Valtrus Innovations Ltd. v. SAP America, Inc.

CourtDistrict Court, E.D. Texas
DecidedDecember 13, 2024
Docket2:24-cv-00021
StatusUnknown

This text of Valtrus Innovations Ltd. v. SAP America, Inc. (Valtrus Innovations Ltd. v. SAP America, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Valtrus Innovations Ltd. v. SAP America, Inc., (E.D. Tex. 2024).

Opinion

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

VALTRUS INNOVATIONS LTD. and KEY § PATENT INNOVATIONS, LTD., § § Plaintiffs, § v. CIVIL ACTION NO. 2:24-CV-00021-JRG § SAP AMERICA, INC. and SAP SE, § Defendants. §

MEMORANDUM OPINION AND ORDER Before the Court are (1) Defendants SAP America, Inc. and SAP SE’s (collectively, “Defendants” or “SAP”) Motion for Intra-District Transfer Under 28 U.S.C. § 1404(a) (Dkt. No. 22, the “Motion to Transfer”), and (2) Defendants’ Motion to Stay Case Pending Rulings on Motion to Dismiss for Lack of Standing and Motion to Transfer (Dkt. No. 76, the “Motion to Stay” and with the Motion to Transfer, the “Motions”). Having considered the Motions, the associated briefing, and all documents submitted in support thereof, the Court finds that the Motions should be DENIED. I. INTRODUCTION On January 15, 2024, Plaintiff Valtrus Innovations Ltd. (“Plaintiff”1 or “Valtrus” and with Defendants, the “Parties”) filed suit, accusing Defendants of infringing U.S. Patent Nos. 6,823,409, 6,889,244, 7,152,182, 7,313,575, 6,691,139, 7,936,738, and 6,871,264 (the “’264 Patent”) (collectively, “the Asserted Patents”). (Dkt. No. 1 ¶¶ 30–75.) Specifically, Plaintiff alleges that the following products infringe one or more of the Asserted Patents: SAP HANA, SAP HANA on AMD EPYC, SAP Cloud Integration, SAP Data Services, and SAP Business Network Asset

1 After Defendants filed the Motion to Transfer, the Court granted Plaintiff leave to amend its complaint to add Key Patent Innovations, Ltd. as a co-plaintiff. (Dkt. No. 83.) Collaboration. (Dkt. Nos. 1-8–1-13). Plaintiff also alleges that venue is proper before this Court. (Dkt. No. 1 ¶¶ 27–29.) On March 20, 2024, Defendants filed the Motion to Transfer. (Dkt. No. 22.) In the Motion to Transfer, Defendants request that the Court order an intra-district transfer of this case to the

Sherman Division of the Eastern District of Texas under 28 U.S.C. § 1404. (Dkt. No. 22 at 1.) Soon thereafter, the Court ordered venue discovery. (Dkt. No. 29.) II. LEGAL STANDARD Section 1404(a) provides that “[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 or division where it might have been brought.” The first inquiry when analyzing a case’s eligibility for § 1404(a) transfer is “whether the judicial district to which transfer is sought would have been a district in which the claim could have been filed.” In re Volkswagen AG, 371 F.3d 201, 203 (5th Cir. 2004) (“Volkswagen I”). Once that threshold is met, courts analyze private and public factors relating to the convenience of parties and witnesses as well as the interests of particular venues in hearing the

case. See Humble Oil & Ref. Co. v. Bell Marine Serv., Inc., 321 F.2d 53, 56 (5th Cir. 1963). “A motion to transfer venue pursuant to § 1404(a) should be granted if the movant demonstrates that the transferee venue is clearly more convenient, taking into consideration” the private and public factors. In re Radmax, Ltd., 720 F.3d 285, 288 (5th Cir. 2013) (emphasis added and cleaned up). While the plaintiff’s choice of venue is entitled to deference, it is “not an independent factor.” In re Volkswagen of Am., Inc., 545 F.3d 304, 314-15 (5th Cir. 2008) (“Volkswagen II”). Rather, the plaintiff’s choice of venue contributes to the defendant’s elevated burden of proving that the transferee venue is “clearly more convenient” than the transferor venue. Id. at 315. Also, though the private and public factors apply to most transfer cases, “they are not necessarily exhaustive or exclusive,” and no single factor is dispositive. Id. III. ANALYSIS A. The Motion to Transfer (Dkt. No. 22) 1. The Suit Could Have Been Filed in the Sherman Division Defendants argue that this case could have been filed in the Sherman Division of the

Eastern District of Texas. (Dkt. No. 22 at 7.) Plaintiff does not dispute such, and the Court agrees with Defendants. 2. Private Interest Factors The private interest factors include: (i) the relative ease of access to sources of proof; (ii) the availability of compulsory process to secure the attendance of witnesses; (iii) the cost of attendance for willing witnesses; and (iv) all other practical problems that make trial of a case easy, expeditious, and inexpensive. Volkswagen I, 371 F.3d at 203 (citing Piper Aircraft Co. v. Reyno, 454 U.S. 235, 241 n.6 (1981)). a) Relative Ease of Access to Sources of Proof “When the vast majority of the evidence is electronic, and therefore equally accessible in either forum, this factor bears less strongly on the transfer analysis.” In re TikTok, Inc., 85 F.4th

352, 358 (5th Cir. 2023) (cleaned up) (quoting In re Planned Parenthood Fed’n Am., Inc., 52 F.4th 625, 630 (5th Cir. 2022)). Courts should also consider “the location of document custodians and location where documents are created and maintained, which may bear on the ease of retrieval.” In re Google LLC, No. 2021-178, 2021 WL 5292267, at *2 (Fed. Cir. Nov. 15, 2021). According to Defendants, they have two offices located in the Sherman Division which maintain “relevant documents concerning issues of infringement, invalidity, and damages.” (Dkt. No. 22 at 8.) Defendants argue that no documents are located or accessible in the Marshall Division. (Id.) Further, Defendants argue speculatively that Plaintiff’s licensing agent, Patent Platform Services LLC (“PPS”), and the former owner of the Asserted Patents, Hewlett Packard Enterprise (“HPE”), may likely have relevant documents in their Sherman Division-based offices. (Id.)

Plaintiff argues that where, as here, relevant documents are stored electronically and there is no physical evidence in the potential transferee venue, this factor is neutral. (Dkt. No. 41 at 6.) Instead of maintaining documents in the Sherman Division, Plaintiff argues that Defendants admit that they store and maintain documents relating to the design and development of the Accused Products in Germany and India. (Id.; Dkt. No. 22 at 8 n.3 (“SAP also stores and maintains documents relating to the design and development of the Accused Products in Germany and India.”).) Notably, Defendants have failed to identify any Texas-based servers. (Dkt. No. 41 at 6.) With respect to PPS, Plaintiff argues that most relevant documents are in New Jersey, Pennsylvania, and/or hosted on third-party Microsoft servers. (Id. at 7.) Regarding HPE, its worldwide headquarters is in Spring, TX—which is closer to the Marshall Division than the

Sherman Division. (Id.) Defendants do not dispute that the relevant documents are electronic. Also, Defendants do not identify any document custodians or servers located in the Sherman Division. Defendants further admit that they “store[] and maintain[] documents relating to the design and development of the Accused Products in Germany and India.” (Dkt. No. 22 at 8 n.3.) A court in the Western District of Texas recently considered a similar situation. In SVV Technology Innovations, Inc. v.

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Related

Piper Aircraft Co. v. Reyno
454 U.S. 235 (Supreme Court, 1982)
In Re TS Tech USA Corp.
551 F.3d 1315 (Federal Circuit, 2008)
In Re Volkswagen Ag Volkswagen of America, Inc.
371 F.3d 201 (Fifth Circuit, 2004)
In Re: Radmax, Limited
720 F.3d 285 (Fifth Circuit, 2013)
In re Planned Parenthood Federation of America
52 F.4th 625 (Fifth Circuit, 2022)
In re Volkswagen of America, Inc.
545 F.3d 304 (Fifth Circuit, 2008)
In Re: Kevin Clarke
94 F.4th 502 (Fifth Circuit, 2024)

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Valtrus Innovations Ltd. v. SAP America, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/valtrus-innovations-ltd-v-sap-america-inc-txed-2024.