DENISE J. CASPER, District Judge.
Defendants RPost Communications, Ltd. and RPost Holdings, Inc. (collectively, "RPost") move to dismiss this case for lack of subject matter jurisdiction pursuant to Fed. R. Civ. P. 12(b)(1), or, in the alternative, asks this Court to decline, in its discretion, to adjudicate this claim, under the Declaratory Judgment Act. D. 62. For the reasons discussed below, the Court DENIES the motion.
On November 12, 2013, Plaintiff Sophos, Inc. ("Sophos") filed this action seeking a declaratory judgment that it does not infringe the patents at issue on the heels of receiving notice from RPost that its products and services "infringe certain patents owned by RPost." D. 1; D. 1-1 at 2. In the wake of the filing of this lawsuit by Sophos, RPost filed a patent infringement suit against Sophos in the Eastern District of Texas. The Court subsequently denied RPost's motion to transfer the instant case to the Eastern District of Texas, D. 53, and the Texas action was transferred to this Court according to the first-to-file rule.
Here, Sophos seeks a declaratory judgment about the patents at issue. RPost contends first that there is no ripe controversy and, therefore, the Court lacks subject matter jurisdiction to hear this case. "Ripeness is an Article III jurisdictional requirement" and a court may not grant a declaratory judgment unless the plaintiff's request "arise[s] in a context of a controversy ripe for judicial resolution."
RPost contends that this matter is not ripe for review because: (1) Sophos has failed to allege affirmatively that RPost owns the patents-in suit; and (2) Sophos's recent request for a stay pending the outcome of the ongoing patent ownership dispute in California indicates the plaintiff's acknowledgement that this matter is not ripe for review. D. 74 at 2-3. As to the first contention, Sophos has alleged plausibly that the Defendants own the patents at issue, even as such ownership is a matter of dispute and the subject of ongoing litigation in California.
That is, there exists a case or controversy and a declaratory judgment would finally and conclusively resolve the question of whether Sophos infringes the patents in question, patents over which RPost has continuously asserted ownership.
As to fitness, for the reasons discussed above, a judicial determination will be final and definitive as to whether Sophos infringed on the patents. As to hardship, that Sophos's alleged infringement creates a "direct and immediate dilemma" is apparent from the claim infringement notice sent by RPost. RPost is incorrect that Sophos's claims "squarely involve `uncertain and contingent events that may not occur as anticipated, or indeed may not occur at all,'" as the events giving rise to the suit occurred as a result of Sophos's alleged infringement. D. 74 at 3 (quoting
Second, Sophos's motion to stay this action, during the pendency of the California litigation regarding patent ownership, does not amount to an admission that this matter is not ripe. The motion to stay (denied by this Court) was, as posited by Sophos, an attempt to conserve resources while that litigation continued. It does not alter the fact that this matter is ripe because of RPost's alleged actions (i.e., putting Sophos on notice of its infringement of its patents) and continuing to assert an ownership in those patents, including the initiation and litigation of the infringement case against Sophos originally filed in the Eastern District of Texas.
Should the Court not dismiss based on lack of subject matter jurisdiction, RPost alternatively requests dismissal pursuant to the Court's discretionary authority under the Declaratory Judgment Act. D. 63 at 7-8. The Declaratory Judgment Act provides, "[i]n a case of actual controversy within its jurisdiction . . . any court of the United States, upon the filing of an appropriate pleading, may declare the rights and other legal relations of any interested party seeking such declaration, whether or not further relief is or could be sought." 28 U.S.C. § 2201(a). The Supreme Court has "characterized the Declaratory Judgment Act as an enabling Act, which confers a discretion on the courts rather than an absolute right upon the litigant."
For the aforementioned reasons, RPost's motion to dismiss, D. 62, is DENIED.