Nuvotronics, LLC v. Luxtera, Inc. et al

Filing 43

MEMORANDUM OPINION. Signed by District Judge Glen E. Conrad on 4/1/2014. (lab)

I THE UNI
N
TED STATES DI
STRI COURT
CT

CLERK' OFFI U, Dk T COURT
S
CE S. S .
AT ROANOKE,
- VA
FI ED
L

FOR THE WES
TERN DI TRI OF VI NI
S CT
RGI A

AF 22 2 1
29

ROAN O KE DI I
V SION

UL
l

B.
t

.
.

(YC K
L,
E
v

N U V OTR ON I LLC ,
CS,
Ci lA c i N O.7: 3CV 00
vi ton
1
478
Pl i if
a ntf ,
M EM O R A ND UM O PI I N
N O

LU XTERA ,I C . e a .
N , t l,

By:Ho Gl n E.
n. e Conr d
a
Chi fUnied St t D i ti tJ
e
t
a es s r c udge

Def nt .
enda s

Nuvor cs LLC (l uvor c ' fldt sdi riya tonf bra h ofe r tand
toni ,
d
N tonis' ie hi ve st ci or e c
)
ontac

mia oprai ofta s rt a ns Luxtr ,I .(kv ea'a MolxI or ae
sppr iton rde eces gai t e a nc t uxtr' nd e nc portd
l
)

(Mo1x'. Th d fn a t h v mo e t ta se tea to t teS uhenDitit f
k e'
$
) e ee d ns a e v d o rn fr h cin o h o t r src o
Caio ni frtec n e e c o tepate a dwin se a di teitr s o j sie p ru n t
lfr a o h o v nin e f h ris n te s s n n h n ee t f u tc , u s a to

2 U. C. 1 4 a. Fo t er a o st o t b lw,h moinwil ed nidwih u p eu ie
8 S. j 40 () r h e s ns e f rh eo t e to l b e e t o t rj d c .
Backzround

The f l ng f t a epr e e i t lghtm os f vor bl t Nuvotoni s t
olowi acs z es nt d n he i
ta a eo
r c ,he
nonm o ngpa t .1 Nuvotoni i aVigi alm iedla lt c
vi
ry
r cs s r ni i t ibiiy ompa wih isprnci plc of
ny t t i pal a e
bus nes i Ra or V igi a. The c pa m a a t e m i r s l c m u c tons
i s n df d, r ni
om ny nuf c ur s c o- ca e om ni a i
ha dw a e a de e e t c
r r nd f ns e hnol y. N uvot oni s w a c ea ed i 2008 t ough a m a ge e
og
r c
sr t n
hr
na m nt

bu u o c rana st o Ro m a dHa sElcr n cM aeil, (RHEM' b Nuv to is
yo t f e ti ses f h n a e to i tras LLC C
I
' y or nc '
)
lW he rviwigamotont ta se un rj 1 4() t c r ma c nsd re d nc ousde
ne e n
i o r n f r de 40 a ,he ou t y o ie vie e ti
t pl ngs d m us vi a1 f ct i t lghtm os f abl t t pary opposngt a f .'
he eadi , ç
but t ew 1 a s n he i
t avor e o he t
i r ns er'
Pitbur LogitcsSvs. l v.C. Engl I ,No.09ts gh
si
. nc.
R.
and. nc.
1036,2010 U . D it LEX I 2941 at*6
S. s.
S
,
-

( . Pa J n.l 2 0 . e as Thap v. dii, 6:2- 0 39, 01 U. Dit LEXI
W D. . a 4, 01 ) s e lo r e Lawi aa No. 1 CV- 00 2 2 S. s.
,
S
l 446 a * ( . Va Oc. , 2)(tGqve t tDe e a tbe r ah a y b d ni o po i t
5 4, t 3 W D. . t 26 201 t i n ha fnd n as e v ur e n p sng he
g
pl ntf sc en f um ,and t sr pr um pton i f
ai if' hos or
he tong es
i n avoroft pl ntf schoi off um,lwil
he ai if
ce or
l

r viw t f csi t Ig tmos fvo a et t plitf,)(n ena cttonsa q ttonmaks
e e he a t n he ih
t a r bl o he an if' itr l iai nd uoa i
'
r
omit )
ted .

f unde sa f me RHEM e oye ,Da d She e a Noe He ks aong wih a s alg o
o
r nd or r
mpl es vi
n'r nd
l i ,l
t m l r up
ofV i g ni i s or . She r r i t Pr s de ofN u t oni .
r i a nve t s
r e s he e i nt
vo r cs
D e e ntLuxt r i a D e a a e c por to bas d i Ca l ba Ca ior a whi h
f nda
ea s
l w r or a i n, e n rs d, lf ni , c

m a a tzese e to- ptca s t m s Def n M olx i a Delwa eco por ton, s i
nuf c tr l c r o i l yse .
enda t e s
a z r ai ba ed n
Li l llnoi , hi h m a ac ur e e toni i e c m e t r a o he el c rc co po nt .
s e, li s w c
nuf t es l c r c nt r ol c o s nd t r e t i al m ne s
l Fe u r of2007, e e e a i ofRHEM a Lu e a m e a a t a s
n br a y
r pr s nt tves
nd xt r
t t r de how i
n
A na i ,Calf ni Luxt r w asi ne ofa lg s ce f o ofispr
he m
ior a.
ea
n ed
i ht our or ne t oduc s The
t.

r pr e a i dic s d RHEM ' Sipa optc lpa ka ng t hnol y,a whe he i mi htbe
e es nttves s us e
S - k i a c gi ec og nd
t rt g
m odii d t s tLuxt r sne .
fe o ui
e a' eds
I A prlof2007, EM a Luxt r e e e i o a wrte no s l ur ag e m ent
n
i
RH
nd
e a nt r d nt
it n ndi c os e r e

(1 ' frt pur eofe orngas ple r ai hi Purua t t NDA,RHEM a
'
NDA' o he pos xpl i up ir eltons p. s nto he
)
nd
Luxt r agr d t e ha e c i nta i or a i r l t d t RH EM ' Si pa o i lpac ge
e a ee o xc ng onfde i l nf m ton e a e o
S - k ptca
ka
t hnol y, nc udi s ii tons des g ,dr w i , e tng and m a a urng m e hods a
ec og i l ng pec fca i , i ns a ngs t s i
nuf ct i
t , nd
s m pl s The ND A pr bist r ci e ofc i nta i o m a i f om di cl i s h
a e.
ohi t he e pi nt onfde i l nf r ton r
s os ng uc
i or a i n t a t r pa t a f om us ng s h i or a i f ra pur e e e t es tf t
nf m to o hid ry nd r
i uc nf m ton o ny pos xc pt hos e orh
i t N D A . I st r s e r on Apr l8,201
n he
t e m xpie
i
4.
On J 27,2007, e r s nt tve ofRHEM a Luxt r had a i talc e e e c l,
une
r p e e ai s
nd
ea
n nii onf r nc a l

d i whih RHEM pr de a dea ld des rpton ofisSipa t c ogy. Thepr s n a i
urng c
ovi d
tie
ci i
t - k e hnol
e e t ton
wasl d by She r rfom RHEM ' f clt i Bl c bur Vig ni
e
re r
S a iiy n a ks g, r i a.
On ora
boutAugus 1 2007,r pr s nt tve o RH EM a Luxt r ha a he
t 0,
e e e ai s f
nd
e a d not r
conf
erence cal,durng w hi Sher erpres ed an engi i and optcaldes gn anal i f om
l i
ch
r
ent
neerng
i
i
ys s r
RH EM ' Bl
S acksbur f lt Ther er,r es atvesofLuxt a vi t RH EM ' Bl
g aciiy.
eaft epr ent i
er sied
S acksbur
g

f c lt w he e t y di c s de i c e s a a pl n f m odiyi t Si pa t c
a iiy, r he s us ed s gn onc pt nd a or
f ng he - k e hnol t
ogy o

m ee Lu e a' r r m e s The r pr e a i s a s di c s pr
t xt r s equie nt .
e es nt tve l o s us ed opos d t r sofa s r c
e em
e vi e
ag e m e pur ua t w hi h RH EM w oul m a t ne es a y m odi i a i . D urng t
r e nt s nt o
c
d ke he c s r
fc tons
i he

mee i RHEM dicl ed a tonali or ton r lt d t t Sipa t hnol
tng,
s os ddii
nf ma i ea e o he - k ec ogy.

OnOcobe 22,200 RHEM a Luxt ae e e i oa i talsr c a e me (he
t r
7,
nd er ntr d nt n nii e vie gre nt t
C e1NRE') Purua t t Pha e1NRE,
k
phas
'. s nt o he s
RHEM a e t ma acur a dei r200
gred o nuf t e nd lve
e r m e a opt l toni pod s m pl s f Luxt r t t s a i or a e i o ispr
xpe i nt l oe ec r c
n e or
e a o e t nd nc por t nt t oduc . The
t
s m pl s we et be m a a tze a RHEM ' Bl c bur f c lt
a e r o
nuf c tr d t
S a ks g a iiy.

l t s i of2008,Sherrla ne t tRo a Haa ($t 'wa l ngt di s
n he prng
re e r d ha hm nd s i1AH' s ooki o ve t
)
isas e sa s i t d w ih RH EM . She r rdi c s d a m a
t s t s oc a e t
r e s us e
nage e buyou opton wih RA H a
m nt
t i
t
nd
RHEM exe utves pur ua t whi h R HEM w o d s lis a s t , el va i e l c ua pr r y,
c i , s nt o
c
ul el t s e s r e nt nt le t l ope t
a ongoi bus nes . The pr
nd
ng i s
opos d buyou i ude t t a f ra as i e oft N D A
e
t ncl d he r ns e nd s gnm nt he

a t Pha eINRE. l J y2008,She r r Heks a as l gr p ofVigi a ba e i t s
nd he s
n ul
re , i , nd ma l ou
r ni - s d nvesor
a co pls dt m ml ge ntbuyouta f m e Nuvo r cs
c m ihe he
a me
nd or d
toni .
On A ugus 7,2008,Luxt r r pr e a i svi ie N uvotoni 'hea
t
e a e es nt tve st d
r cs
dqua t r , hi a
r e s w ch, t

t tm e we el a e i Blc bur Thepur eoft me i wast dee m i s c fc tons
he i , r oc t d n a ks g.
pos
he etng
o tr ne pe iia i
f a l r ero de t tw e e s ts a t y t bo h pa i s
or a g r r ha r a i f c or o t rte .

OnAugus 22,2008, eais apurhas or rf 2, pa t (heS e1 NRE'.
t
Luxtr sued
c e de or 000 rs t c
phas 1
'
)
The pa t w e e m a ac ur d a t Bl c bur f c lt a t fna s pm e w a m a i
rs r
nuf t e t he a ks g a iiy, nd he i l hi nt s de n
D ecem ber2008.

l t m e ntm e Luxt r r pr e a i st a e t Bl c bur o a l a tt occ s ons
n he a i ,
e a e es nt tve r vel d o a ks g n t e s wo a i
t di cus prci and pr
o s s i ng
ocedur f ivol e pr
es or d um
oducton,'whi w as expect t occuraft t
i ' ch
ed o
er he

NRE o deswe ee ee. ( vi Sher rDec. t!40. l Ocobe of2008,
r r r omplt Da d re
la
) n t r
Nuvor cs
toni
pr vi d a q t f a sx- ont pe i ofi r as d pr
o de
uo e or i m h r od nc e e oduc i l ve s. Ba e on a s a e
ton e l
sd
s ur nc s
3

fom Luxt r t tapur ha eor rwa f t om i Nuvotoni sbo htt i nt r a hied
r
e a ha
c s de s orhc ng,
r c ug he nve o y nd r
e pl ye s ne s a y t m ee t pr uc i de a s tf r h i t quot H oweve ,t
m o e ce s r o
t he od ton m nds e o t n he
e.
r he
com pa e r l i hi uli a el s ed,a a a e u n pu cha e or rw asne r i s d.
ni s' e atons p tm t y our
nd n gr ed- po r s de
ve s ue

On De embe 22, 08,She r rfe t Caiom i t m e twih Luxtr r pr e a i s
c
r 20
re lw o lf a o e t
e a e es nt tve .
D urng t m e tng,Sher e l r d t tLuxt r wasc i r ng pur ui a ale na i op i
i he e i
r r ea ne ha
ea
onsde i
s ng n t r tve ton
f ris lg s ce.
o t i ht our

On J nua y 2,
a r 2009,She r rwr e Gr g Yo
re ot e
ung,
Luxtr ' Pr i nta Chi fExe tve
e a s esde nd e
cu i
O f i r a ad s d hi t tN uvotoni sw oul ha t s down is Sipa lne a l y of is
fce , nd vi e m ha
r c
d ve o hut
t - k i nd a f t
em pl
oyees i t com pani w er unabl t r
f he
es e
e o each a m ut l agr
ualy eeabl r ol i by Januar 8,
e es uton
y

2009. She r ra s e phasze i hatt Si pak Pod i a uni and pr pr e a y t l ol of
re lo m
i d t he t
s
que
o i t r ec m ogy

Nuvotoni covee byt NDA.' (
r cs rd he
' Compla 22. l ar pons lte daedJ nuay7,2009,
. t ) n es e etr t a r
Y oung ad s d She r rt tLuxt r wi hed t t r i t isr l tons p w ih N uvot oni s b t t
vi e
r e ha
ea s
o e m na e t e a i hi t
r c , ut ha
i w o d c i t s t s y isoblga i nsunde t N D A .
t ul ontnue o a i f t i to
r he
N uvotoni and Luxt r s e nty ag ee u n a a ountt r ol t i e s i
r cs
e a ubs que l r d po n m
o es ve he r xi tng
pr
oduc i di pu e. l J
ton s t n anua y 200 t y s gne a ge r r e e ofa 1cl i sw ih exc pton of
r
9, he i d
ne al el as
l am
t
e i

t er a e t t pa tes oblga i unde t NDA a t i r peci i el cua pr ry
hos elt d o he ri ' i tons
r he
nd her es tve nt le t l ope t
rght . The ea t r N uvot oni s r l ca e t a s ale f ciiy i Ra or V igi a.
i s
r fe ,
r c e o t d o m l r a lt n df d, r ni
l t i t ntac i n, uvotoni sale t t ats e poi a t J
n he ns a
to N
r c l ges ha , om
nt fer anua y 7,
r 2009,
Luxt r
ea
r r e e ne r d N uvotoni s'Si pa t c og i vi a i oft N D A a t V igi a
eve s - ngi e e
r c
- k e hnol y n ol ton he
nd he r ni

Unior TrdeSe r t Ac ($ t'. SeeVa Codejj59.- t 59.fm a
c es t ( '
Ac )
.
1336 o 1343. Nuvoto c f t
r nis urher
a l gest tLux e a de l pe p o
le
ha
t r ve o d, r duce a s d pr
d, nd ol oduc s t tutlzeN uvo r cs t hnol
t ha ii
t oni ' ec ogy,
i vi a i oft N D A a t A c .
n ol ton he
nd he t

Onora
boutJ nua y l1 2011 M ol pur has d Luxtr sslc pho ot c - eda tve
a r ,
, ex c e
e a' iion t oni sbas c i
optc ca ebusnes . N uvot oni alege , i or a i a be i , ha M ol x ac r d a 1of
i al bl
i s
r cs l s on nf m ton nd lef t t e quie l
Luxt r s r g s dute ,a i e ess unde t N DA , nd t tM ol x,wih t a s s a e o
e a' i ht , i s nd nt r t
r he
a ha
e
t he s i t nc f

Luxt r con i
e a, tnuedt de l pr e, nd s lpr t t ta ebas dupo i or a e or
o veop, oduc a el oduc s ha r
e
n, nc por t ,
utlz Nuvotoni s Sipa t c og i vi a i oft NDA a t Ac .
ii e
r c ' - k e hnol y,n olton he
nd he t
Nuvotoni fld s ta i tLu e aand M olx o Oc obe 1 201 Thede enda s
r cs ie ui ga ns xtr
e n t r 6, 3.
f nt
ha m ove t t a f rve t t U nie St t s Di ti tCour f rt Sout r D i ti tof
ve
d o r ns e nue o he t d a e sr c
t o he
he n s r c
Ca ior a. The c the d a hea i on t m o i n on Fe a y 3, 1 The m o i n hasbee
lf ni
our l
rng
he t o
bnl r 20 4.
to
n
f l bref and i rpe f revi .
uly i ed
s i or ew
D i si
scus on

Thedee nt'moto t ta frve i br
fnda s in o rnse nue s oughtptrua t 28U. C.j1 a ,
ts nt o
S. 404()

whihp o i e t a dfo t ec n e e c o t ep risa dwi e ssgnd i teitr s o
c r v d s h tt j r h o v nin e f h a t n t se a j n h nee t f
l
e
n
j tc adititc tmayta fra ci la tont a ot rdititordi sonwheeimi
usie, src our
rnse ny vi ci o ny he src
vii
r t ght
ha be nbr ht' 28U. C. 1 a. Thi saut tsi e dt plc dicrtoni t
ve e oug .
'
S. j 404()
s tt e ç ntnde o a e s ei n he
i

d src c u t oa j dc t mo insf rta fra c r igt a idviuaie , a eb -a e
itit o r t du iae to o rnse c o dn o n n i d lz d c s - y c s
c i r i ofconve enc a f r s .' St r Or . nc. Ri oh Cop . 487 U . 22,
ons de aton
ni e nd aine s ' ewa t g. l v. c
,
S. 29

( 988)(nt na ciai a q ttonmakso te . l decdi whehe t e riet s
1
i er l tton nd uoai
r mitd) n i ng t r o xecs hi
dicei c t tpialyco i anumbe off t s i l ng:1 1 pli ifsc ceof
s rton, ours y c l nsder
r acor,ncudi k ) antf hoi
(
f tm,( c ninceoft pa tes ( wines c ninc a a ce s a ( t i ees of
orl 2) onve e
he ri , 3) t s onve e e nd c s, nd 4) he ntr t

j sie' Hen Kete Gmb'& Co. Ra o US LLC, 5 F. u p. d6 0 6 7( D. .
u tc .
' iz tlr
l
l
v. z r A.
7 0 S p 2 6 , 6 E. Va
201 ,s as Roc ngha Prcat l v. rca l r snztm - avlnd,I .No.
0) ee lo ki m e s, nc. Amei n nfaj cu M r a nc,
.

5: 1 v00024,2011U. DitLEXI 1
1c
S. s.
S 30885,a * ( . Va Nov.1 2011 ( tngShieLLC
t 6 W D. .
4, ) cii
r
v. ikl No.7:0c 434, 1U. DitLEXI 1
M c e,
1 v00 201 S. s.
S 3940( . Va.Feb.11 20119. The
W D.
, (

pa te s ki t a f rbea t i a bur n ofs w i t tt ba a e o i t r t w e ghs
r i s ee ng r ns e
r he t vy de
he
ho ng ha he l nc f n e es s i

sr yi gher fvor' Arbinv.Bowe No. - 720,1 U. App.LEXI 1
tongl n t ij a .' a a
n, 91 1
992 S.
S 5624,a *
t3

( hCi.J y7,1 2) Fo t f l ngr s ns t c tc ude t t dee nt have
4t r ul 99 . r he olowi ea o ,he our oncl s hathe fnda s
notm ett s bu den a t s tm e
hi r
t hi i .
1.

Pl ntf s choi ofvenue
ai i f'
ce

The fr tf c ori t t a f ra l i i t pl i if s c ce ofve
is a t n he r ns e na ys s s he a ntf ' hoi
nue. tlha c c i
ç- t hoi e s
t ca l e il d t ç ubs a i lwei , e pe i ly whe et c e f r i t pl i tf sho e
ypi ly ntte o s t nta
ght' s c a l
r he hos n o um s he a n if
m
f r orbe sa s t ntalr l ton t t c us ofa ton, H e nz K e te ,75 F.Supp. a
o um
ar ubsa i e a i o he a e
ci '
' i
tl r 0
2d t

667;s ealoAl r I .v. duePhamaL. ,634F.Su 2d626,633( . Va. 9)
e s phama,nc Pur
r
P.
pp.
W D. 200
(i pli ifsc ceoff nl de eve s tnta weghtexc ptwhe $1 t pli ifc oss
( antf hoi
A
o m s r s ubsa il i , e
n 4 ) he antf ho e
af eg f um,a ( t c e ve ha ltl c ci t t c eofa ton.' ( i
orin or nd 2) he hos n nue s ite onne ton o he aus ci '' quotng
)
Ge Cr ai LLC v.Le pFr Entr .I ,1 F.
n. e ton
a oc e s. nc. 92 Supp. 5 504- ( . Va.
2d 03, 05 W D. 2002).
)
l t sca e, he def nda sdi put w he he t W e t r D it i tofV igi a i
n hi s t
e nt s e
t r he s e n s rc
r ni s
N uvot o cs hom e f m . Alhough N uvotoni s a l s i isc pl i t ti i a V igi a
r ni '
onz
t
r c lege n t om a nt ha t s
r ni
lm ied la lt c pa a t tisprnci ofi e a e l a e i Ra o d, igi a t
i t i biiy om ny nd ha t i pal t c s r oc t d n df r V r ni , he
d e nt a g t tt c pa sope a i ha be n a a e bei r l a e t D ur m ,
ef nda s r ue ha he om ny'
r tons ve e nd r
ng e oc t d o
ha
N orh Ca olna. To s
t r i
uppor t sa gum e , he de e nt diec t cou ts al n i n t a num be
t hi r
nt t
f nda s r t he r ' t e t o o
r
ofm e a publca i nspe t i ng t Nuvot o c ne m anuf c urng f ciiy i D ur m .
di
i to
r a ni o
r ni s' w
a t i a lt n
ha
A c or ng t a a tc e pub i he on Apr l1 201 Noel e kst d t Tr a e Bus ne sJ na
c di o n r i l
ls d
i 6, 3,
H i ol he i nal
i s our l

t ts e ce t ta ii Nuvor cs he dqua tr t Du ha byt e of201 ( B
ha he xpe td o rnston
toni ' a res o r m he nd
3. Ex.
t De l ofJ fe A.W aea 1 ) Si lry,n a i e viw wihW RAL Te hW ie Heks
o e. efr y
r t 0. mial i n ntr e t
c r, i

i c tdt ta 3 peopl woul beû
ndiae ha bout 0
e
d t i fom t Ra or Blc blr s r nijaea
movgngl r he df d- a ks zggVigi a r
t t Tra e, i l ng'l relja Da dSherr' ( A t De .ofJ feyA.W ae.
o he ingl ' ncudi éhe s f nd vi re . Ex. o cl efr
'
'
r)
6

I rs
n e pons ,Nuvot oni hass it d a de a a i f om D a d She r r t c pa s
e
r cs
ubm te
cl r ton r
vi
r e , he om ny'

Prsde . I t de aaton,Sherrsae ,unde pe lyofpej y,asf l :
e i nt n he clr i
re tts
r nat
rur
olows
N uvotoni s hea
r c ' dqua tr i l a e a 7586 O1 Pe r Fe Loop,Ra or
r e s s oc t d t
d ppe s ny
df d,

Vigi a(heC Fa iiy' a ha be nsnc Mac o 2009. W hiewedo
r ni t G
OPF clt ' nd s e i e rh f
)
l
ha s l de i c ntr i t LosAngeesa e ( t t e e oyee)andt
ve mal sgn e es n he
l r a wih hre mpl s
he
Bosona e ( t t e e oye s a adein/ nuacuzngf iiyi Dur m,
t r a wih hre mpl e ) nd sg ma f t i aclt n ha
N orh Ca olna, he OPF Fac lt r m a ns ou c por t hea
t r i t
iiy e i
r or a e dqua t r a i t
r e s nd s he
onl f ciiy whe ewem a a t eourpr ucs
y a lt
r
nuf cur
od t.
Im a nt i a r i nc i bo h Ra or V igi a and Ca y, o t Ca olna. 1
i a n es de e n t df d, r ni
r N rh r i
m ai ai a V igi a d i r slce e a m y c ri r i t r d i t Com m o a1h
nt n
r ni r ve ' i ns nd
a s eg s e e n he
nwe t
ofV igi a.
r ni
N u t oni 'c por t r or ar ke a t OPF Fa iiy. The OPF Fa iiy
vo r cs or a e ec ds e pt t he
c lt
c lt
a es i t c pa sprm a y m aii ad e s 1s DUN S r i t a i CAG E
ddr s s he om ny' i r
lng dr s . t
eg sr ton,

c a t Syse f AwadM a ge tr itaton ( r a1go nme
ode nd he tm or r na men egsr i whee 1 ver nt
c r cor mus r se)aeallnke wiht OPF Faclt add e s
onta t s t egitr r 1 i d t he
iiy r s .

( 1ofDa dSher ra !!3 5. Asumi t t t ofSherrsde aai t c rts
Dec.
vi re t - ) s ng he nzh
re ' clrton,he ou i
c t a ne t c ude,a t s sage oft pr e ngs t tt W es e n D it i tofV igi a
ons r i d o oncl
t hi t
he oce di , ha he
t r s rc
r ni
c i st beN uvotoni s hom e f um a t , ha t c pa sc c ofve i e il d
ontnue o
r c'
or
nd, hus t t he om ny' hoi e
nue s ntte
t (
o i i r bl de e e . See Le p Fr 1 F.Su 2d a 5 .s a s Roc ncha
cons de a e f r nce '
'
a oc, 92
pp. t 05, ee l o
ki m

Prcat l ,2011U. Dit LEXI 1
e s. nc.
S. s.
S 30885, t*9( di t tt pl ntf sdecsont fl s t
a hol ng ha he ai if
ii o ie ui
i t W e t r D i ti tofV igi a w a e tte t t ons de a e de e e e, s nc t di ti tw a
n he s e n sr c
r ni s n il d o t i r bl f r nc ' i e he sr c s
c
'

t pl nifshomef um)
he aitf
or .
I a ton t a gui t tt W ese D it i tofV igi a i no l rN u t oni s hom e
n ddii o r ng ha he
t m s rc
r ni s onge vo r c '
f um , he de e nt a g t tt c pany' c c t ltga e he e i e il d t l s w ei ht
or t
f nda s r ue ha he om
s hoi e o ii t r s ntte o e s g
be aus ç he e i lt l t c
c e s r s ite o onne tt c e f um w ih t c us ofac i ' Gl m or a Coa
t
e he hos n or
t he a e
ton.' a g n
l
C o . Rane sGr PLC, 4 F.
m v. t r p.
85 Supp. 6, ( . Va.1 . Ba e ont c rntr or
43 438 W D. 993) s d he ure ec d,
-

ho
weve,heco ti una et ag e . 'W q l ii c rai ytuet tçthelvelofdeee t
rt ur s bl o r e t hie ts e t nl r ha gq e
g
frnce o
a pl i if sf um c i e va i sw ih t sgnii a e o t co a t be w e n t ve c e by
a ntf or
ho c r e t he i f c nc f he nt c s t e he nue hos n

pli ifa t unde l ng c us ofaci n, s h c ac sa eno lm ie t t eonl ha ng t
antf nd he
ryi a e
to ' uc ont t r t i t d o hos
y vi o
do w ih a de e n ' o n a l ed a t ofi rng e . Com s r sl .v.I ec a A d Sci nce
t
f nda t s w leg c s nf i em nt'
'
co e nc
nt r l
e .

l ,924F.
nc.
Supp.2d676,686( D. 201 ( i Pr mausAV.LLC v.Fa e k,nc.
E. Va. 3) quotng ac t
c boo I ,
769F.Supp.2d991 99 ( D. 2011) Ast dee nsrcog z i t i i ta bre ,
, 4 E. Va. ).
he fnda t e nie n her niil if
s e oft i i s s' ha m us ber ol d i t sc e a e i ha di cl ur sw e e m adedur ng
om
he i s ue 't t t es ve n hi as r ' t s os e r
key
w
i
t r l nttm e pe i 'by N uvotoni s a / RHEM , nd û
he e eva i
rod'
r c nd or
a û he t a l ged t a s cr t
whet r he le
r de e e s

weee re i enilorpr itr ' ( .n Supp.ofM ott Trnse a 1 ) Ac di t
r ve ontd ta
opreay. Br i
'
.o a fr t 0. cor ng o
D a d She r r sdec ar to t Sipa t hnol a i s w a de l d,m odii d,a
vi
re '
l a i n, he - k ec ogy t s ue s ve ope
fe nd
pr
oduc a N uvot o c f c lt i Bl c bu g, igi a,a confde i li or a i pe t ni
ed t
r ni s' a iiy n a ks r V r ni nd
i nta nf m ton rai ng
t t t hnol w a di c os durng i pe s n m e tngsa t Bl c bur f iiy a
o he ec ogy s s l ed i n- r o
ei
t he a ks g ac lt nd
pr s nt t o c
e e a i ns onduc ed vi c er e ca lfom t tf iiy. A s u i t t t ofShe r r s
t
a onf enc l r ha ac lt
s m ng he nzh
re'
de l r ton,t r i m or t n a S ite' t c m ec t W e t m D i ti tofV igi a w ih t
c a a i he e s e ha k tl ' o ol t he s e
l
src
r ni t he
pl ntf ca e ofa ton. Gl m or n,8 F.Supp.a 438. Ata m i m um ,t d c i d
ai i ps us s c i
a ga 54
t
ni
he es r be
c a t w ih t W e t r D i ti tofV igi a s por t c l i n t tt pl ntf sc c o
ont c s t he s e n src
r ni up t he onc us o ha he ai if hoi e f

ishomef um i d tl e il t d e e e. M a r v. s rGl lLt ,No. 1
t
or s é il ntted o efr nc '
s
'
cga d Es a oba d.
2: 2CV0
0031
,

201 U. Dit LEXI 26562, t*5( . Va Fe 27, 3) Ac r i y, s dont c rnt
3 S. s.
S
a W D. . b. 201 . co dngl ba e
he ure
r or t c tco l
ec d, he our nc udest t sf t m iia e a i tta f ni t ca e t t Sout r
hat hi ac or lt t s ga ns r ns e ng he s o he
he n
D i ti tofCalf ni .
sr c
ior a
lI.

C onveni
ence of t partes
he
i

Thes ondfdori t ta fra yssi t c nine oft pa tes ;$W l
ec a n he rnse nal i s he onve e e he ri . ûg hen
plitfsfl s ti t i ho f um,c nincet pa te rrl i e r o aest j tf
anif ie ui n her me or onve e o ris aey,f ve , pert o usiy
ta f r'' He nzKete ,750F.Supp. a 668 ( i J Ta l v. e 48 F. pp.2d
r nse .' i
tlr
2d t
quotng TH x. nc. Le , 2 Su

731 738( D. 2007). M oeove,rnse i nota pr it wheni wilme eys r t
, E. Va.
)
r rta fr s p oprae
t l r l eve o
s f t baa ofi
hit he lnce nconve e fom onesdet a he . 1
nince r
i o not r d.
I t sc e t r i no que ton t ti w oul be m or c
n hi as , he e s
s i ha t
d
e onveni ntf Luxt r a M ol t
e or
e a nd
ex o
de end t s s ti t Sout r Di t i tofCalf ni snc Luxt r s he dqua t r ,ope a i ,
f
hi ui n he
he n sr c
ior a, i e
e a' a
re s
r tons
a e pl e a e l a e i Ca lba a M ol x ha a s t lt of i i Cars d a a s e
nd m oye s r oc t d n rs d, nd
e s a elie fce n
l ba nd al s
ofi i Sa D i
tce n n ego. H ow e r t Sout r Di t i to Calf ni i no a c ve e f um f
ve , he
he n s rc f ior a s t on ni nt or or

Nuvotoni st purue isc am s snc isprnc pa pl eofbusnes a r l va r c dsa e
r c o s t l i , i e t i i l ac
i s nd e e nt e or r
c r nty l a ed i Ra or Vi gi a. W hie t de e nt m a be c r c i a gui t tm or
ur e l oc t n df d, r ni
l he f nda s y
or e t n r ng ha
e

e de e r lt d t t i al ge a tonsi l t d i Calf ni t c ti c r nty k bl t
vi nc ea e o her le d c i s ocae n ior a, he our s ure l ma e o
c ude t tt a f r i t c s w oul a om pls m or t n m e e y s fi t ba a e of
oncl
ha r ns e rng he a e
d cc
ih
e ha
r l hi tng he l nc
i
nconve e e t t pl i i f Se V S Te hs-LLC v. it r l , o. 11
ni nc o he a ntf . e
c .
Tw te , ncp N 2: CV43, 1U .
201 S.

Dit LEXI 1
s.
S 57536, t* ( D. J 28, 1 (û1ti pr bl t tmor r lva e de e
a 23 E. Va. une 201 ) '(j s oba e ha e ee nt vi nc
i a m o e pa t wine s s a e l t i t N orhe n D it i tofCa i or a. H o eve ,ta f r
s nd r ry t s e r oca ed n he
t r s rc
lf ni
w r r ns e

i i ppr raewheei r aplitf ofgtlc e f um a meel s fst baa eof
s na op it
r t obs anif is hosn or nd r y hit he lnc
i
nconve e efom defnda t pli if' Ac di y,t sf t doe no sr yweghi
ninc r
e nt o antf.
). cor ngl hi acor s t tongl i n
f
avoroftans er
r f .
1
11.

W iness conveni
t
ence and access

The t r f c or w ines c
hid a t , t s onve enc a ac es ,i t prm a y f usoft de e nt '
ni e nd c s s he i r oc
he f nda s

m oto t ta f r Coursha r cog z t tt sf c ori C c i r bl i
i n o r nse .
t ve e nied ha hi a t s ç onsde a e mpora 'i t
of
tnce'n he
t a f ra ys s Sa s El cs Co. Lt v. m bus 1 ., 38 F.
r ns e nal i . m ung e . , d. Ra
. nc
6 Supp. 708,71 ( D,
2d
8 E. Va.
-

-

2005) Asage rlmatr howeve,C ditnci i drwnbewe nparya non- ry
.
nea te ,
r i si ton s a
a
t e t nd
pa t

winese .' J çtcl t ha rpe tdl e
t s s' . ûg ours ve e ae y mpha i dt ti c i rngwhehe t ta f a
Z
sze ha n onsde i
t r o rnser
c s unde 28U. C.j1 a ,hei onve e et apa t wine si notaf de t s me
ae
r
S.
404() t nc ninc o ry t s s
for d he a

w e g ast i nve e t non- r y w ines e .' Be c W iel s Sol i . nc. G a m i
i ht he nco ni nce o
pa t t s s '' a on r es
utons l v. r n

l '.l , 5: c 2011U. DitLEXI 11 0, t*1 ( . Va. t 25, 1 ( i
ntl nc.No. 11 v25,
S. s.
S 493 a 4 W D. Oc . 201 ) quotng
U SA La , nc. Bi Enc ne r Su e e s & N utii I , o.1:
bs I v. o- i e ed ppl m nt
rtone nc.N
09CV47 2009 U . D it
,
S. s .

LEXI 37797,a *1 ( D. .M a 1 2009). W hiepat winese aepr ume t bemor
S
t 1 E. Va y 4,
)
l ry t s s r es d o
e
wilng t t siy i adif r ntf u ,he ei no s h pr s ptonf rnon- ry wines e .
li o e tf n f e e or m t r s uc e um i o
pa t t s s
Sam s
un/,386 F.Supp.2d at718.

l t sca e t d e nt as e t ha a num be oft i non- ry w ines esr i i
n hi s , he ef nda s s r t t
r he r
pa t t s esde n
Calf ni and t tltga i i Vi g ni w ilc us g e ti onve e e t t s i vi l . The
ior a
ha ii tng n r i a l a e r a nc
ni nc o he e ndi dua s
de e
f ndant ha s it d a a fdavi f om G r g Y ou Luxt r sPr i nta Chi f
s ve ubm te n f i t r
e
ng,
e a' esde nd
e
Exec i Ofi e , hi h s a e t tY oung s
utve t c r w c t t s ha
poke t s ve a oft e po e i wines e ,a t t
o e r l hes t ntal t s s nd ha
t y i ca ed t ti w oul be e r m e y di r tve f rt m t t a t V igi a l addii t
he ndi t ha t
d
xt e l s up i o he o r vel o r ni . n
ton o
t bur
he densoft a l t def nda s a gue t tt ge r phi ldi t nc put t m ata
r ve , he e nt r
ha he og a ca s a e s he

ds d a tg b c u ete ep tnil n- a' wi e s saen t u j c t c mp lo yp o e si
ia v n a e e a s h s o e ta no p ly t se r o s be t o o us r r c s n
t n
V igi a
r ni .
A sN uvo r cse pha i esi isbrefi o
t oni m
s z n t i n pposton,howe r d e e y a s r i t ta
ii
ve , t r l s e tng ha
m
w ines lvesout i t s
t si
s de he ubpoe po e oft c t snote ug t tp t s al s i f vorof
na w r he our i
no h o i he c e n a
t a f r' Roc ngha Pr a t 2011U . D it LEX I 1
r ns e .
'
ki m ec s ,
S. s .
S 3088 a *1 I t d,i he m ovi
5, t 2. ns ea '
t
ng

p rymu t e n taeG eh rt twi e si wiln t ta e t af r inj rs ito .'
a t s d mo srt wh t e ha t s s l g o rv lo o eg u idcin''
n
i
M uli v.Eguia I o.Se vssLLC , o.3: CV 888,20 U . D i t LEX I 2465 a * 24
lns
f x nf
r .
N
05
06 S. s .
S
0, t 23-

( D.Va Apr 28,2006 .
E.
. .
)
Upon r ew oft cur entr d,t cour i unabl t concl t t def
evi
he r ecor he
ts
eo
ude hat he endant have
s

m a a s fc e t s i i t sr ga d. The de a a i f o Gr g Young doesnotc pel he
de uf i i n how ng n hi e r
cl r ton r m e
om t

conouso t tt de e nt 'potnta no pa t wines e woul bec
l i n ha he f nda s e il n- ry t s s
d
omplt l unwilng t
e ey
li o

ta lt Vigi at t siy a e as
r ve o r ni o e tf bs nt ubpoena I t d,t afi vi i c t st ti woul be
. nsea he tda t ndi a e ha t
d
i onve entf t e i vi l t tave t V i g ni ,a t tt y w o d pr f rt a d
nc
ni or hes ndi dua s o r l o r i a nd ha he
ul e e o voi

pa tci toni t ltgai alogeher Se e:.YoungRe yDec. t!4($ dHola ...
ri pai n he ii ton t t . e, . ,
pl
la
;
Te
tway
i c t d i woul be e r m el di nl i f hi t tave t Vi g ni and he doesnotw a t
ndi a e t
d
xt e y s ptve or m o r l o r i a
nt o

ta lt Vigi aorpatci t i a ti1' ;d. t1 (d agEnse ...se rmeyrl a t
rve o r ni
ri pae n ny ra,) l a 7 i i ly i xte l euctnt o
'
cr

pa tci t i t Vigi aa tona . .E dp ee)t kee ( sc nyloutofa l l
ri pae n he r ni ci nd . woul r fr o p hi ompa
ny ega
pr ee ngs.) ( ihoute de et tt s winese aeunwilngt tsiyvol trl t s
oc di ' . t t
' W
vi nc ha he e t s s r
li o e tf unaiy,hi
f c orbec e l si
at
om s es mpora . Roc nc m Pr c t 201lU . Dit LEXI 1
tnt'
'
ki ha
e as,
S. s .
S 30885, t*1 , e
a 3' e
s
a s A s l l ' Gp .v. de De e e I ,N o.3: 1 00079,201 U . Di t LEX I
l o hbu ' ntl
y
Ca x f nc s nc.
1 CV
2 S. s .
S

1
34878 a * ( . Va. pt20,201 ( di t tt sfco di notfvorta fr snc t
, t 26 W D. Se .
2) hol ng ha hi a tr d a rnse , i e he
atda t ofdefns winese ioc e s eyonco nincea i nowa s
fi vis
e e t s s t usgdl oll
f
nve e nd n
y uggesl t t
ted) ha
t ywoul beunwilngt ta lt Vigi a'.
he
d
li o r ve o r ni'
)
The c tr ogni st tltga i i V i g ni w ili r s t c ta e
our ec ze ha ii tng n r i a l nc ea e he os nd xpens of
e
s c i w ines t s i ony f t def nda s How e r a t s s a oft pr ee ngs i
e ur ng t s e tm
or he e nt .
ve , t hi t ge he oc di , t
a
ppea st tt a f r i t ca e w oul m e e y s f t c tbuz nst N uvot o c ,whi h ha
r ha r ns e rng he s
d r l hi t he os de o
r ni s
c s
pr de is own afi vis f o non- r y w ines e who cl i t tt y w oul be
ovi d t
tda t r m
pa t t s s
a m ha he
d
i onve e d i t c e wa m o d t Ca i o ni I t a e ofa e de e t tt
nc
ni nce f he as s ve o lf r a, n he bs nce ny vi nc ha he
de e nt 'non- r y w ine s woul be unwilng t ta l o t W es e n D i ti ofV igi at
f nda s
pa t t s es
d
li o r ve t he
t r s rd
r ni o
t s iy on t i beha f t c tc l
e tf
he r
l , he our onc udest tt sf t doe no s r y w ei h i f voroft
ha hi ac or s t t ongl
g n a
he
def nda s
e nt .
lV .

Int
erestofJus ce
ti

Thefna fco i t ta fra l i i t i ee tofusi ,whih' nc
i l a tr n he rnse nayss s he ntrs j tce c t ompa s publc
e
ses i
i er tf orsai ed ats t atc i egriy and f r
nt es act
m
ys em i nt t
ainess.' Byer v.Equi ax I o.Servs. LLC,
'
son
f nf
,

467F.Supp.2d6 635( D. 2006)(ntr lciai a quotto maksomitd)
27, E. Va.
i ena tton nd ain r
te .
Re e ntc i r tons i l t c tsf m ii r t wih t a plca e l w ,doc tc tons
l va ons de a i nc ude he our ' a la iy t he p i bl a
ke ondii ,

a c s t p e s st a mih h v t b ve d,h p si ii o a u fi tilt ea ii t j i
c e s o rmie h t g t a e o e iwe te o sbl y f n n ar ra,h blt o on
t
y
ot rpa te , hepos i lt ofha as me ,t pe e y ofar lt aci a t i e e ti
he ris t
sbiiy
r s nt he nd nc
e aed ton, nd he ntr s n
ha ng l a c r s e de i d a hom e Se Bd. Tr t e v.Ba orH e tng & A i
vi oc l ontover i s c de t
. e
of us e s
vl
ai
r

Condii ng.nc.70 F.Supp.1 1 0 ( D. .1 ;HenzKeter 750F.Supp.2da
toni l , 2
253, 26 E. Va 988) i tl ,
t
670.

l t sca e,t def nda sco e t ta num be oft f e ng f c o sa e e t r
n hi s he e nt nc de ha
r he or goi a t r r ihe

d uta'ord deemi tve' ( .nSupp. Mot t Trnsera 1 ) Thedefnda s
i rl' i
ne
non- tr nai .' Br i
of .o a f t 6.
e nt

mananta te( r p rie tfco sh r rlt t t a ii t j i p ris f in s o til
iti h t h t e e t n a t r ee eae o he blt o on ate ,ar e s fra,
mo
n
y
a haasmen.' (d. Fort f l ngras , we ,heco ti una et c udet t
nd r s t' 1 )
he olowi e ons ho vert ur s bl o oncl ha
t e f t stp t s al i f vo oft a f ra t stm e.
hes ac or i he c e n a r r ns e t hi i

W ihrs e ttera ii t j i a dto a pat s t d fn a t alg t t x ea
t e p c h i blt o on d iin l ri ,he ee d ns le e ha Lu tr
y
e

t y' n t j i In vaieMir Te h o o y,t rpa e n v n o ,do id mn fc to
i 'wa t o on n o tv c o c n l g i e lc me t e d r C r n e iiain
ma
s
f
p r o e' ta ln v t Mir Te h o o ykma n t n o ohewiebea l t a fr t j i
u p s s' h t n o ai
;
ve co c n l g ç y o wa t r t r s
be o fo d o on
i as tbei ltgae s fra y' a t tt sc tt ynotha urs ci ove l
n ui ng ii td o a wa ' nd ha hi our i
;
ma
vej iditon r nnovai
tve
Mir Te
co chnol ' (d. t1 )(mpha i a d) Ast pli ife
ogy. 1 a 6 e ss dde . he antf mpha iesi isbrefi
'
sz n t i n
o
pposton, e r Im o tve M i r Te hnol y w asno a pa t t t nondi c os e
ii how ve , r va i
co c
og
t r y o he
s l ur
a e m e a i s ,a i i unc e ron wha bas sLuxt r woul s k i m nii a i i r l ton
gr e nt t s ue nd t s l a
t i
ea
d ee nde fc ton n e a i
t t i t nta ton. I t a e eofa f t re a ton o s ppo tng e de e t c ti
o he ns a c i
n he bs nc
ny urhe xpl na i r u r i vi nc , he our s
unabl t concl t t sf orwei i f
eo
ude hat hi act
ghs n avoroftansf att stm e.
r er hi i
The def
endant al o ar t N uvotoni has engaged i har m entby flng t sacton
s s gue hat
r cs
n ass
ii hi i
i t W es er D i rctofV igi a,and t is deci on t fl s ti t s di rctunder i t
n he
t n sti
r ni
hat t
si o ie ui n hi sti
m nes he

f ines oft ltga i pr es The de enda s'a gum e si t s r ga d a e pr m i e on t
a r s he ii ton oc s.
f
nt r
nt n hi e r r e s d
he

a s ri t tNu r c i ai ' Caolnahe dqua trdc
s eton ha votonis s i t r i - a ree ompa 'l a 1 ) al t tiha
Nolh
ny'(d. t 7 , td ha t s
i tae cal c e t sf um (ahe t nisa t lhomedititi Norh Car i .' ( pl
t rtgi ly hos n hi or rt r ha t cua
s
src n t olnal' Re y
Bra 1 ) Ase ane a
. t 6.
xpli d, bove, ve,hea sri t t
howe rt se ton ha Nuvoto c i nolng bas i t s
r nis s o er ed n hi
di ti ti r f ed by t s or d l r t o f om D a d She r , hi h i ca est tt pl i ifi
s r c s e ut
he w n ec a a i n r
vi
rer w c ndi t ha he a ntf s
he dquare ed i Ra or t tvi t ly a 1ofis e de i hous a ishe dqua t r ,a t t
a
t r n df d, ha r ua l l t vi nce s
ed t t a
r e s nd ha
t a l ed t a s cr sa i s we e de l pe a di cl e i t W es e n Di t i to V igi a
he leg r de e et t s ue r ve o d nd s os d n he
t r sr c f r ni .
A s um i t tut ofShe r r sdec a a i a t s sag oft pr ee ngs t c ti una et
s ng he r h
re '
l r ton t hi t e he oc di , he our s bl o

c l t tt pli ifhasat mpt d t har s t d e nt wih isc c ofve ,o t t
onc ude ha he antf
te e o a s he ef nda s t t hoi e
nue r ha
r t ni ve woul ot r i e unde m i t f ines oft ltga i n pr e s
e ai ng nue
d he w s
r ne he a r s he ii to oc s .
Fi ly, he co i a i o ha ng l alc r r i s de i d i t ho e f um doe
na l t
nsder ton f vi oc ontove s e c de n he m or
s

notsr y we g i f vorofta f r Vi wi t r or i t lg mos f vor l t
tongl i h n a
r nse . e ng he ec d n he i ht t a ab e o
N uvo r cs t sdi put i ve a Vi g ni co o a i w ih is prnc pa pl c ofbusnes i
t oni , hi s e nvol s
r i a p r ton t t i i l a e
i sn

Ra or Acc di y,tgj si notac s i whiht ctz nsoft W esenDititof
df d. or ngl tthi s
a e n c he iie
he tr src
Vi gi a w oul be bur ne w ih a c r r y t tbe r no r l ton t t dit i t'
r ni
d
de d t ontove s ha a s
e a i o he s rc .'
Rocki
ngham Pr
ecast 2011 U . D it LEX I 130885,at*22.see al H ei K e l 750 F.Supp.
,
S. s .
S
,
so nz tter,

a 670(mpha i ngt tç r ni ha a i ers i pr di afr f isr i nt t ltg t
t
e
szi ha i gi a s n nt et n ovi ng oum or t esde s o iiae
vi
t i diputs'.
her s e '
)
C oncl on
usi

Fort r s sa e t c tco l s t tt de e nt ha notm e t rhe vy
he ea ons t t d, he our nc ude ha he f nda s ve
t hei a
bur ofpr ng t t scas s d be t
den
ovi hat hi e houl
ransf red t t Sout n Di t i ofCalf ni
er o he
her s rct
ior a.

H o e r bec us di c r m a r ve le de e t tf vo st t a f rofve , hedef nda s
w ve , a e s ove y y e a vi nc ha a r he r ns e
nue t
e nt '

motonwilbede edwihoutprj c
i
l
ni t
eudie.
13

The Clr i die t dt s nd c rii c esoft sme or ndum opi on a t
e k s r c e o e e tfed opi
hi m a
ni nd he
accom panyi or t al couns ofr d.
ng der o l
el ecor
&*
ENTER: s t d yo Api, 201
Thi ' a f rl 4.

( :v
. ,.
0
ChifUnie Stt Diti J
e
td aes srd udge