Two-Way Media LLC v. AT & T INC.

636 F. Supp. 2d 527, 2009 U.S. Dist. LEXIS 47700, 2009 WL 1606972
CourtDistrict Court, S.D. Texas
DecidedJune 8, 2009
DocketCivil CC-8-116
StatusPublished
Cited by4 cases

This text of 636 F. Supp. 2d 527 (Two-Way Media LLC v. AT & T INC.) is published on Counsel Stack Legal Research, covering District Court, S.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Two-Way Media LLC v. AT & T INC., 636 F. Supp. 2d 527, 2009 U.S. Dist. LEXIS 47700, 2009 WL 1606972 (S.D. Tex. 2009).

Opinion

MEMORANDUM OPINION AND ORDER GRANTING MOTION TO TRANSFER VENUE

HAYDEN HEAD, Chief Judge.

This is a patent infringement ease. Plaintiff Two-Way Media LLC (“TWM”) sues AT & T Inc. and its subsidiary corporations (“the AT & T Defendants”) 1 for infringing U.S. Patent Nos. 5,778,187 (the “187 Patent”), 5,983,005 (the “005 Patent”), 6,434,622 B1 (the “622 Patent”), 7,080,153 (the “153 Patent”), and 7,266,686 (the “686 Patent”). The AT & T Defendants move to transfer venue of this case to the United States District Court for the Western District of Texas, San Antonio Division 2 , pursuant to 28 U.S.C. § 1404(a). For the reasons discussed below, the motion is GRANTED.

I. BACKGROUND

TWM owns five patents 3 related to live streaming technology that is used for broadcasting audio and video over the Internet. On April 11, 2008, TWM filed suit in this Court against Akamai Technologies, Inc. (“Akamai”), Limelight Networks, Inc. (“Limelight”), and the AT & T Defendants for infringing those patents. TWM has since settled with Akamai and Limelight, which are no longer parties to this lawsuit. The only defendants remaining in this case are the AT & T Defendants. TWM contends the AT & T Defendants provide a service called “U-verse” that infringes its patents.

On February 27, 2009, the AT & T Defendants filed a motion to transfer venue of this case in the Corpus Christi Division of the Southern District of Texas to the San Antonio Division of the Western District of Texas. They argue San Antonio is a clearly more convenient forum than Corpus Christi because the U-verse business is based in and managed from San Antonio, and the majority of their key witnesses live in either San Antonio or Austin. The AT & T Defendants also contend this lawsuit has no meaningful connection to the Corpus Christi Division because none of the parties, potential witnesses, or relevant evidence is located in the Corpus Christi Division, and U-verse is not sold in the Corpus Christi Division.

TWM opposes transfer arguing it would not be in the interest of justice. Citing to Regents of the Univ. of Cal. v. Eli Lilly & Co., 119 F.3d 1559 (Fed.Cir.1997), TWM argues judicial economy favors keeping this case in Corpus Christi. TWM contends this Court has already invested substantial time and resources becoming familiar with the technology at issue in this case. Specifically, from 2004 to 2007, this Court presided over a case that involved three of the five patents that are now at issue in this case. See Two-Way Media, *531 LLC v. America Online, Inc., Civil Action No. 2:04-89. TWM argues transferring this case to San Antonio would create a delay and waste judicial resources.

II. APPLICABLE LAW

Title 28 U.S.C. § 1404(a) applies to change of venue in patent cases. In re TS Tech USA Corp., 551 F.3d 1315, 1319 (Fed.Cir.2008). Section 1404(a) provides “[f]or the convenience of parties and witnesses, in the interest of justice, a district court may transfer any civil action to any other district [court] where it might have been brought.” 28 U.S.C. § 1404(a). In reviewing a district court’s decision regarding a motion to transfer venue under § 1404(a), the Federal Circuit Court of Appeals applies the law of the regional circuit in which the district court sits. In re TS Tech USA Corp., 551 F.3d at 1319 (citing Storage Technology Corp. v. Cisco Systems, Inc., 329 F.3d 823, 836 (Fed.Cir.2003)).

In the Fifth Circuit, district courts have broad discretion in deciding whether to order a transfer. In re Volkswagen of America, Inc., 545 F.3d 304, 315 (5th Cir.2008) (citing Balawajder v. Scott, 160 F.3d 1066, 1067 (5th Cir.1998)). The preliminary question that a district court must answer in ruling on such a motion is whether the civil action “might have been brought” in the destination venue. In re Volkswagen AG, 371 F.3d 201, 203 (5th Cir.2004) (citing In re Horseshoe Entm’t, 337 F.3d 429, 432 (5th Cir.) cert. denied, 540 U.S. 1049, 124 S.Ct. 826, 157 L.Ed.2d 698 (2003)). If so, a district court must then determine whether “the convenience of the parties and witnesses, in the interest of justice” requires transfer. In re Volkswagen AG, 371 F.3d at 203.

Under Fifth Circuit law, a party moving to transfer a case under § 1404(a) must show “good cause.” In re Volkswagen of America, Inc., 545 F.3d at 315. To show good cause means that a moving party, in order to support its claim for a transfer “... must satisfy the statutory requirements and clearly demonstrate that a transfer is ‘[f]or the convenience of the parties and witnesses, in the interest of justice.’ ” Id. When the transferee venue is not clearly more convenient than the venue chosen by the plaintiff, the plaintiffs choice of forum should be respected. Id. However, when the movant demonstrates that the transferee venue is clearly more convenient, it has shown good cause and the district court should grant the transfer. Id.

The Fifth Circuit Court of Appeals has adopted the private and public factors enunciated in Gulf Oil Corp. v. Gilbert, 330 U.S. 501, 67 S.Ct. 839, 91 L.Ed. 1055 (1947), as appropriate for determining whether a § 1404(a) transfer is for the convenience of parties and witnesses and in the interest of justice. In re Volkswagen of America, Inc., 545 F.3d 304, 315 (5th Cir.2008). However, the Gilbert factors are not necessarily exhaustive or exclusive, and none “... can be said to be of dispositive weight.” Id. (citing Action Indus., Inc. v. U.S. Fid. & Guar. Corp., 358 F.3d 337, 340 (5th Cir.2004)). The plaintiffs choice of venue is not a distinct factor in the § 1404(a) analysis. In re TS Tech USA Corp.,

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Bluebook (online)
636 F. Supp. 2d 527, 2009 U.S. Dist. LEXIS 47700, 2009 WL 1606972, Counsel Stack Legal Research, https://law.counselstack.com/opinion/two-way-media-llc-v-at-t-inc-txsd-2009.