Plaintiff Waived Any Objection To The Order Transferring Venue And Consented To Litigation In California
Plaintiff’s objection to the transfer of this action from Illinois to California was waived. Well-settled law establishes that “[o]bjections to venue are waivable.” Transcapital Leasing Assocs., 1990-II, L.P. v. United States, 398 F.3d 1317, 1322 (Fed. Cir. 2005); see also Fed. R. Civ. P. 12(h)(1). Moreover, the law of the regional circuit controls as “to the procedural question of waiver.” Riverwood Int’l Corp. v. R. A. Jones & Co., 324 F.3d 1346, 1352 (Fed. Cir. 2003). Under either Ninth Circuit or Seventh Circuit law, once a motion to transfer has been granted, the losing party must make a motion to retransfer the case in the transferee district court to preserve the issue for appeal. See Posnanski, 421 F.3d at 980-81; Illinois Tool Works, Inc. v. Sweetheart Plastics, Inc., 436 F.2d 1180, 1187-88 (7th Cir. 1971); accord 17 James Wm. Moore et al., Moore’s Federal Practice § 1164[2][b] (3d ed. 1999).21
Here, Plaintiff waived any objection to California as the venue for this action by litigating in California for more than three years without moving to retransfer to Illinois or to some other forum. After this action was transferred at the outset of the litigation, the first and only time that Plaintiff renewed his request that California was an inappropriate forum arose in its present appeal well after the California District Court ruled against him on summary judgment. Indeed, Plaintiff expressly consented to litigating in California by filing multiple amended complaints there, which acknowledge that “[v]enue properly lies in [the Central District of California]” (A1624-1 to 1624-17 at ¶ 40; A2823-2838 at ¶ 40), and by not objecting to the setting of dates for trial in California.
The Illinois District Court Did Not Abuse Its Discretion In Transferring The Case To California
Even if Plaintiff could challenge the transfer order at this point, the Illinois District Court did not abuse its discretion in transferring this case to California at the time the motion was decided. Storage Tech., 329 F.3d at 836. For example, the record demonstrates that when the transfer motion was decided every fact witness identified by Plaintiff (other than himself) resided in Los Angeles. A692, 904.
On appeal, Plaintiff speciously claims the only “principal witnesses” are himself and Mr. Bloom, “the inventor of the ‘ReVoice Studio’ feature, who resides in the United Kingdom. Pl. Br. pp. 73-74. Plaintiff mischaracterizes the record when he suggests that other witnesses identified by Defendants “have had precious little to do with this lawsuit” and that after the transfer “no one heard anything further about most of those critical witnesses.” Id. at pp. 1, 73-74.
First, any reliance on those portions of the lower court record, established years after the case was transferred, is misplaced; especially when Plaintiff materially changed his claims after the transfer occurred. For example, at the time of the transfer, Plaintiff’s allegations included claims of infringement relating to the Make-A-Movie DVD add-on feature. A900. Make-A-Movie was designed and developed entirely in California by a third-party vendor, Media Revolution. A904. Plaintiff’s decision to abandon his claim against Make-A-Movie, in the face of a complete failure of proof of infringement, years after the motion to transfer was granted, however, does not retroactively render the Illinois Court’s decision an abuse of discretion when it considered the location of these witnesses.
Second, because this action was decided on summary judgment, the full list of material (e.g., trial) witnesses from Los Angeles, especially those employed by the Defendants and third parties supportive of the Defendants or within the subpoena power of the California District Court, was never a matter of record. While Defendants had identified numerous knowledgeable individuals and entities in compliance with Fed. R. Civ. P. 26(a)(1), most of whom resided outside of Illinois (A706-718, 760-780), Plaintiff chose for strategic reasons to depose only a few of these individuals. Plaintiff’s decision not to depose the numerous other individuals and entities with knowledge about the “selection, design, development, and implementation of the accused features” or the other issues in the litigation (e.g., validity and damages), does not establish any error by the Illinois District Court when it relied on the Defendants’ identification of these individuals in support of its motion to transfer. A904-905.
In addition, Plaintiff faults the Illinois Court for “los[ing] sight of the need for Sitrick to travel to California, his counsel to travel to California, and the need to employ local counsel in California.” Pl.’s Br. p. 75. The Illinois District Court specifically addressed this issue and found based on the undisputed record that the burden of travel for Plaintiff and his counsel was minimal. A905. Furthermore, Plaintiff cannot point to any evidence that he was unable to prosecute his case vigorously because of the transfer.
Finally, Plaintiff accuses the Illinois District Court of “add[ing] an additional requirement” that patentees must make or sell their patented product if they “wish to enforce [their] patents in [their] home jurisdiction.” Pl. Br. pp. 75-76. The Illinois District Court did no such thing. The Court simply analyzed whether Plaintiff had ever reduced his claimed inventions to practice as one factor among many that favored transfer. A906-907.
Conclusion
For the foregoing reasons, Appellees respectfully request that the Court sustain the rulings by the District Court in all respects.
Dated: August 10, 2007 Respectfully submitted,
SIDLEY AUSTIN LLP
Jeffrey M. Olson
Robert A. Holland
Samuel N. Tiu
By:
Jeffrey M. Olson
Counsel for Defendants-Appellees
On August 10, 2007, an original and eleven (11) copies were served pursuant to Rule 25(a)(2)(B) of the Federal Rules of Appellate Procedure by Federal Express on the Clerk for the United States Court of Appeals, Federal Circuit, 717 Madison Place, N.W., Washington, DC 20439 for delivery within three (3) calendar days. I also served counsel for plaintiff each with two (2) bound copies by Federal Express and another copy by electronic mail as follows:
Keith V. Rockey (krockey@rdlklaw.com)
Kathleen A. Lyons
ROCKEY, DEPKE, LYONS & KITZINGER, LLC
Sears Tower, Suite 5450
233 S. Wacker Drive
Chicago, Illinois 60606
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Peter W. James (pjames@bakerlaw.com)
BAKER & HOSTETLER LLP
333 South Grand Ave., Suite 1800
Los Angeles, California 90071-1523
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Executed on August 10, 2007, at Los Angeles, California.
Elizabeth Hernandez
certificate of compliance
I hereby certify that the foregoing brief complies with the type-volume limitation set forth in Rule 32(a)(7)(B) of the Federal Rules of Appellate Procedure. Based on the word-count function in Microsoft Word, the brief contains 13,695 words.
Dated: August 10, 2007 By:
Jeffrey M. Olson
Counsel for Defendants-Appellees
LA1 973294v.1
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