Posts Tagged: "Western District of Texas"

In what may foreshadow upcoming changes to case allocations in the Western District of Texas, Judge Alan Albright of the Waco Division appears to have revived his former practice of retaining cases transferred from the Waco Division to the Austin Division following granted Section 1404 motions (i.e., convenience transfers). In his first years on the bench, Judge Albright habitually retained cases transferred out of Waco to the “sister” Austin Division on his personal docket. As one of the more notable examples, all three of the (much-covered) VLSI v. Intel litigations were transferred to Austin and retained by Judge Albright; two of the three cases were then retransferred back to Waco to allow trial to timely proceed, notwithstanding COVID-related closures in Austin.

The U.S. Court of Appeals for the Federal Circuit (CAFC) today denied General Motors’ petition for a writ of mandamus seeking to compel Judge Alan Albright to transfer a patent infringement case brought against GM by Intellectual Ventures (IV) to the U.S. District Court for the Eastern District of Michigan. IV sued GM in Albright’s Western District of Texas court for infringing 12 patents covering services and products installed in GM cars, including certain features of GM’s OnStar service. GM moved to transfer the case to Michigan, arguing that “the employees most knowledgeable about the design and development of the accused products and certain third-party component suppliers” are based there. IV countered that GM has “an IT Innovation Center” in Austin, Texas, where employees knowledgeable about the accused technology work.

The U.S. Court of Appeals for the Federal Circuit (CAFC) today granted Amazon, Inc.’s petition for a writ of mandamus asking that Judge Alan Albright of the Western District of Texas be directed to sever claims brought by Flygrip, Inc. against it from claims made against another defendant and to transfer the case to a Colorado district court. Flygrip sued Amazon for direct and indirect patent infringement based on resale on Amazon’s platform of handheld-device cases manufactured by PopSockets, Otter Products and Quest USA Corp. PopSockets and Otter are headquartered in Colorado, so Amazon moved to transfer the case to the U.S. District Court for the District of Colorado.

The U.S. Court of Appeals for the Federal Circuit (CAFC) today said in a precedential order that Judge Alan Albright’s Scheduling Order in a case between Aire Technology Limited and Apple, Inc. went too far in mandating additional substantive discovery and re-briefing that would result in nearly a year passing before the court rules on Apple’s venue transfer motion. Apple asked the U.S. District Court for the Western District of Texas in April 2022 to transfer Aire’s patent infringement case against it to the Northern District of California. Apple filed declarations during venue discovery to support the need for transfer, including a request to supplement its motion with additional declarants just prior to the close of venue discovery, and offered to make the declarants available for deposition and to extend the transfer proceedings for a “reasonable” amount of time.

With Judge Alan Albright no longer a lock for patent litigants in the Western District of Texas, prospective claimants and their counsel should be rethinking their venue selection strategies. Litigants and lawyers who previously relied on Judge Albright’s favorable procedural rules and efficient trial schedules as a proxy for more rigorous due diligence will now need to take a closer look at the merits of their cases when considering whether and where to file. For those navigating this new world order, litigation funders serve as a valuable resource. Experienced funders can offer objective advice about the strengths and weaknesses of complex patent infringement cases, strategic insights about potential litigation venues, and non-recourse financing for meritorious cases.

The U.S. Court of Appeals for the Federal Circuit (CAFC) today denied Hewlett Packard’s petition for a writ of mandamus ordering the U.S. District Court for the Western District of Texas to transfer its case to Massachusetts. Intellectual Ventures (IV) sued Hewlett Packard Enterprises (HPE) in the Western District of Texas, alleging infringement of a patent directed to data storage solutions assigned to IV. HPE moved for transfer, arguing that the development of the accused products occurred mostly in Massachusetts, but the district court denied the motion.

Yesterday, Chief Judge Orlando Garcia of the U.S. District Court for the Western District of Texas issued an order that, in Garcia’s words, will “equitably distribute” new patent cases among 12 district judges. This order is an effort to address “the volume” of new cases assigned to the Waco Division’s Judge Alan Albright. Albright’s court is viewed as patent owner friendly and he has been under fire recently from both the U.S. Court of Appeals for the Federal Circuit (CAFC) and Congress on different fronts for his policies and procedures, which do tend more often than not to give patent owners their day in court.

The U.S. Court of Appeals for the Federal Circuit (CAFC) on Friday directed Judge Alan Albright’s Waco Division of the U.S. District Court for the Western District of Texas to transfer a case brought by CPC Patent Technologies PTY Ltd against Apple to the Northern District of California. The CAFC said the district court erred in weighing the convenience of the witnesses factor as only slightly favoring transfer, noting that the court has historically rejected the view that this factor should be based solely on the distance the witness would have to travel.

Just as some sources had begun to speculate that Judge Alan Albright had received the United States Court of Appeals for the Federal Circuit’s (CAFC’s) message on transfer—in light of a slew of decisions reversing his refusals to move cases out of his court—the CAFC yesterday granted two more petitions for mandamus relief, holding the United States District Court for the Western District of Texas clearly abused its discretion in not granting a change of venue.

In December 2020, StratosAudio, Inc. (Stratos) filed patent infringement complaints in the Western District of Texas against Volkswagen and Hyundai (the Petitioners) which are incorporated in New Jersey and California, respectively. The two cases were consolidated on appeal. Since both Volkswagen and Hyundai reside outside of the Western District of Texas, the two companies moved to dismiss or transfer the cases under 28 U.S.C. §1406(a) and Federal Rule of Civil Procedure 12(b)(3).

The United States Court of Appeals for the Federal Circuit (CAFC) has become enamored with the power of the writ of mandamus to correct what they do not like, and they do not like patent owners filing patent infringement actions in Texas. Or, perhaps it is more accurate to say that while they might not mind patent owners filing patent infringement actions in Texas, they expect federal district court judges in Texas to order those patent owners off to other courthouses outside of Texas upon the request of defendants.

Just over one week ago, U.S. District Judge Alan D. Albright of the Western District of Texas entered a ruling denying PNC Bank’s motion to dismiss patent infringement claims asserted by financial record retrieval tech developer Mirror Imaging. In affirming the validity of Mirror Imaging’s patents under Section 101 at the motion to dismiss stage, Judge Albright acknowledged that tests handed down by the Supreme Court for subject matter eligibility have created a “confusing abyss of patent eligibility law” before affirming the validity of Mirror Imaging’s patents on both steps of the Alice test.

The first panel of Tuesday’s PTAB Masters™ 2022, titled “Discretionary Denials: Has the WDTX Been Neutered?”, presented data that reveals the U.S. Patent and Trademark Office’s (USPTO’s) Patent Trial and Appeal Board (PTAB) seemingly stopped citing Fintiv as a reason to discretionarily deny inter partes review (IPR) proceedings for cases with parallel litigation in the Western or Eastern Districts of Texas (WD of TX/ ED of TX) during the last four months of 2021. While the PTAB issued a larger number of institution decisions overall in those months compared with previous months, and a larger number of cases citing Fintiv, there was also a relatively low number of cases across all jurisdictions in which discretion to deny was applied based on the Fintiv analysis.

This week in Other Barks & Bites: the U.S. Senate confirms the appointment of Judge Lucy Koh to the bench of the Ninth Circuit; the Federal Circuit affirms a summary judgment ruling of no induced infringement in an international patent case over plastics manufacturing; the Supreme Court denies an appeal of the French government’s sovereign immunity win over cybersquatting claims; the Senate Commerce Committee approves a bill that would increase foreign direct investment into semiconductor manufacturing; Judge Mauskopf sends a letter indicating that the Administrative Office of the U.S. Courts will consider concerns raised regarding case assignment policies in the Waco Division of the Western District of Texas; the USPTO proposes a rule that would end the practice of mailing printed patent certificates upon issuance in favor of electronic-only patent certificates; and news reports indicate that Oracle is seeking a major acquisition of a medical records and software firm.