In Re ZHEJIANG CRYSTAL-OPTECH CO. LTD. ( 2023 )


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  • Case: 23-111    Document: 18     Page: 1    Filed: 03/01/2023
    NOTE: This order is nonprecedential.
    United States Court of Appeals
    for the Federal Circuit
    ______________________
    In re: ZHEJIANG CRYSTAL-OPTECH CO. LTD.,
    Petitioner
    ______________________
    2023-111
    ______________________
    On Petition for Writ of Mandamus to the United States
    District Court for the Eastern District of Texas in No. 2:21-
    cv-00378-JRG, Chief Judge J. Rodney Gilstrap.
    ______________________
    ON PETITION
    ______________________
    Before DYK, REYNA, and CHEN, Circuit Judges.
    DYK, Circuit Judge.
    ORDER
    Zhejiang Crystal-Optech Co. Ltd. (“Crystal”) petitions
    for a writ of mandamus directing the United States District
    Court for the Eastern District of Texas to vacate its order
    denying Crystal’s motion to transfer and transfer the case
    to the United States District Court for the Northern Dis-
    trict of California. Viavi Solutions Inc. (“Viavi”) opposes.
    For the following reasons, we deny the petition.
    Viavi sued Crystal in the Eastern District of Texas, al-
    leging that Crystal was actively inducing others to infringe
    three of its patents. Viavi’s complaint asserts that Crystal,
    Case: 23-111    Document: 18      Page: 2    Filed: 03/01/2023
    2                    IN RE: ZHEJIANG CRYSTAL-OPTECH CO. LTD.
    a foreign-based corporation, was subject to personal juris-
    diction in the Eastern District of Texas because it know-
    ingly sold the accused optical filter products with the
    expectation that they would be incorporated into mobile de-
    vices that would be sold in Texas. Appx031.
    Crystal moved to dismiss the case for lack of personal
    jurisdiction. Crystal also moved to transfer the case under
    
    28 U.S.C. § 1404
    (a) to the Northern District of California,
    though Crystal “dispute[d] that it is subject to personal ju-
    risdiction by any United States District Court.” Appx183.
    The district court denied both motions. It first found that
    “Crystal, through its sales of Filters for application in Sam-
    sung Galaxy phones, knew (or should have reasonably
    known) the likely destination of the products, and their
    conduct and connections with the forum state were such
    that they should reasonably have anticipated being
    brought into court here.” Appx010. On that basis, the
    court denied Crystal’s motion to dismiss.
    As to § 1404(a), the court found that Crystal had failed
    to establish the threshold requirement that the action
    “might have been brought” in the Northern District of Cal-
    ifornia, noting Crystal’s own insistence that it was not sub-
    ject to personal jurisdiction there and explaining that it
    was “not necessarily true” that personal jurisdiction in
    Northern California would follow from its reasoning as to
    why jurisdiction existed in the Eastern District of Texas.
    Appx012. In the alternative, the court analyzed the private
    and public interest factors that govern transfer determina-
    tions and concluded that Crystal had failed to establish
    that the Northern District of California was clearly more
    convenient. Crystal then filed this petition challenging
    only the district court’s no-transfer determination.
    We follow regional circuit standards governing motions
    under § 1404(a). See In re TS Tech USA Corp., 
    551 F.3d 1315
    , 1319 (Fed. Cir. 2008). Under Fifth Circuit law, Crys-
    tal, as the § 1404(a) movant, bore the burden of
    Case: 23-111     Document: 18      Page: 3    Filed: 03/01/2023
    IN RE: ZHEJIANG CRYSTAL-OPTECH CO. LTD.                       3
    demonstrating that transfer was appropriate. See In re
    Volkswagen of Am., Inc., 
    545 F.3d 304
    , 314 (5th Cir. 2008)
    (en banc). Our limited task here is to determine whether
    the district court clearly abused its discretion in concluding
    that Crystal failed to satisfy that burden. See In re Juniper
    Networks, Inc., 
    14 F.4th 1313
    , 1318 (Fed. Cir. 2021).
    We see no such clear abuse. Crystal insists that the
    district court’s finding that it is subject to personal juris-
    diction in the Eastern District of Texas also compels the
    conclusion that it is subject to personal jurisdiction in the
    Northern District of California. Pet. at 7. But the core
    premise of Crystal’s petition—that the court relied on Fed-
    eral Rule of Civil Procedure 4(k)(2) to conclude that per-
    sonal jurisdiction exists, Pet. at 11; Reply at 3—is wrong.
    The district court indicated that its conclusion was based
    on an analysis of Crystal’s “connections with the forum
    state,” i.e., Texas, Appx010, as opposed to its contacts with
    the United States as a whole. See Fed. R. Civ. P. 4(k)(2)
    (establishing personal jurisdiction only where “the defend-
    ant is not subject to jurisdiction in any state’s courts of gen-
    eral jurisdiction”). Because Crystal has not otherwise
    clearly shown that this case “might have been brought” in
    the transferee forum, we deny its mandamus petition.
    Accordingly,
    IT IS ORDERED THAT:
    The petition is denied.
    FOR THE COURT
    March 1, 2023                        /s/ Peter R. Marksteiner
    Date                            Peter R. Marksteiner
    Clerk of Court
    

Document Info

Docket Number: 23-111

Filed Date: 3/1/2023

Precedential Status: Non-Precedential

Modified Date: 3/1/2023