ORDER
BEFORE THE COURT is the Report and Recommendation (Dkt. 32) submitted by Magistrate Judge Mark A. Pizzo recommending that Defendants’ Motion to Dismiss or, In the Alternative, for Summary Judgment (Dkt. 10) be granted. Plaintiff has filed objections to the Report and Recommendation (Dkt. 34) and Defendants have filed a response (Dkt. 35). 1
The District Court is required to “make a de novo determination of those portions of the magistrate’s report or ... recommendation to which objection is made.” .28 U.S.C. § 636(b)(1). The District Court may reconsider a report and recommendation where it has been shown that the magistrate’s order is clearly erroneous or contrary to law. 28 U.S.C. § 636(b)(1)(A). The court may “accept, reject or modify in whole or in part; the findings or recommendations made by the magistrate.” 28 U.S.C. § 636(b)(1)(C).
Plaintiffs Objections
Plaintiff contends the magistrate judge incorrectly concluded that declaratory judgment jurisdiction is lacking. The Declaratory Judgment Act requires that an “actual controversy” exist before a court considers granting declaratory relief.
MedImmune Inc. v. Genentech, Inc.,
Contrary to Plaintiffs contention, at this juncture, it simply cannot be known whether the FDA will require changes to Defendant’-s device, as it is undisputed that Defendant has not submitted the requisite FDA application and Defendant estimates that it is at least three years away from submitting an application. 2 The magistrate judge correсtly concluded that Class HI medical devices, such as the accused device, cannot be commercialized without proper FDA approval. Regardless of Defendant’s marketing claim that it has a “go-to-market” design, it is cannot be known whether Defendant’s current design will be approved by the FDA or whether Defendant will eventually produce and market the device in its current state. Moreover, because Defendant is several years away from submitting an application for FDA approval, the date on which the potentially infringing activities will begin (if ever) will inevitably be several years from the date on which Plaintiff filed his First Amended Complaint.
Given these circumstances, the magistrate judge correctly concluded that Plaintiff failed to meet the “immediacy” and “reality” criteria necessary to find an “actual controversy” within the meaning of the Declaratory Judgment Act. Essentially, Plaintiff s complaint seeks nothing more than an advisory opinion.
See Sierra Applied Sciences, Inc. v. Advanced Energy Industries, Inc.,
Plaintiff also contends that there is no evidence to support the magistrate
It is undisputed that 35 U.S.C. § 271(e)(1) exempts activities that “would otherwise constitute patent infringement as non-infringing if they are undertaken for the purpose of developing and submitting to the Food and Drug Administration information necessary to obtain marketing approval for a medical device under § 515 of the Federal Food, Drug, and Cosmetic Act, 90 Stat. 552, 21 U.S.C. § 360e (FDCA).”
See Eli Lilly & Co. v. Medtronic, Inc.,
Lastly, Plaintiff reargues his position on personal jurisdiction. In a conclusory fashion, Plaintiff contends that Defendant’s “contacts with Florida were in connection with the making, using, or marketing of the accused [] device” and that “[a]ll of these actions [ ] give rise to specific jurisdiсtion over [Defendant], as well as general jurisdiction .... ” (Dkt. 34, p. 4). 3 Notably, Plaintiff does not contend the magistrate judge overlooked critical facts or misapplied the law. Rather, Plaintiff simply disagrees with the magistrate judge’s conclusion that personal jurisdiction is lacking.
Contrary to Plaintiff s assertion, the magistrate judge correctly concluded that Defendant did not engage in activity that would subject Defendant to the jurisdiction of the Florida courts pursuant to Florida Statute § 48.193. Significantly, Plaintiffs declaratory claim does not revolve аround or involve the existence or content of Defendant’s telephone or email communications. Nor does Plaintiffs claim for declaratory judgment arise from communications between Defendant and its former vendor in Melbourne, Florida, who is not a party to this action. Plaintiff further fails to establish that Defendant’s contacts satisfy the minimum contacts requirement of the due process clause. Defendant’s telephone calls, emails, the purchase of component parts, and former vendor relatiоnship, alone or cumulatively, do not rise to the level required by the due process clause such that Defendant should have anticipated being haled into a Florida court. Because this Court lacks
Accordingly, after careful consideration of the Report and Recommendation, Plaintiffs objections, and Defendants’ response, in conjunction with an independent examination of the file, this Court is of the opinion that the Report and Recommendation should be adopted, confirmed, and approved in all respects. Accordingly, it is
ORDERED AND ADJUDGED that
1) The Report and Recommendation (Dkt. 32) is adopted, confirmed, and approved in all respects and is made a part of this order for all purposes, including appellate review.
2) Defendants’ Motion to Dismiss (Dkt. 10) is GRANTED. Plaintiffs First Amended Complaint is DISMISSED.
3) All pending motions are DENIED as moot.
4) The Clerk is directed to close this case.
REPORT AND RECOMMENDATION
This is a patent infringement action involving a medical device that has not yet been approved by the Federal Drug Administration (“FDA”) nоr subjected to human clinical trials. Despite this, Plaintiff has sued Defendant seeking a declaratory judgment that Defendant’s device infringes or will infringe his patent (the “'941 patent”). Defendant, in response, has moved to dismiss the complaint claiming the Plaintiff has failed to satisfy the Declaratory Judgment Act’s “actual controversy” demands and the Court lacks personal jurisdiction over the Defendant (doc. 10). After consideration, I agree and recommend that Defendant’s motion be granted and Plaintiffs case be dismissed without prejudice. 1
A. Background
Plaintiff is the sole owner and inventor of the '941 patent, which covers an apparatus used to direct the movement of a surgical laser within the brain to kill brain tumors. Defendant is currently performing animal testing of the “AutoL-ITT system” (thé “Device”) which, like the '941 patent, directs a surgical laser within the brain to kill brain tumors.
2
To date, Defendant has not submitted an application to the FDA for approval of the Device. Nonetheless, the Defendant has exhibited the AutoLITT system on at least five separate occasions in California, Massachusetts, Louisiana, and Ohio.
3
B. Discussion
1. case or controversy
The Declaratory Judgment Act (the “Act”), which governs declaratory actions in patent suits, explicitly requires that an “actual controversy” exist before a court may decide whether to grant declaratory relief.
See
28 U.S.C. § 2201. That requirement extends only to cases and controversies justiciable under Article III of the Constitution.
Teva Pharmaceuticals USA Inc. v. Novartis Pharmaceuticals Corp.,
“be definite and concrete, touching the legal relations of parties having adverse legal interests; and that it be real and substantial and admit of specific relief through a decree of a conclusive character, as distinguished from an opinion advising what the law would be upon a hypothetical state of facts. Basically, the question in each case is whether the facts alleged, under all the circumstances, show that there is a substantial controversy, between parties having adverse legal interests, of sufficient immediacy and reality to warrant the issuance of a declaratory judgment.”
Medlmmune,127 S.Ct. at 771 .
Part of the Article III calculus is whether the action is ripe for adjudication.
Teva Pharmaceuticals, 482
F.3d at 1337 (“The doctrine of ripeness focuses on thе conduct of the defendant to determine whether the defendant[’]s actions have harmed, are harming, or are about to harm the plaintiff.”). A controversy is ripe for adjudication if the question presented is “ ‘fit for judicial review,’ ” such that the controversy is entirely or substantially a question of law and the postponement of a
Plaintiff, anticipating the Defendant’s motion to dismiss, confronted these Article III hurdles in his complaint.
6
Thus, he attempts to establish a justiciable controversy by first alleging that Defendant is currently infringing its '941 patent because the Defendant exhibited the allegedly infringing Device at various conferences and trade shows. Further, he concedes that federal law
[see
35 U.S.C. § 271(e)(1)
7
] exempts activities that “would otherwise constitute patent infringement as non-infringing if they are undertaken for the purpose of developing and submitting to the Food and Drug Administration information necessary to obtain marketing approval for a medical device under § 515 of the Federal Food, Drug, and Cosmetic Act, 90 Stat. 552, 21 U.S.C. § 360е (FDCA).”
8
See Eli Lilly & Co. v. Med-tronic, Inc.,
infringement (doc. 9 ¶29). Additionally, the Plaintiff contends that Defendant will inevitably infringe on the '941 patent if it receives regulatory approval to market and sell the allegedly infringing Device (doc. 9 ¶ 24).
These arguments do not shoulder Plaintiffs Article III burden. Most of these exhibitions are better described as “investment shows” because Defendant attended those shows to seek out potential investors. Seeking investment sources is clearly an action in furtherance of Defendant’s development of the Device to submit to the FDA for approval. Nor does Plaintiff dispel the Defendant’s § 271(e)(1) exemption cover. Lastly, Plaintiff fails to meet the “immediacy” and “reality” criteria warranted for the issuance of a declaratory judgment.
Sierra Applied Sciences, Inc. v. Advanced Energy Industries, Inc.,
Irrespective, and assuming that an actual controversy exists, the district court is vested with discretion to decline to hear a declaratory judgment action.
Telectronics,
Here, the district court should decline to hear this declaratory judgment action because a substantial controversy of sufficient immediacy and reality does not warrant the issuance of a declaratory judgment. Defendant has not yet tеsted the Device on humans, the Device is years away from FDA approval, and Defendant is prohibited from distributing or selling the Device in its current state. Further, neither party can opine that the Device approved by the FDA will be the same device, or even substantially the same device, that exists presently. However, even if the district court determines an actual controversy exists, the court should decline to hear this action because the issuance of a declaratory judgment would conflict with the purpose of the 35 U.S.C. § 271(e)(1) exemption and would simply serve as an advisory opinion contravening the objectives for which the Declaratory Judgment Act was created.
2. lack of personal jurisdiction
To properly exercise personal jurisdiction over a non-consenting party outside the forum state, the district court must engage in a two-step inquiry.
Hildebrand v. Steck Mfg. Company, 279
F.3d 1351, 1354 (Fed.Cir.2002). The first step in the inquiry involves a determination whether the defendant is amenable to service of process under the applicable state long-arm statute.
Id.
Accordingly, Plain
Section 48.193(l)(b) provides the only reasonable basis upon which Plaintiff could assert that Defendant’s alleged activities give rise to personal jurisdiction pursuant to the long-arm statute. In Florida, the commission of a tortious act within the state does not require a defendant’s physical presence.
Wendt v. Horowitz,
The second step in the inquiry involves a determination whether the culmination of the defendant’s activities within the forum state satisfies the minimum contacts rеquirement of the due process clause.
Hildebrand,
C. Conclusion
Accordingly, it is
RECOMMENDED:
1. Defendants’ Motion to Dismiss or, In The Alternative, For Summary Judgment (doc. 10) be GRANTED, and the First Amended Complaint be DISMISSED WITHOUT PREJUDICE.
IT IS SO REPORTED at Tampa, Florida, on this 11th day of March, 2008.
Notes
. The Canadian entity Monteris Medical, Inc. and United States entity Monteris Medical, Inc. will collectively be referred to as "Defendant.” (Sée Dkt. 32, p. 2 at n. 2).
. Plaintiff has filed an "Offer of Proof" (Dkt. . 44) which includes an April 2, 2008 article from Mlive.com wherein Duncan allegedly said that Defendant intended to begin testing its technology on humans next month and that "clearance to market the product could be obtained from the [FDA] by the end of this year." (Dkt. 44, Ex. A). Plaintiff's "Offer of Proof” is a transparent attempt to circumvent this Court’s April 24, 2008 order denying Plaintiff's request .to supplement his objections to the Report and Recommendation. (Dkts. 41, 42, 43). That aside, the article is unreliable hearsay and does not alter this Court's dеtermination.
. Based on Duncan's averments, the magistrate judge concluded that "[a]t the time of filing Defendants' motion to dismiss, Monteris Medical, Inc. (US) had not yet undertaken any activities. Rather, Monteris Medical, Inc. (Can) had undertaken all activities in the United States up until that time.” (Dkt. 32, p. 2; Duncan Deck ¶ 2).
. The district judge referred the matter to me for a report and recommendation (doc. 28). See 28 U.S.C. § 636 and Local Rule 6.01(b).
. Monteris Medical, Inc. (US) is a start-up medical device company incorporated under the laws of the state of Delaware. Monteris Medical, Inc. (Can), the Canadian parent corporation, established Monteris Medical, Inc. (US) as a wholly-owned subsidiary in 2006 to address business development, regulatory and clinical activities in the United States. At the time of filing Defendant's Motion to Dismiss, Monteris Medical, Inc. (US) had not yet undertaken any activities. Rather, Monteris Medical, Inc. (Can) had undertaken all activities in the United States up until that time. Plaintiff alleges that Monteris Medical, Inc. (US) is the “alter ego’’ of Monteris Medical, Inc. (Can) (doc. 27). Without making a determination on the divisibility of the two companies and unless otherwise stated, "Defendant” refers collectively to Defendant Monteris Medical, Inc. (Can) and Defendant Monteris Medical, Inc. (US).
.Defendant disputes that the "system” has been exhibited on these occasions contending
. Although the Plaintiff cites Rule 12(b)(6) (the failure of the complaint to state a cause of action) as the operative rule for its jurisdictional challenge, the appropriаte rule for "case or controversy” issues under Article III is Rule 12(b)(1).
See Super Sack Mfg. v. Chase Packaging Corp.,
. Federal Circuit law governs case or controversy issues involving declaratory judgment determinations about patent infringement or validity.
See Adenta GmbH v. OrthoArm, Inc.,
. Oddly, this tactic goes beyond that envisioned by Fed.R.Civ.P. 8(a).
. Section 271(e)(1) states in relevant part:
"It shall not be an act of patent infringement to make, use, offer to sell, or sell within the United States or import into the United States a patented invention ... solely for uses reasonably related to development and submission of infоrmation under a Federal law which regulates the manufacture, use or sale of drugs or veterinary biological products.
.The Federal Food, Drug, and Cosmetic Act is a federal law which regulates the manufacture, use or sale of drugs or veterinary biological products within the meaning of Section 271(e)(1).
See Merck KGaA v. Integra Lifesci-ences I, Ltd., et al.,
. Defendant alleges that the contacts relating to this vendor relationship have transferred to Minnesota and Colorado (doc. 10).
. In Plaintiff's Memorandum in Opposition to Defendant’s Motion to Dismiss, Plaintiff lists the contacts in furtherance of the allegedly infringing activity based on Plaintiff’s First Set of Interrogatories, Response to Interrogatory No. 4 and Exhibit A attached thereto.
.
See Carlyle
v.
Palm Beach Polo Holdings, Inc.,
