Raytheon Company v. Cray, Inc.

Filing 94

ORDER ADOPTING REPORT AND RECOMMENDATIONS for 21 Motion to Dismiss,, filed by Cray, Inc., 65 Report and Recommendations,. Signed by Judge Rodney Gilstrap on 9/21/2016. (nkl, )

IN THE UNITED STATES DISTRICT COURT
FOR THE EASTERN DISTRICT OF TEXAS
MARSHALL DIVISION
RAYTHEON COMPANY,
Plaintiff,
v.
CRAY, INC.,
Defendant.

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Case No. 2:15-cv-1554-JRG-RSP

ORDER ADOPTING MAGISTRATE JUDGE’S REPORT AND RECOMMENDATION
Before the Court is Defendant Cray Inc.’s Objection (Dkt. No. 69) to the Magistrate
Judge’s Report and Recommendation Denying Cray’s Motion to Dismiss or Transfer for Improper
Venue or, in the Alternative, to Dismiss or Transfer the Action Under the First-to-File Rule (Dkt.
No. 65).
Cray argues that the Magistrate Judge improperly applied a prima facie standard of proof
and erroneously credited Raytheon’s allegations in its pleadings over contrary declarations
adduced by Cray, which allegedly “confirm that Cray does not have customers in this District, nor
has it offered to sell or marketed any accused products to persons here.” (Dkt. No. 69 at 3.)
The Magistrate Judge did not just credit Raytheon’s pleadings over contrary evidence.
Instead, the Magistrate Judge also found that Cray had failed to adduce evidence to controvert
Raytheon’s allegations in its pleadings. (See, e.g., Dkt. No. 65 at 5–6.) It is noteworthy that Cray’s
statements on its public website confirm the correctness of the Magistrate Judge’s conclusion that
Cray purposefully directed allegedly infringing sales at UT system institutions in this district. See
Texas Advanced Computing Center (TACC) Selects Cray XC40 Supercomputer for Next Lonestar
System (July 13, 2015) available at http://investors.cray.com/phoenix.zhtml?c=98390&p=irol-

newsArticle&ID=2067085 (“[T]he new Cray system . . . will serve as the primary high
performance computing resource in the UT Research Cyberinfrastructure (UTRC) initiative . . . the
UTRC provides new capabilities that advance current and future research across all University of
Texas institutions. The UTRC enables researchers in all 15 UT System institutions to collaborate
with each other and compete at the forefront of science and discovery.”) (emphasis added). These
statements may explain why Cray was unable to adduce competent evidence controverting
Raytheon’s allegations.
The Court has reviewed the objected to portions of the Magistrate Judge’s Report and
Recommendation de novo and finds no error. The Court adopts the conclusions of the Report and
Recommendation. 28 U.S.C. § 636(b)(1)(C); Fed. R. Civ. P. 72(b)(3). Accordingly, Defendant’s
Objections are OVERRULED. The Magistrate Judge’s Report and Recommendation (Dkt. No.
65) is ADOPTED and Cray’s Motion to Dismiss or Transfer for Improper Venue or, in the
Alternative, to Dismiss or Transfer the Action Under the First-to-File Rule (Dkt. No. 21) is
DENIED.

So Ordered this
Sep 21, 2016

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