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Federal Circuit Orders Venue Transfer in Patent Infringement Case
Practical Law Legal Update 1-515-9188 (Approx. 3 pages)
Federal Circuit Orders Venue Transfer in Patent Infringement Case
by PLC Intellectual Property & Technology
| Published on 08 Dec 2011 • USA (National/Federal) |
The US Court of Appeals for the Federal Circuit granted a petition for a writ of mandamus to transfer venue in a patent infringement case from the Delaware District Court to the Northern District of California even though the defendant company is incorporated in Delaware.
On December 2, 2011, the US Court of Appeals for the Federal Circuit, applying the law of the Third Circuit, granted a petition for a writ of mandamus in In re Link_A_Media Devices Corp., a patent infringement case, directing the Delaware District Court to transfer venue to the Northern District of California.
Marvell International, Ltd., a holding company incorporated in Bermuda, sued Link_A_Media Devices Corporation (LAMD) in the Delaware District Court for patent infringement. Although LAMD is incorporated in Delaware, LAMD's headquarters are in northern California, nearly all of its 130 employees work at the headquarters and the dispute is with inventors employed by a Marvell affiliate located in Santa Clara, California, approximately three miles from LAMD.
LAMD filed the writ of mandamus in the Federal Circuit after the Delaware district court denied its motion to transfer venue to the Northern District of California under 28 U.S.C. § 1404(a). The Federal Circuit found that the district court failed to properly balance established private and public interest factors, and put too much weight on:
- Marvell's choice of forum.
- LAMD's incorporation in Delaware.
Instead, the plaintiff's choice of forum is given less deference where it is not the plaintiff's home forum. State of incorporation is not a factor in Section 1404 or under Third Circuit precedent and is not dispositive in the venue transfer analysis.
Relying on Jumara v. State Farm Ins. Co., 55 F.3d 873, 879 (3d Cir. 1995), the Federal Circuit found that the district court also should have considered, among other things:
- The convenience of the witnesses.
- Location of the books and records.
- Public interest factors, including:
- the enforceability of the judgment;
- practical considerations that may make the trial faster and less expensive; and
- local interest.
The Federal Circuit also rejected Marvell's argument that Delaware was the proper forum because Delaware judges are highly experienced in patent infringement litigation as Marvell's claims arise under uniform federal patent laws.
As this case shows, when choosing Delaware District Court as venue in a patent infringement case, the plaintiff must look beyond the state of incorporation of potential defendants. While the Third Circuit places significant weight on the plaintiff's choice of forum, less deference is given where it is not the plaintiff's home forum.