OPINION AND ORDER
Plaintiff brings this case alleging patent infringement. Defendants move to dismiss on the grounds that the Court lacks jurisdiction due to a binding forum selection clause. For the reasons given herein, Defendants’ Motion to Dismiss is granted.
I. Background
A. Factual Background
1. The Parties
Plaintiff Production Resource Group, L.L.C. (“Plaintiff’ or “PRG”) is a Delaware limited liability company that designs, manufactures, and sells “sophisticated lighting fixtures, controllers and associated products for use in entertainment and display environments.” (Compl. & Jury -Demand (“Compl.”) ¶ 1.) Defendants Martin Professional, A/S and its wholly-owned subsidiary, Martin Professional, Inc. (collectively “Defendants” or “Martin”), are corporations from Denmark and Florida, respectively. • (Id. ¶¶ 2-3.)
2. The Contractual Relationship of the Parties
PRG and Martin entered into two agreements (collectively, the “Agreements”) effective on or about November 1, 2003 — a License Agreement and an Agreement for the Provision of Consultancy Services (“Consultancy Agreement”). (Mem. of Law in Supp. of Defs.’ Mot. to Dismiss for 'Lack of Subject Matter Jurisdiction (“Defs.’ Mem.”) 2; Pl.’s Mem. of Law in Opp’n to Defs.’ Mot. to Dismiss (“PL’s Mem.”) 2; Decl. of Douglas R. Nemec
On November 9, 2005, Martin notified Plaintiff that it believed that, pursuant to the Agreements, as of November 1, 2005, Martin was no longer obligated to pay a monthly fee outlined in the Consultancy Agreement.
3. The Forum Selection, Dispute Resolution, and Other Relevant Provisions
The heart of this Motion is the extent to which the Agreements might require
24. Choice of Laws
This Agreement shall be governed by and construed and interpreted in accordance with the laws of England and Wales and the Parties hereby submit to the exclusive jurisdiction of the Courts of England and Wales.
25. Dispute Resolution
In the event of a dispute arising out of or relating to this Agreement, including any question regarding its existence, validity or termination, the Parties shall first seek settlement of that dispute in accordance with the LCIA Mediation procedure ... or pursuant to some method as they may mutually agree. If the dispute is not settled by mediation ... the dispute shall be referred to and finally resolved in accordance with section 24.
(License Agreement ¶¶ 24-25.) Beyond these provisions, Plaintiff notes that the License Agreement also requires that the “scope” of any claims of any of the “Licensed Patents” shall be determined “under the laws of the competent jurisdiction that issued the Licensed Patent.” {Id. 1fl(k).)
The Consultancy Agreement contains the following corresponding provisions regarding dispute resolution, choice of law, and forum selection:
13.8 This Agreement is governed by and shall be construed in accordance with the law of England and Wales. The parties agree to submit to the exclusive jurisdiction of the Courts of England and Wales save as to enforcement where their jurisdiction shall be nonexclusive.
13.9 In the event of a dispute arising out of or relating to this Agreement, including any question regarding its existence, validity or termination, the parties shall first seek settlement of that dispute by mediation in accordance with the LCIA Mediation Procedure, ... or pursuant to such other method as they may mutually agree. If the dispute is not settled by mediation ... the dispute shall be referred to and finally resolved in accordance with clause 13.8.
(Consultancy Agreement §§ 13.8-13.9.)
B. Procedural Background
Plaintiff brought this action on July 15, 2008, alleging infringement of twenty separate patents that it alleges it owns. (Compl.M 9, 14, 19, 24, 29, 34, 39, 44, 49, 54, 59, 64, 69, 74, 79, 84, 89, 94, 99, 104.) For each count, Plaintiff alleges that Mar
II. Discussion
A. Standard of Review
1. Procedural Mechanism of Evaluating a Forum Selection Clause
Martin has styled its motion as one challenging the Court’s jurisdiction, pursuant to Fed.R.Civ.P. 12(b)(1). As Martin has answered, Martin’s Motion is made pursuant to Fed.R.Civ.P. 12(c) (“Rule 12(c)”). “Where a Rule 12(c) motion asserts that a court lacks subject matter jurisdiction, the motion is governed by the same standard that applies to a Rule 12(b)(1) motion.” Xu v. City of New York, No. 08-CV-11339,
Neither the Supreme Court nor the Second Circuit has established a single procedural mechanism for resolving enforcement of a forum selection clause. See Asoma Corp. v. SK Shipping Co.,
On a motion to dismiss pursuant to Rule 12(b)(1), a court must dismiss á claim if it “lacks the statutory or constitutional power to adjudicate it.” Morrison v. Nat’l Austl. Bank Ltd.,
These standards are not altered by the fact that the Motion at issue is premised on a forum selection clause. See New Moon Shipping,
2. Enforceability of Forum Selection Clauses
Parties may consent to personal jurisdiction through forum-selection clauses in contracts. See Nat’l Equip. Rental, Ltd. v. Szukhent,
“Th[e Second Circuit] has explained that ‘[d]etermining whether to dismiss a claim based on a forum selection Clause involves a four-part analysis’ .... ” S.K.I. Beer Corp. v. Baltika Brewery,
3. Governing Law
The Parties present three related arguments. First, Plaintiff argues that the forum selection (and/or choice of law) clauses are irrelevant because the applicable contracts were terminated, and Plaintiff is suing only for post-termination damages. (Pl.’s Mem. 7.) Martin argues that the Agreements were not terminated, and that whether they were is a question that is, itself, subject to the forum selection (and choice of law) clauses. (Defs.’ Mem. 8; Reply Mem. of Law in Further Supp. of Defs.’ Mot. to Dismiss for Lack of Subject Matter Juris. (“Reply Mem.”) 1.) Second, Plaintiff argues that if the Agreements do govern this action, then the Consultancy Agreement language governs, and is permissive, rather than mandatory. (PL’s Mem. 13.) Martin argues that the License Agreement governs, and that neither of the Agreements permit this suit. (Defs.’ Mem. 10; Reply Mem. 8.) Third, Plaintiff argues that even if the License Agreement governs, the forum selection and choice of law clauses do not govern the claims asserted in this action, and that enforcement of the clauses would be unreasonable. (PL’s Mem. 10, 15.) Martin argues that the clauses do cover this action, and that enforcement of the clauses would not be unreasonable. (Defs.’ Mem. 6, 11; Reply
Fortunately, courts have confronted this kind of Gordian knot before. The Second Circuit has held that federal law governs the first and fourth steps of forum selection clause analysis regardless of the existence of a choice of law provision. See Phillips,
In this case, no Party cites to or references any decision or principle of English or Welsh contract law. In fact, the Parties rely heavily on federal law. The only reference to English or Welsh law in the motion papers is a citation to a single opinion for the proposition that English courts may accept jurisdiction over questions of United States patent law pursuant to a forum selection clause. (Reply Mem. 9.) Moreover, Martin — i.e. the movant— explicitly argues that this Court can rely on “general contract principles and federal precedent” (Defs.’ Mem. 5 n. 1 (internal quotation marks omitted)), and Plaintiff does not whisper an objection. Therefore, it is appropriate to assume that the Parties do not rely on any distinctive feature of English or Welsh law, and acquiesce to application of federal common law. See Phillips,
B. Application of Phillips
1. Whether Notice Of The Forum Selection Clause Was Provided
With the question of the governing law resolved, the Court now turns to the four-prong analysis described in Phillips. To begin, there is no dispute concerning the first prong of the Phillips test — notice— and so the Court starts its analysis with the second prong. See S.K.I. Beer,
2. Whether The Forum Selection Clause Is Mandatory
The second prong requires an answer to the question of whether the forum selection clause at issue is permissive or mandatory, “i.e., to decide whether the parties are required to bring any dispute to the designated forum or simply permitted to do so.” Phillips,
Here, even in the best case scenario for Plaintiff, which can be found in the Consultancy .Agreement, the forum selection clause is only permissive with respect to “enforcement.”. Breaking it down, the License Agreement explicitly provides that it is to be “governed by and construed and interpreted in accordance with the laws of England and Wales and the Parties hereby submit to the exclusive jurisdiction of the Courts of England and Wales.” (License Agreement ¶24 (emphasis added).) This is precisely the type of language that courts have routinely relied upon to find
It is true that the Consultancy Agreement limits the exclusivity of the forum selection, by providing that the Parties submit to the “exclusive jurisdiction of the Courts of England and Walds save as to enforcement where their jurisdiction shall be non-exclusive.” (Consultancy Agreement § 13.8 (emphasis added).) Focusing on this language, Plaintiff argues that the forum selection clause is permissive here because Plaintiff is seeking to “enforce its termination of the Agreements.” (Pl.’s Mem. 13.) Though the Court does not offer an opinion as to what “enforcement” of the agreements (let'alone enforcement of the termination of the agreements) might be when differentiated from any normal contract dispute, “enforcement” clearly is not this patent suit that requests
no contractual remedies, and that purportedly seeks remedies for actions that supposedly occurred, at least in part, after the alleged termination of the Agreements. Indeed, the heart of Plaintiffs argument is that this action does not arise from the Agreements, and is not an attempt to enforce them. (Id. at 1 (“This is a patent enforcement action ____”); id. (“PRG does not need to assert any rights under any contract in order to enforce its patents against Martin.”); id. at 9 (seeking relief for “post-termination infringement”); id. at 10 (distinguishing between an action “to enforce its termination ... by showing pre-termination infringement” and this action for “post-termination infringement”); id. (“PRG asserts no rights under the terminated contract.”).) Therefore, regardless of which Agreement is applicable, the forum selection clause is mandatory.
S. Whether The Forum Selection Clause' Covers This Action
Plaintiff offers two arguments to demonstrate that the claims in this suit are not covered by the forum selection clause: (1) the Agreements were terminated and, hence, the forum selection clause in each is no longer applicable (PL’s Mem. 7); and (2) even if the forum selection clause is applicable, it does not cover the dispute involving Plaintiffs claim regarding post-termination patent infringement, (id. at 10).
Regarding the first point, the Court need not decide whether the Agreements have been terminated (Defendant disputes Plaintiff, on this point). The License Agreement contains a survival clause (License Agreement ¶ 16(e) (providing for survival of, inter aha, the forum selection and dispute resolution provisions)), and such clauses are presumptively enforceable. See Future Indus. of Am., Inc. v. Advanced UV Light GMBH, No. 09-CV-
When determining the scope of a forum selection clause, the Court “examine[s] the substance of th[e] claims, shorn of their labels,” and relates the substance of the claims “to the precise language of the clause,” “discounting] the precedential weight of cases that deal with dissimilarly worded clauses.” Phillips,
Courts have identified at least two categories of terms describing the scope of a forum selection clause. The narrower category includes terms such as “arise out of,” “arise from,” or “arising under,” whereas the broader category includes terms such as “in connection with,” “relating to,” or “associated with.” See Phillips,
Thus, the question is the extent to which the forum selection clause in each Agreement is limited to disputes “arising out of’ the underlying Agreement, or whether it also covers disputes more broadly “relating to” each Agreement. When interpreting contracts, it is accepted that separate agreements executed contemporaneously and that áre part of a single transaction are to be read together. See This Is Me, Inc. v. Taylor,
These principles are highly relevant here for while it may be that standing alone the forum selection clause in each Agreement might limit the jurisdiction of English and Welsh courts to disputes “arising out of’ the Agreements, these provisions must be interpreted “in the context of the entire contractual arrangement,” including the dispute resolution provisions in each Agreement. Personal Sec. & Safety Sys. Inc. v. Motorola Inc.,
The question then is whether Plaintiffs patent claims relate to the Agreements. On this point, the case law provides an answer. The term “related to” is “not necessarily tied to the concept of a causal connection.” Coregis Ins. Co. v. Am. Health Found., Inc.,
Given the broad definition of the phrase “relating to,” the Court concludes that Plaintiffs patent claims relate to the License and Consultancy Agreements. While it may be that Plaintiff does not base its patent claims on the Agreements, that is, they do not arise from the Agreements, there is little doubt that the patent claims relate to the very agreements that governed Defendants’ use of Plaintiffs patents. See Gen. Protecht Grp., Inc. v. Leviton Mfg. Co.,
L Whether Plaintiff Has Rebutted The Presumptive Reasonability Of the Forum Selection Clause
The fourth and final inquiry in the Phillips analysis is whether the party resisting enforcement of the forum selection clause (here, Plaintiff) has rebutted the presumption of enforceability. To meet this burden, Plaintiff must “clearly show that ‘enforcement would be unreasonable or unjust, or that the clause was invalid for such reasons as fraud or overreaching.’” Phillips,
Not surprisingly, foreign businessmen prefer, as do we, to have disputes resolved in their own courts, but if that choice is not available, then in a neutral forum with expertise in the subject matter. Plainly, the courts of England meet the standards of neutrality and long experience in admiralty litigation. The choice of that forum was made in an arm’s-length negotiation by experienced and sophisticated businessmen, and absent some compelling and countervailing reason it should be honored by the parties and enforced by the courts.
Bremen,
Therefore, the Court concludes that Plaintiff has not established that enforcement of the forum selection provision in each Agreement would be unreasonable.
C. Whether this Opinion Should be Sealed
Pursuant to their Joint Protective Order, the Parties have fried their memoranda under seal. However, “[i]n addition to [a] common law right of access, it is well established that the public and the press have a ‘qualified First Amendment right to attend judicial proceedings and to access certain judicial documents.’ ” Lugosch v. Pyramid Co. of Onondaga,
III. Conclusion
For the reasons stated herein, Defendants’ Motion to Dismiss is granted. The Clerk of the Court is respectfully requested to close this case.
SO ORDERED.
Notes
. The Consultancy Agreement provided for a monthly fee payable to Plaintiff by Martin for two years from the effective start date of the Agreements. (Consultancy Agreement § 5.)
. The License Agreement provided for a “Royalty-Free Period” that terminated if Martin ceased paying the monthly fee established by "section 5 of the Consultancy Agreement,” and for the payment of royalties, under certain circumstances, at the conclusion of the Royalty-Free Period. (License Agreement ¶ 3(b)(i)-(ii).)
. In fact, the Court notes that the Parties attempted mediation without success, through the Court’s mediation program. (Pl.’s Mem. 5 n. 1.) Plaintiff admitted at oral argument that Defendant had a right to mediation of this dispute pursuant to section 13.9 of the Consultancy Agreement (and paragraph 25 of the License Agreement). (Oral Arg. Tr. 27: 5-23, Mar. 26, 2012.)
. Plaintiff does not seek breach of contract damages. For example, Plaintiff is not seeking royalty payments under the License Agreement.
. The existence of a license to use the patents is an affirmative defense to patent infringement. See Boehringer Ingelheim Vetmedica, Inc. v. Merial, Ltd., No. 09-CV-212,
. The Court recognizes that the License Agreement provides that the scope of a patent claim would be determined “under the laws of the competent jurisdiction that issued the” patent. (License Agreement ¶ 1(1).) At most, this provision represents an agreed-to exception to the choice of law provision of the Agreement, but does nothing to change the fact that the Agreement requires that any dispute "arising out of” or “relating to” the Agreement that is unresolved via mediation is to be resolved "in accordance with” the forum selection clause.
. Plaintiff makes no claim that there was fraud by Martin in negotiating the forum selection provisions in the Agreements, or that Martin otherwise overreached in the formation of the Agreements. Nor can Plaintiff make a claim of inconvenience to itself, having freely participated in the negotiations leading to the Agreements. See Bremen,
. There also is ample authority that American courts consider infringement claims involving foreign patents when the parties have adopted a forum selection clause. See, e.g., Fairchild Semiconductor Corp. v. Third Dimension (3D) Semiconductor, Inc.,
. At oral argument, Plaintiff's counsel suggested, without citing any authority, that there might be a statute of limitations issue with prosecuting this action in England and
