Summary: CAFC vacates E.D. Texas’s refusal to sever and stay claims and to transfer the separate action.

Case: In Re Nintendo of Am., Inc., No. 2014-132 (Fed. Cir. June 25, 2014) (precedential). On Petition for Writ of Mandamus to E.D. Tex. Before Newman, Rader, and Hughes.

Procedural Posture: The defendants, Nintendo and eleven retailers (“the Retailers”), brought this petition for a Writ of Mandamus when the district court denied their motion to sever and stay the claims of patent infringement against the Retailers, and to transfer the separated action against Nintendo to the Western District of Washington. CAFC vacated the district’s court order.

  • Transfer: Pursuant to 28 U.S.C. § 1404(a), CAFC found that to facilitate just, convenient, efficient, and less-expensive determination, the district court should have exercised discretion to grant the petition to transfer the action against Nintendo to the Western District of Washington. The disparity of the convenience outweighed the Plaintiff’s right to choose a forum where it could obtain a higher royalty.
  • Severance: Pursuant to Fed. R. Civ. P. 21., CAFC found that the district court should have exercised discretion to sever and stay the claims against the Retailers because the Plaintiff has no claim against Retailers unless it prevails on the infringement claims against Nintendo.

Olena Ierega