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In Re Verizon Business Network Services Inc.
635 F.3d 559
| Fed. Cir. | 2011
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Background

  • 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)
Read the full case

Case Details

Case Name: In Re Verizon Business Network Services Inc.
Court Name: Court of Appeals for the Federal Circuit
Date Published: Mar 23, 2011
Citation: 635 F.3d 559
Docket Number: M-956
Court Abbreviation: Fed. Cir.