Radio Systems v. Accession (CAFC 2010-1390) precedential; Judges Bryson (author), Linn, Dyk

This is another in a series of cases presenting us with the question whether a patentee's activities directed at the forum state were sufficient to give the forum court personal jurisdiction over the patentee in a declaratory judgment action. The district court in this case held that the defendant's activities were not sufficient to give it personal jurisdiction over the defendant, and we agree.

A United States district court may exercise personal jurisdiction over a defendant if the defendant "is subject to the jurisdiction of a court of general jurisdiction in the state where the district court is located." Fed. R. Civ. P. 4(k)(1)(A). The district court's exercise of jurisdiction over an out-of-state defendant must be consistent with both the forum state's long-arm statute and the requirements of due process. See Avocent Huntsville Corp. v. Aten Int'l Co., 552 F.3d 1324, 1329 (Fed. Cir. 2008). Because Tennessee's long-arm statute is coterminous with due process limitations, Masada Inv. Corp. v. Allen, 697 S.W.2d 332, 334 (Tenn. 1985); see Tenn. Code Ann. § 20-2-214, the jurisdictional issue in this case turns on whether the court's exercise of jurisdiction would be consistent with the requirements of due process.

Radio Systems does not allege that the district court has general jurisdiction over Accession, which has no "continuous and systematic general business contacts" with Tennessee, Helicopteros Nacionales de Colombia, S.A. v. Hall, 466 U.S. 408, 416 (1984). Instead, Radio Systems alleges that the district court has specific jurisdiction over Accession based on events related to the instant dispute.

In order to satisfy due process requirements for establishing specific jurisdiction over a defendant, the plaintiff must show that the defendant purposely directed its activities at residents of the forum and that the plaintiff's claim arises from or relates to those activities. In addition, the plaintiff must satisfy the court that the assertion of personal jurisdiction under the circumstances is reasonable and fair. Breckenridge Pharm., Inc. v. Metabolite Labs., Inc., 444 F.3d 1356, 1363 (Fed. Cir. 2006).

The principles of Avocent govern this case. We have characterized the rule in Avocent as follows: that "only enforcement or defense efforts related to the patent rather than the patentee's own commercialization efforts are to be considered for establishing specific personal jurisdiction in a declaratory judgment action against the patentee." Autogenomics, 566 F.3d at 1020, citing Avocent, 552 F.3d at 1336. Mr. Sullivan's attempts to interest Radio Systems in a business transaction relating to his product were not "enforcement or defense efforts." Instead, Mr. Sullivan's correspondence with Radio Systems was focused on generating a market for the Wedgit, not on enforcing or defending the '141 patent. Moreover, Avocent did not distinguish between commercialization efforts directed generally at residents of the forum state and efforts directed specifically at the plaintiff. See also Hildebrand v. Steck Mfg. Co., 279 F.3d 1351, 1356 (Fed. Cir. 2006) (dismissing declaratory judgment action for lack of personal jurisdiction despite patentee's efforts to license products to plaintiffs). The fact that Mr. Sullivan focused on Radio Systems in his effort to commercialize his invention therefore does not render his activities in Tennessee sufficient for the exercise of specific personal jurisdiction.

The ruling continues with minute details, sufficient to cure insomnia by their "what about this tiff" quality, which should inspire every personal jurisdiction maven to lavish untold attention on those fine details, while the rest of us leave the doggy door behind.

Affirmed.