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,” Fed.R.Civ.P. 20(a), under the correct legal standard.
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 Rule 20 of the Federal Rules of Civil Procedure. Oasis argued that although the asserted “patents cover a broad range of technologies, the accused infringement in this case is limited to online backup/storage services,” and that “each defendant offers a similar commercial online backup/storage service” such that “[t]he steps taken to provide those services are covered by the asserted method claims of the patents-in-suit.” Plaintiff Oasis Research, LLC’s Opposition to Defendants’ Venue and Jurisdiction Related Motions at 1, Oasis Research, LLC v. ADrive LLC, No. 4:10-cv-435 (E.D.Tex. Dec. 3, 2010), ECF No. 133.
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. Fed.R.Civ.P. 21. Just as when weighing the § 1404(a) factors, however, that discretion must be exercised within the boundaries set by relevant statutes and precedent.
See In re Volkswagen,
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 35 U.S.C. § 299) (providing in relevant part that accused infringers may be joined in one action as defendants or have their actions consolidated for trial only if the allegations of infringement “aris[e] out of the same transaction, occurrence, or series of transactions or occurrences relating to the making, using, importing into the United
While petitioners argue that joinder here would be improper under the new and old rules, they wisely refrain from arguing that the new 35 U.S.C. § 299 itself mandates this outcome. As a general rule, we do not give statutes retroactive effect “unless Congress clearly indicates its intention to do so.”
Lowder v. Dep’t of Homeland, Sec.,
When considering a motion to sever under Rule 21, “courts have looked to Rule 20 for guidance.”
Acevedo v. Allsup’s Convenience Stores, Inc.,
It is clear that where defendants are alleged to be jointly liable, they may be joined under Rule 20 because the transaction-or-occurrence test is always satisfied.
See Temple v. Synthes Corp.,
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 Rule 20. The advisory committee notes specifically state that Rule 20(a)(2), concerning joinder of defendants, “is derived from
English Rules Under the Judicature Act
(The Annual Practice, 1937) O. 16, r.
4,”
which was the English rule for joinder of defendants. Fed.R.Civ.P. 20 advisory committee note. The referenced 1937 edition of
The Annual Practice
explains that before the revision of the English joinder rules, “it was held
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 Rule 20. The question then is under what circumstances is the joinder of independent actors permissible under Rule 20.
In imposing both the transaction- or-occurrence requirement and the requirement of a common question of law or fact, Rule 20 makes clear that the existence of a single common question of law or fact alone is insufficient to satisfy the transaction-or-occurrence requirement. In the present context the mere fact that infringement of the same claims of the same patent is alleged does not support joinder, even though the claims would raise common questions of claim construction and patent invalidity. District courts outside the Eastern District of Texas have generally agreed in cases involving patent, copyright, and trademark law.
2
So too we have previously held that claims of infringement of the same patent by independent parties, without more, are not part of the same transaction or occurrence for purposes of Rules 13 and 14, and are instead “new claims against new parties ... not authorized by the joinder rules.”
Frank’s Casing Crew & Rental Tools, Inc. v. PMR Techs., Ltd.,
As other courts have noted, the transaction-or-oceurrence test of Rule 20(a) is similar to the transaction-or-occurrence test of Rule 13(a) for compulsory counter
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 Rule 20 that allows joinder of parties whenever the claims arise out of ‘the same series of transactions or occurrences.’ ” 7 Charles Alan Wright et al.,
Federal Practice and Procedure
§ 1653 (3d ed.2001). Courts have applied this “transaction or occurrence” requirement using a “case-by-case approach” based on a “flexible] ... standard [that] enables the federal courts to promote judicial economy by permitting all reasonably related claims for relief by or against different parties to be tried in a single proceeding under the provisions of Rule 20.”
Id.
The Supreme Court has stated that under the Federal Rules of Civil Procedure, “the impulse is toward entertaining the broadest possible scope of action consistent with fairness to the parties; joinder of claims, parties and remedies is strongly encouraged.”
Gibbs,
Thus, independent defendants satisfy the transaction-or-occurrence test of Rule 20 when there is a logical relationship between the separate causes of action. The logical relationship test is satisfied if there is substantial evidentiary overlap in the facts giving rise to the cause of action against each defendant. In other words, the defendants’ allegedly infringing acts, which give rise to the individual claims of infringement, must
share
an aggregate of operative facts. The Supreme Court in
United States v. Mississippi,
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 Rule 20’s transaction-or-occurrence test unless the facts underlying the claim of infringement asserted against each defendant share an aggregate of operative facts. To be part of the “same transaction” requires shared, overlapping facts that give rise to each cause of action, and not just distinct, albeit coincidentally identical, facts. The sameness of the accused products is not enough to establish that claims of infringement arise from the “same transaction.” Unless there is an actual link between the facts underlying each claim, of infringement, independently developed products using differently sourced parts are not part of the same transaction, even if they are otherwise coincidentally identical.
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 Rule 20, the district court has considerable discretion to consolidate cases for discovery and for trial under Rule 42 where venue is proper and there is only “a common question of law or fact.” Fed.R.Civ.P. 42(a);
see
9A Wright et al.,
supra,
§ 2382 (“[T]he existence of a common question by itself is enough to permit consolidation under Rule 42(a), even if the claims arise out of independent transactions.”). Common pretrial issues of claim construction and patent invalidity may also be adjudicated together through the multidistrict litigation procedures of 28 U.S.C. § 1407.
See, e.g., In re Cruciferous Sprout Litig.,
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 Rule 20, it is appropriate to look at joinder of defendants in other tort cases because "[p]atent infringement is a tort.”
Wordtech Sys., Inc. v. Integrated Network Solutions, Inc.,
.
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 35 U.S.C. § 299 changes the test for joinder of defendants in patent infringement actions, and our approach to the new provision is not dictated by this case. The new statute only allows joinder of independent defendants whose acts of infringement involve "the same accused product or process.” Id. § 299(a)(1) (emphasis added). We need not decide whether the sameness test in the new legislation is identical to the sameness test we adopt here for cases not covered by the new legislation.
