See Breckenridge Pharm., Inc. v. Metabolite Labs., Inc., 444 F.3d 1356, 1361 (Fed. Cir. 2006) (“The issue of personal jurisdiction in a declaratory action for noninfringement is ‘intimately related to patent law’ and thus governed by Federal Circuit law regarding due process.”). Although Federal Circuit law applies on the substantive issue of whether there is personal jurisdiction, arguably, regional circuit law should apply with respect to the procedural aspect of determining such. The Court, however, need not resolve this issue as both Ninth Circuit law and Federal Circuit law are in agreement on the procedure to be applied. That is, where written materials only are submitted in a dispute over personal jurisdiction, a plaintiff need only make a prima facie showing of jurisdiction. See Data Disc, Inc. v. Sys. Tech. Assocs., Inc., 557 F.2d 1280, 1285 (9th Cir. 1977); Elecs. for Imaging, Inc. v. Coyle, 340 F.3d 1344, 1349 (Fed. Cir. 2003) (emphasis in original). Uncontroverted allegations in the plaintiff’s complaint are accepted as true, and conflicts in, e.g., statements contained in affidavits are resolved in the plaintiff’s favor. See Boschetto v. Hansing, 539 F.3d 1011, 1015 (9th Cir. 2008); Elecs. For Imaging, 340 F.3d at 1349. B. Specific Jurisdiction “‘Determining whether personal jurisdiction ex

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Slack Technologies, Inc. v. Phoji, Inc., (N.D. Cal. 2020).

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