In Re EMC Corporation
ORDER
Petitioners EMC Corp., Decho Corp., and Iomega Corp. (collectively, “EMC”) seek a writ of mandamus to direct the United States District Court for the Eastern District of Texas to sever and transfer the claims against them to the United States District Court for the District of Utah. Petitioners Carbonite Inc. (“Carbonite”), Iron Mountain Inc. and Iron Mountain Information Management, Inc. (collectively, “Iron Mountain”), GoDaddy.com, Inc. (“GoDaddy”), and Pro Softnet Corp. (“Pro Softnet”) join in EMC’s petition, seeking to have the claims against them severed and transferred to federal district courts in Massachusetts, Arizona, and California. We grant the petition in part and direct the district court to determine whether the claims “aris[e] out of the same transaction, occurrence, or series of transactions or occurrences,”
I
Petitioners are eight of eighteen companies named as defendants in a single complaint filed by Oasis Research LLC (“Oasis”) in the Eastern District of Texas. Oasis asserted the method claims from four patents, U.S. Patent Nos. 5,771,354; 5,901,228; 6,411,943; and 7,080,051 (claim 9 only), all of which deal with off-site computer data storage. Specifically, the patents claim methods for allowing home computer users to remotely connect to an online service system for purposes of external data and program storage and additional processing capacities in exchange for a fee.
The defendants in this case are all alleged to offer services that provide online backup and storage for home or business computer users. See Complaint at 7-12, Oasis Research, LLC v. ADrive LLC, No. 4:10-cv-435 (E.D.Tex. Aug. 30, 2010), ECF No. 1. In particular, petitioners are alleged to offer online backup and storage through web sites such as www.mozy.com and www.atmosonline.com (EMC); www. carbonite.com (Carbonite); baekup.ironmountain.com (Iron Mountain); www. godaddy.com/gdshop/email/vsdb_landing. asp (Go-Daddy); and www.idrive.com (Pro Softnet). Id. at 8, 9,11,12.
Petitioners sought orders to sever and transfer the claims against them to more appropriate venues, arguing that because there was no concert of action, the claims against them did not arise out of the same transaction or occurrence, as required by
The magistrate .judge found nothing improper about maintaining these claims in one action in the Eastern District of Texas, for “[cjlaim validity, claim construction, and the scope of the four patents ... are questions common to all Defendants in this case.”
Oasis Research, LLC v. Adrive, LLC,
No. 4:10-CV-435,
II
A
We first turn our attention to this court’s jurisdiction. The remedy of mandamus is available in extraordinary situations “to correct a clear abuse of discretion or usurpation of judicial power.”
In re Calmar, Inc.,
It is well established that mandamus is available to contest a patently erroneous error in an order denying transfer of venue.
See In re Apple, Inc.,
We must here address as a matter of first impression whether mandamus can be an appropriate means to test a district court’s discretion in ruling on motions to sever and transfer. While transfer motions are governed by regional circuit law,
see In re Link-A-Media Devices Corp.,
We conclude that mandamus is available as a remedy. With regard to the “no other means” requirement, there is no meaningful distinction between a petitioner’s seeking review of an order denying transfer because the district court clearly abused its discretion in applying the § 1404(a) factors and a petitioner’s seeking review of an order denying a motion to transfer because the district court clearly abused its discretion by not severing the
Nor does the “clear and indisputable” requirement preclude us from issuing the writ. To be sure, Rule 21, which authorizes a district court to “sever any claim against a party,” provides a district court broad discretion.
Here, if joinder was improper, the petitioners will not have a meaningful opportunity to present individualized defenses on issues such as infringement, willfulness, and damages because each defendant will have limited opportunities to present its own defense to the jury. We note that district courts have expressed similar concerns.
See, e.g., WiAV Networks, LLC v. 3Com Corp.,
No. C 10-03448,
In an analogous case, the Fifth Circuit in
In re Fibreboard Corp.,
B
We turn to the issue of severance. We first note the unusual circumstances from which this petition comes before us. Recently, Congress addressed the issue of joinder in patent cases in section 19 of the Leahy-Smith America Invents Act, which was signed into law just days after this petition was filed.
See
Leahy-Smith America Invents Act, Pub.L. No. 112-29, sec. 19(d), § 299, 125 Stat. 284, 332-33 (2011) (to be" codified at
While petitioners argue that joinder here would be improper under the new and old rules, they wisely refrain from arguing that the new
When considering a motion to sever under
It is clear that where defendants are alleged to be jointly liable, they may be joined under
The cases make equally clear that the fact that the defendants are independent actors does not preclude joinder as long as their actions are part of the “same transaction, occurrence, or series of transactions or occurrences.” The decision of the Supreme Court in
United States v. Mississippi
The permissibility of joining defendants who act independently is also clear from the origins of
Based on this history, it follows that the mere fact that a case involves independent actors as defendants does not necessarily bring the case outside the scope of
In imposing both the transaction- or-occurrence requirement and the requirement of a common question of law or fact,
As other courts have noted, the transaction-or-oceurrence test of
Professors Wright and Miller concluded that “[t]he logical-relationship test employed under Rule 13(a) seems consistent with the philosophy underlying the passage in
Thus, independent defendants satisfy the transaction-or-occurrence test of
We agree that joinder is not appropriate where different products or processes are involved. Joinder of independent defendants is only appropriate where the accused products or processes are the same in respects relevant to the patent. But the sameness of the accused products or processes is not sufficient. Claims against independent defendants (i.e., situations in which the defendants are not acting in concert) cannot be joined under
In addition to finding that the same product or process is involved, to determine whether the joinder test is satisfied, pertinent factual considerations include whether the alleged acts of infringement occurred during the same time period, the existence of some relationship among the defendants, the use of identically sourced components, licensing or technology agree
In exercising its discretion, the district court should keep in mind that even if joinder is not permitted under
C
Since the district court here applied an incorrect test, the district court’s ruling must be set aside, and the issues of severance and joinder considered under the proper standard. We therefore grant the petition to the limited extent that we vacate the district court’s order denying the motions to sever and transfer, and direct the district court to reconsider those motions in light of the correct test.
Accordingly,
IT IS ORDERED THAT:
(1) The petition for a writ of mandamus is granted.
(2) Carbonite, Iron Mountain, GoDaddy, and Pro Softnet’s motions to join EMC’s petition are also granted to the extent that the district court is directed to reconsider their motions in light of the correct test.
Notes
. To determine when claims against different alleged patent infringers do satisfy the transaction-or-occurrence prong of
.
See, e.g., Rudd v. Lux Prods. Corp. Emerson Climate Techs. Braebum Sys.,
No. 09-CV-6957,
.
See, e.g., EIT Holdings LLC v. Yelp!, Inc.,
No. C 10-05623,
. As discussed above, we do not decide today whether the new joinder provision at