Lead Opinion
Plaintiff-Appellant Autogenomics, Inc. (Autogenomics) sued Defendant-Appellee Oxford Gene Technology Limited (Oxford) in the United States District Court for the Central District of California for a declaratory judgment of invalidity and non-infringement of claims 9 and 10 of U.S. Patent No. 6,054,270 (the '270 patent). The district court granted Oxford’s motion to dismiss for lack of personal jurisdiction. Autogenomics, Inc. v. Oxford Gene Tech., Ltd., No. SACV 07-846-MRP (C.D.Cal. Jan. 17, 2008). Autogenomics appeals this ruling, as well as the district court’s denial of jurisdictional discovery. Because the district court possessed neither general nor specific personal jurisdiction over Oxford, and because the court did not abuse its discretion by denying jurisdictional discovery, we affirm.
BACKGROUND
A. Jurisdictional Facts
Oxford is a British biotechnology company organized under the laws of England and Wales. Oxford owns the '270 patent, which relates to oligonucleotide microarrays for analysis of polynucleotides. Oxford is not registered to do business in California, nor does it have any facilities, assets, employees, or agents there. Autogenomics is a biotechnology company organized under the laws of California, with its main office in Carlsbad, California. Autogenomics uses microarray technology in its business. Autogenomics alleges in support of the district court’s personal jurisdiction that Oxford has several contacts with California. The jurisdictional facts alleged by Autogenomics are supplemented, where noted, by uncontradicted evidence presented by Oxford.
1. Licensing Negotiations Between Autogenomics and Oxford: In early 2006, Oxford contacted Autogenomics regarding the '270 patent, which Oxford contends is infringed by Autogenomics’s manufacture and sale of microarray products. In a February 28, 2006 e-mail, Autogenomics
2. Licenses: Oxford entered into nonexclusive licenses with “about ten” California companies with respect to its microarray technology. Although no license terms are in evidence, Autogenomics alleges that one license — not of the '270 patent in particular — to Incyte Pharmaceutics Inc. (Incyte), a California company, is an exclusive license. Oxford claims that it has an “open licensing policy for its patented microarray technology, including the technology covered by the '270 patent,” and specifically admits that it granted a non-exclusive license of the '270 patent to Affymetrix Inc., a California company.
3. The Agilent Agreement: According to an Oxford press release and an article from a publically available website, Oxford and Agilent Technologies (Agilent) — a company with offices in California — completed a collaborative agreement in 2007. Autogenomics characterizes this agreement as a joint venture. There is no evidence that this agreement involves a license or has any relationship to the '270 patent. It involves “a collaborative agreement giving [Oxford] access to Agilent’s mieroarray platform, confirming [Oxford] as an Agilent Certified Service Provider, and appointing Agilent as an OEM supplier for [Oxford] designed microarrays.” The deal will purportedly allow the two companies to “jointly develop a'Centre of (Microarray) Excellence.” Oxford executives characterize the relationship as a “close collaboration.” The purpose of the deal is to allow Oxford “to become the largest microarray service provider in Europe.” An uncontested Oxford declaration states:
[Oxford] has a supply agreement with Agilent that allows [Oxford] to purchase arrays from Agilent for [Oxford]’s use or resale without geographical restriction. There is no joint venture between Agilent and [Oxford].- The agreement between Agilent and [Oxford] is not a distribution agreement whereby Agilent supplies products on [Oxford]’s behalf for or into the California market, or indeed to any other market.
4. Conferences: Oxford attended three scientific conferences — trade shows in Autogenomics’s terminology — in California in 2003, 2005, and 2007. The three conferences- dealt with “nanotechnology,” “bio-nanotechnology,” and “modeling and simulation of microsystems,” respectively. At the 2003 conference, Oxford is listed among dozens of “presenting companies.” At the 2005 conference, Oxford is listed among dozens of companies under the heading “Past Participant Highlights.” At the 2007 conference, Oxford was scheduled to deliver a 20-minute presentation on “[a] method for the highly parallel analysis of gene expression of single cells.” In a 2007 company newsletter, Oxford reported that it would attend a fourth conference in California where its booth description characterized Oxford as focusing on “[m]icroarray services and application products” and stated that Oxford “adopts a broad licensing policy for its microarray patents.”
5. Sales: In April 2006, Oxford sold 20 microarrays to a California company for $7,600. According to Oxford, the sale con
6. Publication: Oxford published an “application note” on Nature.com, the globally-aceessible website of Nature, a United Kingdom scientific publication. The application note describes an Oxford microarray product. Autogenomics characterizes the application note as an advertisement to California companies, noting that the University of California is one of the top ten institutional visitors to Nature.com.
B. Procedural Background
On July 23, 2007, Autogenomics filed a declaratory judgment action against Oxford in the United States District Court for the Central District of California. Autogenomics asked the court to find that claims 9 and 10 of the '270 patent are invalid or unenforceable, and that Autogenomics did not infringe the same claims. On November 27, 2007, Oxford filed a motion to dismiss, arguing that the district court lacked either general or specific personal jurisdiction over it.
On January 17, 2008, the district court ruled that it lacked general jurisdiction because Oxford’s contacts with California were insufficient to be the equivalent of having a physical presence within the state. Autogenomics, No. SACV 07-846-MRP at 8-11. The court further ruled that it lacked specific jurisdiction because the declaratory judgment action did not arise from or relate to most of the contacts alleged by Autogenomics, and those contacts that did relate to the declaratory judgment action nonetheless did not contribute to jurisdiction under our holding in Red Wing Shoe Co. v. Hockerson-Halberstadt, Inc.,
DISCUSSION
I.
Personal jurisdiction is a question of law that we review de novo. Avocent Huntsville Corp. v. Aten Int’l Co.,
“Determining whether jurisdiction exists over an out-of-state defendant involves two inquiries: whether a forum state’s long-arm statute permits service of process and whether assertion of personal jurisdiction violates due process.” Genetic Implant,
Autogenomics argues that the district court has personal jurisdiction over Oxford on two bases: general and specific personal jurisdiction. General jurisdiction, on one hand, “requires that the defendant have ‘continuous and systematic’ contacts with the forum state and confers personal jurisdiction even when the cause of action has no relationship with those contacts.” Silent Drive,
A.
The district court correctly ruled that it lacked general personal jurisdiction over Oxford. Oxford does not have contacts with the forum state that qualify as “continuous and systematic general business contacts.” Helicopteros,
While acknowledging that the standard for general jurisdiction is “fairly high,” Autogenomics argues that Oxford’s attendance at several conferences in California approximated a physical presence within the state. Autogenomics urges us to infer that “Oxford was using its conference appearances to meet with existing and potential customers, just as it would if it had an office.” We decline to do so. Although we must resolve factual conflicts in Autogenomics’s favor, it is entitled to only those inferences that are reasonable. Pennington Seed, Inc. v. Produce Exch. No. 299,
Autogenomics also points to the Agilent agreement as evidence of continuous and systematic contacts. We cannot reasonably infer from the Agilent agreement that the agreement will cause Oxford to have significantly more contact with California than the defendant in Helicópteros had with Texas — repeated purchases and visits by personnel over a number of years. See
B.
Where a defendant is not subject to general personal jurisdiction in the forum state, a district court may nonetheless exercise specific personal jurisdiction over the defendant subject to a three part test:
(1) the defendant purposefully directed its activities at residents of the forum, (2) the claim arises out of or relates to those activities, and (3) assertion of personal jurisdiction is reasonable and fair. With respect to the last prong, the burden of proof is on the defendant, which must “present a compelling case that the presence of some other considerations would render jurisdiction unreasonable” under the five-factor test articulated by the Supreme Court in Burger King.
Breckenridge Pharm., Inc. v. Metabolite Labs., Inc.,
The district court’s decision that it lacked specific personal jurisdiction was largely based on Red Wing Shoe, which held that “cease-and-desist letters alone do not suffice to justify personal jurisdiction” in a declaratory judgment action.
The district court’s decision and the principal briefing on appeal occurred before our decision in Avocent. In that case, we endeavored to reconcile our decisions regarding personal jurisdiction in declaratory judgment actions, and concluded the following:
While exclusive licensing agreements and other undertakings that impose enforcement obligations on a patentee or its licensee reflect the kind of “other activities” that support specific personal jurisdiction in a declaratory judgment action, the defendant patentee’s own commercialization activity does not. What the patentee makes, uses, offers to sell, sells, or imports is of no real relevance to the enforcement or defense of a patent, because “the federal patent laws do not create any affirmative right to make, use, or sell anything.”
Avocent,
In the event a patentee casts its net of cease-and-desist letters too widely and entangles some non-infringing products, a plaintiff may have little recourse other than a declaratory judgment action to disentangle its non-infringing business. In those instances, the cease-and-desist letters are the cause of the entanglement and at least partially give rise to the plaintiffs action. In sum, the mirror-image analysis does not account for the legitimate use of a declaratory judgment action as a disentanglement tool. Thus, it ignores the essential fact that in a declaratory judgment action, the patentee is, after all, the defendant.
Principles of fair play and substantial justice afford a patentee sufficient latitude to inform others of its patent rights without subjecting itself to jurisdiction in a foreign forum. A patentee should not subject itself to personal jurisdiction in a forum solely by informing a party who happens to be located there of suspected infringement. Grounding personal jurisdiction on such contacts alone would not comport with principles of fairness.
Id. at 1360-61.
Our holding in Avocent was that only enforcement or defense efforts related to the patent rather than the patentee’s own commercialization efforts are to be considered for establishing specific personal jurisdiction in a declaratory judgment action against the patentee.
Because principal briefing had been completed in this ease prior to our decision in Avocent, on December 19, 2008, we asked the parties to submit supplemental briefing addressing Avocent. Autogenomics had originally argued that Oxford had nine types of contacts with California. In its supplemental brief, Autogenomics concedes that our “holding in Avocent eliminated seven of those nine types of contacts in the context of a declaratory judgment action.” Appellant’s Supplemental Br. 2. Autogenomics explained that only two of the alleged types of contacts Oxford had with California were still relevant to the specific jurisdiction inquiry: the Agilent agreement and the licenses. Id. at 2-3.
First, Autogenomics asserts that the Agilent agreement is sufficient to establish jurisdiction over Oxford. We disagree. Although Agilent is a California company, and the agreement was created to pursue the field of microarrays, there is nothing in evidence, nor would it be a reasonable inference, to suggest that this agreement involves the '270 patent or is “analogous to a grant of a patent license.” Genetic Implant,
Second, Autogenomics argues that we should infer that Oxford gave an exclusive license that relates to the '270 patent. As support for this contention, Autogenomics argues that the allegedly exclusive Incyte license means that the following declaration of Oxford’s director of licensing and business development is false: “[Oxford] has an open licensing policy for its patented microarray technology, including the technology covered by the '270 patents. All of [Oxford’s] licenses are nonexclusive .... ” Even though the Incyte license “does not relate to the patent-at-issue in our case,” Autogenomics argues that because of this apparent inconsistency, we should infer that Oxford is hiding an exclusive license of the '270 patent. We disagree because although the inconsistency greatly weakens the strength of Oxford’s declaration, it is nonetheless undisputed that there are numerous non-exclusive licenses of the '270 patent. Because of this, it cannot be a reasonable inference that there is also an exclusive license of the same patent.. We therefore conclude that the district court does not have specific personal jurisdiction over Oxford because Autogenomies has failed to allege sufficient activities “relating] to the validity and enforceability of the patent” in addition to the cease-and-desist communications. Avocent,
II.
Autogenomics also appeals the district court’s denial of jurisdictional discovery. We review the district court’s denial of discovery, an issue not unique to patent law, for abuse of discretion, applying the law of the regional circuit. Digeo, Inc. v. Audible, Inc.,
In this case, there is no denial of a motion for jurisdictional discovery for us to review because there was no formal motion for jurisdictional discovery. According to an uncontroverted declaration by counsel for Oxford, on November 26, 2007, counsel for Oxford contacted counsel for Autogenomics to warn him of the pending motion to dismiss for lack of personal jurisdiction. After discussing arguments relating to jurisdiction, counsel for Autogenomics raised the possibility of jurisdictional discovery, and asked for the contact information of relevant people at Oxford. Counsel for Oxford identified two people and indicated that he was willing to discuss the issue further, even after Oxford filed its motion to dismiss. Counsel for Autogenomics said that he would call back within a few days, but he did not. Oxford filed its motion to dismiss on November 27, 2007.
In its opposition to Oxford’s motion to dismiss, filed December 21, 2007, Autogenomics stated, without elaboration, that “[i]n the event that the Court is not completely convinced of jurisdiction, Autogenomics hereby requests that the Court grant limited discovery.” On December 28, 2007, the district court attempted to contact counsel for Autogenomics to advise him of how to properly request jurisdictional discovery. On January 2, 2008, counsel for Autogenomics returned the court’s telephone call, leaving a message for the clerk. At the hearing for the motion to dismiss on January 14, 2008, Autogenomics reiterated its request for jurisdictional discovery. The district court noted that it never received the required formal motion. In its January 17, 2008 ruling, the court refused to grant jurisdictional discovery. The court found that the suggestions at oral argument and in the opposition brief were insufficient, and regardless, that Autogenomics had “not shown, with any degree of specificity, that discovery would ‘demonstrate facts sufficient to constitute a basis for jurisdiction.’ ” Autogenomics, No. SACV 07-846-MRP at 17 n. 3 (quoting Wells Fargo & Co. v. Wells Fargo Express Co.,
The district court did not abuse its discretion by denying jurisdictional discovery. As an initial matter, the district court is correct that under Ninth Circuit law, it is not necessarily an abuse of discretion to reject a request for jurisdictional discovery because no formal motion was made. Sopcak v. N. Mountain Helicopter Serv.,
Furthermore, as the district court noted, “[a]n appellate court will not interfere with the trial court’s refusal to grant discovery except upon the clearest showing that the dismissal resulted in actual and substantial prejudice to the litigant; such a refusal is not an abuse of discretion when it is clear that further discovery would not demonstrate facts sufficient to constitute a basis for jurisdiction.” Wells Fargo,
CONCLUSION
The district court possessed neither general nor specific personal jurisdiction over Oxford, and the court did not abuse its discretion by denying Autogenomics’s request for jurisdictional discovery. The judgment below is
AFFIRMED.
Notes
. The dissent also suggests that this decision is inconsistent with our court’s recent decision in Synthes (U.S.A.) v. G.M. Dos Reis Jr. Ind. Com. de Equip. Medico,
. Autogenomics relies on Commissariat AL’Energie Atomique v. Chi Mei Optoelectronics Corp.,
Furthermore, although we held in Commissariat that "[i]n determining the relevance of a request for jurisdictional discovery, we apply Federal Circuit law,” that is not our task here.
Dissenting Opinion
dissenting.
The Federal Circuit again restricts United States parties from access to our courts when a United States patent is owned by a foreign entity. The court rules that the foreign patent owner is not subject to suit in California despite its commercial presence in California including the grant of at least ten patent licenses to companies in California; despite a manufacturing venture of the patent owner with a California-based company to produce and sell microarrays designed by the patent owner; despite participation by the patent owner with respect to the patented technology in trade shows and scientific meetings in California; and despite the patent owner’s threats of infringement against Autogenomics, a California company whose accused activities are conducted in California. On the entirety of these contacts, jurisdiction of this declaratory judgment action was proper in the Central District of California. From my colleagues’ contrary ruling, I respectfully dissent.
DISCUSSION
It is not disputed that there is a “case of actual controversy” in accordance with the Declaratory Judgment Act, 28 U.S.C. § 2201(a), between the patent owner Oxford Gene Technology Inc., a British company, and the plaintiff Autogenomics. The only question is whether the requirements of personal jurisdiction have been met in California, the resident forum of Autogenomics, recognizing that Oxford is not registered to do business in any of the United States.
Wdiere a foreign defendant has not consented to suit in a forum, the inquiry into personal jurisdiction turns on a trio of criteria, generally designated as purposeful availment, relatedness, and reasonableness. Burger King Corp. v. Rudzewicz,
Autogenomics readily made a prima facie showing as to these criteria, for Oxford owns several United States patents, including the patent that is the subject of this declaratory action, and is exercising its United States patent rights through approximately ten licensees in California. Autogenomics states that Oxford has entered into a manufacturing venture with the California company Agilent, whereby Agilent serves as a California-based supplier of microarrays designed by Oxford. Oxford’s employees have personally exhibited the Oxford technology at trade shows in California and publicized the availability of licenses for Oxford’s United States patents. The record shows sale of Oxford microarray products to at least one customer in California. Oxford employees
The reasonableness inquiry applies to both defendant and plaintiff, invoking “notions of fair play and substantial justice,” Akro,
[Cjourts in appropriate cases may evaluate the burden on the defendant, the forum State’s interest in adjudicating the dispute, the plaintiffs interest in obtaining convenient and effective relief, the interstate judicial system’s interest in obtaining the most efficient resolution of controversies, and the shared interest of the several States in furthering fundamental substantive social policies.
Autogenomics brought this declaratory judgment action in the forum of its corporate residence and principal place of business, the location of the activities that Oxford says infringe its United States patents. The compulsory counterclaim of infringement would center oh activities in the Central District of California. No other forum has been asserted by Oxford to be more convenient; indeed, the entire relationship between Oxford and Autogenomics has been in the California forum, which is a primary locus of the biotechnology ihdustry in which both parties are engaged. All of these factors are relevant to the inquiry of whether “the quality and nature of the activity in relation to the fair and orderly administration of the laws” is sufficient for a forum to exercise jurisdiction. International Shoe Co. v. Washington,
Personal jurisdiction of owners of United States patents has been recognized in circumstances no closer to the forum than those here. In Campbell Pet Co. v. Miale,
The comparison with Viam is informative, for both Oxford and SPAL are foreign owners of United States patents who do business in the forum without themselves residing in the forum. In Oxford’s case its patented inventions are placed in United States commerce through manufacture by United States licensees, providing a more direct connection with United States commerce than the importation of products manufactured offshore. Oxford’s contacts with the California forum are not “random, fortuitous, or attenuated,” Burger King,
Today’s ruling is also, incompatible with this court’s recent decision in Synthes (U.S.A.) v. G.M. Dos Reis Jr. Ind. Com. de Equip. Medico,
On considering the interests of both sides to this dispute, in light of precedent, it has not been shown that subjecting-Oxford to suit in California is either unreasonable or unfair. My colleagués on this panel hold that the California forum has neither general nor specific jurisdiction over Oxford, although the Central District of California is the forum most directly related to Oxford’s activities in the United States, as well as being the locus of the accused infringement. Nonetheless, this court immunizes Oxford, the owner of a United States patent, from resolution of the patent dispute. This court has recognized that “[j]ust as a state has a substantial interest in preventing patent infringement within its borders, it also has a substantial interest in protecting its residents from claims of patent infringement that may be unwarranted.” Deprenyl Animal Health, Inc. v. Univ. of Toronto Innovations Found.,
Depriving Autogenomics of the opportunity to resolve the threat of infringement is contrary to the purpose and principles of the Declaratory Judgment Act. See Medlmmune, Inc. v. Genentech, Inc.,
My colleagues on this panel, in support of their ruling that Oxford cannot be sued in California, cite this court’s recent holding in Avocent Huntsville Corp. v. Aten International Co.,
The panel majority also cites the statement in Red Wing Shoe Inc. v. Hockerson-Halberstadt, Inc.,
The evolving law under Medlmmune facilitates challenge to adversely held patents. See, e.g., SanDisk Corp. v. STMicroelectronics, Inc.,
This is not a trivial question. The PTO reports that 50.3% of the patents granted in 2008 were issued to foreign patentees. See USPTO, Extended Year Set—Historic Patents By Country, State, and Year—All Patent Types (December 2008), available at http://www.uspto.gov/web/offices/ac/ido/ oeip/tafi’cst_allh.htm. Thus restriction on the availability of declaratory judgment actions against foreign-owned patents is of economic significance. As this court stated in Viam, it cannot have been contemplated that activities otherwise subject to federal jurisdiction, are always immunized from adjudication when the patent owner’s address is offshore.
The court’s decision that Oxford cannot be brought before the court in the Central District of California is contrary to law, precedent, and policy. I respectfully dissent.
. Rule 4(k)(2) states:
(2) Federal Claim Outside State-Court Jurisdiction
For a claim that arises under federal law, serving a summons or filing a waiver of service establishes personal jurisdiction over a defendant if:
(A) the defendant is not subject to jurisdiction in any state's courts of general jurisdiction; and
(B) exercising jurisdiction is consistent with the United States Constitution and laws.
