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944 F. Supp. 2d 357
D. Del.
2013
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Background

  • Versata filed suit against Callidus alleging patent infringement of the '024, '304, and '326 patents by accused Callidus software, including SPM Suite, TrueComp, and TrueProducer products.
  • Plaintiffs are Delaware corporations with principal offices in Austin, Texas; Callidus is a Delaware corporation with principal office in Pleasanton, California.
  • Plaintiff asserts infringement occurs through making, using, licensing, selling, offering for sale, and importing the accused software and services in Delaware, elsewhere in the United States.
  • Callidus contends the accused activities and maintenance are primarily centered in California, where its servers and majority of personnel are located.
  • The court addressed Callidus’s motions to transfer venue to the Northern District of California and to dismiss for failure to state a claim; both motions were denied.
  • The court applied § 1404(a) analysis and reviewed the sufficiency of pleadings under Rule 12(b)(6) to determine whether claims of direct and indirect infringement were plausibly pled.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether venue should be transferred under 28 U.S.C. § 1404(a). Versata argues transfer is improper; plaintiff chose a legitimate forum (Delaware) and convenience factors do not justify transfer. Callidus asserts California is more convenient due to location of development, maintenance, and documents; discovery and witnesses may favor California. Transfer denied; plaintiffs choice of forum favored and factors did not compellingly favor transfer.
Whether the complaint plausibly pleads direct infringement. Versata identifies accused products as including SPM Suite, TrueComp, and TrueProducer, sufficient under Form 18. Callidus contends the pleading lacks specific identification of infringing acts. Pleading of direct infringement is sufficient under Form 18 and Twombly/Iqbal standards.
Whether the complaint plausibly pleads indirect infringement (inducement and contributory infringement). Versata alleges Callidus had knowledge of infringement at least as of filing and that inducement and contributory infringement are plausible. Callidus argues Pleading is insufficient or lack of particular customers for inducement. Indirect infringement allegations are facially plausible and adequately pled.

Key Cases Cited

  • Jumara v. State Farm Ins. Co., 55 F.3d 873 (3d Cir. 1995) (burden on movant to show need for transfer; plaintiff's forum preference respected)
  • In re Linkr-A-Media Devices Corp., 662 F.3d 1221 (Fed.Cir.2011) (framework for § 1404(a) transfer analysis)
  • Helicos Biosciences Corp. v. Illumina, Inc., 858 F. Supp. 2d 367 (D. Del. 2012) (recognizes comprehensive transfer analysis framework and private/public factors)
  • E.E.O.C. v. Univ. of Pa., 850 F.2d 969 (3d Cir. 1988) (federal comity and transfer analysis considerations)
  • Red Wing Shoe Co., Inc. v. Hockerson-Halberstadt, Inc., 148 F.3d 1355 (Fed. Cir. 1998) (origin of infringement standards and § 271 analysis references)
  • Global-Tech Appliances, Inc. v. SEB S.A., 131 S. Ct. 2060 (2011) (inducement requires culpable conduct and knowledge of infringement)
  • Walker Digital LLC v. Facebook, Inc., 852 F. Supp. 2d 559 (D. Del. 2012) (pleading of indirect infringement tied to knowledge and continued conduct after notice)
  • McZeal v. Sprint Nextel Corp., 501 F.3d 1354 (Fed. Cir. 2007) (pleading requirements for direct infringement allegations in patent cases)
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Case Details

Case Name: Versata Software, Inc. v. Callidus Software Inc.
Court Name: District Court, D. Delaware
Date Published: May 16, 2013
Citations: 944 F. Supp. 2d 357; 2013 WL 2111672; 2013 U.S. Dist. LEXIS 69470; Civ. No. 12-931-SLR
Docket Number: Civ. No. 12-931-SLR
Court Abbreviation: D. Del.
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