ERIC F. MELGREN, District Judge.
Defendants Garmin International, Inc., and Garmin USA, Inc. (collectively "Garmin") move this Court for a stay pending inter partes review ("IPR") of the patent in suit. In addition, Garmin moves the Court for an intra-district transfer for trial to Kanas City, Kansas. As explained below, the Court grants Garmin's motion to stay the case until the Patent Trial and Appeal Board ("PTAB") issues its decisions regarding Garmin's IPRs. Furthermore, because the PTAB's decision could simplify the issues in the case such that Plaintiff LoganTree LP no longer has a claim for infringement, the Court denies Garmin's motion for intra-district transfer for trial without prejudice.
Plaintiff LoganTree LP filed this patent infringement suit on August 23, 2017, alleging that Garmin's accelerometer-based activity trackers infringe its U.S. Patent No. 6,059,576 (the '576 Patent). In February 2018, Garmin filed two petitions for IPR with the PTAB covering 52 of the 185 claims of the '576 Patent. LoganTree did not file a Patent Owner Preliminary Response, and on August 30, 2018, the PTAB instituted the IPRs on all grounds. The PTAB is expected to complete the proceedings and issue its final decisions by August 30, 2019.
In August 2018, Garmin moved for intra-district transfer for trial to Kansas City, Kansas (Doc. 26). It also filed a Motion to Stay Case Pending Inter Partes Review of the '576 Patent (Doc. 32). Because of Garmin's motion to stay the case, the Court cancelled the scheduling conference set for September 18, 2018. As a result, the parties have not served or completed any discovery, infringement contentions, or invalidity contentions.
The Court considers three factors when deciding whether to stay judicial proceedings pending IPR: "(1) whether discovery is complete and a trial date has been set; (2) whether a stay will simplify the issues in question and trial of the case; and (3) whether a stay would unduly prejudice or present a clear tactical disadvantage to the nonmoving party."
The first factor the court considers in determining whether to stay the case is the stage of the proceedings. This case is in its infancy. Upon the filing of Garmin's motion, the court postponed the initial scheduling conference. No schedule has been set; no discovery has been conducted; no depositions have been conducted, and no Markman hearing has been set. The parties have only exchanged Rule 26 initial disclosures. LoganTree claims that this case has been active for almost two years and should not be delayed any further. The Court acknowledges that this lawsuit was initially filed in the Western District of Texas, but there was no action in the Texas litigation that would weigh against granting a stay. Therefore, because this lawsuit is in its initial stages, this factor weighs in favor of a stay.
The second factor the Court considers is whether a stay of this litigation pending Garmin's IPRs will result in the simplification or elimination of the issues for the Court to consider in this case. The '576 Patent contains 185 claims. Three of these claims are independent (claims 1, 13, and 20) and the remaining 182 claims are dependent on claims 1, 13, or 20. At this point, LoganTree has not specifically identified which of the 185 claims in the '576 Patent it intends to assert against Garmin.
Garmin's IPRs challenge 50 the '576 Patent's claims, including the three independent claims.
After considering the parties' arguments, the Court concludes that the PTAB's decisions will help simplify or eliminate the issues in this case. Although LoganTree contends that the unchallenged claims do not contain overlapping subject matter with the challenged claims, LoganTree has not identified a single claim that it could assert against Garmin in this litigation that is not nearly identical to one challenged in the IPRs. Furthermore, the fact the PTO is only reviewing some but not all of the '576 Patent's claims does not mean that the PTAB's decision is irrelevant or unhelpful to this litigation. Other courts have found that the benefits of a stay remain even when only some of the litigated claims are being reviewed.
The third factor that the Court must consider in determining whether to grant a stay is undue prejudice or clear tactical disadvantage to the nonmoving party. In evaluating this factor, "courts have taken a practical approach to determining whether the non-movant will suffer undue prejudice from a stay. A court may deny a request for a stay where the movant has unjustifiably delayed seeking reexamination, or where the stay will do nothing but delay the proceedings."
Garmin argues that a stay pending Garmin's IPRs would not unduly prejudice LoganTree. Garmin argues that LoganTree is not a competitor of Garmin and has no products on the market embodying the claims of the '576 Patent. Thus, according to Garmin, any purported harm to LoganTree may be fully compensated with money damages. Garmin also asserts that there is little tactical disadvantage to LoganTree, where this litigation is in its early stages. IPRs must be disposed of within one year of being instituted, and thus Garmin argues that this should alleviate any concerns LoganTree would have over delay.
LoganTree argues that it will be unduly prejudiced by a stay of this case. LoganTree questions whether Garmin filed its IPRs in a timely manner, pointing out that the parties have been litigating the issue for two years—first in the Western District of Texas and then in the District of Kansas. LoganTree primarily argues, however, that a stay would be prejudicial because there is a strong likelihood it will lose evidence during this time. According to LoganTree, the inventor of the '576 Patent, Theodore Brann, has extensive health and medical issues, and a stay of any length in this case would prevent Brann from being available to testify at trial.
The Court concludes that LoganTree will not be unduly prejudiced by a stay. Garmin does not appear to have delayed in filing its IPRs, and in any event, the PTAB must issue its decisions this year—by August 30, 2019.
Because the three factors weigh in favor of a stay, the Court grants Garmin's Motion to Stay Pending Inter Partes Review. The case is stayed until the PTAB issues its decision in Garmin's IPRs. To the extent LoganTree seeks to preserve Brann's testimony during the stay, Garmin must agree to his deposition. In addition, the parties must file a joint report advising the Court of the PTAB's decision as well as the parties' respective positions for further proceeding with this case within 14 days of the PTAB's decision on Garmin's IPRs.
Garmin asks the Court to transfer the trial forum from Wichita to Kansas City. Garmin contends that not a single document or witness relevant to this case is in Wichita, and in fact, the situs for its witnesses and documents is in Olathe, which is 20 miles from the Kansas City courthouse. The Court, however, declines to address Garmin's arguments at this time. As previously noted, Garmin contends that its petitions for IPR cover all of the claimed subject matter that could be asserted against it in this litigation. Thus, if Garmin is successful, it could eliminate any infringement issues present in this case. Accordingly, the Court denies Garmin's motion for intra-district transfer for trial without prejudice. Should this litigation continue to proceed after the PTAB issues its decisions on Garmin's IPRs, Garmin may refile its motion at that time.