Williamson v. Google Inc., C.A. No. 14-216-GMS (D. Del. Mar. 2, 2015)
Transcript of Williamson v. Google Inc., C.A. No. 14-216-GMS (D. Del. Mar. 2, 2015)
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IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF DELAWARE
RICHARD A. WILLIAMSON, ON BEHALF
OF AND
AS
TRUSTEE FOR AT HOME
BONDHOLDERS' LIQUIDATING TRUST,
Plaintiff,
v.
GOOGLE INC.,
Defendant.
OR ER
Civil Action No. 14-216-GMS
On February 19, 2014, the plaintiff Richard Williamson ( Williamson ) filed a patent
infringement suit against the defendant Google Inc. ( Google ), alleging infringement
of
U.S.
Patent Nos. 6,014,698 (''the '698 Patent ) and 6,286,045 ( the '045 Patent ). (D.I. 1.) Williamson
filed the action on behalf of and as trustee for the At Home Bondholders' Liquidating Trust
( Liquidating Trust ).
Presently before the court is Google's Motion to Transfer Case to the Northern District of
California. (D.I. 11.) For the following reasons, the court will transfer the case to the Northern
District ofCalifornia.
For the convenience ofparties and witnesses, in the interest of ustice, 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). nder§ 1404(a), the court undertakes a two-step inquiry in order to resolve a
motion to transfer. First, the court must determine whether the action could have originally been
brought in the proposed transferee forum. Memory Integrity LL v Intel Corp. No. 13-1804-
GMS, 2015 WL 632026, at 2 (D. Del. Feb. 13, 2015).
If
yes, the court proceeds to the second
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step and asks whether transfer would best serve the interests
of
justice and convenience.
Id
(quoting
Smart Audio Techs.
LLCv
Apple Inc.
910 F. Supp. 2d 718, 724 (D. Del. 2012)). These
interests are outlined in the Third Circuit's decision in Jumara v State Farm Insurance Co.
55
F 3d 873, 879-80 (3d Cir. 1995). The private interests may include the
plaintiffs
choice
of
forum,
the defendant's choice, where the claims arose, the convenience
of the parties, the convenience of
non-party witnesses (to the extent they would
be
unavailable), and the location of the books and
records.
Id
at 879. The public interests include the enforceability
of
the judgment, practical
considerations, any administrative difficulties arising from court congestion, and the trial judges'
familiarity with applicable state law in diversity cases.
Id
at 879-80.
Both parties agree that the first step is
satisfied-Williamson
could have filed suit in the
Northern Dist;rict
of
California. Thus, the court proceeds to consider the Jumara factors.
1
Plaintiff s Choice. Williamson is not at home in Delaware, and therefore his choice is
entitled to less deference. See In re Link A Media Devices Corp. 662 F.3d 1221, 1223 (Fed.
Cir. 2011). Williamson resides in New York, whereas the Liquidating Trust was formed in the
Northern District
of
California. Although it does not afford Williamson's choice paramount
consideration, the court nonetheless finds that some degree
of
heightened deference is
warranted. See Ithaca Ventures k.s. v Nintendo ofAm. Inc. No. 13-824-GMS, 2014 WL 4829027,
at *2-3 (D. Del. Sept. 25, 2014) (citing Shutte v Armco Steel Corp. 431F.2d22 (3d Cir. 1970)).
Defendant s Choice. Google seeks transfer to the Northern District ofCalifornia. Google
has legitimate reasons for seeking to litigate there, as its principal place
of
business is in Mountain
View, California.
DJ. 1
i 2.) Thus, Google's choice is entitled to
some-but
not overriding-
1
The parties agree that three of the public interest factors are irrelevant or neutral: enforceability of the
judgment, public policies
of
the fora, and the judges' familiarity with applicable state law. The court does not address
these factors.
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deference.
See Intellectual Ventures I
LL
v
Altera Corp.
842 F Supp. 2d 744, 755 (D. Del.
2012) ( Under Third Circuit law, [a defendant's] preference for an alternative forum is not given
the same weight
as
Plaintiffs preference. ).
Where the Claims Arose While this factor is often neutral where the accused infringer
operates nationally, the court often takes into account where the infringing products originate-
i.e.
where they are designed, developed, manufactured, or marketed.
See Ithaca Ventures
2014
WL 4829027, at *3.
Linex Techs. Inc.
v
Hewlett-Packard Co.
No. 11-400-GMS, 2013 WL
105323, at *4 (D. Del. Jan. 7, 2013). Google designed and developed the accused AdSense product
in Mountain View; Google continues to develop and market AdSense from that location.
Therefore the infringement claims have deeper roots in the Northern District of California than
in the District ofDelaware.
See Linex Techs.
2013 WL 105323, at *4. This factor weighs slightly
in favor of transfer.
Convenience o the Parties Google is a Delaware corporation. Although the Federal
Circuit has warned against placing undue emphasis on a company's situs of incorporation in the
transfer calculus, see In re Link_A_Media 662 F.3d at 1224, Google's extensive history
of
litigating in the District ofDelaware and its considerable resources suggest that any inconvenience
to Google would be minimal. Nonetheless, the court agrees that, considering Google's logistics,
litigation in the Northern District of California would be
more
convenient.
n
contrast,
Williamson, on behalf
of
the Liquidating Trust, is in New York and will be required to travel
regardless of where this action takes place. He does not share the same logistic concerns as
Google. Moreover, he is no stranger to the Northern District of California the Liquidating Trust
was formed in the U.S. Bankruptcy Court for the Northern District of California. Although the
court certainly believes that Williamson's resources (as trustee) do not quite rival those of Google,
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Williamson does not suggest that litigating in the Northern District of California would pose a
financial burden. At least a portion of Williamson's legal counsel is in fact already located within
the District. Additionally, the court is puzzled by Williamson's numerous references to the
efficiencies of litigating in New York City: he did not file this lawsuit in the Southern District of
New York, but rather in the District of Delaware. Thus, in the court's view, the convenience of
the parties weighs very slightly in favor of transfer.
Non Party Witnesses. Google has identified three
companies located
in the Northern
District
of California that
work within the relevant patented-technology industry. Google argues
that its invalidity contentions may rely on testimony from founders or inventors at these
companies, who would not be subject to Delaware's subpoena power. Williamson does not
identify any non-party witnesses who could only be compelled to testify in Delaware. Google
need not prove that [its identified witnesses] may actually be unavailable for trial in Delaware.
See Ithaca Ventures 2014 WL 4829027, at
5
(internal quotation marks omitted). [I]t is enough
that likely witnesses reside beyond the court's subpoena power and that there is reason to believe
that those witnesses will refuse to testify absent subpoena power.
Joao Control Monitoring
Sys.
LLCv
Ford Motor Co.
No. 12-cv-1479 (GMS), 2013 WL 4496644, at *6 (D. Del. Aug. 21,
2013). Google's identified witnesses have no relationship with Google, thus providing some
reason to believe that they would refuse to testify. This factor favors transfer.
Books and Records. Although the burden on defendants to produce books and records
has declined substantially with modern technology, the location
of
this evidence is still a factor to
be considered. See In re Link_A_Media 662 F.3d at 1224; Smart Audio Techs. LLC v Apple
Inc.
910
F.
Supp. 2d 718, 732 (D. Del. 2012). Google's documents are located in Mountain View.
Thus, this factor, at least to a degree, favors transfer.
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Practical Considerations
As this is a public interest factor, the court must pay close
attention to the broader public costs ofli tigating in one forum versus the other, rather than rehash
the parties' convenience arguments. The location of non-party witnesses is relevant.
See Segan
LL
v Zynga Inc.,
No. 11-670-GMS, 2014 WL 1153388, at *4 (D. Del. Mar. 19, 2014)
( [T]ransfer to a district where numerous nonparty witnesses reside will reduce public costs. ).
The court has already discussed Google's non-party witnesses located in the Northern District
of
California. Aside from this, the court is not persuaded that the aggregate litigation costs would
be very different between the two Districts.
See Mite Networks Corp. v Facebook, Inc.,
943
F
Supp. 2d 463, 476 (D. Del. 2013). This factor slightly favors transfer.
Court Congestion The parties do not provide the court with meaningful data concerning
administrative difficulties or court congestion in the two Districts. While the relative size
of
the
respective caseloads is an inadequate justification for transfer alone, increased times from filing
to disposition and trial are important factors that do influence the court's calculus.
Ithaca
Ventures,
2014
W
4829027, at *6. Without data on resolution times, the court finds this factor
is neutral.
Local Interest The court is not convinced that either the District of Delaware or the
Northern District ofCalifornia has a local interest in the resolution of his patent infringement case,
which implicates markets on a national and international scale.
See id
at 7;
Helicos Bioscis. Corp.
v Illumina, Inc.,
858
F
Supp. 2d 367, 375 (D. Del. 2012). This factor is neutral.
On balance, the court finds that the
Jumara
factors as a whole weigh in favor
of
transfer.
IT IS HEREBY ORDERED THAT Google's Motion to Transfer Case to the Northern District of
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California (D.I. 11) is GRANTED. This action is TRANSFERRED to the Northern District o
California.
Dated: March _:b___ 2015
2
The court declines to address Google s recently filed motion to stay proceedings pending inter p rtes
review.
D.1.
53.)
6