Inre: Microsoft Corporation ( 2014 )


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  • Case: 14-123     Document: 32       Page: 1    Filed: 05/05/2014
    CORRECTED: MAY 5, 2014
    NOTE: This order is nonprecedential.
    United States Court of Appeals
    for the Federal Circuit
    ______________________
    IN RE MICROSOFT CORPORATION,
    Petitioner.
    ______________________
    2014-123
    ______________________
    On Petition for Writ of Mandamus to the United
    States District Court for the Eastern District of Texas in
    No. 6:12-cv-00663-LED, Judge Leonard Davis.
    ______________________
    ON PETITION
    ______________________
    Before LOURIE, DYK, and REYNA, Circuit Judge.
    LOURIE, Circuit Judge.
    ORDER
    PersonalWeb Technologies, LLC filed more than a
    dozen complaints at the United States District Court for
    the Eastern District of Texas, charging among others,
    Microsoft Corporation, Yahoo!, Inc., and Apple, Inc. with
    infringement of the same patents. Each of those defend-
    ants moved to transfer its respective cases to where it was
    headquartered, asserting that the locale of evidence and
    witnesses would make such venues more convenient for
    trial. 28 U.S.C. § 1404(a).
    Case: 14-123    Document: 32     Page: 2   Filed: 05/05/2014
    2                        IN RE MICROSOFT CORPORATION
    The district court granted Apple’s motion, but denied
    Microsoft and Yahoo!’s requests, noting that its familiari-
    ty with the patents created judicial economy that favored
    keeping those cases together in the Eastern District of
    Texas. Microsoft alone has petitioned this court for a writ
    of mandamus, arguing, among other things, that if the
    court’s familiarity with the patents should not preclude
    transfer of Apple’s case then it likewise should not pre-
    vent transfer of the case against Microsoft to the Western
    District of Washington.
    Applying Fifth Circuit law in cases arising from dis-
    trict courts in that circuit, this court has held that man-
    damus may be used to correct denials of transfer that
    were clear abuses of discretion under governing legal
    standards. See, e.g., In re Nintendo Co., 
    589 F.3d 1194
    (Fed. Cir. 2009); In re Hoffmann-La Roche Inc., 
    587 F.3d 1333
    (Fed. Cir. 2009); In re Genentech, Inc., 
    566 F.3d 1338
    (Fed. Cir. 2009); In re TS Tech USA Corp., 
    551 F.3d 1315
    (Fed. Cir. 2008); accord In re Volkswagen of Am., Inc., 
    545 F.3d 304
    (5th Cir. 2008) (en banc).
    Although the question of transfer in this case is close,
    we cannot say that the district court’s determination
    amounted to a clear abuse of discretion. The Supreme
    Court has emphasized that judicial economy should play a
    role in transfer matters. See Van Dusen v. Barrack, 
    376 U.S. 612
    , 643-46 (1964); Cont’l Grain Co. v. Barge FBL-
    585, 
    364 U.S. 19
    , 26 (1960). The Yahoo! suit remains in
    the Eastern District of Texas and Yahoo! has not filed a
    petition seeking transfer. Even though Microsoft and
    Apple are similarly situated with regard to the court’s
    familiarity with the patents, the court additionally noted
    Case: 14-123    Document: 32     Page: 3   Filed: 05/05/2014
    IN RE MICROSOFT CORPORATION                             3
    that Microsoft’s accused technology apparently underlies
    at least one of Yahoo!’s products at issue. *
    Deference as to the proper administration of justice is
    particularly appropriate in this type of circumstance,
    where the trial court is “familiar with [an] . . . asserted
    patent and the related technology . . . coupled with the
    fact there is co-pending litigation before the trial court
    involving the same patent and underlying technology”
    and, as the district court noted, Microsoft and Yahoo! plan
    on calling at least some of the same witnesses. In re
    Vistaprint Ltd., 
    628 F.3d 1342
    , 1347 (Fed. Cir. 2010); In
    re Volkswagen of Am., Inc., 
    566 F.3d 1349
    (Fed. Cir.
    2009); Regents of the Univ. of Cal. v. Eli Lilly & Co., 
    119 F.3d 1559
    (Fed. Cir. 1997).
    Microsoft attempts to characterize the overlap be-
    tween the case against itself and Yahoo! as “minimal.”
    Reply to Petition at 11. But by Microsoft’s own prior
    admission, “[c]onsiderations of judicial economy and
    efficiency here include the fact that defendant Microsoft
    has an indemnity relationship with defendant Yahoo!
    (with regard to Microsoft’s ‘Bing’ search engine, identified
    by PersonalWeb as underlying Yahoo!’s accused search
    engine) . . . .” Exhibit 43 to Petition at 10-11. These
    statements certainly undermine Microsoft’s argument
    that it was unreasonable for the district court to weigh
    judicial economy against transfer.
    Although judicial economy cannot dominate the
    § 1404(a) analysis, which generally calls for transfer
    where the convenience factors strongly weigh in favor of
    the transferee forum, the district court’s conclusion did
    *  Because Yahoo!’s recent motion to sever and stay
    the related claims was not raised to the district court with
    regard to transfer or addressed in the petition, we will not
    consider its impact on the transfer analysis.
    Case: 14-123     Document: 32     Page: 4   Filed: 05/05/2014
    4                           IN RE MICROSOFT CORPORATION
    not rest entirely on judicial economy. It noted that any
    documentary sources of proof and employee witnesses of
    PersonalWeb would reside in the Eastern District of
    Texas. It further found that the Western District of
    Washington had no authority to compel a non-party
    witness to testify. Under these circumstances and the
    relatedness of the suits against Microsoft and Yahoo!, it is
    not entirely self-evident that the transferee venue is more
    convenient and that transfer would be in the interest of
    justice. We therefore cannot say that Microsoft has met
    the demanding standard for mandamus relief.
    Accordingly,
    IT IS ORDERED THAT:
    The petition for a writ of mandamus is denied.
    FOR THE COURT
    /s/ Daniel E. O’Toole
    Daniel E. O’Toole
    Clerk of Court
    s19