NITZA I. QUIÑONES ALEJANDRO, District Judge.
The above-captioned civil action is one of eight cases remaining that were consolidated by Order dated January 11, 2018,
The procedural history in this case is protracted and can be summarized as follows:
Section 1404(a) provides that "[f]or 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 or to any district or division to which all parties have consented." 28 U.S.C. § 1404(a). The purpose of transferring venue under § 1404(a) "is to prevent the waste of time, energy, and money, and to protect litigants, witnesses and the public against unnecessary inconvenience and expense." Van Dusen v. Barrack, 376 U.S. 612, 616 (1964). In determining whether transfer is appropriate, "the district court is vested with wide discretion," Plum Tree, Inc. v. Stockment, 488 F.2d 754, 756 (3d Cir. 1973), consistent with federal law. Jumara v. State Farm Ins. Co., 55 F.3d 873, 877-78 (3d Cir. 1995).
The threshold inquiry under § 1404(a) is whether venue in the transferee district is proper. Id. at 878. If venue is proper, the court must then undertake a balancing test to decide whether the convenience of the parties and witnesses and the interest of justice would be better served by a transfer to a different forum. Coppola v. Ferrellgas, Inc., 250 F.R.D. 195, 197 (E.D. Pa. 2008). Although "there is no definitive formula or list of the factors to consider," when determining whether a transfer is warranted, a court should weigh existing relevant private and public interests in its decision process. These interests are the following:
Jumara, 55 F.3d at 879-80 (citations omitted).
The party seeking the transfer bears the burden of establishing the need for the transfer. Id. at 879.
Moving Defendant argues that this case could have been brought in the Central District of California, and that transferring it to that district would be in the interest of justice and convenient for the parties and witness. Plaintiff opposes the motion.
Venue in patent infringement cases, such as this matter, is governed by 28 U.S.C. § 1400(b). This section provides that "civil action for patent infringement may be brought in the judicial district where the defendant resides, or where the defendant has committed acts of infringement and has a regular and established place of business." 28 U.S.C. § 1400(b). As an initial threshold inquiry, because Moving Defendant "resides" in California and has its principal place of business in the Central District of California, this Court finds that this civil action could have been brought in the Central District of California. See TC Heartland LLC v. Kraft Foods Grp. Brands LLC, 137 S.Ct. 1514, 1521 (2017) ("As applied to domestic corporations, `reside[nce]' in § 1400(b) refers only to the State of incorporation."). Having concluded that the transferee court has venue, this Court will now weigh the Jumara factors to determine whether transfer is warranted.
As noted, the private factors discussed in Jumara include: (1) plaintiff's forum preference as manifested in the original choice; (2) the defendant's preference; (3) whether the claim arose elsewhere; (4) the convenience of the parties as indicated by their relative physical and financial condition; (5) the convenience of the witnesses—but only to the extent that the witnesses may actually be unavailable for trial in one of the fora; (6) and the location of books and records (similarly limited to the extent that the files could not be produced in the alternative forum). Jumara, 55 F.3d at 879.
Plaintiff is incorporated in Pennsylvania, actively operates its business in this district, and its Chief Executive Officer resides in this district. [ECF 63 at 6].
Moving Defendant attempts to chisel away at this forum deference and argues that this matter should be transferred to the Central District of California, where it will be consolidated with Defendant Epson's recently transferred case, to avoid the possibility of inconsistent rulings were this case to remain in Pennsylvania. This concern is without merit. Whether this case is transferred or not, there will be Related Cases heard and decided by this Court. Thus, transfer will neither increase nor decrease the likelihood of inconsistent decisions. Further, in these patent cases, both this Court and the United States District Court for the Central District of California are bound by the decisions of the United States Federal Circuit Court, and any appeal of either court's decision will be decided by the United States Federal Circuit Court. See In re Cray Inc., 871 F.3d at 1360 (Fed. Cir. 2017); In re Micron Tech., Inc., 875 F.3d 1091, 1098 (Fed. Cir. 2017); see also Trustees of Univ. of Pennsylvania v. St. Jude Children's Research Hosp., 982 F.Supp.2d 518, 529 n.14 (E.D. Pa. 2013). Thus, the risk of inconsistent decisions by this Court and the United States District Court for the Eastern District of California is minimal.
Moving Defendant also argues that because the "center of gravity" of the alleged patent infringements occurred in the Central District of California, the preferred forum is California. [ECF 63 at 5-7]. This Court acknowledges that courts have held that in a "patent infringement case the preferred forum is that which is the center of gravity of the accused activity." Logopaint A/S v. 3D Sport Signs SI, 163 F.Supp.3d 260, 266 (E.D. Pa. 2016) (internal quotations omitted). "The center of gravity for such claims is in the district where the alleged infringement occurred." Id. (internal quotations omitted). Where the center of gravity is in another district, a plaintiff's choice of venue is accorded less deference. Id. However, while the center of gravity test is a factor to consider, it "is to be given substantial weight only where the plaintiff has engaged in forum shopping." Lucent Techs., Inc. v. Aspect Telecommunications Corp., 997 WL 476356, at *3 (E.D. Pa. Aug. 20, 1997). That is not the case here. The cases relied upon by Moving Defendant in support of its "center of gravity" argument all involve plaintiffs who filed suit outside their home forum. Where, as here, a plaintiff files suit in its home forum, and there is no evidence of forum shopping, the "center of gravity" test only slightly weakens the strong deference a district court must give to the plaintiff's forum choice. Thus, the "center of gravity" test only slightly weakens this Court's deference to Plaintiff's forum choice.
The second factor, the defendant's forum preference, "is entitled to considerably less weight than [p]laintiff's, as the purpose of a venue transfer is not to shift inconvenience from one party to another." Morrison v. Lindsey Lawn & Garden, Inc., 2014 WL 831570, at *3 (E.D. Pa. Mar. 4, 2014). This is especially true where, as here, a defendant has delayed filing a motion to transfer pursuant to § 1404(a). See Abbott, 2008 WL 4522481, at *3 (noting that "delay alone does not preclude transfer" but that it supported the denial of the motion to transfer). As noted in the analysis of Plaintiff's forum selection, Moving Defendant's reasons for selecting venue in California versus Pennsylvania have been discounted and need not be repeated again. In light of these considerations, this factor weighs against a transfer.
The third factor, where the majority of events giving rise to the claim occurred, weighs in favor of not transferring the case. While Moving Defendant's operations are primarily located in the Central District of California and, thus, much of the alleged infringing conduct occurred in California, there does not appear to be any dispute that some of the alleged infringing activity occurred in this district. In addition, in its counterclaim against Plaintiff, Moving Defendant questions the validity of the Patents.
While it is self-evident that both parties would find it more convenient to litigate in their respective home fora, "Jumara instructs this Court to consider the relative financial condition of the parties . . ." when considering this factor. Carnegie Mellon, 2009 WL 3055300, at *3. Moving Defendant, a Fortune 500 company, is larger and has greater financial resources with which to litigate in a foreign forum than Plaintiff, a smaller local company. Thus, this factor weighs in favor of denying transfer. See id. (noting that the defendants are publicly-traded corporations with global operations and annual revenues that exceed $2 billion that have the "financial wherewithal of litigating in Pennsylvania."); DermaMed, 152 F. Supp. 2d at 783 (finding that the defendants were the "largest marketers of cosmetic goods, spa treatments accessories and machinery and equipment in the beauty and cosmetics field" that would have no issues with litigating in Pennsylvania).
"When arguing for transfer on the basis of witness availability at trial and witness convenience, movant has the responsibility to specify clearly the key witnesses to be called." Szabo v. CSX Transp., Inc., 2006 WL 263625, at *2 (E.D. Pa. Feb. 1, 2006). A defendant must do more than simply argue that its witnesses will be inconvenienced; it must argue that they would be unavailable to appear in the relevant district. See Jumara, 55 F.3d at 879 (noting that the "convenience of the witnesses [is only relevant] to the extent that the witnesses may actually be unavailable for trial in one of the fora"); see also Abbott, 2008 WL 4522481, at *2 (noting that "[w]hile it might be more convenient for witnesses located in Virginia to testify in Virginia, [the d]efendant does not argue that any witnesses will be unable to attend a trial in this District."); Askew v. CSX Transp., Inc., 2008 WL 4347530, at *2 (E.D. Pa. Sept. 22, 2008) (noting the witness convenience standard is whether the witnesses are unavailable, not merely inconvenienced)).
Moving Defendant argues that the relevant witnesses who were involved in the decisions and activities relevant to Moving Defendant's conduct are located at its headquarters in the Central District of California, which supports transfer. [ECF 59 at 9-10]. Moving Defendant, however, fails to identify any specific witness who would be called and why such witness would be unavailable for trial or unable to travel to Pennsylvania. Accordingly, Moving Defendant has not met its burden as to this factor, and it is, thus, neutral or it weighs in favor of Plaintiff.
The location of books and records is likewise "limited to the extent that the files could not be produced in the alternative forum." Jumara, 55 F.3d at 879; DermaMed, 152 F. Supp. 2d at 784 ("[I]t is only if . . . documents [are] incapable of being produced in the forum that the convenience of parties carries sufficient weight to render transfer of venue appropriate."). With the availability of photocopying and electronic discovery, the location of documents is generally a neutral factor, see Kravas v. Private Adoption Servs., Inc., 2009 WL 5184689, at *4 (W.D. Pa. Dec. 22, 2009), and Moving Defendant has not provided any support, and does not assert, that it cannot produce records or samples located at its headquarters in this district. This factor, thus, is neutral.
The public interest factors discussed in Jumara include: (1) the enforceability of the judgment; (2) practical considerations that could make the trial easy, expeditious or inexpensive; (3) the relative administrative difficulty in the two fora resulting from court congestion; (4) the local interest in deciding local controversies at home; (5) the public policies of the fora; (6) and the familiarity of the trial judge with the applicable state law in diversity cases. Jumara, 55 F.3d at 879-80.
Because this is a federal patent infringement case, the enforceability of the judgment, public policies of the fora, and the familiarity of the trial judge with the applicable state law in diversity cases, are not relevant in this case. See Irwin v. CSX Transp., Inc., 2010 WL 1071428, at *5 (E.D. Pa. Mar. 22, 2010); Carnegie Mellon, 2009 WL 3055300, at *5. This Court will consider the remaining factors.
Of the Related Cases, seven remain pending in this district, while one has been transferred to the Central District of California. Thus, Plaintiff will be required to litigate in both this district and the Central District of California regardless of whether Moving Defendant's motion to transfer is or is not granted. In addition, while Moving Defendant's trial witnesses are not identified, it is fair to assume, as Moving Defendant argues, that its witnesses are located in the Central District of California. It is unclear whether Moving Defendant will have more witnesses for Moving Defendant than for Plaintiff. Thus, this factor is a neutral factor or weighs slightly in favor of Plaintiff.
Moving Defendant argues that based on federal court management statistics, the Central District of California has a less congested calendar. [ECF 59 at 11-12]. Specifically, Moving Defendant asserts that the Central District of California has a median time from filing to trial in civil cases of 18.9 months, and only 538 civil cases over three years old, whereas this district has a median time of 20.7 months and 1,395 three-year-old cases. (Id.). Moving Defendant contends that this warrants transfer to the Central District of California. (Id.).
"Although the relative congestion of court dockets may be evaluated in a motion to transfer, it generally is not a factor worthy of great weight." Penda Corp. v. STK, LLC, 2004 WL 2004439, at *3 (E.D. Pa. Sept. 7, 2004). In this case, the less than two-month difference in median time from filing to trial is insignificant, and, at most, minimally supports transfer. Jones Pharma, Inc. v. KV Pharm. Co., 2004 WL 323109, at *3 (D. Del. Feb. 17, 2004) (finding that a four-month difference in time from filing to trial only minimally favored transfer). Likewise, the additional number of three-year or older cases in this district minimally supports transfer.
Plaintiff is a Pennsylvania company, the Patents were developed here, and the alleged infringing activity mostly occurred here. Clearly, "Pennsylvania has an interest in discouraging patent infringement within its borders." Lucent Techs., Inc. v. Aspect Telecommunications Corp., 1997 WL 476356, at *8 (E.D. Pa. Aug. 20, 1997). This factor favors denying transfer.
After weighing and balancing the Jumara private and public factors, this Court finds that Moving Defendant has failed to meet its burden of showing that the Eastern District of Pennsylvania, Plaintiff's preferred forum, is an inconvenient venue to litigate Plaintiff's patent infringement claims against Moving Defendant, and the Jumara factors collectively weigh in favor of denying Moving Defendant's motion to transfer.
For the reasons stated herein, Moving Defendant's motion to transfer based on forum non conveniens is denied. An Order consistent with this Memorandum Opinion follows.
Section 1400(b) is the applicable venue statute for civil actions based on claims of patent infringement. Section 1400(b) provides that a "civil action for patent infringement may be brought in the judicial district where the defendant resides, or where the defendant has committed acts of infringement and has a regular and established place of business." 28 U.S.C. § 1400(b). On May 22, 2017, the Supreme Court decision in TC Heartland LLC v. Kraft Foods Grp. Brands LLC, 137 S.Ct. 1514 (2017), was issued, which held that for purposes of venue under § 1400(b), a domestic corporation "resides" only in its state of incorporation. This decision prompted the above four Defendants to file their motions to transfer for improper venue, because they are not incorporated in Pennsylvania, and do not maintain "regular and established place[s] of business" in this district. On February 23, 2018, this Court concluded that venue in this district was improper for Defendants OKI, Canon, Epson, and Lexmark, and granted their respective motions to transfer. [ECF 72, 73, 74, 75].
As noted above, Moving Defendant did not file a motion to transfer venue based on improper venue, and the deadline to do so has passed. In its motion to transfer for forum non conveniens, Moving Defendant asserts that it is incorporated in California, and maintains its headquarters in Lake Forest, California, in the Central District of California, but does not state whether it maintains a regular and established place of business in this district. Plaintiff, however, asserts that Moving Defendant has a regular place of business in King of Prussia, Pennsylvania, which is located in this district. [ECF 63 at 3]. Moving Defendant has not rebutted this assertion. Accordingly, without deciding the appropriateness of venue in this judicial district, this Court will only note that Moving Defendant has not denied that it has a regular and established place of business in this district.