Federal Circuit Upholds Venue Transfer in Google and Amazon Cases

In a recent decision, the U.S. Court of Appeals for the Federal Circuit upheld venue transfers from Western Texas to Northern California in cases involving Google and Amazon. The court overwhelmingly rejected VirtaMove's appeal arguments, thereby affirming the transfers.

Venue Transfer Rationale

  1. Initial Orders

    • U.S. District Judges David Counts and Alan Albright transferred venue to Northern California despite objections from VirtaMove.
    • The transfers were based on the Fifth Circuit's 100-mile rule, which allows venue transfer if a majority of potential witnesses face significant travel.

  2. VirtaMove’s Appeal Arguments

    • VirtaMove argued that using the 100-mile rule excluded Eastern U.S. and Canadian witnesses closer to Western Texas.
    • They referenced In re TikTok (2023), where the Fifth Circuit required a showing of inconvenience for most witnesses, though this was upheld despite challenges.

  3. Operational Ties and Court Congestion

    • The court found Google's operations in Northern California justified the transfer, as their product design ties closely to the case.
    • VirtaMove's arguments on local interest were deemed insufficient, and court congestion factors did not impact the decision.

  4. Denial of Mandamus Relief

    • The Federal Circuit denied both Google and Amazon appeals, finding no right to mandamus relief for VirtaMove.

Intellectual Property Protection

The ruling underscores the significance of venue rules based on witness convenience and the weight given to companies' operational ties in determining appropriate venues.

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