MEC Resources, LLC v. Apple, Inc.
MEC Resources, LLC v. Apple, Inc.
Opinion of the Court
MEMORANDUM
A..California citizen asks we transfer venue of this patent infringement case filed by a,Texas citizen and now being pursued by a North Dakota citizen based on convenience when none of the witnesses or documents have Delaware connections. Parsing through sworn facts, we carefully consider whether another venue is more appropriate to timely resolve a dispute over property created in California or Taiwan between. citizens from states other than Delaware, While this Court welcomes the chance to resolve complex patent disputes with proper venue, when a Californian asks to transfer venue in a case brought by a Texan, we carefully evaluate the facts and apply our court of appeals’ guidance. Having applied this guidance and rejecting the claim the California citizen waived the convenience of venue argument by waiting until after we ruled on dispositive motions, we enter the accompanying Order granting the California citizen’s motion to transfer to the far more convenient district court in the Northern District of California.
I. Facts relating to venue,
Before sélling its rights to MEC Resources LLC, Prowire LLC owned United States Patent No. 6,137,390 titled “Inductors with Minimized EMI Effect and the Method of Manufacturing the Same.” (“’390 patent”).
After suing, Prowire “transferred all right, title, and interest” in the ’390 patent to MEC Resources, LLC and we substituted MEC for Prowire.
Apple is a California corporation with its principal place of business in Cupertino, California.
II. Analysis
Apple moves , to transfer venue to the Northern District of California. As we held in our August 9, 2017 memorandum, venue over this patent infringement claim is proper in-this District give'sale of iPad 4 devices in Apple’s Delaware retail store.
A. Applying Jumara factors warrants transfer.
In Jumara v. State Farm -Ins. Co., our court of appeals defined the relevant private and public interests we must consider when exercising our discretion under 1404(a). Private interests are “the plaintiffs choice of forum; the defendant’s preference; whether the claim arose elsewhere; the convenience of the parties; the convenience of the expected witnesses; and the location of the books and records. The relevant public interests are: ‘the enforceability of the judgment; practical considerations that could make the trial easy, expeditious, or inexpensive; the relative administrative difficulty in the two fora resulting from.court congestion; the local interest in deciding local controversies at home; [and] the public policies of the fora.’ ”.
1. Jumara private interest factors weigh in favor of transfer.
The private interest factors weigh in favor of transfer.
a. Prowire’s forum of preference.
While we accord deference to Prowire’s choice, “deference given to the plaintiffs choice is reduced when the chosen venue is not the plaintiffs home forum.”
MEC (having recently substituted in for Prowire) cites numerous cases is asking we defer to Prowire’s choice of venue where the plaintiff is a foreign corporation or where Delaware is not the plaintiffs home turf. Our review shows every case cited by MEC involves a party with ties to Delaware. No cited case addresses our situation where neither party is incorporated or has a principal place of business in Delaware.
b.Apple’s forum preference.
Apple prefers to litigate in the Northern District of California where it is incorporated and has its principal place of business. Apple’s preference weighs in favor of transferring venue but we accord its preference less weight than Prowire’s or MEC’s preference (which we accord less deference than usual).
c.Whether the claim arose elsewhere.
Under 35 U.S.C. § 271(a), Apple’s claims arose “wherever someone has committed acts of infringement” but courts hold “infringement claims, however, have even deeper roots in the forum where the accused products were developed.”
d.The convenience of the parties.
We consider the “(1) the parties’ physical location; (2) the associated logistical and operational costs to thé parties’ employees in traveling to Delaware (as opposed to the proposed transferee district) for litigation purposes; and (3) the relative ability of each party to bear these costs in light of its size and financial wherewithal.”
Neither party is formed or has a principal place of business in Delaware. MEC is located in North Dakota which is geographically closer to the Northern District of California than this District, with one employee located in Michigan and another located in North Dakota. MEC’s two employees will travel to trial whether it is here or in the Northern District of California. MEC’s two employees argue Delaware is more convenient than the Northern District of California but do not explain why.
Apple’s relevant employees are located in Cupertino, California. The associated logistical and operational costs for Apple’s employees to travel to Delaware would be complicated and more expensive than trial in the Northern District of California.'
MEC argues Apple as a multibillion corporation is not burdened by litigating in Delaware. The parties’ financial wherewithal is a neutral consideration because litigation in Delaware is not a burden on Apple arid Prowire already choose to litigate in a place where it is not located accepting the costs of travel. MEC. bought these rights knowing it of this suit in this District.
Overall, this factor weighs in favor of transfer because the parties’ physical locations are not convenient to Delaware and MEC’s litigation costs will likely remain the same because its two employees must travel even if we do not transfer venue.'
e. The convenience of the witnesses.
We consider the convenience of the witnesses “but only to the extent that the witnesses rnay actually be unavailable for trial in one of the fora,”
Apple argues this factor weighs in favor of transfer because none of the inventors of the patents-in-suit reside in Delaware; they reside in Taiwan and the attorney for the patent-in-suit is in Hawaii. Apple argues the Northern District of California is closer and more convenient for the witnesses traveling from Taiwan and Hawaii. MEC argues Apple does not show any of these witnesses would not attend trial. We do not “require such a clear statement—it is enough that likely witnesses reside beyond the court’s subpoena power and that there is reason to believe that those witnesses will refuse to testify absent subpoena power.”
This factor is neutral.
f. The location of books and records.
We consider the location. of books and records “limited to the extent that the files could not be produced in the alternative forum.”
Apple designed and developed the product containing the allegedly infringing inductor in Cupertino, California which is also its principal place of business -so “it is reasonable to presume that much of the evidence will be found there.”
2. Jumara public interest factors weigh in favor of transfer,
The public interest factors weigh in favor of transfer.
a.The enforceability of the judgment.
The parties do not address this issue because a judgment in this District and the Northern District of California are equally enforceable so this factor is neutral.
b. Practical considerations for trial.
We consider “practical considerations that could make trial easy, expeditious, or inexpensive.”
c. The relative administrative difficulty in the two fora resulting from court congestion.
While neither party addresses this factor, we do because this District is now reduced to two active district court judges with judges from other busy districts sitting as visiting judges to help address the busy docket until new district court-judges are sworn. The Northern District of California has a full bench of talented district court judges experienced in patent litigation. As of the March 31, 2017 Reporting Period, 6.2% in the docket of the Northern District of .California is oyer three years old compared to 13.4% in this District.
d. The local interest in deciding local controversies at home.
“This factor is typically neutral in the context of patent litigation, as ‘patent issues do not give rise to a local controversy or implicate local interests.’”
e. The public policies of the fora.
This factor is neutral because MEC brings federal patent claims which are the resolved in the same manner and under the same Federal Rules of Civil Procedure and Evidence in this District and in the Northern District of California.
B. MEC’s equitable argument is not applicable.
Outside of the Jumara factors, MEC argues Apple’s motion as a matter of fairness should be denied because Apple waited six months after being sued and after we denied Apple’s motion for improper venue to move to transfer under § 1404. MEC argues transfer would “set this case back months” and “much of the early work would need to be re-done.”
Apple did not waive its ability to move under § 1404 by failing to move by a certain time, unlike a Fed. R. Civ. P. 12(b)(3) motion for improper venue which must be raised with a responsive pleading. “A motion to transfer should be made early in the proceeding. However, a mere passage of time or delay is not alone sufficient to deny a motion to transfer.”
We review the six months between filing and the transfer motion to determine if this six month “delay” causes MEC undue prejudice, increases litigation expenses, or if Apple is otherwise engaging in dilatory tactics.
Apple could have moved to transfer venue coterminous -with moving for improper venue on the First Amended Complaint. We cannot say Apple’s decision to wait until after we ruled on its Rule 12 motions is a dilatory tactic. Prowire agreed to give Apple extra time to respond and a month of delay is due to factors outside of either party’s control.
Transferring venue at this early stage in litigation will not increase costs or “restart” the case. The parties just began discovery and the same discovery rules apply in the Northern District of California. Other than pro hac vice motions, we cannot think of work the parties will need to re-do after transfer. Apple cannot move under Rule 12 again. The transfer will not cause undue prejudice to MEC because this litigation remains in its early stages.
III. Conclusion
In the accompanying Order, we grant Apple’s motion to transfer venue under § 1404(a) based on our fact specific review of the Jumara private and public interest factors weighing decidedly in favor of transfer.
. Amended Complaint, ECF Doc, No. 13, ¶ 7.
. Id. ¶ 9.
. 2⅛-¶1.
. Harrits Declaration, Exhibit 11, ECF Doc. No, 58-1 at 64.
. Id.
.' Harrits’ Declaration, Exhibit 2, ECF Doc. No. 58—1 at 5.
. Plaintiff’s Unopposed Motion to Substitute Parties,.ECF Doc, No, 60 at 1.
. Plaintiff's Response to Motion to Transfer, ECF Doc. No. 70 at 7.
. Harrits’ Declaration, ECF Doc. No. 58, ¶¶ 19-20.
. O’Berry Declaration, ECF Doc. No. 73, ¶ 1; Driscoll Declaration, ECF Doc, No. 71, nr.
. Driscoll Declaration, ECF Doc, No. 71, ¶ 6,
. Id.
. Id. ¶ 5. .
. O’Berry Declaration, ECF Doc. No. 73, ¶ S.
. Jaynes Declaration, ECF Doc. No. 57, ¶ 3.
. See Exhibit 1 to Katz Declaration, ECF Doc. No. 72-1 at 2; Jaynes Declaration, ECF Doc. No. 57, ¶ 20
. Id. If 5.
. Id. ¶ 9.
. Id.n 12-14.-’
. Id. ¶¶ 12-15, 18.
. Id. ¶ 21,
. Id. ¶ 22.
. ' ECF Doc. No. 46. '
. See Jumara v. State Farm Ins. Co., 55 F.3d 873, 879-(3d Cir. 1995).
. Blackbird Tech LLC v. TuffStuff Fitness, Int'l, Inc., No. 16-733, 2017 WL 1536394, at *2 (D. Del. Apr. 27, 2017) (quoting Jumara, 55 F.3d at 879-80).
. MoneyCat Ltd. v. PayPal, Inc., No. 13-1358, 2014 WL 2042699 at *4 (D. Del. May 15, 2014) (citing In re Link_A_Media Devices Corp., 662 F.3d 1221, 1223 (Fed. Cir. 2011)).
. Id.
. Id.
. Id.
. See Godo Kaisha IP Bridge 1 v. Omnivision Techs., Inc., No. 16-290, 246 F.Supp.3d 1001, 1002-03, 2017 WL 1196430 (D. Del. March 29, 2017) (defendant is a Delaware corporation); Cellectis, S.A. v. Precision Biosciences, Inc., 858 F.Supp.2d 376, 377 (D. Del. 2012) (defendant is a Delaware corporation); Intellectual Ventures LLC v. Altera Corp., 842 F.Supp.2d 744, 748-49 (D. Del. 2012) (plaintiff and defendant are Delaware corporations); Tessera Inc. v. Sony Electronics Inc., No. 10-838, 2012 WL 1107706 at *1 (D. Del. March 30, 2012) (plaintiff and defendant are Delaware corporations); Cypress Semiconductor Corp. v. Integrated Circuit Sys., Inc., No. 01-199, 2001 WL 1617186 at *1 (D. Del. Nov. 28, 2011) (plaintiffs are Delaware corporations); Simms v. Thomson Reuters Tax and Accounting, Inc., No. 10-904, 2011 WL 4501225 at *1 (D. De. Sept. 28, 2011) (plaintiff is an individual residing in Delaware suing her employer); Everglades Interactive, LLC v. Playdom, Inc., No. 10-902, 2011 WL 2294075 at *1-2 (D. Del. June 8, 2011) (almost all defendants are Delaware corporations); Academisch Ziekenhuis Leiden v. Cardiomems, Inc., No. 10-1127, 2011 WL 864911 at *1 (D. Del. March 9, 2011) (defendant is a Delaware corporation); Carl Zeiss Meditec, Inc. v. Xoft, Inc., No. 10-308, 2010 WL 4024603 at *1 (D. Del. Oct. 13, 2010) (defendant is a Delaware corporation), ML Lee Acquisition Fund II L.P., 816 F.Supp. 973, 975 (D. Del. 1993) (several defendants are Delaware corporations or limited liability companies); Pennwalt Corp. v. Purex Indus., Inc., 659 F.Supp. 287, 288 (D. Del. 1986) (defendant is a Delaware corporation).
. See Simms, 2011 WL 4501225 at *1; Cypress Semiconductor, 2001 WL 1617186 at *1.
. See Memory Integrity, LLC v. Intel Corporation, No. 13-1804, 2015 WL 632026 at *3 (D.Del. Feb. 13, 2015) (citing Intellectual Ventures I LLC v. Altera Corp., 842 F.Supp.2d 744, 759 (D. Del. 2012)) (finding defendant's forum preference weighs in favor of transfer but giving it "limited weight”).
. Id. (citing Intellectual Ventures, 842 F.Supp.2d at 759).
. See Memorandum, ECF Doc. No. 46,
. See Memory Integrity, 2015 WL 632026 at *3 (citing Intellectual Ventures, 842 F.Supp.2d at 759).
. Id. at *4 (quoting Smart Audio Techs., L.L.C. v. Apple, Inc., 910 F.Supp.2d 718, 724 (D. Del. 2012) (internal citation omitted)).
. Id. (quoting Jumara, 55 F.3d at 879),
. See Audatex North America, Inc. v. Mitchell International, Inc., No. 12-139, 2013 WL 3293611 at *5 (D. Del. June 29, 2013).
. Id.
. Id. at '"6 (quoting Jumara, 55 F.3d at 879).
. Id.
. In re Link_A_Media, 662 F.3d at 1223.
. See Audatex, 2013 WL 3293611 at *6.
. We do not address the 6th Jumara factor, the familiarity of the trial judge with the applicable state law in diversity cases because this case only has federal patent law claims.
. Smart Audio, 910 F.Supp.2d at 732.
.United States District Court—National Judicial . Caseload Profile, Reporting Period March 31, 2017, http://www.uscourts.gov/ sites/defaul(/fíles/data_tables/fcms_na_ distprofile0331.2017.pdf (last visited July 31, 2017).
. Smart Audio, 910 F.Supp.2d at 733 (quoting TriStrata Tech., Inc. v. Emulgen Labs., Inc., 537 F.Supp.2d 635, 643 (D. Del. 2008)).
. Plaintiff's Response to Motion to Transfer, ECF Doc. No. 70 at 5.
. Blumenthal v. Management Assistance, Inc., 480 F.Supp. 470, 471 (N.D. Ill. 1979) (denying defendant’s motion to transfer venue after considering numerous factors, including the fact defendant waited three years after ligation commenced to move for transfer).
. See id. (internal citation omitted) (holding "the court may order a transfer whenever the circumstances satisfy the requirement of the section unless the delay would unduly prejudice the other party, increase the expense of litigation or the late motion is merely a dilatory tactic”).
. See ECF Doc. Nos. 1, 4.
. The Clerk also referred the case to Magistrate Judge Christopher Burke but Judge Burke cannot decide a dispositive motion (such as a motion to dismiss) without the parties’ consent.
. See ECF Doc. No. 6.
. See ECF Doc. Nos. 13, 14.
. MEC’s argument also suggests Apple is engaged in judge shopping after we denied three of Apple's motions. One motion MEC references is our denying Apple’s motion to stay discovery pending the outcome of the motion to dismiss on the day we denied Apple's motion to dismiss, August 9, 2017. We denied this motion as moot. See ECF Doc. No. 47.
. See ECF Doc. No. 48.
. See Saleh v. Titan Corp., 361 F.Supp.2d 1152, 1168 (S.D. Cal. 2005) (finding a 5 month delay not an undue delay because the case is far from trial and in early stages).
Reference
- Full Case Name
- MEC RESOURCES, LLC v. APPLE, INC.
- Cited By
- 24 cases
- Status
- Published