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Federal Circuit, Citing Forum-Shopping, Transfers Patent Cases to California
In re: Samsung Electronics Co., Ltd., et al.
The Federal Circuit granted mandamus petitions filed by Samsung Electronics and LG Electronics, ordering patent cases pending against them in the Western District of Texas be transferred to the Northern District of California. The court relied on precedent discounting pre-litigation attempts by plaintiffs to forum shop by manipulating jurisdiction or venue. The court held that such attempts should also be disregarded in determining the most appropriate venue.
Ikorongo Technology LLC (Ikorongo Tech) owned the asserted patents. A month before filing the complaint against Samsung and LG in the Western District of Texas, Ikorongo Tech created Ikorongo Texas LLC (collectively, Ikorongo), a formally unrelated company owned by the same five directors. Both Ikorongo companies also operated out of the same North Carolina office. Ikorongo Tech assigned to Ikorongo Texas the exclusive right to sue and collect damages on the patents within specified parts of the Western District of Texas, while retaining the rights to the patents in the rest of the country. Ikorongo Texas then sued Samsung and LG in the Western District of Texas; Ikorongo Tech joined the suits one day after the initial complaints were filed. The complaints generally accused patent infringement stemming from the functionality of certain third-party apps on mobile devices made by Samsung and LG.
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