VOIP-PAL.COM, INC. v. AMAZON.COM, INC.

CourtDistrict Court, W.D. Texas
DecidedJune 10, 2022
Docket6:21-cv-00668
StatusUnknown

This text of VOIP-PAL.COM, INC. v. AMAZON.COM, INC. (VOIP-PAL.COM, INC. v. AMAZON.COM, INC.) is published on Counsel Stack Legal Research, covering District Court, W.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
VOIP-PAL.COM, INC. v. AMAZON.COM, INC., (W.D. Tex. 2022).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF TEXAS WACO DIVISION VOIP-PAL.COM, INC. § Plaintiff, § § Civil No. 6:21-cv-00668-ADA v. § § AMAZON.COM, INC., § AMAZON.COM SERVICES LLC, and § AMAZON WEB SERVICES, INC. § Defendants. § [PUBLIC REDACTED] ORDER DENYING DEFENDANTS’ MOTION TO TRANSFER VENUE Defendants Amazon.com, Inc., Amazon.com Services LLC, and Amazon Web Services, Inc., (collectively, “Amazon”) filed their Motion to Transfer (the “Motion”) on November 19, 2021. ECF No. 26. Plaintiff VoIP-Pal.com, Inc. (“VoIP”) filed its Opposition to VoIP’s Motion on March 15, 2022. ECF No. 40. Amazon filed its Reply on March 29, 2022. ECF No. 48. After careful consideration of the briefing, the Court DENIES Amazon’s Motion. I. FACTUAL BACKGROUND Plaintiff VoIP is a Nevada corporation with its principal place of business in Waco, Texas. ECF No. 6 ¶ 1. Defendant Amazon is a Delaware corporation with its principal place of business in Seattle, Washington. Id. ¶¶ 2-4. VoIP filed a complaint against Amazon alleging infringement of U.S. Patent Nos. 8,630,234 (the “’234 patent”) and 10,880,721 (the “’721 patent”; collectively, the “Asserted Patents”) on June 28, 2021. Id. ¶¶ 11-12. The Asserted Patents describe systems, methods, and apparatuses for communication across and between internet-protocol based communication systems and other networks, such as internally controlled systems and external networks. Id. ¶ 26. The “Accused System” is a communications platform where Amazon server infrastructure enables communications by Amazon Alexa Calling Devices (e.g., desktop computers, laptops, tablets, smartphones, and mobile devices) and Alexa software applications running on such devices (collectively, “Alexa devices”). Id. ¶ 28. Alexa devices, Echo devices, the Amazon Alexa app, and Fire tablets (“Amazon Products”) communicate using the Accused System. Id. The Accused System enables communications between the Amazon Products, from the Amazon Products to mobile or landline phones, and group calling between Alexa devices. Id.

¶¶ 28-29. The Accused System ECF No. 40 at 4. A call takes different paths through the Accused System and interact with different servers depending on the caller and the receiver. Amazon engineers responsible for the Accused System are spread across Amazon locations in Sunnyvale, California; Seattle, Washington; Toronto, Ontario, Canada; and Austin, Texas. ECF No. 26 at 4.

ECF No. 26-1 ¶ 3. Ex-Amazon employee Tim Thompson led

a team of 40 engineers responsible for the Alexa devices’ operating system at Amazon’s facility in Austin, Texas. ECF No. 42 Ex. 71 (“Thompson Decl.”) ¶¶ 3-5. While VoIP’s principal place of business is here in Waco, only Chief Financial Officer Kevin Williams works in Waco. ECF No. 26 at 4. VoIP’s other current and former c-suite executives live in Canada. Id. Moreover, until recently VoIP’s principal place of business was in Bellevue, Washington—VoIP moved to Waco in March of 2021, less than one year before it filed this lawsuit. Id.

1 Exhibit VOIP 0007 to the Vinod Prasad deposition, also labeled as Exhibit 24 on ECF page 103. Two Amazon teams in Austin––one managed by Bala Kumar and the other formerly managed by Tim Thompson––have evidence related to the Accused System. Thompson Decl. ¶¶ 3- 5. In Austin, Tim Thompson formerly led an operating system team that included 40 engineers, and Bala Kumar’s Echo Platform Software team includes 13 engineers. Id. Another twelve engineers of the Echo Platform Software team are in Sunnyvale, California. Id.

ECF No. 42 (“Prasad Dep.”) 123:19-124:4. ECF No. 40 at 4. Id. at 5-6. Id. II. LEGAL STANDARD In patent cases, motions to transfer under 28 U.S.C. § 1404(a) are governed by the law of the regional circuit. In re TS Tech USA Corp., 551 F.3d 1315, 1319 (Fed. Cir. 2008). 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 or to any district or division to which all parties have consented.” “Section 1404(a) is intended to place discretion in the district court to adjudicate motions for transfer according to an ‘individualized, case-by-case consideration of convenience and fairness.’” Stewart Org., Inc. v. Ricoh Corp., 487 U.S. 22, 29 (1988) (quoting Van Dusen v. Barrack, 376 U.S. 612, 622 (1964)). The preliminary question under Section 1404(a) is whether a civil action might have been brought in the transfer destination venue. In re Volkswagen, Inc., 545 F.3d 304, 312 (5th Cir. 2008) (en banc) (“Volkswagen II”). Answering that question requires a determination of whether the proposed transferee venue is proper. A plaintiff may establish proper venue by showing that the defendant committed acts of infringement in the district and has a regular and established place of business there. 28 U.S.C. § 1400(b). A defendant has a regular and established place of business in the district if the plaintiff proves that there is a “physical place in the district,” that it is a “regular and established place of business,” and lastly that it is “the place of the defendant.” In re Cray Inc., 871 F.3d 1355, 1360 (Fed. Cir. 2017).

Additionally, Fifth Circuit courts “should . . . grant” a § 1404(a) motion if the movant can show his proposed forum is “clearly more convenient.” Volkswagen II, 545 F.3d at 315. The Fifth Circuit further held that “[t]he determination of ‘convenience’ turns on a number of public and private interest factors, none of which can be said to be of dispositive weight.” Action Indus., Inc. v. US. Fid. & Guar. Co., 358 F.3d 337, 340 (5th Cir. 2004). The private factors include: “(1) the relative ease of access to sources of proof; (2) the availability of compulsory process to secure the attendance of witnesses; (3) the cost of attendance for willing witnesses; and (4) all other practical problems that make trial of a case easy, expeditious and inexpensive.” In re Volkswagen AG, 371 F.3d 201, 203 (hereinafter “Volkswagen I”) (5th Cir. 2004) (citing Piper Aircraft Co. v. Reyno, 454

U.S. 235, 241 n.6 (1982)). The public factors include: “(1) the administrative difficulties flowing from court congestion; (2) the local interest in having localized interests decided at home; (3) the familiarity of the forum with the law that will govern the case; and (4) the avoidance of unnecessary problems of conflict of laws of the application of foreign law.” Id. The burden to prove that a case should be transferred for convenience falls on the moving party. Volkswagen II, 545 F.3d at 314. Thus, the movant must demonstrate that the alternative venue is clearly more convenient than the plaintiff’s chosen forum. Id. at 315. Although the plaintiff’s choice of forum is not a separate factor entitled to special weight, respect for the plaintiff’s choice of forum is encompassed in the movant’s elevated burden to “clearly demonstrate” that the proposed transferee forum is “clearly more convenient” than the forum in which the case was filed. Id. at 314–15.

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VOIP-PAL.COM, INC. v. AMAZON.COM, INC., Counsel Stack Legal Research, https://law.counselstack.com/opinion/voip-palcom-inc-v-amazoncom-inc-txwd-2022.