District Court for Western District of Texas Denies Realtek’s Motion to Dismiss for Lack of Personal Jurisdiction
11/09/2022DiNovo Price is pleased to announce a victory on behalf of our client Bandspeed, LLC (“Bandspeed”). On October 13, 2022, the U.S. District Court for the Western District of Texas, Austin Division, denied the motion to dismiss for lack of personal jurisdiction of defendant Realtek Semiconductor Corporation (“Realtek”), finding that plaintiff Bandspeed had “made a prima facie showing that Realtek is subject to personal jurisdiction by this court under Rule 4(k)(2) of the Federal Rules of Civil Procedure.”
Bandspeed’s amended complaint alleges that Realtek, a Taiwanese corporation, sold products in the Western District of Texas and throughout the United States that infringe Bandspeed’s patents relating to Bluetooth® and other IoT technologies. Realtek argued that jurisdiction is improper because it has no subsidiaries, facilities, or operations in Texas; is not authorized, registered, or licensed to do business in Texas; and does not direct any of its activities toward residents of Texas. In response, Bandspeed argued that Realtek has sufficient contacts with the United States as a whole to confer personal jurisdiction under Rule 4(k)(2) of the Federal Rules of Civil Procedure.
The court agreed, stating that Realtek “targeted the United States market and has purposefully availed itself of doing business in the United States.” In particular, the court found that Realtek conducts business with U.S. companies for the purpose of incorporating its products into products sold in the United States, has sought authorization from the FCC to sell its products in the United States, has presented products for sale and distribution in the United States at the Consumer Electronics Show in Nevada, and sought approval from Bluetooth SIG to ensure its products complied with U.S. standards.
The court also held that Bandspeed’s claims arise under federal law, Realtek had failed to identify an alternative forum in which Bandspeed could have brought suit in order to defeat application of Rule 4(k)(2), and the exercise of jurisdiction comports with federal due process.
The case is Bandspeed, LLC v. Realtek Semiconductor Corporation, Cause No. 1:20-cv-00765-LY, in the United States District Court for the Western District of Texas.
For a copy of the court’s order, click here.
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