REBECCA BEACH SMITH, District Judge.
This is a patent infringement action filed by plaintiff Fox Group ("Fox"), against defendants Cree, Inc. ("Cree") and Dow Corning Corporation ("Dow Corning"). This matter comes before the court on Dow Coming's Motion to Dismiss and, in the Alternative, to Transfer. For the reasons set forth herein, Dow Coming's motion to transfer venue is
On June 29, 2010, Fox filed this patent infringement action against Dow Corning and Cree, two entirely separate entities. In its Complaint, Fox alleges that the defendants made, used, sold, and/or offered for sale products covered by U.S. Patent Number 6,534,026 ("the '026 patent") and U.S. Patent Number 6,562,130 ("the '130 patent"), which are owned by Fox and relate to "silicon carbide substrates."
On April 21, 2010, two months before this action commenced in the Eastern District of Virginia, Dow Corning filed a declaratory judgment action against Fox in the Southern District of New York
On August 30, 2010, Dow Corning filed the instant motion, seeking transfer to the Southern District of New York.
Dow Corning is a Michigan corporation with its principle place of business in Michigan. Dow Corning is registered to do business in New York, and has been so registered at all relevant times. Fox is a California corporation with its sole place of business in Warrenton, Virginia.
"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 deciding whether to grant a motion to transfer venue, this court must conduct the following two inquiries: "`(1) whether the claims might have been brought in the transferee forum; and (2) whether the interest of justice and convenience of the parties and witnesses justify transfer to that forum.'" JTH Tax, Inc. v. Lee, 482 F.Supp.2d 731, 735 (E.D.Va. 2007) (quoting Koh v. Microtek Int'l, Inc., 250 F.Supp.2d 627, 630 (E.D.Va.2003)).
The court must determine whether this action might have been brought in the
The determination of whether a court can assert personal jurisdiction over a defendant in a patent infringement suit is governed by Federal Circuit law, rather than by the regional circuit in which the case is litigated. See Convergence Tech. (USA), LLC v. Microloops Corp., No. 1:09cv1256, 2010 WL 1931743, at *4 (E.D.Va. May 11, 2010) (citing Avocent Huntsville Corp. v. Aten Int'l Co., Ltd., 552 F.3d 1324, 1328 (Fed.Cir.2009)). Under Federal Circuit precedent, a district court must consider the following two issues: (1) whether the forum state's long-arm statute authorizes the exercise of personal jurisdiction over the defendant; and (2) whether the exercise of personal jurisdiction over the defendant comports with the requirements of the Due Process Clause of the Fifth Amendment. See Viam Corp. v. Iowa Export-Import Trading Co., 84 F.3d 424, 427 (Fed.Cir.1996). New York's long-arm statute does not extend to the outermost boundaries of the Due Process Clause, see, e.g., Graphic Controls Corp. v. Utah Med. Prod., Inc., 149 F.3d 1382, 1385 (Fed.Cir.1998); Beacon Enter., Inc. v. Menzies, 715 F.2d 757, 764 n. 6 (2d Cir.1983), thus the court must address each issue in turn.
The statutory issue is easily resolved. In interpreting the New York long-arm statute, the court can "defer to the interpretations of the relevant state and federal courts." Graphic Controls, 149 F.3d at 1386. New York courts have recognized that registration to do business under New York Business Corporation Law § 1304 subjects foreign corporations to personal jurisdiction. See, e.g., Glory Wealth Shipping Serv. Ltd. v. Rice Co., No. 08civ.10245, 2008 WL 5454224, at *2 (S.D.N.Y. Dec. 23, 2008); Iyalla v. TRT Holdings, Inc., No. 04civ.8114, 2005 WL 1765707, at *3 (S.D.N.Y. July 25, 2005). Fox does not contest that Dow Corning is registered to do business in New York. See, e.g., Isackson Decl. Ex. 26, ECF No. 16-26. Accordingly, New York's long-arm statute authorizes the exercise of personal jurisdiction over Dow Corning.
As regards the constitutional issue, the court cannot defer to the interpretations of other federal and state courts. See Graphic Controls, 149 F.3d at 1385. Accordingly, the court must first ask whether Dow Corning has the minimum contacts with New York necessary to confer
Registration to do business in New York requires the registering party to designate an agent for service of process. N.Y.McKinney's Business Corporation law § 1304. The Supreme Court, in a case requiring it to analyze the predecessor to the New York Business Corporation Law, recognized that "designation of an agent for service of process [is] an effective consent to be sued in the federal courts," and that "consent of parties may bring about a state of facts which will authorize the courts of the United States to take cognizance of a case." Neirbo Co. v. Bethlehem Shipbuilding Corp., 308 U.S. 165, 173-75, 60 S.Ct. 153, 84 L.Ed. 167 (1939) (citations omitted). In its New York registration, Dow Corning designated a New York entity as its registered agent. See Isackson Decl. Ex. 26, ECF No, 16-26. Although the court might thereby find the constitutional issue met, International Shoe v. Washington, 326 U.S. 310, 66 S.Ct. 154, 90 L.Ed. 95 (1945) cast doubt on the viability of this basis for general jurisdiction.
Fox could have brought its claims against Dow Corning as counterclaims in the S.D.N.Y. action.
As personal jurisdiction exists, the Southern District of New York would be a "judicial district where the defendant" resides for purposes of 28 U.S.C. § 1400(b) so that venue could have been properly laid there at the inception of this lawsuit and may now be transferred there pursuant to 28 U.S.C. § 1404(a), if convenience and justice so dictate.
Having determined that the Southern District of New York is a proper venue for this action, the court must next decide whether to exercise its discretion to transfer this action there. In making this determination, the court normally considers the following factors: (1) the plaintiff's choice of venue; (2) the convenience of the parties and witnesses; and (3) the interest of justice. See, e.g., Agilent Techs., Inc. v. Micromuse, Inc., 316 F.Supp.2d 322, 326 (E.D.Va.2004). Although the decision whether to grant a motion to transfer venue is within the sound discretion of the district court, see Beam Laser Sys., Inc. v. Cox Commc'ns, Inc., 117 F.Supp.2d 515, 517 (E.D.Va.2000), there is a strong presumption that a case should stay in the plaintiff's chosen forum. See, e.g., Samsung Elec. Co. Ltd. v. Rambus, Inc., 386 F.Supp.2d 708, 724 (E.D.Va.2005). However, when two identical actions are pending at the same time in two federal courts, the first-filed action is generally preferred, "even if it is a request for a declaratory judgment." Holmes Group, Inc. v. Hamilton Beach/Proctor Silex, Inc., 249 F.Supp.2d 12, 15 (D.Mass.2002) (citations omitted). "The policy underlying the first-to-file rule is the avoidance of duplicative litigation and the conservation of judicial resources." Samsung, 386 F.Supp.2d at 724. Exceptions to the rule occur "when justice or expediency requires," but "there must, however, be sound reason that would make it unjust or inefficient to continue the first-filed action." Genentech, Inc. v. Eli Lilly and Co., 998 F.2d 931, 937-38 (Fed.Cir.1993) abrogated on other grounds by Wilton v. Seven Falls Co., 515 U.S. 277, 115 S.Ct. 2137, 132 L.Ed.2d 214 (1995).
The court finds no reason to depart from the first-filed rule. Fox commenced this action two months after Dow brought the S.D.N.Y. action. Both actions seek to determine the same ultimate issue. See Byerson v. Equifax Info. Serv., 467 F.Supp.2d 627, 635-36 (E.D.Va.2006). It would be eminently unjust and inefficient to delay this matter further: Dow has not been able to move forward in the S.D.N.Y. action and Cree has not been able to move forward with its defense and counterclaim in this court. While both federal actions involve the same patents, the infringement issues are different and specific to two different entities, Dow Corning and Cree. Finally, there is no indication of inequitable conduct, forum shopping, or bad faith by Dow Corning.
For the reasons set forth above, Dow Coming's motion to transfer venue is
The Clerk is