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Federal Circuit Decides Three Mandamus Challenges: Sending a Waco Patent Case Filed Against Hulu to California, But Keeping Patent Cases Filed Against Apple and Google in Waco
Blog
August 4, 2021
It’s moving day for Hulu with the Federal Circuit directing Judge Albright (Waco) to transfer a patent case against Hulu to the Central District of California. The In re Hulu, LLC 2021-142 opinion (Fed. Cir. Aug. 2, 2021) is another in a growing list of successful mandamus challenges seeking to stream cases out of Waco. This opinion may be the one to watch though, as it provides some of the broadest rationale. The opinion weighted the convenience of California-based party-related witnesses and prior art witnesses, regardless of whether the witnesses were shown as unwilling to testify in Texas, and noted that there were no potential witnesses in Waco. The opinion also discounted Waco’s ability to set an earlier trial date. A tabular point-counter-point summary of the findings is included below, followed by a list of the notable mandamus challenges seeking transfer out of Waco.
Transfer Analysis
Factor | District Court | Federal Circuit |
The Relative Ease of Access to Sources of Proof |
Factor weighs slightly in favor of transfer because bulk of documents/sources of proof are in California. But there was no showing with specificity of the evidence that could not be obtained in the alternate forum. Also, “the Court believes that the factor itself is at odds with the realities of modern patent litigation . . . relevant documents are typically located on a server” accessible anywhere. | Factor was not specifically addressed by mandamus opinion. |
The Availability of Compulsory Process to Secure the Attendance of Witnesses | Factor weighs against transfer. Minimal weight is given to prior art witnesses in California, because those “witnesses are generally unlikely to testify at trial.” Also, with one exception, Hulu did not show that California-based third party witnesses were unwilling to travel to Waco to testify. | Factor favors transfer. The “vast majority of witnesses to be analyzed under this factor would be subject to the compulsory process of the Central District of California.” District court overlooked multiple third party witnesses located in California. Also, it was improper to discount location of prior art witnesses here, where the identified prior art “was specifically mentioned in the asserted patents themselves, heightening their potential relevance.” Also, it was improper to require a showing that witnesses are unwilling to travel to Texas to testify. |
The Cost of Attendance for Willing Witnesses | This, the most important factor, weighs against transfer. Hulu’s California witnesses are given less weight since they are party witnesses who can be compelled to testify in Waco. Also, Hulu’s failure to identify specific third party witnesses in California weighed against transfer. | Factor favors transfer. The “overwhelming number of potential witnesses” are located in California. No potential witnesses are located within the Waco District. Improper to entirely discount inconvenience to party witnesses. |
Other Factors That Make Trial Easy, Expeditious, and Inexpensive | Factor is neutral. Court generally discounted arguments related to any delay/non-delay stemming from a transfer, California courts’ familiarity with Hulu’s streaming technology, the presence of other related suits in Waco, the likelihood of California granting a stay pending IPR proceedings compared to the argued “0%” chance of a stay in Waco, and the uncertainty of when jury trials are likely to begin again in California following pandemic-closures. | Factor was not specifically addressed by mandamus opinion. |
Administrative Difficulties | Factor weighs against transfer. The “facts indicate a greater efficiency of bringing cases, especially patent cases, to trial in the Western District of Texas than in the Central District of California.” | Factor is neutral. A “court’s general ability to set a fast-paced schedule is not particularly relevant to the court congestion factor.” (citing In re Apple Inc., 979 F.3d 1332 (Fed. Cir. 2020)). |
Local Interests | Factor weighs slightly in favor of transfer. Hulu is a California company and its sale of the accused product does not otherwise create a local interest in Waco. Hulu, however, does have some employees in Waco’s District. | The mandamus opinion noted in a footnote that “local interests are not a fiction” and to “the extent that the district court discounted the local interest factor based on this reasoning, this was also an error.” |
Familiarity of the Forum with the Law That Will Govern the Case and Avoiding Conflict of Laws and the Application of Foreign Laws Factors | Factors are neutral. Parties agreed the factors are neutral. | Factors were not specifically addressed by mandamus opinion. |
Two other transfer hopefuls, Apple and Google, were not so lucky. The In re Apple Inc. 2021-147 opinion (Fed. Cir. Aug. 4, 2021) found that Judge Albright’s decision denying transfer “[t]o be sure . . . was not free of error” and found that the decision improperly diminished the importance of the convenience of witnesses merely because they were employees of the parties.” Similarly, the In re Google LLC, 2021-144 opinion (Fed. Cir. Aug. 4, 2021) stated that “we may have our doubts as to whether Western Texas is just as convenient as Northern California for prospective evidence and witnesses.” Nevertheless, both opinions found that the movants failed to show entitlement to mandamus relief, while observing that potential witnesses resided in the Waco District.
For those of you interested in the timing of these things: the Hulu and Apple mandamus opinions issued eight months after the initial opening briefs were filed in the district court. The Google mandamus opinion took a bit longer, issuing about 14 months after the initial transfer motion was filed. Judge Albright took four to five months to decide Hulu and Apple’s motions, and about 11 months to decide Google’s. Finally, the transfer motions here did not slow down the claim construction process, and a Markman hearing was held in each case either while the transfer motion was pending or right after the transfer motion was decided. For the Hulu case though, the hearing minutes noted that “[a]fter the claims terms were done parties announced that there is a motion to transfer that is pending and ripe for a ruling. The Court told parties that an order on that motion will be done asap. In the future the Court is working on a plan so that those motions will be ruled on before the Markman Hearing occurs.” A couple months later, Judge Albright issued an “Amended Standing Order Regarding Motion For Inter-District Transfer” (June 8, 2021) requiring transfer movants to “provide the Court with a status report with respect to whether the motion(s) has been fully briefed and ready for resolution no later than six weeks prior to the date of the Markman hearing” and stating that “the Court will either promptly enter an order resolving the pending motion(s) prior to the Markman hearing or it will postpone the Markman hearing until it has had the opportunity to do so.”
Notable other mandamus challenges to Waco’s denial of transfer motions in patent cases are listed below:
Granted
Case Name | Docket No. | Order Date | Relief Requested |
IN RE: HULU, LLC | 21-142 | 8/02/2021 | Mandamus for transfer to C.D. Cal. under 28 U.S.C. § 1404(a) |
IN RE: UBER TECHNOLOGIES, INC. | 21-150 | 7/8/2021 | Mandamus for transfer to N.D. Cal. under 28 U.S.C. § 1404(a) |
IN RE: SAMSUNG ELECTRONICS CO., LTD. | 21-139 | 6/30/2021 | Mandamus for transfer to N.D. Cal. under 28 U.S.C. § 1404(a) |
IN RE: TRACFONE WIRELESS, INC. | 21-136 | 4/20/2021 | Mandamus for transfer to S.D. Fla. under 28 U.S.C. § 1404(a) |
IN RE: TRACFONE WIRELESS, INC. | 21-118 | 3/2/2021 | Mandamus to stay proceedings until order issued on pending motion to transfer |
IN RE: SK HYNIX INC. | 21-113 | 1/22/2021 | Mandamus to stay proceedings until order issued on pending motion to transfer |
IN RE: INTEL CORPORATION | 21-105 | 12/23/2020 | Mandamus to vacate order transferring case back to Waco from Austin under Rule 77(b) and inherent authority for docket management |
IN RE: APPLE INC. | 20-135 | 11/9/2020 | Mandamus for transfer to N.D. Cal. under 28 U.S.C. § 1404(a) |
IN RE: NITRO FLUIDS L.L.C. | 20-142 | 10/28/2020 | Mandamus for transfer to S.D. Tex. under 28 U.S.C. § 1404(a) |
IN RE: ADOBE INC. | 20-126 | 4/28/2020 | Mandamus for transfer to N.D. Cal. under 28 U.S.C. § 1404(a) |
Denied
Case Name | Docket No. | Order Date | Relief Requested |
IN RE: GOOGLE | 21-144 | 8/4/2021 | Mandamus for transfer to N.D. Cal. under 28 U.S.C. § 1404(a) |
IN RE: APPLE INC. | 21-147 | 8/4/2021 | Mandamus for transfer to N.D. Cal. under 28 U.S.C. § 1404(a) |
IN RE: TCO AS | 21-158 | 7/13/2021 | Mandamus to transfer to S.D. Tex. under 28 U.S.C. § 1404(a) |
IN RE: BOSE CORPORATION | 21-145 | 5/25/2021 | Mandamus to stay all non-venue-related proceedings until order issued on pending motion to dismiss or transfer |
IN RE: WESTERN DIGITAL TECHS, INC. | 21-137 | 5/10/2021 | Mandamus for transfer to N.D. Cal. under 28 U.S.C. § 1404(a) |
IN RE: APPLE INC. | 21-135 | 4/9/2021 | Mandamus for transfer to N.D. Cal. under 28 U.S.C. § 1404(a) |
IN RE: NITRO FLUIDS L.L.C. | 21-130 | 3/29/2021 | Mandamus for transfer to S.D. Tex. under 28 U.S.C. § 1404(a) |
IN RE: TRUE CHEMICAL SOLUTIONS, LLC | 21-131 | 3/23/2021 | Mandamus to reverse intra-division transfer from Austin to Waco under 28 U.S.C. § 1404(a) |
IN RE: ADTRAN, INC. | 21-115 | 3/19/2021 | Mandamus to stay all deadlines unrelated to venue until order issued on pending motion to transfer |
IN RE: SK HYNIX INC. | 21-114 | 2/25/2021 | Mandamus for transfer to C.D. Cal. under 28 U.S.C. § 1404(a) |
IN RE: INTEL CORPORATION | 21-111 | 1/21/2021 | Mandamus to vacate re-transfer back to Waco from Austin under 28 U.S.C. § 1404(a) |
IN RE: APPLE INC. | 20-127 | 6/16/2020 | Mandamus for transfer to N.D. Cal. under 28 U.S.C. § 1404(a) |
IN RE: DROPBOX, INC. | 20-132 | 6/1/2020 | Mandamus for transfer to N.D. Cal. under 28 U.S.C. § 1404(a) |
IN RE: DROPBOX, INC. | 20-130 | 5/29/2020 | Mandamus for transfer to N.D. Cal. under 28 U.S.C. § 1404(a) |
IN RE: APPLE INC. | 20-104 | 12/20/2019 | Mandamus for transfer to N.D. Cal. under 28 U.S.C. § 1404(a) |
This entry has been created for information and planning purposes. It is not intended to be, nor should it be substituted for, legal advice, which turns on specific facts.