In re: Toyota Motor Corp., No. 14-113 (Fed. Cir. 2014)Annotate this Case
AVS filed a patent infringement suit in the Eastern District of Texas, five months after AVS was incorporated in the Western District of Texas. AVS is a subsidiary of a patent-licensing company Acacia and shares an office in the Eastern District of Texas with other Acacia subsidiaries of Acacia. Some of the patents at issue are in the same family as patents that were the subject of cases previously litigated in the Eastern District of Michigan. A few months later, Toyota and Gulf States moved to sever claims against Gulf States; to transfer the claims against Toyota to the Eastern District of Michigan under 28 U.S.C. 1404(a); and to stay claims against Gulf States s pending resolution of the transferred case. Gulf States is located in Houston, Texas (the Southern District of Texas), and is an independent distributor of Toyota vehicles in five states. The district court denied the motions. The Federal Circuit vacated. Nothing favors the transferor forum, but several factors favor the transferee forum. Toyota has a clear right to transfer.