MARCO A. HERNÁNDEZ, District Judge.
Plaintiff, Columbia Sportswear North America, Inc. ("Columbia"), alleges that Defendant Seirus Innovative Accessories, Inc. ("Seirus"), a Utah corporation with a principal place of business in California, has infringed Columbia's patents related to a heat reflective lining for outdoor sporting gear. Currently before the Court is Seirus's motion to dismiss for lack of personal jurisdiction, or alternatively, to transfer venue to the Southern District of California. The Court has personal jurisdiction over Seirus because it intentionally targeted the forum by selling allegedly infringing products directly to Oregon retailers. Also, since the multi-factor analysis which guides the Court's decision to transfer venue is essentially balanced between the parties, the Court defers to Columbia's choice of venue. Accordingly, Seirus's motion is denied.
Columbia is a Portland, Oregon based outdoor company with more than $2.1 billion in global annual sales. Plaintiff's Response to Motion to Dismiss/Transfer Venue ("Pl. Resp.") at 3. Columbia owns and controls U.S. Patent Nos. D657,093 ("`093 patent"), 8,424,119 ("`119 patent), and 8,453,270 ("`270 patent"). Complaint ("Compl.") ¶ 2. Collectively, those patents protect Columbia's Omni-Heat technology, a heat reflective material that retains body heat but allows for breathability and moisture wicking. Compl. ¶ 2. The Omni-Heat material is used as a lining in a variety of outdoor gear such as jackets, shirts, gloves, and more. Compl. ¶ 2.
Seirus is a Utah corporation with a principal place of business in Poway, California. Compl. ¶ 5. Seirus sells its own brand of cold weather gear, including gloves and glove liners with a breathable, heat reflective material it calls HEATWAVE. Compl. ¶¶ 20-21. Columbia alleges that Seirus's HEATWAVE product infringes its Omni-Heat patents, and that Columbia purchased gloves featuring Seirus's HEATWAVE product at various stores in Oregon. Complat ¶¶ 25, 26-47.
Before it could substantiate Seirus's products were available for purchase in Oregon, Columbia filed a patent infringement action against Seirus in December, 2013, in the Western District of Washington. Compl. ¶ 9. Seirus filed a similar motion to dismiss for lack of personal jurisdiction because, it argued, it lacked any meaningful contacts with the forum. Defendant's Memorandum in Support of Motion to Dismiss ("Def. Memo."), at 8. Columbia sought leave to conduct jurisdictional discovery, but the court denied the motion and ordered Columbia to respond to Seirus's motion to dismiss or transfer venue. Compl. ¶ 13. In the interim, Columbia confirmed that Seirus's HEATWAVE products were available in Oregon. Compl. ¶ 12. Since Seirus had yet to file an answer in the Washington case, Columbia promptly filed a notice of dismissal under Federal Rule of Civil Procedure ("Rule") 41(a), and subsequently filed the instant action in the District of Oregon. Compl. ¶ 15-16.
Seirus now moves to dismiss for lack of personal jurisdiction because it lacks the "minimum contacts" with Oregon required to support a constitutional exercise of this Court's personal jurisdiction over it. Alternatively, Seirus seeks to transfer this case to the Southern District of California because it is a more convenient forum.
Federal Circuit law, rather than regional circuit law, determines whether a district court has personal jurisdiction over the defendant in a patent infringement case.
Personal jurisdiction over an out-of-state defendant in a patent-related dispute involves two questions: whether jurisdiction exists under the forum state's long-arm statute, and if so, whether asserting personal jurisdiction is consistent with the limitations of the Due Process Clause of the federal Constitution.
The Due Process Clause "protects an individual's liberty interest in not being subject to the binding judgments of a forum with which he has established no meaningful contacts, ties, or relations."
"Under the `minimum contacts' test, a defendant may be subject to either specific jurisdiction or general jurisdiction."
A district court can exercise specific personal jurisdiction over a defendant subject to a three-part test. First, the defendant must have purposefully directed its activities at residents of the forum. Second, the plaintiff's claim must arise out of or relate to those activities. And third, the exercise of personal jurisdiction must be reasonable and fair.
"For the convenience of parties and witnesses, in the interest of justice, a district court may transfer any civil action to any other district or division where it might have been brought." 28 U.S.C. § 1404(a). In determining whether transfer is proper, the Federal Circuit applies regional circuit law.
Columbia concedes that Seirus is not subject to general jurisdiction in this district. Instead, Columbia relies on specific jurisdiction and argues that Seirus has "directed its commercial activities to Oregon," through both direct sales of infringing and other products in the state and its sales to national vendors with outlets in Oregon. Pl. Resp. at 11-12.
Seirus admits it first sold an accused HEATWAVE product directly to an Oregon retailer in December of 2013. Def. Memo. at 4. Since that first sale, Seirus admits it sold a total of $798 of the accused products directly to specialty stores such as ski shops and hunting stores in Oregon, a mere 0.0014% of its total sales in the same period.
The value of Seirus's direct sales in Oregon may be small, but there is no dispute that Seirus has sold products directly into the forum, and that Columbia's suit arises out of or relates to those sales. That is all that is required for Columbia to make a prima facie showing that the Court has personal jurisdiction over Seirus.
Finally, the third element of the test for specific personal jurisdictions requires the exercise of such jurisdiction be "reasonable and fair."
In examining "reasonableness," courts "consider five factors: (1) the burden on the defendant, (2) the forum's interest in adjudicating the dispute, (3) the plaintiff's interest in obtaining convenient and effective relief, (4) the interstate judicial system's interest in obtaining the most efficient resolution of controversies, and (5) the shared interest of the states in furthering fundamental substantive social policies."
Seirus asserts that it would be unfair and unreasonable to subject it to this Court's jurisdiction. Its officers and documents are located in California approximately 1,000 miles from the District of Oregon, and Seirus argues it will be uniquely burdened by litigating this matter in Oregon, given the small revenues generated from sales here and that Seirus is a "small company." Def. Reply at 12. But those reasons do not constitute the compelling showing required to override the exercise of otherwise constitutional jurisdiction in this case. Seirus admits to doing business in this forum, both directly and indirectly through sales to national retailers. Columbia has a strong interest in adjudicating in this forum, its home state, a harm felt here that was caused by Seirus's intentional conduct directed at this forum. The State of Oregon has the same interest as other states in "ensuring that its citizens are not harmed by nonresidents though patent infringement."
Because Columbia has established a prima facie case that Seirus has sufficient minimum contacts with Oregon that are related to Columbia's claims, and because Seirus has failed to show that the exercise of personal jurisdiction would be unreasonable or unfair, Seirus's motion to dismiss for lack of personal jurisdiction is denied.
Courts employ a two-step analysis when determining whether transfer is proper. First, a court must ask "whether the transferee district was one in which the action might have been brought by the plaintiff."
The Ninth Circuit has identified a number of public and private interest factors that a district court may consider, including: (1) the plaintiff's choice of forum, (2) the parties contacts with the forum, (3) convenience to the parties, (4) convenience to the witnesses, (5) availability of compulsory process for non-party witnesses, (6) ease of access to evidence, (7) differences in the costs of litigation in the two forums, (8) familiarity of each forum with the applicable law, (9) local interest in the controversy, and (10) the relative court congestion and time of trial in each forum.
First, the Court finds that this action could have been brought in Seirus's proposed alternative forum, the Southern District of California, because Seirus has its principal place of business there and is subject to that court's general personal jurisdiction. As for the weighing of factors, the Court finds that many are neutral. Both this Court and the Southern District of California are equally able to adjudicate patent infringement matters. Both parties and their witnesses would be inconvenienced if this case is heard in the other's preferred forum. The relative docket congestion between the two courts is not so significant as to tip the scales in favor of one party or the other.
As for the parties' contacts with the forum, Seirus admits that it has directly sold and sent allegedly infringing products into Columbia's home state, and this intentional targeting of the forum for commercial gain weighs in Columbia's favor.
Seirus vigorously argues that this matter should be transferred because its evidence is located in Southern California. Def. Reply at 14. Seirus cites
Finally, there is ordinarily a "strong presumption in favor of the plaintiff's choice of forum."
For the reasons stated, Defendant Seirus's motion to dismiss for lack of personal jurisdiction or, alternatively, transfer venue to the Southern District of California [15] is denied.