In Re Verizon Business Network Services Inc.
635 F.3d 559
| Fed. Cir. | 2011Background
- Six defendants sued by Red River Fiber Optic Corp. in the Eastern District of Texas for patent infringement involving U.S. Patent No. 5,555,478.
- Defendants moved to transfer to the Northern District of Texas, Dallas Division; initial denial by Magistrate Judge.
- Magistrate found Dallas was more convenient due to witness location; Marshall had prior case handling but court favored economy.
- District court affirmed denial of transfer, citing built-in efficiencies from prior case and reexamination materials.
- Petition for writ of mandamus was granted; court held denial of transfer was patently erroneous under §1404(a).
- Court compared convenience and found most witnesses within 100 miles of Dallas and none within Marshall.]
- Note: Prior district court case involving the same patent settled in 2003; no pending parallel case at time of decision.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether denial of transfer was clearly erroneous given convenience | Red River: transfer to Dallas better for witnesses and efficiency | Marshall maintained due to prior case handling and expected overlapping issues | Yes; denial was patently erroneous; transfer granted |
| Whether prior handling of a related patent suit can justify denying transfer | Prior construction experience supports keeping in Marshall | Prior case results should be considered but not dispositive without current overlap | No; prior case handling does not override compelling transfer under §1404(a) |
Key Cases Cited
- In re Volkswagen of Am., Inc., 545 F.3d 304 (5th Cir. 2008) (en banc; transfer denial was patently erroneous due to witnesses nearby Dallas)
- In re Vistaprint Ltd., 628 F.3d 1342 (Fed. Cir. 2010) (district court’s familiarity with the patent and co-pending litigation does not justify denying transfer)
- In re TS Tech USA Corp., 551 F.3d 1315 (Fed. Cir. 2008) (discusses discretion in §1404(a) and related standards)
- Stewart Org., Inc. v. Ricoh Corp., 487 U.S. 22 (1988) (guides §1404(a) balancing factors)
