VANESSA L. BRYANT, District Judge.
On May 17, 2013, the Plaintiff, Protegrity Corporation, ("Protegrity"), a corporation incorporated under the laws of The Cayman Islands, brought an action for patent infringement against Defendant Dataguise, Inc. ("Dataguise"), a Delaware Corporation with its principal place of business in Fremont, California. [Dkt. #1, Complaint at ¶¶ 1, 2]. The Defendant moved to dismiss the complaint for lack of personal jurisdiction pursuant to Fed. R. Civ. P. 12(b)(2) and for improper venue pursuant to Fed. R. Civ. P. 12(b)(3), or, in the alternative, to transfer the case to the Northern District of California pursuant to 28 U.S.C. § 1404(a). [Dkt. #1 at ¶ 1]. On September 3, 2014, this Court granted Defendant's Motion to Transfer. [Dkt. #56]. Plaintiff now moves to join its wholly owned subsidiary Protegrity USA, Inc. ("Protegrity USA") as a plaintiff to the action under Federal Rule of Civil Procedure 20(a) [Dkt. #59] and seeks reconsideration of the Court's Order transferring the case to the Northern District of California under Rule 60(b) [Dkt. #61]. For the reasons that follow, Defendant's Motion for Joinder and Motion for Reconsideration are both DENIED.
The Court assumes the parties' familiarity with the underlying facts and allegations of this case, and summarizes them only briefly here.
On November 20, 2001, United States Patent Number 6,321,201 ("`201 Patent") entitled "Data Security System for a Database Having Multiple Encryption Levels Applicable on a Data Element Value" was duly and regularly issued. [Dkt. #1 at ¶ 8]. On March 19, 2013, United States Patent Number 8,402,281 ("`281 Patent") entitled "Data Security System for a Database" was duly and regularly issued. [
The Plaintiff "develops technologies and commercial products through its wholly owned subsidiaries Protegrity USA, Inc. and Protegrity Research and Development AB." [Dkt. #49-1, Declaration of Andrea Ahlquist at ¶ 3]. Protegrity USA, which has 29 employees, is Protegrity's "principal operating subsidiary" and holds the exclusive license to use, make, sell, and offer to sell embodiments of the `201 Patent and the `281 Patent." [
The Plaintiff moves to join its U.S. subsidiary, Protegrity USA, as a co-plaintiff under Federal Rule 20. Rule 20, which governs permissive joinder, provides that the court may permit persons to "join in one action as Plaintiffs if they assert any right to relief . . . arising out of the same . . . series of transactions or occurrences." Fed.R.Civ.P. 20(a)(1)(A). Permissive joinder under Rule 20 "rests with the sound discretion of the court" and empowers the Court "to make such orders as may be required to prevent delay or prejudice."
Until now, Plaintiff has consistently alleged that as the owner of the patents, it is the only party with the right to bring suit for their infringement. [Dkt. #49-1 at ¶ 6]. Plaintiff now attempts to argue that Protegrity USA, as the exclusive licensee of its patent, holds "enough exclusionary rights [in the patents] that it suffered an injury in fact by Defendant's infringement," and therefore can be joined as a plaintiff in the action. [Dkt. # 59 at pp. 4-5]. Plaintiff's argument is an unavailing attempt to overcome this Court's order of transfer, and is not supported by the law or the facts.
Plaintiff does not and cannot argue that Protegrity USA is a required party to the action under Federal Rule of Civil Procedure 19. This is because Protegrity USA's exclusionary rights to the patent are completely subsumed within, and thus amply represented by, Plaintiff's lawsuit seeking an injunction restraining Defendant from further infringement of the patents and damages under the Patent Act, 35 U.S.C. § 284. [Dkt. #1]. Protegrity is the owner of, the sole entity with the right to sue to enjoin infringement of, and the sole recipient of the profits derived from, the exploitation of the patents in suit. [Dkt. #49-1 at ¶¶ 4-6]. By Plaintiff's own admission, in this suit "PUSA . . . asserts the same right to relief as" Protegrity. [Dkt. #59 at p. 3].
For the same reasons, permissive joinder of Protegrity USA would be wholly redundant. Plaintiff's lawsuit already seeks to vindicate Protegrity USA's exclusionary rights and as such will necessarily resolve all the issues that Protegrity USA would raise as a co-plaintiff. Joining Protegrity USA as a party promotes neither fairness nor efficiency, but rather seeks to impede "trial convenience and . . . the final determination of disputes" by attempting to add weight to Plaintiff's argument, already considered and rejected by this Court, that venue is proper on this district.
The cases cited by Plaintiff in support of its motion are inapposite and therefore unpersuasive. First, these cases concern the issue of standing, which is not the question before the Court. Second, they address the standing
The Court therefore declines to exercise its discretion to permit joinder of Protegrity USA as a co-plaintiff to the current action. The Plaintiff's Motion to Join is DISMISSED.
Reconsideration will generally only be granted when a party can point to "an intervening change of controlling law, the availability of new evidence, or the need to correct a clear error or prevent manifest injustice."
Federal Rule of Civil Procedure 60(b)(6) allows a court to "relieve a party or its legal representative from a final judgment, order, or proceeding for . . . any other reason that justifies relief." Fed.R.Civ.P. 60(b)(6). This "catch-all" exception for relief gives the court broad discretion "to grant relief when appropriate to accomplish justice."
Plaintiff first argues that joinder of Protegrity USA is a new fact that would affect the Court's analysis of whether to transfer venue. [Dkt. #61, Plaintiff's Motion for Reconsideration at pp. 5-6]. The Court disagrees. The joinder of Protegrity USA is not a fact or an intervening change of controlling law, nor does it constitute new evidence which, in the exercise of due diligence, could not have been brought to the Court's attention. It is also not necessary to correct a clear error or prevent manifest injustice. As discussed above, the Court has denied Plaintiff's motion to join PUSA as it is superfluous and Plaintiff's argument is therefore moot. Moreover, the Court cannot conceive of, and Protegrity has failed to show, how the joinder of a wholly owned subsidiary which is neither the owner nor the financial beneficiary of the patents in suit would constitute "extraordinary or exceptional circumstances."
Plaintiff also contends that its request to transfer this case to the Honorable Robert Chatigny was overlooked by the Court and that, if considered, this fact would change the Court's analysis of this forum's familiarity with the applicable law. [Dkt. #61 at pp. 6-7]. This argument also fails to raise any new fact or issue warranting reconsideration, let alone one rising to the level of extraordinary circumstances. Moreover, it misconstrues the standard for determining proper venue.
The Court was well aware of Plaintiff's desire to have all its cases transferred to Judge Chatigny. However, Plaintiff has failed to establish that this case shares common questions of law or fact with the other cases sufficient to warrant consolidation. A district court can consolidate related cases under Federal Rule of Civil procedure 42(a) only when "actions involving a common question of law or fact are pending before the court." Fed. R. Civ. P. 42(a);
Even more critically, Plaintiff has failed to establish that the purportedly related nature of these cases, consolidated or not, has any bearing on the District of Connecticut's familiarity with the federal patent law that governs this case. When courts consider a potential venue's "relative familiarity with the applicable law," they are referring to a forum's familiarity with state law in diversity cases, not to a forum's familiarity with related cases before them.
For the reasons stated above the Plaintiff's Motion to Join Protegrity USA, Inc. as a Party-Plaintiff and the Plaintiff's Motion for Reconsideration are both DENIED. The Clerk is ordered to transfer this case to the Northern District of California.
IT IS SO ORDERED.