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Tour Tech. Software, Inc. v. RTV, Inc.

Citation: 377 F. Supp. 3d 195Docket: 17-CV-5817 (MKB)

Court: District Court, E.D. New York; March 27, 2019; Federal District Court

Narrative Opinion Summary

In a patent infringement case, Tour Technology Software, Inc. sued RTV, Inc. for allegedly infringing the '400 Patent related to virtual tour technology. The Plaintiff, a New York corporation, filed the lawsuit in the Eastern District of New York, asserting that RTV, based in Michigan, performed infringing activities in New York. RTV moved to dismiss the case for improper venue, arguing it neither resided nor had a regular business presence in the district. The court evaluated the venue under 28 U.S.C. § 1400(b), which requires that a defendant either resides in the district (defined as the state of incorporation) or has a regular and established place of business there. The court found the Plaintiff's evidence insufficient to establish venue, as RTV did not meet these criteria. Consequently, the court opted to transfer the case to the Western District of Michigan, where RTV is based, rather than dismiss it outright. The court also addressed procedural issues, noting that the Doe Defendants, identified as additional parties in the amended complaint, had not been served or established a business presence in Michigan. Hence, the action against them could not be transferred, and the Plaintiff was required to decide how to proceed within thirty days. The court's decision highlights the stringent venue requirements under patent law and the necessity of establishing proper venue for each defendant.

Legal Issues Addressed

Patent Venue under 28 U.S.C. § 1400(b)

Application: The court determined that the Eastern District of New York was not a proper venue for the patent infringement case against RTV because RTV did not reside or have a regular and established place of business there.

Reasoning: The plaintiff failed to demonstrate proper venue for RTV, as RTV does not reside in the Eastern District of New York nor maintain a regular and established business there.

Prima Facie Case for Venue in Patent Cases

Application: The court recognized that a prima facie showing of infringement acts occurring within a district suffices for establishing venue, but found the plaintiff's allegations inadequate in this regard.

Reasoning: The plaintiff has made a prima facie case of infringement in this district.

Regular and Established Place of Business

Application: The court analyzed whether RTV had a regular and established place of business in the district but found RTV's connections insufficient to establish such a presence.

Reasoning: RTV contends that it does not have a regular and established place of business in the district, despite its website indicating a virtual presence as a Glen Cove, New York tour company.

Transfer of Venue

Application: Due to the improper venue, the court exercised its discretion to transfer the case to the Western District of Michigan, where RTV is located.

Reasoning: The court chose to transfer the case against RTV to the Western District of Michigan, where RTV is located.

Venue Requirements for Unidentified Defendants

Application: The court noted that the Doe Defendants had not been served and lacked evidence of a regular business presence in Michigan, thus precluding transfer for them.

Reasoning: The Court notes that the Doe Defendants reside in the Eastern District of New York and lacks evidence of a regular business presence in the Western District of Michigan, thus ruling out the possibility of transferring the action against them.