Smart Mobile Technologies LLC v. Samsung Electronics Co. Ltd.

District Court, W.D. Texas·Decided September 11, 2023·No. 6:21-cv-00701·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF TEXAS WACO DIVISION SMART MOBILE TECHNOLOGIES § LLC, § Plaintiff § W-21-CV-00701-ADA § -vs- § § SAMSUNG ELECTRONICS CO. and § LTD., SAMSUNG ELECTRONICS § AMERICA, INC., § Defendants ORDER DENYING DEFENDANTS’ MOTION TO TRANSFER Before the Court is Defendants Samsung Electronics Co. Ltd (“SEC”) and Samsung Electronics America, Inc.’s (“SEA”) (collectively, “Samsung”) Motion to Transfer Venue to the Northern District of California. ECF No. 42. Plaintiff Smart Mobile Technologies LLC (“Smart Mobile”) opposes the motion. ECF No. 84. Samsung filed a reply to further support its motion. ECF No. 91. After careful consideration of the parties’ briefs and the applicable law, the Court DENIES Samsung’s motion to transfer venue to the Northern District of California. I. FACTUAL BACKGROUND In its complaint, Smart Mobile claims Samsung infringes of U.S. Patent Nos. 8,442,501 (the “’501 patent”), 8,472,936 (the “’936 patent”), 9,472,937 (the “’937 patent”), 8,761,739 (the “’739 patent”), 8,824,434 (the “’434 patent”), 8,842,653 (the “’653 patent”), 9,019,946 (the “’946 patent”), 9,049,119 (the “’119 patent”), 9,191,083 (the “’083 patent”), 9,614,943 (the “’943 patent”), 9,756,168 (the “’168 patent”), and 9,084,291 (the “’291 patent”) (collectively, the “asserted patents”). ECF No. 1 ¶¶ 1−14. The ’501, ’936, ’937, ’739, ’119, and ’168 patents are directed to “improved wireless communication systems and devices having voice and data communication capability, the capability to switch dynamically between wireless networks, and the capability of communicating with a server than enhances the functionality of the devices.” Id. ¶ 23. The ’434, ’653, ’946, ’291, ’083, and ’943 patents are directed to “enhancements to mobile device communications functionality.” Id. ¶ 24.

Smart Mobile, the owner of the asserted patents, is a limited liability company organized under the laws of Delaware. Id. ¶ 16. Smart Mobile’s principal place of business is in Austin, Texas. Id. SEC is a corporation organized under the laws of South Korea with a principal place of business in South Korea. Id. ¶ 17. SEA is a wholly owned subsidiary of SEC. Id. ¶ 18. SEA is a corporation organized under the laws of New York with a principal place of business in New Jersey. Id. According to Smart Mobile, Samsung sells products that infringe the asserted patents, including Galaxy S, Galaxy Note, Galaxy A, Galaxy J, Galaxy Z, Galaxy Tab, and other Galaxy mobile devices. Id. ¶ 34. The Court will refer to these products as the “accused products.” Along with this case, Smart Mobile also filed an action against Apple Inc. Smart Mobile Technologies LLC v. Apple Inc., No. 6:21-cv-603-ADA (W.D. Tex. June 11, 2021), ECF No. 1

[hereinafter “Apple Litigation”]. The Apple Litigation involves many of the same patents that are asserted in this case. After responding to Smart Mobile’s complaint, Samsung filed this motion to transfer. ECF No. 42. Samsung does not argue that the Western District of Texas (“WDTX”) is an improper venue for this case; instead, it argues that the Northern District of California (“NDCA”) is a more convenient forum, pointing to the location of potential witnesses and the relevant records in California. Id. at 1. Smart Mobile contends that this case should remain in the WDTX, pointing to, among other factors, Smart Mobile’s witnesses and evidence in Texas and the lack of relevant witnesses in the NDCA. ECF No. 84 at 1. 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 NDCA. Samsung argues that the threshold determination is met because SEA has facilities in California and over 520 full-time employees in

the NDCA, and SEC is a foreign corporation. No. 42 at 4. Smart Mobile does not address the threshold determination. ECF No. 84. Because Samsung has shown that venue is proper for the claims against SEC and SEA, the Court determines that the threshold determination is met.

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Smart Mobile Technologies LLC v. Samsung Electronics Co. Ltd., (W.D. Tex. 2023).

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