SUE F. ROBINSON, District Judge.
At Wilmington this 10th day of December, 2014, having reviewed the papers submitted in connection with various pending motions,
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3. The ICC issued Partial Award No. 3 on July 5, 2012, finding (inter alia) that: (1) Amkor had failed to pay royalties for products using technology described in seven U.S. and foreign Tessera patents (including the '076 patent); (2) Amkor's breaches were material, deliberate and intentional; (3) because Amkor also breached the Agreement by continuing to make covered products without compensating Tessera, damages were awarded through the date of the award; and (4) given Amkor's deliberate and intentional breaches, Tessera was entitled to terminate the Agreement as of February 2011. (D.I. 26, ex. E) Amkor appealed the damages award to the Superior Court of the State of California, County of San Francisco ("Superior Court"), arguing that the ICC lacked the authority to award damages after February 2011, when Tessera sent its notice of termination letter. (D.I. 26, ex. H)
4. On July 6, 2012, Tessera initiated the litigation at bar, wherein Tessera claims that Amkor infringes the '076 patent based in part on Partial Award No. 3. In November 2013, the parties filed a stipulation to stay the litigation pending resolution of the arbitration proceedings. (D.I. 21) On April 9, 2013, Amkor petitioned the Patent Trial and Appeal Board for inter partes review of various claims of the '076 patent, including claims 1 and 6. As per the norm, the PTAB made a preliminary finding that the challenged claims of the '076 patent should be cancelled; the IPR trial hearing was scheduled for June 12, 2014, with a final decision due October 11, 2014. (D.I. 66, ex. 5)
5. On May 9, 2014, the ICC issued Partial Award No. 5, which calculated the damages based on the liability determinations in Partial Award No. 3. (D.I. 26, ex. F) On May 27, 2014, Amkor filed its motion to vacate, modify, or correct. (D.I. 24) Tessera filed its motion to strike (D.I. 33) on June 23, 2014. On July 14, 2014, Tessera filed a petition to confirm Partial Award No. 5 in the Superior Court. (D.I. 66, ex. 3) Amkor presented a petition to vacate, modify, or correct the award in the same state court proceeding. (D.I. 26, ex. 4) In August 2014, Amkor attempted to remove the California state court proceedings to the United States District Court for the Northern District of California. Tessera responded with a motion to remand, which motion was granted by the federal court. (D.I. 60, ex. A) By order issued October 9, 2014, the Superior Court confirmed Partial Award No. 5 and judgment was entered in favor of Tessera, with damages in the amount of $112 million. (D.I. 66, exs. 1-2) Amkor appealed. On November 25, 2014, the Court of Appeal of the State of California, First Appellate District, affirmed the denial of Amkor's petition. (D.I. 68, ex. A) On October 10, 2014, the PTAB issued its decision, concluding that Amkor had not proven by a preponderance of the evidence that claims 1-8, 10-13, 18, and 19 of the '076 patent were unpatentable. (D.I. 66, ex. 5)
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(D.I. 26, ex. A at 12) Given that the arbitration provision is included within the choice of law provision, a reasonable interpretation of such language requires application of the California arbitration procedures, so long as such procedures do not conflict with the Federal Arbitration Act's ("FAA") policy of encouraging arbitration. See, e.g., Mount Diablo Med. Ctr. v. Health Net of California, Inc., 101 Cal.App.4th 711, 719-24 (2002).
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8. I decline to grant Amkor's motion, for two primary reasons. First, the Agreement's arbitration clause applies broadly to "any disputes, controversies, claims or differences which may arise from, under, out of or in connection with this Agreement." (D.I. 26, ex. A, at 12) California courts have held that such language requires "that the parties arbitrate extracontractual disputes apart from strict interpretation and contract performance questions." EFund Capital Partners v. Pless, 150 Cal.App.4th 1311, 1329 (2007).
9. The procedural history of this dispute also counsels against Amkor's position. Even if this court has jurisdiction to review the award of post-termination damages, I decline to exercise it in light of the state court proceedings. The merits of Amkor's arguments have now been rejected by the ICC, the California Superior Court, and the California Court of Appeal. Although Amkor argues that it is not asking this court to overturn the California judgment, the relief it is requesting
Hinman v. Fujitsu Software Corp., 2006 WL 358073, at *1 (N.D. Cal. Feb. 13, 2006) (citing to Colorado River, 424 U.S. at 818, as well as Moses H. Cone Mem'l Hosp. v. Mercury Constr. Corp., 460 U.S. 1, 23-26 and 34 n.20 (1983)).
10. When reviewing the above factors in light of the record, abstention is warranted. The dispute between the parties arises out of a business relationship memorialized in the Agreement. The Agreement is governed by California law, with a broad arbitration clause. As agreed to by the parties, the state courts of California have the jurisdiction to review the arbitral decision, and have entered final judgment consistent with the agreed upon process. Indeed, Amkor invoked the jurisdiction of the California courts until it was handed an adverse decision. Since then, Amkor has engaged in (charitably speaking) "reactive" litigation which has engaged the resources of multiple state and federal courts. Moreover, as noted by Tessera, "district courts routinely abstain under Colorado River where the state courts are already involved in the arbitration."
11. Consistent with the view taken by the United States District Court for the Northern District of California in granting Tessera's motion to remand, "this court is not a state court of review, nor is it one in the business of deciding cases of pure state concern." Abstention is appropriate. Amkor's motion to vacate, modify, or correct is denied. Tessera's motion to strike is denied as moot. An order shall issue.