throbber
Case 1:16-cv-02690-AT Document 24 Filed 01/08/16 Page 1 of 13
`
`
`
`IN THE UNITED STATES DISTRICT COURT
`FOR THE EASTERN DISTRICT OF TEXAS
`TYLER DIVISION
`
`
`
`
`
`Plaintiffs,
`
`
`
`
`
`
`Civil Action No. 6:15-cv-907
`
`
`
`
`SIPCO, LLC, and IP CO, LLC
`(d/b/a INTUS IQ),
`
`
`
` v.
`
`EMERSON ELECTRIC CO., EMERSON
`PROCESS MANAGEMENT LLLP, FISHER-
`ROSEMOUNT SYSTEMS, INC.,
`ROSEMOUNT INC., BP, p.l.c., BP
`AMERICA, INC., and BP AMERICA
`PRODUCTION COMPANY,
`
`
`
`
`
`
`
`Defendants.
`
`
`
`
`PLAINTIFFS’ MEMORANDUM IN OPPOSITION TO EMERSON
`DEFENDANTS’ MOTION TO DISMISS OR TRANSFER THIS ACTION
`
`SIPCO, LLC and IP Co, LLC (d/b/a INTUS IQ) (“Plaintiffs” or “SIPCO”) submit this
`
`Memorandum in Opposition to the Motion to Dismiss or Transfer (“Mot. To Dismiss”) filed by
`
`Emerson Electric Co., Fisher-Rosemount Systems, Inc., and Rosemount Inc. (collectively,
`
`“Defendants” or “Emerson”). SIPCO opposes the motion because (1) Emerson is not entitled to
`
`benefit from the first-to-file rule after affirmatively abandoning its preemptively-filed declaratory
`
`judgment claims with respect to SIPCO’s patents in a separate action pending in the Northern
`
`District of Georgia (“NDGA”); (2) the asserted patents in this case are sufficiently different from
`
`those in the NDGA action such that first-to-file does not apply; and (3) the Eastern District of
`
`Texas is the proper and more convenient forum for resolving this dispute. For these and other
`
`reasons set forth more fully below, SIPCO respectfully requests the Court to deny Emerson’s
`
`motion.
`
`FACTUAL BACKGROUND
`
`I.
`
`
`
`

`

`Case 1:16-cv-02690-AT Document 24 Filed 01/08/16 Page 2 of 13
`
`
`
`SIPCO and Emerson are not strangers, and it is partly because of their history that the
`
`first-to-file rule should not apply to this case. SIPCO has a substantial patent portfolio covering
`
`technologies that have been incorporated into wireless protocols utilized by standard-setting
`
`organizations and licensed to more than sixty corporations. See Original Complaint (hereinafter,
`
`“Orig. Comp.”), at ¶¶ 50-55; see also First Amended Complaint (hereinafter, “1st Am. Comp.”),
`
`at ¶¶ 59-61, 63-64. Before Emerson preemptively commenced litigation against SIPCO in the
`
`NDGA, SIPCO and Emerson shared (and continue to share) a licensor/licensee relationship with
`
`respect to SIPCO’s patents. More particularly, in 2011, the White-Rodgers Division of Emerson
`
`Electric Co. took a license to a portfolio of SIPCO patents and pending patent applications,
`
`including patents at issue in this lawsuit. See Orig. Comp. ¶¶ 60-61; see also 1st Am. Comp. ¶¶
`
`71-72.
`
`SIPCO’s license grant does not extend to any Emerson entity or division other than the
`
`White-Rodgers Division. See Orig. Comp. ¶¶ 62-67; see also 1st Am. Comp. ¶¶ 73-80. As a
`
`result, Emerson filed a preemptive declaratory judgment suit in the NDGA alleging non-
`
`infringement and invalidity of eight SIPCO patents, including patents-in-suit in this case. See
`
`Mot. to Dismiss, Exh. A. Thereafter, the Emerson entities changed course and withdrew their
`
`complaint. They changed course yet again by re-filing a subsequent declaratory judgment
`
`complaint in the NDGA, but this time alleging non-infringement and invalidity of only two
`
`SIPCO patents: U.S. Patent Nos. 7,103,511 (“the ‘511 patent”) and 6,044,062 (“the ‘062
`
`patent”)—neither of which are at issue in this case. See Mot. to Dismiss, Exh. B. Having full
`
`knowledge of SIPCO’s patent portfolio, and having filed and abandoned claims for declaratory
`
`relief in the NDGA with respect to a broad range of SIPCO patents, including many of the
`
`patents-in-suit in this case, Emerson made a clear statement—it did not intend to litigate any
`
`2
`
`

`

`Case 1:16-cv-02690-AT Document 24 Filed 01/08/16 Page 3 of 13
`
`
`
`additional SIPCO patents in the NDGA.
`
`As alleged in the Original Complaint, the non-licensed Emerson entities are infringing
`
`ten1 SIPCO patents. See Orig. Comp. ¶¶10-49; see also 1st Am. Comp. ¶¶ 15-58. The patents at
`
`issue in this case are not substantially similar to the patents at issue in the NDGA case. In fact, as
`
`shown in detail below, a number of the patents-in-suit claim different systems and devices than
`
`those claimed by the two patents asserted in the NDGA action.
`
`SIPCO filed suit in this district because its judges have already construed the claims of
`
`four SIPCO patents at issue in this case2 and are familiar with the technology and subject matter
`
`underlying those patents. In addition, the non-licensed Emerson entities have places of business
`
`in Texas (including a principal place of business) and in this judicial district, and they have
`
`committed and continue to commit acts of patent infringement in Texas and within this judicial
`
`district. Accordingly, for these and other reasons set forth more fully below, this case should not
`
`be dismissed or transferred to the NDGA because the Eastern District of Texas is the proper and
`
`more convenient forum for this dispute.
`
`II.
`
`LEGAL STANDARD
`
`A.
`
`First-to-File Rule
`
`The first-to-file rule is a general rule that gives precedence to the first-filed action
`
`“[w]hen two actions that sufficiently overlap are filed in different district courts.” Futurewei
`
`Techs., Inc. v. Acacia Research Corp., 737 F. 3d 704, 708 (Fed. Cir. 2013). But “‘an ample
`
`
`1 The ten patents are: U.S. Patent Nos. 7,697,492 (“the ‘492 patent”); 6,437,692 (“the ‘692 patent”); 6,914,893 (“the
`‘893 patent”); 6,249,516 (“the ‘516 patent”); 7,468,661 (“the ‘661 patent”); 8,000,314 (“the ‘314 patent”);
`8,233,471 (“the ‘471 patent”); 8,625,496 (“the ‘496 patent”); 8,754,780 (“the ‘780 patent”); and 8,908, 842 (“the
`‘842 patent”). SIPCO added U.S Patent No. 8,013,732 (“the ‘732 Patent”) in its First Amended Complaint. See 1st
`Am. Comp. ¶¶ 55-58.
`2 Attached hereto as Exhibit A, see SIPCO, LLC v. Amazon.com, Inc., No. 2:08-cv-00359-JRG (E.D. Tex. Oct. 19,
`2012), ECF No. 562 (Judge Gilstrap) (‘511 patent, ‘492 patent, and U.S. Patent No. 6,891,838); SIPCO, LLC v.
`ABB, Inc., No. 6:11-cv-00048-LED-JDL (E.D. Tex. July 30, 2012), ECF No. 255 (Magistrate Judge Love) (511
`patent, ‘692 patent, ‘492 patent, and ‘893 patent); SIPCO, LLC v. Datamatic, Ltd., No. 6:09-cv-00532-LED-JDL
`(E.D. Tex. May 6, 2011), ECF No. 161 (Magistrate Judge Love) (‘692 patent and ‘661 patent).
`
`3
`
`

`

`Case 1:16-cv-02690-AT Document 24 Filed 01/08/16 Page 4 of 13
`
`
`
`degree of discretion . . . must be left to the lower courts’” in applying the rule. Merial Ltd. v.
`
`Cipla Ltd., 681 F.3d 1283, 1299 (Fed. Cir. 2012) (quoting Kerotest Mfg. Co. v. C-O-Two Fire
`
`Equip. Co., 342 U.S. 180, 183-84 (1952)). Exceptions to the rule “are not rare, and are made
`
`when justice or expediency requires, as in any issue of choice of forum.” Genentech, Inc. v. Eli
`
`Lilly & Co., 998 F.2d 931, 937 (Fed. Cir. 1993). And the rule is not applied when the first-filed
`
`suit is merely one party’s attempt “to preempt another’s infringement suit.” Elecs. for Imaging,
`
`Inc. v. Coyle, 394 F.3d 1341, 1347 (Fed Cir. 2005). The rule also may not apply when efficiency
`
`and convenience dictate otherwise. See Genentech, 998 F.2d at 937. Whether the second-filed
`
`action should proceed is governed by Federal Circuit law. Futurewei, 737 F.3d at 708.
`
`The moving party bears the ultimate burden to show that a case should be dismissed or
`
`transferred under first-to-file. Sanofi-Aventis Deutschland GmbH v. Novo Nordisk, Inc., 614 F.
`
`Supp. 2d 772, 777 n.5 (E.D. Tex. 2009). And the determination of sufficient or “substantial
`
`overlap” in patent cases requires examination of the claims of the patents at issue. See Document
`
`Generation Corp. v. Allscripts, LLC, No. 6:08-cv-479, 2009 WL 2824741, at *2-*3 (E.D. Tex.
`
`Aug. 27, 2009). Failure to examine the asserted claims risks “chain[ing]” a patent holder to the
`
`first-filed forum “whenever it assert[s] a patent in the same family” as those at issue in the first-
`
`filed action. See id. at *2. Thus, a movant does not show “substantial overlap” merely by
`
`showing the patents are part of the same patent family. Id. at *3 (finding no “substantial overlap”
`
`where one patent was a continuation-in-part of the other).
`
`Even if “substantial overlap” is established, the court in which the issue has been raised
`
`must “utilize a Section 1404(a) approach in order to determine whether the ‘first to file’ rule
`
`should be followed.” Sanofi-Aventis, 614 F. Supp. 2d at 781. There is no “categorical rule that
`
`the first-filed court is always the appropriate court to determine which case should proceed in the
`
`4
`
`

`

`Case 1:16-cv-02690-AT Document 24 Filed 01/08/16 Page 5 of 13
`
`
`
`context of patent infringement suits.” Id. at 775.3
`
`B.
`
`28 U.S.C. § 1404(a) Standard
`
`“For the convenience of parties and witnesses, in the interest of justice, a district court
`
`may transfer a civil action to any other district or division where it might have been brought . . .
`
`.” 28 U.S.C. § 1404(a). “The district court has broad discretion in deciding whether to order a
`
`transfer.” Balawajder v. Scott, 160 F.3d 1066, 1067 (5th Cir. 1998) (citation omitted). But a
`
`motion to transfer should only be granted “upon a showing that the transferee venue is ‘clearly
`
`more convenient’ than the venue chosen by the plaintiff.” In re Nintendo Co., 589 F.3d 1194,
`
`1197 (Fed. Cir. 2009) (quoting In re Genentech, Inc., 566 F.3d 1338, 1342 (Fed. Cir. 2009)). A
`
`substantial burden is placed on the movant to show the proposed forum is “clearly more
`
`convenient”; this burden respects the plaintiff’s “right to choose the forum in which to seek
`
`redress.” Texas Instruments, Inc. v. Micron Semiconductor, Inc., 815 F. Supp. 994, 998 (E.D.
`
`Tex. 1993); see also St. Lawrence Commc’ns LLC v. LG Elecs., Inc., No. 2:14-cv-1055-JRG,
`
`2015 WL 7854738, at *2 (E.D. Tex. Dec. 3, 2015).
`
`The private § 1404(a) convenience factors are “(1) the relative ease of access to sources
`
`of proof; (2) the availability of compulsory process to secure the attendance of witnesses; (3) the
`
`cost of attendance for willing witnesses; and (4) all other practical problems that make a trial
`
`easy, expeditious and inexpensive.” In re TS Tech USA Corp., 551 F.3d 1315, 1319 (Fed. Cir.
`
`
`3 Emerson cites RPost Holding, Inc. v. Trend Micro Inc., No. 2:13-cv-1065-JRG, at 2-3 (E.D. Tex. May 16, 2014),
`ECF No. 29, for the proposition that once substantial overlap is established, the first-filed court determines which
`case should proceed. See Mot. to Dismiss at 5. But RPost relies on Texas Instruments, Inc. v. Micron Semiconductor,
`Inc., 815 F. Supp. 994 (E.D. Tex. 1993) and Cadle Co. v. Whataburger of Alice, 174 F.3d 599 (5th Cir. 1999) for
`this proposition. Both of those decisions were issued before the Federal Circuit’s decision in Micron Technology,
`Inc. v. Mosaid Technologies, Inc., 518 F.3d 897, 904 (Fed. Cir. 2008) (holding that a district court must consider §
`1404(a) factors when exercising its discretion to dismiss or transfer a case in favor of a case pending in another
`forum). And this Court has interpreted Micron to mean that even when the two suits are “identical,” courts should
`not automatically leave the decision of which case should proceed to the first-filed court but should “utilize a
`Section 1404(a) approach in order to determine whether the ‘first to file’ rule should be followed.” Sanofi-Aventis,
`614 F. Supp. 2d at 777-78, 781. Additionally, the issue of substantial overlap was not disputed in the RPost case.
`No. 2:13-cv-01065, at *2, ECF No. 29.
`
`5
`
`

`

`Case 1:16-cv-02690-AT Document 24 Filed 01/08/16 Page 6 of 13
`
`
`
`2008). And the public factors are “(1) the administrative difficulties flowing from court
`
`congestion; (2) the local interest in having localized interests decided at home; (3) the familiarity
`
`of the forum with the law that will govern the case; and (4) the avoidance of unnecessary
`
`problems of conflicts of laws [or in] the application of foreign law.” Id. (quotation omitted).
`
`When analyzing the factors, the movant must be specific and cannot rely on general allegations
`
`and vague assertions about the location of evidence or witnesses to be considered. See Abstrax,
`
`Inc. v. Hewlett-Packard Co., No. 2:14-cv-158-JRG, 2014 WL 5677834, at *2 (E.D. Tex. Nov. 4,
`
`2014); Mears Techs., Inc. v. Finisar Corp., No. 2:13-cv-376-JRG, 2014 WL 1652603, at *3
`
`(E.D. Tex. Apr. 24, 2014).
`
`III. ARGUMENT
`
`A.
`
`Emerson Is Not Entitled to Benefit from the First-to-File Rule After
`Affirmatively Abandoning Its Claims and Demonstrating Its Intent Not to
`Litigate Many of the Patents-in-Suit in Its Preemptively-Filed NDGA Action.
`
`Emerson is not entitled to use the first-to-file rule to bar suit on these patents in this
`
`district. See Genentech, Inc., 998 F.2d at 937 (exceptions to the first-to-file rule can be made
`
`“when justice . . requires”); cf. Alltrade, Inc. v. Uniweld Prods., Inc., 946 F.2d 622, 628 (9th Cir.
`
`1991) (equitable exceptions include bad faith, anticipatory suit and forum shopping); Amerada
`
`Petroleum Corp. v. Marshall, 381 F.2d 661, 663 (5th Cir. 1967) (anticipatory nature of a
`
`declaratory action is an “equitable consideration” a court can consider in applying the first-to-file
`
`rule). Emerson’s White-Rodgers Division took a license to SIPCO’s patent portfolio, which
`
`includes technology covered by almost all of the patents at issue in this case. Having allowed its
`
`other non-licensed divisions and entities to infringe on these patents, Emerson then took the
`
`aggressive action of filing declaratory judgment claims on eight of SIPCO’s patents in the
`
`NDGA, including many of the patents-in-suit, only later to abandon its claims related to those
`
`patents-in-suit and, instead, focus on two SIPCO patents that are not at issue in this case. See
`
`6
`
`

`

`Case 1:16-cv-02690-AT Document 24 Filed 01/08/16 Page 7 of 13
`
`
`
`Mot. to Dismiss, Exhs. A & B. When it abandoned suit on many of the patents now at issue
`
`before this Court, it did so with full knowledge of SIPCO’s patent portfolio, thereby making a
`
`clear statement that it did not intend to litigate any additional SIPCO patents in the NDGA.
`
`By bringing its declaratory judgment action in the NDGA, Emerson preempted any
`
`infringement suit on the ‘511 and ‘062 patents in relation to the accused products and usurped
`
`SIPCO’s right to choose a forum in which to seek redress. See Texas Instruments, 815 F. Supp.
`
`at 998. But it cannot similarly dictate where and when SIPCO gets to sue on its other patents,
`
`including the patents-in-suit—especially when Emerson made a clear, unequivocal choice to
`
`abandon any claims on many of those patents. To hold otherwise would allow Emerson to chain
`
`SIPCO to the NDGA for every patent in its portfolio—even those patents, as shown below, that
`
`have different claimed subject matter and devices. Cf. Document Generation, 2009 WL 2824741,
`
`at *2 (examination of patent claims allowed and to hold otherwise would chain patent holder to
`
`forum for all patents in family). Emerson should not be allowed to deprive SIPCO of its privilege
`
`to choose the proper and most appropriate forum for asserting its rights. See Atl. Marine Constr.
`
`Co. v. U.S. Dist. Ct. for W.D. Tex., ___ U.S. ___, ___, 134 S. Ct. 568, 581 (2013) (describing
`
`“plaintiff’s venue privilege”). Thus, this Court should exercise its ample discretion and reject
`
`Emerson’s attempt to wield the first-to-file rule merely to preempt SIPCO’s infringement suit on
`
`the patents at issue in this case. Cf. Amerada Petroleum, 381 F.2d at 663 (upholding trial court’s
`
`decision not to apply first-to-file rule for equitable reasons); Williamson v. Am. Mastiff Breeders
`
`Council, No. 3:08-cv-336-ECR-VPC, 2009 WL 634231, at *3-*5 (D. Nev. Mar. 6, 2009)
`
`(refusing application of first-to-file on a motion to dismiss or transfer the second-filed suit for
`
`equitable reasons, despite the cases’ substantially similar parties and issues).
`
`7
`
`

`

`Case 1:16-cv-02690-AT Document 24 Filed 01/08/16 Page 8 of 13
`
`
`
`B.
`
`The First-to-File Rule Does Not Apply Because the Patents in Both Actions
`Are Different and the Issues Do Not Substantially Overlap.
`
`The issues in this case do not substantially overlap with the issues in the NDGA action
`
`because SIPCO asserts patents that are different from those in the NDGA action. In addition, in a
`
`number of instances—ignored by Emerson—the patents have different claimed subject matter
`
`and the asserted claims have different limitations. The patents at issue in this case are different
`
`patents from those at issue in the NDGA with different claim language that will require
`
`independent construction—despite the fact that there are some similarities in the patents at issue
`
`here and in the NDGA. See Datamize, Inc. v. Fidelity Brokerage Servs., LLC, No. 2:03-cv-321-
`
`DF, 2004 WL 1683171, at *6 (E.D. Tex. Apr. 22, 2004) (“The Federal Circuit has held that
`
`where there are even small differences in the language of claims in related patents, the claim
`
`language in each patent should be construed independently.”).
`
`For example, the ‘842 patent—one of the patents-in-suit in this case—does not cover the
`
`same subject matter as the two patents in the NDGA case, the ‘511 and ‘062 patents. The ‘842
`
`patent claims a communication device that is substantially different from the systems claimed in
`
`the ‘511 and the ‘062 patents: it describes a device that establishes a connection between another
`
`device and a central location, as opposed to the client-server network claimed in the ‘062 patent
`
`and the network comprising a plurality of transceivers communicating sensor data and a site
`
`controller connected to WAN and a host computer, as claimed in the ‘511 patent. See Patent
`
`Comparison Charts at 1-2.4 As another example, the ‘893 and ‘492 patents (at issue in this case)
`
`claim systems and devices that are substantially different from the system claims in the ‘511
`
`patent (at issue in NDGA): the ‘511 patent includes a site controller connected to a WAN and a
`
`host computer, but neither of those limitations exist in the ‘893 or the ‘492 patents. See id. at 3-4.
`
`
`4 Attached hereto as Exhibit B.
`
`8
`
`

`

`Case 1:16-cv-02690-AT Document 24 Filed 01/08/16 Page 9 of 13
`
`
`
`Further, the ‘893 and ‘492 patents include a packet including scalable address and command
`
`codes, and request/response messages. See id. These limitations are not present in the ‘511 and
`
`‘062 patents at issue in the NDGA. These are only a few examples of the important differences
`
`between what is claimed in the patents-in-suit and the NDGA patents.
`
`Emerson shirks its burden of establishing that the present case is substantially related to
`
`the NDGA case by largely ignoring the specific claims of the patents-in-suit and the NDGA
`
`patents. Instead, Emerson relies solely on the fact that all the patents are part of the same patent
`
`families,5 which is insufficient to show substantial overlap in any case. See Document
`
`Generation, 2009 WL 2824741, at *3 (finding no “substantial overlap” where one patent was a
`
`continuation-in-part of the other); Datamize, 2004 WL 1683171, at *4 (finding no “substantial
`
`overlap” where patents have parent/child relationship).6 In particular, Emerson presents two
`
`examples of what it alleges are nearly identical claims in the ‘471 and ‘692 patents and the
`
`NDGA patents but blithely ignores the vast majority of the other patent claims, as well as the
`
`differences in language and limitations that will require independent construction for each patent.
`
`See Datamize, 2004 WL 1683171, at *6; see also Patent Comparison Charts at 5-6. Emerson
`
`equally fails to show how this case will require the discovery and development of the same
`
`evidence as the NDGA action by neglecting to specify what prior art will be relevant to the
`
`
`5 In claiming that family relationships are enough to show substantial overlap, Emerson relies on previous decisions
`of this Court made in the context of significantly different facts than this case. See RPost, No. 2:13-cv-1065, at *2,
`ECF No. 29 (nonmovant did not contest substantial overlap); MOSAID Techs., Inc. v. Micron Tech., Inc., No. 2:06-
`cv-302-DF, at *5 (E.D. Tex. July 2, 2008), ECF No. 405 (cases shared eight patents in common); AmberWave Sys.
`Corp. v. Intel Corp., No. 2:05-cv-321, 2005 WL 2861476, at *2 (E.D. Tex. Nov. 1, 2005) (second-filed court relied
`on first-filed court’s prior determination that both cases “would involve overlapping issues” and two cases created
`potential conflicts and problems). Contrary to these cases, the patents between both actions are distinct, the question
`of substantial overlap is disputed, and there is no statement from the first-filed court that maintaining both suits will
`create a conflict and will be problematic.
`6 Emerson claims that the ‘842 and ‘511 patents share a “common ancestor,” Application No. 60/059,643 (although
`only the ‘842 patent claims priority directly from Application No. 60/059,643). See Parent Continuity Data for App.
`No. 13/717,384 (‘842 patent) and App. No. 09/925,269 (‘511 patent), attached hereto as Exhibit C. But it has failed
`to explain—with reference to the subject matter and devices claimed by the ‘842 and ‘511 patents—how this is at all
`meaningful to understanding whether the issues in this case and the NDGA case substantially overlap.
`
`9
`
`

`

`Case 1:16-cv-02690-AT Document 24 Filed 01/08/16 Page 10 of 13
`
`
`
`asserted claims at issue in both cases or what witnesses or other evidence both cases will have in
`
`common. Consequently, Emerson does not meet its burden to demonstrate substantial overlap,
`
`and its motion to dismiss or transfer under first-to-file should be denied. See Sanofi-Aventis, 614
`
`F. Supp. 2d 772 at 777 n.5.
`
`C.
`
`The § 1404(a) Convenience Factors Show That This District is the Proper
`and More Convenient Forum for Resolving This Dispute.
`
`Last, the § 1404(a) convenience factors weigh heavily in favor of keeping this suit in the
`
`Eastern District of Texas. Fisher-Rosemount, one of the named Emerson entities, has its
`
`principal place of business in Round Rock, Texas—where its infringing activity, such as product
`
`development, manufacturing, and sales decisions, is presumed to be taking place. See Genentech,
`
`566 F.3d at 1345 (bulk of relevant evidence comes from accused infringer); Raz Imports, Inc. v.
`
`Luminara Worldwide, LLC, No. 3:15-cv-02223-M, 2015 WL 6692107, at *5 (N.D. Tex. Nov. 3,
`
`2015) (principal place of business presumed place of infringing activity); see also Mot. to
`
`Dismiss, Exh. B, ¶ 3. And the other Emerson entities have principal places of business that are
`
`closer to Tyler, Texas—St. Louis, Missouri and Chanhassen, Minnesota—than they are to
`
`Atlanta, showing that this district is closer to important sources of proof for this case. See Mot. to
`
`Dismiss, Exh. B, ¶¶ 2-4. In addition, the Emerson entities have places of business involved in
`
`infringing activities both in this district and other places in Texas, and sales of infringing
`
`products occur significantly within this district. See Orig. Comp. ¶¶ 3-5, 8; see also 1st Am.
`
`Comp. ¶¶ 3-6, 13.
`
`Moreover, two of the three nonparty inventors that may have relevant information to this
`
`dispute are closer to Tyler than Atlanta.7 See Frederick v. Advanced Fin. Sols., Inc., 558 F. Supp.
`
`2d 699, 704 (E.D. Tex. 2007) (convenience of nonparty witnesses is important while
`
`7 Upon information and belief, Edwin R. Brownrigg is a resident of Roseville, California, Thomas W. Wilson is a
`resident of Antelope, California, and Richard Huff is a resident of Conyers, Georgia.
`
`10
`
`

`

`Case 1:16-cv-02690-AT Document 24 Filed 01/08/16 Page 11 of 13
`
`
`
`convenience of party witnesses is generally insignificant). And although one nonparty inventor is
`
`close to Atlanta, he is a named inventor on only four of the patents at issue, and David Petite, a
`
`principal and founder of SIPCO, is also a named inventor on those same patents. Mr. Petite will
`
`testify at trial in the Eastern District of Texas. Further, neither forum will have full subpoena
`
`power over all of the nonparty witnesses, making the subpoena power factor neutral. See MHL
`
`Tek, LLC v. Nissan Motor Co., No. 2:07-cv-289, 2009 WL 440627, at *5 (E.D. Tex. Feb. 23,
`
`2009) (factor neutral where neither venue enjoys absolute subpoena power over all witnesses).
`
`Consequently, the sources of proof and convenience of nonparty witnesses, and thus the private
`
`factors, weigh heavily in favor of this district.8
`
`Judicial economy also weighs in favor of retaining this action in this district. Judges in
`
`this district have construed terms from four of the patents and have familiarity with the patents
`
`and technology at issue in this case. See In re Vistaprint Ltd., 628 F.3d 1342, 1346 (Fed. Cir.
`
`2010) (familiarity with patents at issue is a factor); Mears, 2014 WL 1652603, at *4. Further, this
`
`District has a particularized interest in this dispute given the identified sources of infringing
`
`activity both within this district and Texas, as well as the Emerson entities’ significant presence
`
`in Texas and its places of business located within this district. See In re Acer Am. Corp., 626
`
`F.3d 1252, 1256 (Fed. Cir. 2010) (sale of accused product a factor if significant connection to
`
`particular venue exists).
`
`Finally, Emerson has not met its substantial burden, for either the first-to-file rule or
`
`under § 1404(a), to show that the NDGA is a clearly more convenient forum for this action. See
`
`8 Although recently added to his action, this Court may also consider the addition of BP to the suit. See RPost v.
`Holdings, Inc. v. StrongMail Sys., Inc., No. 2:12-cv-515-JRG, 2013 WL 4495119, at *3 (E.D. Tex. Aug. 19, 2013)
`(addition of co-defendants after motion filed changes convenience factors analysis); Todd Shipyards Corp. v.
`Cunard Line Ltd., 708 F. Supp. 1440, 1450 (D.N.J. 1989); see also In re Volkswagen AG, 371 F.3d 201, 204 (5th
`Cir. 2004) (nothing in §1404(a) limits determination of convenience to those parties in original complaint). Evidence
`of infringing activities will be located at BP gas wellheads located throughout this district, and two of the BP entities
`have their principal places of business in Houston, less than 200 miles away from Tyler. See 1st Am. Comp. ¶¶ 7-9,
`69-79.
`
`11
`
`

`

`Case 1:16-cv-02690-AT Document 24 Filed 01/08/16 Page 12 of 13
`
`
`
`Nintendo, 589 F.3d at 1197; St. Lawrence Commc’ns, 2015 WL 7854738, at *2. It has not
`
`provided any specifics as to the location and relevance of the sources of proof and witnesses that
`
`factor into the § 1404(a) analysis, nor has it mentioned the availability of compulsory process.
`
`See TS Tech USA, 551 F.3d at 1319; Abstrax, 2014 WL 5677834, at *2; Mears, 2014 WL
`
`1652603, at *3. It also conducted no analysis of the public factors, other than to reassert that the
`
`cases overlap. See TS Tech USA, 551 F.3d at 1319. Consequently, it has failed to meet its burden
`
`to show that the NDGA is a clearly more convenient forum. See Nintendo, 589 F.3d at 1197; St.
`
`Lawrence Commc’ns, 2015 WL 7854738, at *2; Sanofi-Aventis, 614 F. Supp. 2d at 777 n.5; cf.
`
`Abstrax, 2014 WL 5677834, at *3 (“[T]he defendant must perform a thorough investigation of
`
`the facts underlying the venue analysis, before filing the motion.”) (emphasis in original).
`
`IV. CONCLUSION
`
`For the foregoing reasons, SIPCO respectfully asks this Court to deny Emerson’s Motion
`
`to Dismiss or Transfer.
`
`
`
`Dated: January 8, 2016
`
`
`
`
`
`
`
`
`
`
`
`/s/ Paul J. Cronin by permission Claire Abernathy
`Henry
`Paul J. Cronin, (MA Bar No. 641230)
`LEAD ATTORNEY
`James C. Hall (MA Bar No. 656019)
`Nutter, McClennen & Fish LLP
`155 Seaport Boulevard
`Boston, MA 02210-2604
`Telephone: (617) 439-2000
`Facsimile: (617) 310-9000
`Email: pcronin@nutter.com
`Email: jhall@nutter.com
`
`T. Johnny Ward, Bar No.
`Claire Henry, Bar No.
`Ward, Smith & Hill, PLLC
`1127 Judson Rd., Ste. 220
`Longview, Texas 75601
`Telephone: (903) 757-6400
`
`12
`
`

`

`
`
`
`
`Case 1:16-cv-02690-AT Document 24 Filed 01/08/16 Page 13 of 13
`
`Facsimile: (903) 757-2323
`Email: jw@wsfirm.com
`Email: ch@wsfirm.com
`
`ATTORNEYS FOR PLAINTIFFS
`
`
`
`
`CERTIFICATE OF SERVICE
`
`I hereby certify that a copy of the foregoing document was filed electronically in
`
`compliance with Local Rule CV-5(a). Therefore, this document was served on all counsel who
`
`are deemed to have consented to electronic service. Local Rule CV-5(a)(3)(A). Pursuant to Fed.
`
`R. Civ. P. 5(d) and Local Rule CV-5(d) and (e), all other counsel of record not deemed to have
`
`consented to electronic service were served with a true and correct copy of the foregoing by
`
`email on this the 8th day of January, 2016.
`
`
`
`
`
`
`
`
`
`
`/s/ Claire Abernathy Henry
`
`
`
`13
`
`

This document is available on Docket Alarm but you must sign up to view it.


Or .

Accessing this document will incur an additional charge of $.

After purchase, you can access this document again without charge.

Accept $ Charge
throbber

Still Working On It

This document is taking longer than usual to download. This can happen if we need to contact the court directly to obtain the document and their servers are running slowly.

Give it another minute or two to complete, and then try the refresh button.

throbber

A few More Minutes ... Still Working

It can take up to 5 minutes for us to download a document if the court servers are running slowly.

Thank you for your continued patience.

This document could not be displayed.

We could not find this document within its docket. Please go back to the docket page and check the link. If that does not work, go back to the docket and refresh it to pull the newest information.

Your account does not support viewing this document.

You need a Paid Account to view this document. Click here to change your account type.

Your account does not support viewing this document.

Set your membership status to view this document.

With a Docket Alarm membership, you'll get a whole lot more, including:

  • Up-to-date information for this case.
  • Email alerts whenever there is an update.
  • Full text search for other cases.
  • Get email alerts whenever a new case matches your search.

Become a Member

One Moment Please

The filing “” is large (MB) and is being downloaded.

Please refresh this page in a few minutes to see if the filing has been downloaded. The filing will also be emailed to you when the download completes.

Your document is on its way!

If you do not receive the document in five minutes, contact support at support@docketalarm.com.

Sealed Document

We are unable to display this document, it may be under a court ordered seal.

If you have proper credentials to access the file, you may proceed directly to the court's system using your government issued username and password.


Access Government Site

We are redirecting you
to a mobile optimized page.





Document Unreadable or Corrupt

Refresh this Document
Go to the Docket

We are unable to display this document.

Refresh this Document
Go to the Docket