Motion to Transfer Venue from Delaware to the Northern District of California Granted, OpenTV, Inc. v. Netflix, Inc., Case No. C 12-1733 (Chief Judge Sleet)
"Made up my mind to make a new start, going to California with an aching in my heart. . . ." Led Zeppelin.
Robert Plant went to California to find a girl with love in her eyes and flowers in her hair. But if you're a patent defendant in Delaware going to California to find a more favorable venue, you should take note of a recent order from the District of Delaware in OpenTV, Inc. v. Netflix, Inc.
Earlier this week, Chief Judge Sleet granted Netflix's motion to transfer venue to the Northern District of California citing a number of factors favoring that District over Delaware. Both OpenTV and Netflix are incorporated in Delaware, which weighed against transfer. And Third Circuit precedent gives some consideration to the plaintiff's choice of venue. However, despite these facts, Judge Sleet still was unmoved that the case belonged in his District, because both OpenTV and Netflix were physically located in California. Additionally, it appeared that none of the inventors lived in Delaware and that several lived in California.
Judge Sleet's discussion of the "local interest" transfer factor is particularly noteworthy. Chief Judge Sleet recognized that this factor is typically neutral in patent litigation because patent issues do not give rise to a local controversy or implicate local interests. Nonetheless, he also noted that while the sale of an accused product offered nationwide does not give rise to a substantial interest in any single venue, there is a situation where the local interest matters. If there are significant connections between a particular venue and the events that gave rise to a suit, the local interest transfer factor should be weighed in that other venue's favor. In OpenTV, Inc. v. Netflix, Inc., Chief Judge Sleet found "significant connections" did exist between the patents-in-suit and California. The accused products were designed and developed in California, and both parties had their physical locations in California. California therefore had its own local interest in the action, which favored transfer – a fact that Robert Plant could easily relate to.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
