Treehouse Avatar LLC v. Valve Corp.

170 F. Supp. 3d 706, 2016 WL 1129726, 2016 U.S. Dist. LEXIS 36883
CourtDistrict Court, D. Delaware
DecidedMarch 22, 2016
DocketCiv. No. 15-427-SLR
StatusPublished
Cited by9 cases

This text of 170 F. Supp. 3d 706 (Treehouse Avatar LLC v. Valve Corp.) 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
Treehouse Avatar LLC v. Valve Corp., 170 F. Supp. 3d 706, 2016 WL 1129726, 2016 U.S. Dist. LEXIS 36883 (D. Del. 2016).

Opinion

MEMORANDUM OPINION

ROBINSON, District Judge

I. INTRODUCTION

On May 27, 2015, plaintiff Treehouse Avatar LLC (“plaintiff’) filed a complaint alleging infringement of U.S. Patent No. 8,180,858 (“the ’858 patent”) against defendant Valve Corporation (“defendant”). (D.I.l) Presently before the court are defendant’s motions to dismiss (D.I.ll) and transfer (D.I.17). The court has jurisdiction pursuant to 28 U.S.C. §§ 1331 and 1338(a).

II. BACKGROUND

Plaintiff is a limited liability company organized under the laws of the State of Delaware, having its principal place of business in Ottawa, Ontario, Canada. (D.I. 1 at ¶ 2) Defendant is incorporated in the State of Washington, with a principal place of business in Bellevue, Washington. (D.I. 1 at ¶ 3) The ’858 patent, titled “Method and System for Presenting Data Over A Network Based On Network User Choices and Collecting Real-Time Data Related To Said Choices,” was filed on November 30, 2010 and issued on May 15, 2012.

III. MOTION TO TRANSFER

A. Standard

Section 1404(a) of Title 28 of the United States Code grants district courts the authority to transfer venue “[f]or the convenience of parties and witnesses, in the interests of justice ... to any other district or division where it might have been brought.” 28 U.S.C. § 1404(a). Much has [709]*709been written about the legal standard for motions to transfer under 28 U.S.C. § 1404(a). See, e.g., In re Link_A_Media Devices Corp., 662 F.3d 1221 (Fed.Cir.2011); Jumara v. State Farm Ins. Co., 55 F.3d 873 (3d Cir.1995); Helicos Biosciences Corp. v. Illumina, Inc., 858 F.Supp.2d 367 (D.Del.2012).

Referring specifically to the analytical framework described in Héticos, the court starts with the premise that “a plaintiff, as the injured party, generally ha[s] been ‘accorded [the] privilege of bringing an action where he chooses.’ ” 858 F.Supp.2d at 371 (quoting Norwood v. Kirkpatrick, 349 U.S. 29, 31, 75 S.Ct. 544, 99 L.Ed. 789 (1955)). Indeed, the Third Circuit in Jumara reminds the reader that “[t]he burden of establishing the need for transfer ... rests with the movant” and that, “in ruling on defendants’ motion, the plaintiffs choice of venue should not be lightly disturbed.” 55 F.3d at 879 (citation omitted).

The Third Circuit goes on to recognize that,

[i]n ruling on § 1404(a) motions, courts have not limited their consideration to the three enumerated factors in § 1404(a) (convenience of parties, convenience of witnesses, or interests of justice), and, indeed, commentators have called on the courts to “consider all relevant factors to determine whether on balance the litigation would more conveniently proceed and the interests of justice be better served by transfer to a different forum.”

Id. (citation omitted). The Court then describes some of the “many variants of the private and public interests protected by the language of § 1404(a).” Id.

The private interests have included: plaintiffs forum of preference as manifested in the original choice; the defendant’s preference; whether the claim arose elsewhere; the convenience of the parties as indicated by their relative physical and financial condition; the convenience of the witnesses— but only to the extent that the witnesses may actually be unavailable for trial in one of the fora; and the location of books and records (similarly limited to the extent that the files could not be produced in the alternative forum). The public interests have included; the enforceability of the judgment; practical considerations that could make the trial easy, expeditious, or inexpensive; the relative administrative difficulty in the two fora resulting from court congestion; the local interest in deciding local controversies at home; the public policies of the fora; and the familiarity of the trial judge with the applicable state law in diversity cases.

Id. (citations omitted) (emphasis added).

B. Analysis

With the above “jurisdictional guideposts” in mind, the court turns to the “difficult issue of federal comity” that transfer motions present. E.E.O.C. v. Univ. of Pa., 850 F.2d 969, 976 (3d Cir.1988). Plaintiff does not challenge that venue would also be proper in the Western District of Washington. As such, the court does not address this further. See 28 U.S.C. § 1404(a); (D.I.16)

Both Delaware and Washington are legitimate forums in which to pursue the litigation at bar. Defendant does not dispute that Delaware is a valid venue, indeed, defendant sells its products across the United States (including to customers in Delaware). (D.I. 18 at 4) Defendant’s state of incorporation also is a traditional and legitimate venue, as is the locus of its business activities. Defendant contends that plaintiffs’ choice of forum should be given little or no deference as Delaware is not “home turf” for the plaintiff. Since [710]*710plaintiff incorporated in Delaware weeks before filing the action at bar, defendant argues that plaintiffs home turf should be deemed Ottawa, Canada, where it has its principal place of business. Business entities choose their situs of incorporation for varied reasons, including the ability to sue and be sued in that venue.1 See, Cradle IP, LLC v. Texas Instruments, Inc., 923 F.Supp.2d 696, 699 (D.Del.2013). Defendant concludes that it is more convenient and efficient to litigate in Washington, based on its incorporation and business offices in Washington. Given that “convenience” is separately considered in the transfer analysis, the court declines to elevate defendant’s choice of venue over the choice of plaintiff. Notwithstanding the Federal Circuit’s recent discussion of “connections to a preferred forum made in anticipation of litigation and for the likely purpose of making that forum appear convenient,” In re Microsoft, 630 F.3d 1361, 1364 (Fed.Cir.2011),2 that plaintiffs have historically been accorded the privilege of choosing their preferred venue for pursuing their claims remains a factor in the .application of the law of this circuit.

A claim for patent infringement arises wherever someone has committed acts of infringement, to wit, “makes, uses, offers to sell, or sells any patented invention” without authority. See generally 35 U.S.C. § 271(a); Red Wing Shoe Co., Inc. v.

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170 F. Supp. 3d 706, 2016 WL 1129726, 2016 U.S. Dist. LEXIS 36883, Counsel Stack Legal Research, https://law.counselstack.com/opinion/treehouse-avatar-llc-v-valve-corp-ded-2016.