MARK S. DAVIS, District Judge.
This matter is before the Court on Defendants Samsung Electronics Co., LTD ("SEC"), Samsung Electronics America, Inc. ("SEA"), and Samsung Telecommunications America, LLC's ("STA") (collectively "Defendants") Motion to Transfer Venue to the United States District Court for the District of New Jersey, pursuant to 28 U.S.C. § 1404(a) and alternative request for limited discovery concerning venue. ECF Nos. 29-30. For the reasons set forth herein, Defendants' motion to transfer and request for venue-related discovery are
Plaintiff Virginia Innovation Sciences, Inc. ("VIS") filed the instant action against Defendants in the Alexandria Division of this District on October 4, 2012. VIS accuses Defendants of infringing several of VIS's patents: U.S. Patent No. 7,899,492 ("the '492 patent"), U.S. Patent No. 8,050,711 ("the '711 patent"), U.S. Patent No. 8,145,268 ("the '268 patent"), U.S. Patent No. 8,224,381 ("the '381 patent"), U.S. Patent No. 7,957,733 ("the '733 patent"), and U.S. Patent No. 8,135,398 ("the '398 patent"). These patents describe "methods, systems, and apparatus for displaying multimedia information from wireless connection networks" and "methods and apparatus for multimedia communications with different user terminals." See ECF No. 1, Exs. A-F. VIS alleges that Defendants have infringed its patents by making, using, offering for sale, selling, and/or importing a wide range of accused products, including smartphones, tablets, Blue-ray players, and hubs. After the filing of the Complaint in the Alexandria Division of this Court, the action was subsequently transferred to this Division, pursuant to District policy concerning the rotation of certain cases.
VIS is a Virginia corporation with its principal place of business in Arlington,
On January 14, 2013, Defendants filed the instant Motion to Transfer Venue to the District of New Jersey. ECF No. 29. In their memorandum in support of such motion, Defendants alternatively seek leave to conduct limited discovery on the question of venue. ECF No. 30. VIS filed its opposition memorandum on January 28, 2013. ECF No. 41. Defendants filed a reply memorandum on January 31, 2013. ECF No. 46. On February 19, 2013, this Court conducted a status conference at which it heard oral argument on the motion to transfer and alternative request for limited discovery. The Court took the matter under advisement and now issues its findings as set forth below.
Title 28, United States Code, Section 1404(a) provides that "[f]or the convenience of the 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). Section 1404(a) "is intended to place discretion in the district court to adjudicate motions for transfer according to an `individualized, case-bycase consideration of convenience and fairness.'" Stewart Org., Inc. v. Ricoh, Corp., 487 U.S. 22, 29, 108 S.Ct. 2239, 101 L.Ed.2d 22 (1988) (citing Van Dusen v. Barrack, 376 U.S. 612, 622, 84 S.Ct. 805, 11 L.Ed.2d 945 (1964)); see also Cognitronics Imaging Sys., Inc. v. Recognition Research Inc., 83 F.Supp.2d 689, 696 (E.D.Va.2000) (recognizing the discretion the district court has to transfer to a more convenient forum).
The burden is on the movant to show that transfer pursuant to Section 1404(a) is proper. Cognitronics, 83 F.Supp.2d at 696. In a patent infringement action, motions to transfer venue pursuant to Section 1404(a) are governed by the law of the regional circuit in which the Court sits. See Winner Int'l Royalty Corp. v. Wang, 202 F.3d 1340, 1352 (Fed. Cir.2000).
In order to determine whether a transfer of venue is appropriate, "a district court must make two inquires: (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." Koh v. Microtek Intern., Inc., 250 F.Supp.2d 627, 630 (E.D.Va.2003). Respecting the first inquiry:
Nationwide Mut. Ins. Co. v. The Overlook, LLC, No. 4:10cv69, 2010 WL 2520973, at *3 (E.D.Va. June 17, 2010) (citing Kontoulas v. A.H. Robins Co., Inc., 745 F.2d 312, 315 (4th Cir.1984)). Once the movant has shown that the transferee venue is a proper
Ultimately, the movant must show "that transfer does more than merely `shift the inconvenience to the other party.'" JTH Tax, 482 F.Supp.2d at 736 (quoting DMP Corp. v. Fruehauf Corp., 617 F.Supp. 76, 77 (W.D.N.C.1985)). "[T]he balance of convenience among the parties and witnesses [must weigh] strongly in favor of the forum to which transfer is sought." Nationwide Mut. Ins., 2010 WL 2520973, at *3 (quoting Nossen v. Hoy, 750 F.Supp. 740, 742 (E.D.Va.1990)) (emphasis in original).
In order to determine whether the transferee court is a district where the cause of action "might have been brought," the Court must determine whether Plaintiff's claims could have been brought in the transferee court initially. Agilent Techs., Inc. v. Micromuse, Inc., 316 F.Supp.2d 322, 325 (E.D.Va.2004). The phrase "might have been brought" has been interpreted to mean that "when a suit is commenced, plaintiff has a right to sue in that district, independently of the wishes of defendant." Hoffman v. Blaski, 363 U.S. 335, 344, 80 S.Ct. 1084, 4 L.Ed.2d 1254 (1960); see also Agilent, 316 F.Supp.2d at 324. If the claims could have been brought in the transferee court initially, the subsequent decision to transfer venue is within the discretion of the court. One Beacon Ins. Co. v. JNB Storage Trailer Rental Corp., 312 F.Supp.2d 824, 828 (E.D.Va.2004) (citing Verosol B.V. v. Hunter Douglas, Inc., 806 F.Supp. 582, 591 (E.D.Va.1992)).
Under 28 U.S.C. § 1400(b), venue in patent infringement lawsuits is proper in any "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) (emphasis added). A corporate defendant resides in any district in which it is subject to personal jurisdiction. 28 U.S.C. § 1391(c).
Both parties agree that VIS's patent infringement claims could have been brought in the District of New Jersey. Defs.' Br. in Supp. of Mot. to Transfer at 5, ECF No. 30; PL's Resp. to Defs.' Mot. to Transfer at 4, ECF No. 41. SEA is a wholly owned subsidiary of SEC with its principal place of business in New Jersey. Additionally, at the status conference, Defendants represented that, although SEC and STA are not headquartered in New Jersey, their employees regularly travel to New Jersey and that the companies maintain offices there. Therefore, it is clear that this civil action "might have been brought" in the District of New Jersey. See 28 U.S.C. § 1404(a); 28 U.S.C. § 1391(c).
Having determined that this action could have been brought in the transferee forum, the Court next considers whether the interest
VIS chose to file the instant action in the Eastern District of Virginia. Defendants argue that little deference should be given to VIS's choice of forum because VIS is a non-practicing entity whose main business is enforcing its intellectual property rights. Accordingly, Defendants contend that both VIS and this action have minimal ties to Virginia. VIS responds — both in its memorandum in opposition to the instant motion and in the declaration from VIS's sole owner, Dr. Tiehong (Ann) Wang ("Dr. Wang") attached thereto — that it has been a "resident" of the Eastern District of Virginia since its formation in 2005 and that it has been engaged in the research, development, and prosecution of the patents-in-suit, as well as other patents, in this District since that time. ECF No. 41 at 5. Defendants reply that VIS's past prosecution of the patents-in-suit cannot establish its present connection to the forum. Defendants further maintain that, because VIS does not manufacture or develop products, it is a non-practicing entity despite its representations that it is actively engaged in research and development.
Generally, a plaintiff's choice of forum is entitled to substantial weight. See Heinz Kettler GMBH, 750 F.Supp.2d at 667; Koh, 250 F.Supp.2d at 632. However, the weight accorded to this choice "varies with the significance of the contacts between the venue chosen by plaintiff and the underlying cause of action." Pragmatus, 769 F.Supp.2d at 995; see also CIVIX-DDI, LLC v. Loopnet, Inc., No. 2:12cv2, 2012 WL 3776688, at *3 (E.D.Va. Aug. 30, 2012). "Even when the plaintiff sues in its home forum, that fact is not by itself controlling and the weight of that factor depends on the nexus tying the case to the forum." Gebr. Brasseler GmbH & Co. KG. v. Abrasive Tech., Inc., No. 1:08cv1246, 2009 WL 874513, at *2 (E.D.Va. Mar. 27, 2009).
Here, VIS is a Virginia corporation that has continuously operated in this District since its formation in 2005. Thus, the Eastern District of Virginia is VIS's home forum. However, that fact alone is not controlling. The Court also considers the nexus between this District and the instant infringement action.
First, the Court notes that the patented technologies at issue in this action were all researched and developed primarily in this District and that the patents-in-suit were prosecuted here. Defendants are correct in noting that past activities may be insufficient to establish a plaintiff's connection to a forum if such activities do not constitute "conditions that `existed when suit was instituted.'" Jaffe v. LSI Corp., 874 F.Supp.2d 499,
VIS represents that it not only researched and developed the patented technologies at issue in this District, but that it continues to research and develop various technologies here. Dr. Wang devotes all of her time to such activities. Although Dr. Wang is VIS's only employee, she is actively engaged in VIS's research and development operations on a full-time basis. The fact that such activities occur in the VIS office at Dr. Wang's residence in Arlington, Virginia does not detract from their significance. Nor does the fact that VIS does not manufacture products undermine VIS's continuing research and development operations, as Defendants suggest. A "non-practicing entity," for purposes of a venue analysis, is an entity that "does not research and develop new technology, but rather acquires patents, licenses the technology, and sues alleged infringers." Pragmatus, 769 F.Supp.2d at 995. VIS's ongoing research and development of technologies for patent distinguish it from those plaintiffs deemed non-practicing entities in the cases upon which Defendants seek to rely. See Order at 2-3, Bascom Research, LLC v. Facebook, Inc., No. l:12cvlll, (E.D.Va. Dec. 11, 2012), ECF No. 40; CIVIX-DDI, 2012 WL 3776688, at *3; Pragmatus, 769 F.Supp.2d at 995 This is simply not a case in which the plaintiff's sole activity in the forum is the enforcement of its intellectual property rights. See CIVIX-DDI, 2012 WL 3776688, at *3; Pragmatus, 769 F.Supp.2d at 995.
In viewing the above facts as a whole, the Court finds that VIS is a practicing entity whose choice of its home forum is entitled to substantial weight in an enforcement action involving patented technologies that VIS researched, developed, and prosecuted here. Accordingly, the Court finds that the connection between this District and the cause of action is sufficient to warrant the substantial deference generally given a plaintiff's choice of forum. See, e.g., Heinz Kettler GMBH, 750 F.Supp.2d at 667; Koh, 250 F.Supp.2d at 632. Defendants have failed to demonstrate otherwise and, as the movants for transfer of venue, they bear the ultimate burden to show that transfer pursuant to Section 1404(a) is proper. Cognitronics, 83 F.Supp.2d at 696.
The fact that VIS's choice of forum is accorded significant weight does not end the inquiry. Transfer would still be appropriate upon a showing that "the balance of convenience among the parties and witnesses is strongly in favor of the forum to which transfer is sought." Nationwide Mut. Ins., 2010 WL 2520973, at *3 (quoting Nossen, 750 F.Supp. at 742) (emphasis in original). The party asserting witness inconvenience "has the burden to proffer, by affidavit or otherwise, sufficient details respecting the witnesses and their potential testimony to enable the court to assess the materiality of evidence and the degree of inconvenience." Koh, 250 F.Supp.2d at 636. Additionally, "the convenience of non-party witnesses should be afforded greater weight [than the convenience of party witnesses] in deciding a motion to transfer." Samsung Electronics Co., Ltd. v. Rambus, Inc., 386 F.Supp.2d 708, 718 (E.D.Va.2005). As the moving parties, Defendants must demonstrate that the Eastern District of Virginia is "an
Defendants have made much of the inconvenience its witnesses will suffer if required to travel internationally to this District. Defendants argue that the District of New Jersey's proximity to two international airports makes it a much more convenient venue, both for their employee witnesses and for the non-party inventors of the patents-in-suit, three of whom reside in China. With respect to Dr. Wang and other non-party witnesses located in Northern Virginia and Washington, D.C., Defendants argue that proceeding in the District of New Jersey would impose equal inconvenience upon such witnesses as would litigating in the Norfolk Division of this District. Plaintiffs argue that they should not be prejudiced by the Court's sua sponte transfer of the action to this Division and proffer declarations from all party and non-party witnesses affirming that this District-even this Division-is far more convenient for them than the District of New Jersey. Defendants urge the Court to disregard such declarations and consider the fact that such witnesses will have to travel a great distance regardless of whether venue is transferred.
As a threshold matter, Defendants, as the parties asserting inconvenience, bear the burden "to proffer by affidavit or otherwise, sufficient details respecting the witnesses and their potential testimony to enable the court to assess the materiality of evidence and the degree of inconvenience." Samsung, 386 F.Supp.2d at 718. Defendants have proffered that all potential witnesses with knowledge concerning the accused products and their sale in the United States are employees who work in South Korea, New Jersey, and Texas. Although Defendants discuss the degree of inconvenience to such witnesses at length, Defendants have failed to provide any specific details concerning the number of witnesses it expects to call (including how many witnesses reside in the transferee district) and how each witness's testimony will be material and non-cumulative, despite being given the opportunity to further elaborate on this point at the status conference. See Koh, 250 F.Supp.2d at 636. Thus, the Court does not have sufficient facts to determine whether Defendants' proffered witnesses are "central to a claim" or "merely cumulative." Samsung, 386 F.Supp.2d at 718.
Furthermore, the facts that are before the Court suggest that the inconvenience to any such witnesses should "play[] a reduced roll in the court's analysis." NanoEntek, Inc. v. BioRad Labs., Inc., No. 2:llcv427, 2011 WL 6023189, at *5 (E.D.Va. Dec. 2, 2011). Specifically, the only witnesses proffered are employees of SEC, SEA, or STA and are, therefore, party witnesses. See id. ("Party witnesses are the parties themselves and those closely aligned with a party [such as employees]."). Such witnesses "are presumed to be more willing to testify in a different forum." Samsung, 386 F.Supp.2d at 718. Additionally, the international travel required of these party witnesses is further mitigated by the fact that the only international defendant, SEC, has previously litigated a patent-infringement declaratory judgment action in the Richmond Division of this District and, in such action, expressly affirmed the convenience of this forum when opposing a motion to transfer venue. See Samsung, 386 F.Supp.2d at 719; see also CIVIX-DDI, 2012 WL 3776688, at *5 (considering a plaintiff's prior litigation in the transferee forum when determining such forum was presumably convenient). Thus, although "international air travel w[ill undoubtedly] be burdensome wherever this case is litigated," it does not appear that such travel
The convenience of the non-party witnesses weighs against transferring the case. The only non-party witnesses presently identified are the inventors of the patents-in-suit and the prosecuting attorney of such patents. Three of the non-party inventors reside in China and the fourth resides in Washington, D.C.
The fourth and final factor for the Court to consider when determining whether transfer to the District of New Jersey is appropriate is the interest of justice. See 28 U.S.C. § 1404(a). Analysis of this factor encompasses considerations unrelated to witness and party convenience, including (1) the pendency of a related action, (2) the court's familiarity with the applicable law, (3) docket conditions, (4) access to premises that might have to be viewed, (5) the possibility of an unfair trial, (6) the ability to join other parties, (7) the possibility of harassment, and (8) the interest of having local controversies decided at home. Pragmatus, 769 F.Supp.2d at 996; Gebr. Brasseler GmbH, 2009 WL 874513, at *5. Ultimately, the interest of justice factor "encompasses public interest factors aimed at `systemic integrity and fairness,'" with the most prominent considerations being "judicial economy and the avoidance of inconsistent judgments." Byerson v. Equifax Info. Servs., LLC, 467 F.Supp.2d 627, 635 (E.D.Va.2006) (quoting Samsung, 386 F.Supp.2d at 721).
The parties agree that the majority of the above considerations are not applicable in this case. Specifically, there are no related actions currently pending in the District of New Jersey, or any other district. The case arises under Federal patent law, so the Court's familiarity with the applicable law is not at issue. See Agilent Techs., 316 F.Supp.2d at 329 (noting that one district court is no better or worse equipped to handle a suit arising under Federal patent law than any other). Neither party has argued that docket considerations should influence the Court's transfer analysis, although the parties agree that the average time to trial for a civil case in the District of New Jersey is approximately twenty-seven months — which is significantly longer than in this District. Additionally, there are no facts before the Court suggesting that there are premises to be viewed in this case or that there is a possibility of unfair trial or harassment in this District. Finally, the ability to join parties also does not appear to be at issue.
The parties only dispute which district has a greater interest in deciding this controversy. Defendants argue that their ties to New Jersey make it more reasonable to
Whether a dispute arising under Federal patent law creates a "local controversy" is not entirely settled in this District. Some courts have agreed with VIS and held that a patent infringement action is not a local controversy. E.g., Lycos, Inc. v. TiVo, Inc., 499 F.Supp.2d 685, 696 (E.D.Va.2007). Others have found a local interest where a plaintiff sues in its home forum. E.g., Taltwell, LLC v. Zonet USA Corp., No. 3:07cv543, 2007 WL 4562874, at *12 (E.D.Va. Dec. 20, 2007). Still others have considered infringement suits to be local "where the maker and seller of the infringing products is located." E.g., Jaffe, 874 F.Supp.2d at 509; NanoEntek, 2011 WL 6023189, at *7. However, in these latter cases, the existence of a local controversy may be predicated upon the economic harm that would result in the transferee forum if a finding of liability were to require a change to manufacturing processes or products. See NanoEntek, 2011 WL 6023189, at *7.
Here, VIS has sued in its home forum and, as the Court has already found, is a practicing entity in such forum. Although Defendants have a heavy presence in New Jersey, all manufacturing of the accused products occurs in South Korea. When prompted at the status conference, Defendants were unable to point to any harm, economic or otherwise, that would result in New Jersey upon a finding of liability. Defendants instead argued that the citizens of New Jersey would have a greater interest in litigating a dispute involving a local company — SEA. Given the absence of any facts concerning the anticipated effect of this action's outcome in New Jersey, the Court sees no reason why jurors in that District would have a greater interest in adjudicating the instant dispute than those in this District. Specifically, jurors in New Jersey may have an interest in a case involving a local company, but jurors in Virginia have at least an equal interest in a case involving technologies developed in Virginia by a Virginia company. On balance, therefore, this factor is neutral to the Court's determination of the instant motion.
In sum, Defendants have failed to show that VIS's choice of forum should not be accorded significant weight. Although the Defendants have extensively argued that convenience of the parties and witnesses should override VIS's choice, the Court finds that Defendants have failed to show that "the balance of the hardships clearly favor[s] transfer." Verizon Online Servs., 203 F.Supp.2d at 623-24. Accordingly, the Court will not disturb VIS's choice of forum.
Defendants' have alternatively requested that, should the Court determine that transfer of venue is not presently warranted under Section 14 04(a), the Court withhold entering such finding and allow the parties to conduct limited discovery concerning venue. At the status conference, Defendants argued that they lacked sufficient information concerning VIS's activities to determine whether VIS is a practicing versus a non-practicing entity. Defendants seek leave to take Dr. Wang's deposition in order to verify both the nature and extent of her work for VIS, and the representations in her declaration.
For the reasons set forth above, the Court
The Court