Ebates Performance Marketing, Inc v. MyMail, Ltd.
5:20-cv-04768
N.D. Cal.Jan 13, 2021Background
- Plaintiffs Rakuten Rewards (Ebates) and Cartera develop Chrome extensions (Rakuten: Get Cash Back for Shopping; SkyMiles Shopping Button). Defendant MyMail is assignee of four patents (ʼ838, ʼ070, ʼ263, ʼ863).
- MyMail previously sued others in this District (the ooVoo cases) asserting two of the same patents; those cases produced claim construction and an invalidity ruling that is on appeal to the Federal Circuit.
- On June 12, 2020, MyMail’s counsel sent Rakuten and Cartera letters with >20‑page claim charts, portions of source code, a license offer, a 12‑day response deadline, and a statement that files would be turned over to litigation counsel if there was no timely response.
- Plaintiffs responded July 2, 2020, asserting non‑infringement and raising collateral‑estoppel/invalidity issues; MyMail did not substantively respond. Plaintiffs filed a declaratory judgment complaint (non‑infringement) on July 16, 2020.
- MyMail moved to dismiss for lack of subject‑matter jurisdiction (no actual controversy) and lack of personal jurisdiction; the court denied the motion, finding an affirmative act and sufficient forum contacts.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether an Article III case or controversy exists for a declaratory judgment of non‑infringement | Letters with claim charts, source code, deadline, and MyMail’s litigation history created a sufficiently immediate and real controversy permitting declaratory relief | Letters were ordinary pre‑suit communications or part of licensing negotiations; not an affirmative act sufficient for declaratory jurisdiction; filing was anticipatory | Court: Held SMJ exists — letters (detailed charts/code + 12‑day deadline + threat to involve litigators) combined with MyMail’s extensive enforcement history constitute an affirmative act under MedImmune/3M tests; licensing negotiations did not negate jurisdiction |
| Whether the Northern District of California has personal jurisdiction over MyMail | Prior enforcement in this district (ooVoo cases) plus the Rakuten‑addressed letter that targeted a forum resident suffices to show purposeful direction and relation to the claim | Sending letters alone (to an out‑of‑state entity) is insufficient; MyMail lacks continuous/systematic contacts with California | Court: Held specific jurisdiction exists — prior litigation in this district, failure to contest jurisdiction in those cases, and the targeted enforcement letter together provide materially related forum contacts; Burger King reasonableness factors favor exercising jurisdiction |
Key Cases Cited
- MedImmune, Inc. v. Genentech, Inc., 549 U.S. 118 (2007) (actual controversy standard and discretion to declare rights under “all the circumstances”)
- 3M Co. v. Avery Dennison Corp., 673 F.3d 1372 (Fed. Cir. 2012) (patent declaratory‑judgment requirements and affirmative‑act analysis)
- Assoc. for Molecular Pathology v. U.S. Patent & Trademark Office, 689 F.3d 1303 (Fed. Cir. 2012) (injury‑in‑fact and traceability in patent controversies)
- Radio Sys. Corp. v. Accession, Inc., 638 F.3d 785 (Fed. Cir. 2011) (ordinary cease‑and‑desist letters ordinarily insufficient for personal jurisdiction)
- Avocent Huntsville Corp. v. Aten Int’l Co., 552 F.3d 1324 (Fed. Cir. 2008) (forum contacts materially related to patent enforcement control jurisdictional inquiry)
- Xilinx, Inc. v. Papst Licensing GmbH & Co. KG, 848 F.3d 1346 (Fed. Cir. 2017) (specific jurisdiction framework and reasonableness analysis in patent cases)
- Int’l Shoe Co. v. Washington, 326 U.S. 310 (1945) (minimum contacts standard)
- Burger King Corp. v. Rudzewicz, 471 U.S. 462 (1985) (reasonableness factors for exercising specific jurisdiction)
- Breckenridge Pharm., Inc. v. Metabolite Labs, 444 F.3d 1356 (Fed. Cir. 2006) (focus on whether enforcement contacts were purposefully directed at forum residents)
- Safe Air for Everyone v. Meyer, 373 F.3d 1035 (9th Cir. 2004) (distinction between facial and factual Rule 12(b)(1) attacks)
