Searching over 5,500,000 cases.


searching
Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.

ZTE (USA) Inc. v. AGIS Software Development LLC

United States District Court, N.D. California

September 12, 2019

ZTE (USA) INC., Plaintiff,
v.
AGIS SOFTWARE DEVELOPMENT LLC, Defendant.

          ORDER DENYING MOTION TO SUPPLEMENT RECORD; DENYING MOTION TO DISMISS; AND DENYING MOTION FOR SANCTIONS RE: DKT. NOS. 41, 48, 107

          HAYWOOD S. GILLIAM, JR. UNITED STATES DISTRICT JUDGE

         Pending before the Court is Defendant AGIS Software Development LLC's (“AGIS Software”) motion to dismiss the Second Amended Complaint (“SAC”) for lack of personal jurisdiction and Defendant's motion for sanctions. See Dkt. Nos. 41, 48. The Court held a hearing on the motions and took them under submission on June 14, 2019. See Dkt. No. 85. Plaintiff subsequently filed a motion to supplement the record. See Dkt. No. 107. The Court finds this motion appropriate for disposition without oral argument and the matter is deemed submitted. See Civil L.R. 7-1(b).

         Having carefully considered the parties' arguments, the Court DENIES Plaintiff's motion to supplement the record, DENIES WITHOUT PREJUDICE Defendant's motion to dismiss, and DENIES Defendant's motion for sanctions.

         I. BACKGROUND

         A. Procedural History

         On June 21, 2017, AGIS Software filed a patent infringement action in the Eastern District of Texas against ZTE (USA) Inc., as well as ZTE Corporation and ZTE (TX) Inc. See AGIS Software Dev. LLC v. ZTE Corp., No. 2:17-cv-517 (E.D. Tex. June 21, 2017) (“AGIS I”), ECF No. 1. Over AGIS Software's objections, the Texas court granted the ZTE entities' motion to dismiss for improper venue and transferred the action to the Northern District of California. See AGIS I, ECF No. 85. In doing so, the district court reasoned that ZTE (USA) did not have a regular and established place of business in the Eastern District of Texas. Id. at 3-7. ZTE (USA) requested that the case be transferred to the Northern District of California, and the district court noted that AGIS Software did not proffer an alternative. Id. at 7. AGIS Software subsequently filed a voluntary dismissal, and the district court dismissed the patent infringement action without prejudice. See id., ECF Nos. 86, 87.

         On the day of the dismissal, October 9, 2018, Plaintiff filed this declaratory judgment action in the Northern District of California, initially naming three defendants: (1) AGIS Software; (2) AGIS Holdings, Inc. (“AGIS Holdings”); and (3) Advanced Ground Information Systems, Inc. (“AGIS Inc.”). See Dkt. No. 1. Plaintiff later amended the complaint, removing AGIS Holdings and AGIS Inc. as defendants. See Dkt. No. 18. In the operative Second Amended Complaint (“SAC”), Plaintiff seeks a declaratory judgment of non-infringement or unenforceability against Defendant AGIS Software as to five patents.[1] See Dkt. No. 39.

         B. Factual Allegations

         Plaintiff alleges that Defendant AGIS Software is a wholly-owned subsidiary of AGIS Holdings. See SAC ¶ 3. AGIS Software, for its part, is a Texas limited liability company with its principal place of business in Texas. See Id. ¶ 7. Plaintiff alleges that Defendant asserted the same patents-in-suit in other patent infringement actions[2]; some of these actions were against California-based companies; and as part of these cases, Defendant “conducted meaningful enforcement activities in California, ” including traveling to and deposing witnesses there. Id. ¶¶ 8-10.

         Defendant now moves to dismiss the complaint, contending that notwithstanding Plaintiff's allegations, the Court lacks personal jurisdiction over AGIS Software. See Dkt. No. 41; see also SAC ¶ 3. Defendant also seeks monetary sanctions against Plaintiff for filing this action in the Northern District of California without a proper basis for exercising personal jurisdiction. See Dkt. No. 48. In support of its motion to dismiss, Defendant has filed a declaration from Malcolm K. Beyer, Jr., Defendant's Chief Executive Officer, stating that Mr. Beyer resides in Florida and that AGIS Software:

• is the “sole and exclusive owner” of the patents-in-suit;
• is not registered to do business in California;
• does not have a registered agent for service of process in California;
• does not have “offices, employees, equipment, bank accounts or other assets in California”;
• does not pay taxes in California;
• does not manufacture or sell products in California;
• does not solicit or engage in business in California;
• does not recruit employees in California;
• does not own, rent, or lease any property in California;
• has not filed a lawsuit in California; and
• has not retained counsel in California related to enforcing the ...

Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.