Xilinx, Inc. v. Papst Licensing GMBH & Co.KG

113 F. Supp. 3d 1027, 2015 WL 4149166
CourtDistrict Court, N.D. California
DecidedJuly 9, 2015
DocketCase Nos. 14-CV-4963-LH, 14-CV-4794-LHK
StatusPublished
Cited by1 cases

This text of 113 F. Supp. 3d 1027 (Xilinx, Inc. v. Papst Licensing GMBH & Co.KG) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Xilinx, Inc. v. Papst Licensing GMBH & Co.KG, 113 F. Supp. 3d 1027, 2015 WL 4149166 (N.D. Cal. 2015).

Opinion

ORDER GRANTING DEFENDANT’S MOTIONS TO DISMISS

LUCY H. KOH, District Judge

Plaintiffs Altera Corporation (“Altera”) and Xilinx, Inc. (“Xilinx”) (collectively, “Plaintiffs”) seek declaratory judgment that their' products do not infringe United States Patent Nos. 6,704,891 and 6,574,759 (collectively “the patents-in-suit”) and thát the claims of the patents-in-suit are invalid. No. 14-CV-4794, ECF No. 1 (“Altera Compl.”); No. 14-CV-4963, ECF No. 1 (“Xilinx Compl.”). . Before the Court are motions to dismiss filed by Papst Licensing GMBH & Co. KG (“Papst”), the owner of the patents-in-suit. No. 14-CV-4794, ECF No. 18 (“Papst MTD-Altera”); No. 14-CV-4963, ECF No. 18 (“Papst MTD-Xilinx”). Papst, a German corporation headquartered in St. Georgen, Germany, moves to dismiss for lack of personal jurisdiction under Federal Rule of Civil Procedure 12(b)(2). In the alternative, Papst asks this Court to transfer both actions to the U.S.. District Court for the District of Delaware. Altera and Xilinx filed oppositions (No. 14-CV-4794, ECF No. 45 (“Alt-era Opp.”); No. 14-CV-4963, ECF No. 52 (“Xilinx Opp.”)), and Papst filed replies (No. 14-CV-4794, ECF No. 51 (“Papst Reply-Altera”); No. 14-CV-4963, ECF No. 56 (“Papst Reply-Xilinx”)).1 Because the issues presented in Papst’s motions are identical, and the facts nearly identical with respect to Altera and Xilinx, the Court resolves both motions in the instant order.

The Court finds this matter suitable for decision without oral argument under Civil Local Rule 7 — 1(b) and hereby vacates the motion hearings set for July 23, 2015, at 1:30 p.m. Having considered the parties’ submissions, the relevant law, and the record in this cáse, the Court hereby GRANTS Papst’s motion to' dismiss for lack of personal jurisdiction in both actions.

I. BACKGROUND

A. Factual Background.

1. The parties

Altera and Xilinx are Delaware corporations headquartered in San Jose, CA. Alt-era Compl. ¶ 1; Xilinx Compl. ¶ 2. Altera and Xilinx design and manufacture Field Programmable Gate Arrays (FPGAs), a type of semiconductor. Altera Opp, 1; Xi-linx Opp. 2. FGPAs are programmable logic devices found in advanced electronic systems in a wide range of markets, including aerospace, wired and wireless communications, automotive, consumer electronics, high performance computing, medical, and broadcasting. Xilinx Opp. 2. Altera and Xilinx are competitors. . FGPAs manufactured by Altera, Xilinx, and Lattice Semi[1032]*1032conductor (“Lattice”) comprise of 90% of the market. Altera Opp. 1.

Papst, a non-practicing entity whose sole business is to monetize and license intellectual property rights, has no offices or employees in California. Papst MTD-Xilinx 2. In the course of its business, Papst has concluded more than 160 licensing agreements with various companies. Altera Opp. 5; Xilinx Opp. 3. Some of Papst’s licensees are headquartered in California. Id. Papst has pursued patent infringement claims against thirteen different companies in California courts. Xilinx Opp. 11.

2. Papst’s acquisition of the patents-in-suit

Papst acquired the patents-in-suit from FTE Exchange (“FTE”), a company incorporated and headquartered in Texas, on October 2, 2012. Xilinx Opp. 6. Five days earlier, FTE had acquired the patents-in-suit from Rambus, Inc. (“Rambus”), a Delaware corporation headquartered in Sunnyvale, CA. Id. Under the Patent Purchase Agreement between Papst and FTE (“the Papst Agreement”), Papst agreed to assume all of FTE’s rights and obligations under the Patent Purchase Agreement between FTE and Rambus (“the Rambus Agreement”). Id.

Pursuant to the Rambus Agreement, Rambus retained a “worldwide, perpetual, irrevocable, fully paid-up, royalty free, non-exclusive, non-transferrable ... right and license” to the patents-in-suit. Id. at 15. In addition, FTE agreed not to sue thirty specifically-identified companies for infringement of the patents-in-suit. Id. at 7. Six of those companies are based in California. Id.

The Rambus Agreement also contains a clause entitled “Seller’s Continued Assistance and Reimbursement.” Papst Reply-Xilinx 11. The clause states that “nothing set forth in this Agreement shall create an obligation for [Rambus] to provide assistance or otherwise perform services.” Id. However, in the event that FTE, or its designated legal representative, requests Rambus’s assistance during prosecution, reexamination, or reissue of the patents, or requests Rambus’s expertise during interference, priority, infringement, or other court proceedings, FTE must compensate Rambus for reasonable costs incurred. Id.

The Rambus Agreement stipulates that all disputes arising out of or relating to the Original Purchase Agreement shall be resolved by a court in Santa Clara, California and be governed by California law. Xilinx Opp. 6.

As owner of the patents-in-suit, Papst maintained a list of twenty-nine potential licensees, twenty-eight of which have significant ties to California. Xilinx Opp. 7. Both Plaintiffs were included on this list. Id. In addition, Papst retained a California-based law firm, which had initially prosecuted the patents-in-suit, to ensure timely payment of PTO maintenance fees. Xilinx Opp. 15.

3. Papst’s negotiations with Plaintiffs

In January and April 2014, Papst sent letters to Plaintiffs accusing each of infringing the patents-in-suit and requesting that each take a license to the patents-in-suit. Papst MTD-Xilinx 3; Xilinx Opp. 5; Papst MTD-Altera 3; Altera Opp. 3. Neither Plaintiff responded to the first letter, but both responded to the second. Papst MTD-Xilinx 3; Papst MTD-Altera 3; Alt-era Opp. 3. Subsequently, on July 17, 2014, Papst’s Managing Director and legal counsel met with Altera at Altera’s San Jose offices to discuss Papst’s allegations of infringement. However, the parties did not agree to a licensing arrangement. Papst MTD-Altera 3; Altera Opp. 3. On October 16, 2014, Papst’s representatives met separately with both Altera and Xilinx in their respective San Jose offices to discuss [1033]*1033Papst’s patent infringement allegations and potential licensing arrangements. Xi-linx Compl. ¶ 12; Xilinx Opp. 5. Again, no licensing agreements were reached.

B. Procedural History

On October 28, 2014, Altera filed this declaratory judgment action in this Court, seeking a declaration that Altera does not infringe the patents-in-suit and that the patents-in-suit are invalid. Altera Compl. On November 7, 2014, Papst sued Lattice and Xilinx in the District of Delaware alleging that they infringe the patents-in-suit. Papst Licensing GMBH & Co. KG v. Lattice Semiconductor, Corp., No. 14-CV-1375-LPS-CJB (D.Del. Nov. 7, 2014); Papst Licensing GMBH & Co. KG v. Xilinx, Inc., No. 14-CV-1376-LPS-CJB (D.Del. Nov. 7, 2014). Within hours, Xilinx filed its declaratory judgment action against Papst in this Court, also seeking a declaration of non-infringement and invalidity regarding the patents-in-suit. Xilinx Compl.

On December 4, 2014, Papst and Xilinx met again, this time in Palo Alto, GA, to continue discussions regarding Papst’s infringement allegations. Xilinx Opp. 6.

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Bluebook (online)
113 F. Supp. 3d 1027, 2015 WL 4149166, Counsel Stack Legal Research, https://law.counselstack.com/opinion/xilinx-inc-v-papst-licensing-gmbh-cokg-cand-2015.