In re Corp..

• Decision Date: 05 January 2011
• Docket Number: Misc. No. 944.
• Citation: 630 F.3d 1361
• Parties: In re MICROSOFT CORPORATION, Petitioner.
• Court: U.S. Court of Appeals — Federal Circuit

630 F.3d 1361

97 U.S.P.Q.2d 1734

In re MICROSOFT CORPORATION, Petitioner.

Misc. No. 944.

United States Court of Appeals, Federal Circuit.

Nonprecedential Order Issued: Nov. 8, 2010.Precedential Order Issued: Jan. 5, 2011.

David J. Lender, Weil, Gotshal & Manges LLP, of New York, NY, for petitioner. With him on the petition were Paul E. Torchia and Steven Kalogeras; Amber H. Rovner, of Houston, TX; and Stacy Quan, Microsoft Corporation, of Redmond, WA.Chris P. Perque, Gardere Wynne Sewell LLP, of Houston, TX, for respondent Allvoice Developments US, LLC. With him on the response was Stacy R. Obenhaus, of Dallas, TX.Before NEWMAN, FRIEDMAN, and LOURIE, Circuit Judges.

ON PETITION FOR WRIT OF MANDAMUS

PER CURIAM.

ORDER

This is a petition for a writ of mandamus from an order denying a motion to transfer pursuant to 28 U.S.C. § 1404(a). That section authorizes a district court of proper jurisdiction to nevertheless transfer a case “for the convenience of parties and witnesses, in the interest of justice.” Because the record plainly shows that the United States District Court for the Western District of Washington is clearly more convenient and fair for trial and that the determination of the United States District Court for the Eastern District of Texas denying transfer was reached by a clear abuse of discretion, we grant the petition and direct transfer.

I.

This case arises out of a patent infringement suit against the petitioner-defendant, Microsoft Corporation, brought by the respondent-plaintiff, Allvoice Developments U.S., LLC. Specifically, Allvoice's complaint asserts that speech recognition functionality in Microsoft's XP and Vista operating systems infringe U.S. Patent No. 5,799,273 entitled “Automated Proofreading Using Interface Linking Recognized Words to Their Audio Data While Text is Being Changed.”

Allvoice brought this suit in the Eastern District of Texas. Allvoice is operated from the United Kingdom by the patent's co-inventor and company's managing member, John Mitchell. Although Allvoice now maintains an office in Tyler, Texas, it is not disputed that the entity does not employ individuals in those offices or anywhere in the United States. Allvoice's website directs requests and inquiries to its Texas office, and Mitchell then answers those requests and inquiries from the U.K.

Microsoft moved to transfer the case to the Western District of Washington, where it maintains its corporate headquarters and where a substantial portion of its employees and its operations are located. Microsoft's motion indicated that all of its witnesses relating to sales, marketing and product direction and prior art speech recognition technology reside in the Western District of Washington. Microsoft also indicated that all of its relevant documents and evidence relating to the marketing, development, and design of the accused products are located within the Western District of Washington.

The Eastern District of Texas denied that motion. The district court explained that both districts had a local interest in adjudicating this matter because Allvoice maintained offices in the Eastern District of Texas and was incorporated under the laws of Texas. With regard to the witnesses, the district court weighed the factor slightly against transfer because Allvoice had identified potential non-party witnesses not in the Eastern District of Texas but rather in New York, Massachusetts, and Florida who, according to the court, would find Texas more convenient for trial. Finally, with regard to the sources of proof, the district court weighed this factor only slightly in favor of transfer because Allvoice had said its documents were maintained in the Eastern District of Texas.

II.

A motion to transfer under § 1404(a) calls upon the trial court to weigh a number of case-specific factors relating to the convenience of the parties and witnesses, and the proper administration of justice, based on the individualized facts on record. See Stewart Org., Inc. v. Ricoh Corp., 487 U.S. 22, 29, 108 S.Ct. 2239, 101 L.Ed.2d 22 (1988). Although a trial court has great discretion in these matters, we have applied Fifth Circuit law in cases arising from district courts in that circuit to hold that mandamus may issue when the trial court's application of those factors amounts to a clear abuse of discretion. 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).

Thus, in Genentech, this court granted mandamus when the trial court relied on its central proximity to the witnesses and parties rather than a meaningful application of the factors. 566 F.3d at 1344. We determined that the factors should conform to the fact that a significant number of witnesses and parties were actually located within the transferee venue and could be deposed and testify without significant travel or expense, while no witness or party was located within the plaintiff's chosen forum. Id. at 1345. We held that the trial court's application of the factors was patently erroneous, in part because a denial of transfer would require every witness to expend significant time and cost in order to attend trial.

This case is in many respects analogous to Genentech. As in that case, there is a stark contrast in convenience and fairness with regard to the identified witnesses. All individuals identified by Microsoft as having material information relating to the patents reside within 100 miles of the Western District of Washington. Thus, these witnesses would not have to undergo considerable cost and expense to testify and would also be subject to that district's subpoena powers. Meanwhile, Allvoice has identified fourteen witnesses, twelve who reside outside Texas and two who are local Eastern Texas businessmen who bought or used the accused Microsoft products and are not represented as having any knowledge of the patent or the issues of the suit. Thus, maintaining trial in the Eastern District of Texas would similarly require witnesses to undergo the cost, time, and expense of travel to attend trial, which would be significantly minimized if this case were transferred to the Western District of Washington.

Allvoice nevertheless urges that this case is distinguishable from Genentech. Allvoice contends that unlike the plaintiff in that case, it has an established presence in the Eastern District of Texas. Allvoice's argument, however, rests on a fallacious assumption: that this court must honor connections to a preferred forum made in anticipation of litigation and for the likely purpose of making that forum appear convenient.

The Supreme Court has long urged courts to ensure that the purposes of jurisdictional and venue laws are not frustrated by a party's attempt at manipulation. Thus, in Miller & Lux, Inc. v. East Side Canal & Irrigation Co., 211 U.S. 293, 29 S.Ct. 111, 53 L.Ed. 189 (1908), the Supreme Court held that a corporation could not create federal diversity jurisdiction by merely assigning its claim...