Federal Circuit Dismisses Patent Lawsuit Against Google Over Lack of Jurisdiction
In a reversal from a prior decision against Google earlier this year, the U.S. Court of Appeals ruled that while a shelf or server rack could be considered a place of business, it's not enough to determine venue without the presence of an employee.
February 13, 2020 at 04:05 PM
4 minute read
The original version of this story was published on The Recorder
Google's ownership of servers in the Eastern District of Texas does not grant a patent holder standing to sue the tech company in that venue, the U.S. Court of Appeals for the Federal Circuit ruled Thursday.
In November 2018, Super Interconnect Technologies sued Google for patent infringement, claiming the Mountain View, California-based company's infringement occurred within the Eastern District of Texas, and that local internet service providers hosted Google Global Cache (GGC) servers in their data centers, giving the court Texas jurisdiction.
However, the Federal Circuit ruled the presence of the servers was not enough without an on-site employee and dismissed the case for lack of venue.
"We conclude that the Eastern District of Texas was not a proper venue because Google lacked a 'regular and established place of business' within the district since it has no employee or agent regularly conducting its business at its alleged 'place of business' within the district," the judges wrote in an opinion filed by Federal Circuit Judge Timothy Belcher Dyk on behalf of Judges Evan Wallach and Richard Taranto.
A Hogan Lovells team made up of Thomas Schmidt, Neal Katyal and Keith O'Doherty won the dismissal for Google.
The court didn't bite on Google's arguments that a place of business means the company has to own or lease a property.
In the opinion, the judges reminded the parties that In re Cray recognized a place of business could be "any physical space the defendant can 'possess or control.'" For example, a table at a flea market can be a place of business, in the same way Google's leased shelf space at the data centers in this case can be considered a "physical, geographical location" where it conducts business. Yet, the Federal Circuit stopped short of answering whether the server equipment itself could be considered a place of business.
The decision represents a reversal from the Federal Circuit's ruling in a case brought by SEVEN Networks against Google.
"Since our decision in Google, three related developments have convinced us that mandamus is appropriate to resolve this venue issue," the opinion asserts. "First, the prediction of our dissenting colleagues has proven accurate, and there are now a significant number of district court decisions that adopt conflicting views on the basic legal issues presented in this case. Second, experience has shown that it is unlikely that, as these cases proceed to trial, these issues will be preserved and presented to this court through the regular appellate process."
The jurists attributed the final justification for the shift in sentiment to the fact that district courts are split on whether a server or rack constitutes as a place of business and whether an employee needs to be present. "This court has not addressed this fundamental and recurring issue of patent law," the order states. "We thus conclude that mandamus is an available remedy."
Orrick, Herrington & Sutcliffe's Clement Roberts in San Francisco wrote an amici curiae brief for more than a dozen companies, including Twitter, Netflix, Fitbit, HP, eBay, DISH Network and RingCentral. Roberts said that while the court did not answer all the questions raised in the petition, the holding that venue requires the presence of an employee makes clear that equipment alone is not enough.
"This should significantly reduce the number of venue disputes," he wrote in an email. "There will still be disputes over who is and is not an agent—but there is a well-developed body of case law governing that question."
Bragalone Conroy's Jeffrey Bragalone in Dallas, who argued for Super Interconnect Technologies, said in an email that he and his client are disappointed in the new "unwarranted" requirement of employees or agents to the patent venue statute. "It is also difficult to understand how mandamus under the facts is 'clear and indisputable,' given that the Federal Circuit previously declined to grant mandamus under identical facts."
Bragalone said Super Interconnect is continuing to evaluate all of its options related to the decision.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllLitigators of the Week: After a 74-Day Trial, Shook Fends Off Claims From Artist’s Heirs Against UMB Bank
An ‘Indiana Jones Moment’: Mayer Brown’s John Nadolenco and Kelly Kramer on the 10-Year Legal Saga of the Bahia Emerald
‘It's Your Funeral’: Avoiding Doing Damage to Your Client’s Case With Uncivil Behavior
Law Firms Mentioned
Trending Stories
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250