Ultravision Technologies, LLC v. GoVision, LLC

District Court, E.D. Texas·Decided December 9, 2020·No. 2:18-cv-00100·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF TEXAS MARSHALL DIVISION

ULTRAVISION TECHNOLOGIES, § LLC, § § Plaintiff, § § Case No. 2:18-cv-00100-JRG-RSP v. § LEAD CASE § GOVISION, LLC, § § Defendant. §

MEMORANDUM ORDER Before the Court is non-party Shenzhen Liantronics Co., Ltd.’s (“Liantronics”) Motion to Intervene in Proceedings and Brief in Support. Dkt. No. 364. Liantronics’ motion seeks to intervene in the above-captioned matter “for the sole purpose of correcting inventorship of the Hall patents under 35 U.S.C. § 256 to name Jiang and Zhang as a co-inventors of the Hall waterproof patents and Jiang, Zhang, and Wang as co-inventors of the Hall monitoring patent.” After due consideration, the Court DENIES Liantronics’ Motion on the grounds that Liantronics’ Motion is untimely and their interests are adequately represented by existing parties. I. BACKGROUND Plaintiff Ultravision Technologies, LLC filed this action on March 27, 2018, alleging that Defendant GoVision, LLC infringed several patents. Dkt. No. 1. Ultravision filed additional complaints against a number of other alleged infringers, including Liantronics, asserting the same patents, and these cases were consolidated on March 12, 2019, making Liantronics a consolidated defendant. Dkt. No. 17. Ultravision notes that simultaneously, complaints were filed at the International Trade Commission. Dkt. No. 393 at 4. As a result of additional cases filed, amended complaints adding and removing asserted patents against various defendants, and service issues, in June of 2020 the Court deconsolidated several member cases, including Case No. 2:18-cv-00103-JRG-RSP (“Liantronics Member Case”), the member case that made Liantronics a consolidated defendant. See Dkt. No. 278. That

same day, the Liantronics Member Case was consolidated under Case No. 2:18-cv-00099-JRG- RSP (“Glux Lead Case”), in which Liantronics is currently a consolidated defendant. Liantronics Member Case Dkt. No. 21; Glux Lead Case Dkt. No. 18. On September 8, 2020, Liantronics, now a non-party, filed the present motion. Dkt. No. 364. Liantronics claims that: “[s]ince being named in a separate proceeding, Liantronics . . . discovered that its technology was wrongfully claimed. . . . Throughout the summer of 2020, Liantronics’ attorneys interviewed various Liantronics employees . . . . These employees confirmed that the subject matter claimed in the Hall patents included concepts they had personally conceived of . . . and were able to locate documents corroborating their invention.”

Dkt. No. 364 at 8–9. Liantronics claims that U.S. Patent Nos. 9,916,782; 9,990,869; 9,978,294; 10,248,372; 9,984,603; 9,642,272; and 9,207,904 (collectively, the “Hall Patents”), all of which are either asserted against Liantronics in the Glux Case, asserted against other defendants in the above-captioned matter, or both, have incorrect inventorship. Id. at 1–2, 8. Liantronics asserts the Hall Patents fail to name Liantronics employees as inventors, and that Liantronics is an owner. Id. at 13. II. LEGAL STANDARDS Intervention is governed by Federal Rule of Civil Procedure 24. Fed. R. Civ. P. 24. Rule 24(a) provides that intervention must be permitted as a matter of right to anyone who: “(1) is given an unconditional right to intervene by a federal statute; or (2) claims an interest relating to the property or transaction that is the subject of the action, and is so situated that disposing of the action may as a practical matter impair or impede the movant's ability to protect its interest, unless existing parties adequately represent that interest.

Fed. R. Civ. P. 24(a). Permissive intervention may be allowed where the intervenor’s claim or defense share common questions of law or fact with the plaintiff’s action and intervention will not unduly delay or prejudice the existing parties. Fed. R. Civ. P. 24(b). The determination to allow permissive intervention under Rule 24(b) is discretionary. New Orleans Pub. Serv., Inc. v. United Gas Pipe Line Co., 732 F.2d 452, 470–71 (5th Cir. 1984) “Although the movant bears the burden of establishing its right to intervene, Rule 24 is to be liberally construed.” Wal-Mart Stores, Inc. v. Tex. Alcoholic Beverage Comm’n, 834 F.3d 562, 565 (5th Cir. 2016). “ In evaluating a motion to intervene, all “allegations are accepted as true.” Mendenhall v. M/V Toyota Maru No. 11, 551 F.2d 55, 56 n. 2 (5th Cir. 1977). The Fifth Circuit has interpreted Rule 24(a)(2) as imposing four requirements for intervention as a matter of right: (1) the motion is timely; (2) the movant has an interest relating to the property that is the subject of the action; (3) the movant is so situated that disposition of the action may, as a practical matter, impair or impede its ability to protect its interests; and (4) the movant’s interest is not adequately represented by the existing parties to the suit. Sierra Club v. Espy, 18 F.3d 1202, 1204–05 (5th Cir. 2994); see also Global Ground Automation, Inc. v. Groundrez, LLC, Case No. 6:08-cv-00374-LED-JDL, Dkt. No. 92, 2011 WL 13098294, at *3 (E.D. Tex. Sept. 9, 2011); see also Reid v. General Motors Corp., 240 F.R.D. 257, 259 (E.D. Tex. 2006). “If a party seeking to intervene fails to meet any one of those requirements, it cannot intervene as a matter of right.” Sierra Club, 18 F.3d at 1205 (citing Kneeland v. National Collegiate Athletic Ass’n, 806 F.2d 1285, 1287 (5th Cir.), cert. denied, 484 U.S. 817, 108 S.Ct. 72, 98 L.Ed.2d 35 (1987). The first factor for intervention as a matter of right, timeliness, has four sub-factors to consider: (1) the length of time during which the would-be intervenor actually knew or reasonably

should have known of its interest in the case before it petitioned for leave to intervene; (2) the extent of the prejudice that the existing parties to the litigation may suffer as a result of the would- be intervenor’s failure to apply for intervention as soon as it knew or reasonably should have known of its interest in the case; (3) the extent of the prejudice that the would-be intervenor may suffer if intervention is denied; and (4) the existence of unusual circumstances militating either for or against a determination that the application is timely. Sierra Club, 18 F.3d at 1205 (citing Stallworth v. Monsanto Co., 558 F.2d 257, 264–66 (5th Cir. 1977)). III. ANALYSIS A. Intervention as a Matter of Right i. Timeliness

a. Length of Time Interest Known or Should Have Known Liantronics argues that its motion is timely because it only discovered the inventorship issue during the pendency of this case. Dkt. No. 364 at 8. Liantronics asserts that throughout the summer of 2020, Liantronics’ attorneys interviewed Liantronics employees, including Jiang, Zhang, and Wang, who worked on a joint project with Ultravision prior to the filing of the provisional application that led to the Hall Patents.

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Ultravision Technologies, LLC v. GoVision, LLC, (E.D. Tex. 2020).

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