Theta IP, LLC v. Motorola Mobility LLC

CourtDistrict Court, N.D. Illinois
DecidedMarch 25, 2024
Docket1:22-cv-03441
StatusUnknown

This text of Theta IP, LLC v. Motorola Mobility LLC (Theta IP, LLC v. Motorola Mobility LLC) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Theta IP, LLC v. Motorola Mobility LLC, (N.D. Ill. 2024).

Opinion

UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION

THETA IP, LLC, ) ) Plaintiff, ) ) No. 22 C 3441 v. ) ) Judge Sara L. Ellis MOTOROLA MOBILITY LLC; ) LENOVO (UNITED STATES) INC, and ) LENOVO GROUP LTD, ) Defendant. )

OPINION AND ORDER Plaintiff Theta IP, LLC (“Theta”) filed this lawsuit against Motorola Mobility LLC (“Motorola”), Lenovo (United States) Inc. (“Lenovo US”), and their parent company, Lenovo Group Limited (“LGL”), alleging infringement of multiple of Theta’s patents that detail technology used to preserve cell phone battery life. LGL filed a motion to dismiss for lack of personal jurisdiction pursuant to Federal Rule of Civil Procedure 12(b)(2).1 Because LGL does not have sufficient minimum contacts with Illinois, this Court lacks jurisdiction over LGL and dismisses it from this case.

1 The parties filed their briefs and accompanying exhibits under seal, also providing redacted versions. If the Court refers to a sealed document, it attempts to do so without revealing any information that could reasonably be deemed confidential. Nonetheless, if the Court discusses confidential information, it has done so because it is necessary to explain the path of its reasoning. See In re Specht, 622 F.3d 697, 701 (7th Cir. 2010) (“Documents that affect the disposition of federal litigation are presumptively open to public view, even if the litigants strongly prefer secrecy, unless a statute, rule, or privilege justifies confidentiality.”); Union Oil Co. of Cal. v. Leavell, 220 F.3d 562, 568 (7th Cir. 2000) (explaining that a judge's “opinions and orders belong in the public domain”). BACKGROUND2 Theta manufactures high performance wireless networking equipment for mobile devices. Its founder, Professor Yannis Tsividis, invented systems to reduce the loss of cell phone’s battery power that occurs when a cell phone connects to a wireless transmitter. He patented various

aspects of his system in U.S. Patent No. 7,010,330 (the “’330 Patent”), U.S. Patent No. 10,129,825 (the “’825 Patent”), and U.S. Patent No. 10,524,202 (the “’202 Patent”) (collectively, the “Patents”). Motorola and Lenovo US import, design, and sell various cellphones and tablet devices that connect to wireless receivers throughout the United States. Motorola is incorporated in Delaware and has its principal place of business in Chicago, Illinois. Lenovo US is incorporated in Delaware and has its principal place of business in Morrisville, North Carolina. Theta asserts that at least some of the products sold by Motorola and Lenovo US use cell phone battery designs that infringe on Theta’s patents.3 LGL is a Chinese holding company, serving as the indirect parent company for Motorola

and the direct parent company for Lenovo US. As explained by Adrian Chim, the Director of Group Financial Reporting and Accounting Policy for LGL, in his affidavit (the “Chim

2 In addressing personal jurisdiction, the Court is not limited to the pleadings. See Purdue Rsch. Found. v. Sanofi-Synthelabo, S.A., 338 F.3d 773, 782 (7th Cir. 2003). Therefore, the Court draws the facts from the complaint and the additional documents submitted by the parties. The Court resolves all factual conflicts and draws all reasonable inferences in Theta’s favor. Id. at 782–83.

3 These products include the following Motorola phones: the Moto G Family phones (including Moto G Power (2021), Moto G Stylus (2022), Moto G Stylus 5G, Moto G Stylus (2021), Moto G Stylus 5G (2022), Moto G Pure, Moto G 100, Moto G Play, Moto G Stylus (2020), Moto G Fast, Moto G Power (2022), Moto G Power (2020)); the Motorola Edge Family (including Edge, Edge (2021), Edge (2020), Edge Plus, Edge 5G, Edge Plus (2022)); the Motorola One Family (including One, One 5G, One 5G Ace, One Fusion Plus, One Action, One Hyper, One Zoom); the Moto X4; the Moto E Family; the Moto Z Family; and the RAZR Family (including, without Razr, Razr (2020), Razr (2nd Gen)). They also include the following Lenovo branded series smartphones: S Series; K Series; Legion Series; P Series; Z Series; VIBE Series; A Series; and the Tab Series products with cellular capabilities. The Court will refer to these products as the “Accused Products.” Affidavit”), LGL is incorporated and has its principal place of business in Hong Kong. See Doc. 54-1 ¶¶ 1–2. As a holding company, LGL does not manufacture or sell any merchandise, nor does it participate in the research and development of the Motorola or Lenovo US products. Id. ¶ 5. LGL does not participate in Motorola’s or Lenovo US’ decision making related to the sales,

marketing, distribution, or importation of Motorola or Lenovo US products. Id. ¶ 6. Nor does LGL pay any wages or salaries to employees of Lenovo US or Motorola. Id. ¶ 8. Both Motorola and Lenovo US have agreements with other LGL subsidiaries. In 2015, Motorola contracted with another LGL subsidiary and cell phone manufacturer, Motorola Wuhan, to sell cell phones throughout the United States. See Doc. 80-9 (the “Motorola and Motorola Wuhan Purchase Agreement”). Lenovo US entered into a distribution agreement with another LGL subsidiary, Lenovo PC HK Limited, to sell cell phones throughout the United States. See Doc. 80-10 (the “Lenovo US/Lenovo PC HK Agreement”). As part of the Lenovo US/Lenovo PC HK Agreement, Lenovo US agreed to consider, but would not be bound by, recommended prices provided by Lenovo PC HK. See Doc. 80-10 at 15. If Lenovo US chose to

sell a product for less, it needs to consult “with the appropriate delegation levels within the Lenovo Group.” Id. The Lenovo US/Lenovo PC HK Agreement defines Lenovo Group as “the group of companies owned, directly or indirectly, by Lenovo Group Limited.” Id. at 5. LEGAL STANDARD A motion to dismiss under Rule 12(b)(2) challenges the Court’s jurisdiction over a party. Fed. R. Civ. P. 12(b)(2). When a defendant raises a Rule 12(b)(2) challenge, “the plaintiff bears the burden of demonstrating the existence of jurisdiction.”4 Curry v. Revolution Lab’ys, LLC,

4 Theta argues that the burden should shift to LGL to prove a lack of personal jurisdiction because LGL filed the motion in an untimely manner, after Theta filed a motion for default against LGL. See be2 LLC v. Ivanov, 642 F.3d 555, 557 (7th Cir. 2011) (“Because he knew about the suit and chose to default rather than defend, he must bear the burden of proof on his post-judgment motion challenging personal 949 F.3d 385, 392 (7th Cir. 2020) (citation omitted). If the Court rules on the Rule 12(b)(2) motion without an evidentiary hearing, the plaintiff need only establish a prima facie case of personal jurisdiction. Id. at 392–93; N. Grain Mktg., LLC v. Greving, 743 F.3d 487, 491 (7th Cir. 2014). In resolving a Rule 12(b)(2) motion, the Court “accept[s] as true all well-pleaded

facts alleged in the complaint,” Felland v. Clifton, 682 F.3d 665, 672 (7th Cir. 2012), and “reads the complaint liberally with every inference drawn in favor of [the] plaintiff,” GCIU-Emp. Ret. Fund v. Goldfarb Corp., 565 F.3d 1018, 1020 n.1 (7th Cir. 2009).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Milliken v. Meyer
311 U.S. 457 (Supreme Court, 1941)
International Shoe Co. v. Washington
326 U.S. 310 (Supreme Court, 1945)
World-Wide Volkswagen Corp. v. Woodson
444 U.S. 286 (Supreme Court, 1980)
In Re Specht
622 F.3d 697 (Seventh Circuit, 2010)
Illinois v. Hemi Group LLC
622 F.3d 754 (Seventh Circuit, 2010)
Avocent Huntsville Corp. v. Aten Intern. Co., Ltd.
552 F.3d 1324 (Federal Circuit, 2008)
Be2 LLC v. Ivanov
642 F.3d 555 (Seventh Circuit, 2011)
J. McIntyre Machinery, Ltd. v. Nicastro
131 S. Ct. 2780 (Supreme Court, 2011)
Union Oil Company of California v. Dan Leavell
220 F.3d 562 (Seventh Circuit, 2000)
Robert Felland v. Patrick Clifton
682 F.3d 665 (Seventh Circuit, 2012)
Holocaust Victims of v. OTP Bank
692 F.3d 638 (Seventh Circuit, 2012)
GCIU-Employer Retirement Fund v. Goldfarb Corp.
565 F.3d 1018 (Seventh Circuit, 2009)
Daimler AG v. Bauman
134 S. Ct. 746 (Supreme Court, 2014)
Northern Grain Marketing, LLC v. Marvin Greving
743 F.3d 487 (Seventh Circuit, 2014)

Cite This Page — Counsel Stack

Bluebook (online)
Theta IP, LLC v. Motorola Mobility LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/theta-ip-llc-v-motorola-mobility-llc-ilnd-2024.