Avocent Huntsville Corp. v. Aten Intern. Co., Ltd.
Full Opinion (html_with_citations)
Opinion for the court filed by Circuit Judge LINN.
Dissenting opinion filed by Circuit Judge NEWMAN.
This appeal concerns the personal jurisdiction of a U.S. district court over a Taiwanese company in a suit for declaratory judgment of non-infringement and invalidity of two U.S. patents owned by that Taiwanese company. Because the plaintiffs failed to allege that the Taiwanese company purposefully directed any activities beyond merely sending notice letters at residents of the forum and that the declaratory judgment action arose out of or related to those activities, we affirm the district courtâs dismissal of all claims for lack of personal jurisdiction.
I. BACKGROUND
Avocent Huntsville Corp. (âAvocent Huntsvilleâ) and Avocent Redmond Corp.
Avocent and Aten International compete in the manufacture and sale of keyboard-video-mouse switches (âKVM switchesâ), which allow a computer user or users to share a single keyboard, video device, and mouse, or multiple sets of keyboards, video devices, and mice. It is undisputed that various Aten International products are available for sale within Alabama. Avo-cent has alleged that Aten International purposefully directed these products to Alabama both by injecting them into the stream of commerce and through direct sales activities. Specifically, Avocent has alleged the sale and delivery to Alabama of a product purchased through the âClearance Centerâ webpage of the ATEN-USA. com website published by Aten International, the existence of products manufactured by Aten International and offered for sale at Best Buy and CompUSA retail stores in Alabama, the availability of Aten International products through nationwide and Internet retailers, and the availability of these products through a government contractor located in Alabama.
Aten International is the assignee of U.S. Patent Nos. 6,957,287 (âthe '287 patentâ) and 7,035,112 (âthe '112 patentâ), both of which relate to KVM switches. This appeal relates to Aten Internationalâs attempts to enforce these patents against Avocent.
Aten Internationalâs enforcement efforts are reflected in three letters. The first is a letter dated May 28, 2004, from counsel for Aten Technology to John Cooper, the CEO and President of Avocent Corporation, stating:
Pursuant to Section 154(d) of the U.S. Patent Act, please be advised that the U.S. Patent Office has published a patent application owned by our client Aten Technology, Inc. A copy of the published patent application is attached. We suggest that you review the claims as we believe they are relevant to a product your company is making, using, selling, offering to sell and/or importing.
J.A. at 473.
In reaction to these letters, on April 6, 2007, Avocent filed a complaint against Aten International in the United States District Court for the Northern District of Alabama for declaratory judgment of non-infringement and invalidity of the '287 and '112 patents. The complaint also presented claims of unfair competition under the Lanham Act, 15 U.S.C. § 1125, and intentional interference with business or contractual relations under Alabama law. Aten International subsequently moved, inter alia, to dismiss the entire action for lack of personal jurisdiction under Rule 12(b)(2) of the Federal Rules of Civil Procedure, or in the alternative, to transfer the case under 28 U.S.C. § 1404(a) to the Western District of Washington where Avocent Redmond had sued Aten International for patent infringement related to three KVM patents owned by Avocent Redmond.
The district court granted Aten Internationalâs motion to dismiss the entire action without prejudice for lack of personal jurisdiction. Avocent Huntsville Corp. v. Aten Intâl Co., No. 07-CV-625, slip op. at 13 (N.DAla. Aug. 30, 2007). The district court held that it could not exercise specific jurisdiction over Aten International based on the letters asserting infringement, id. at 8, concluding that under Red Wing Shoe Co. v. Hockerson-Halberstadt, Inc., 148 F.3d 1355, 1360-62 (Fed.Cir.1998), Aten International âdid not purposefully submit itself to jurisdiction in Alabama by sending the three letters listed above.â Avocent, slip op. at 10. The district court also rejected Avocentâs assertion of general jurisdiction based on the availability of Aten Internationalâs products for sale in Alabama under a âstream of commerceâ theory. Id. at 10-13. After noting that âit is not clear whether these KVM switches are the ones with patents involved in the Washington action, the instant action, or neither,â id. at 11-12, the district court found the most instructive case to be Viam Corp. v. Iowa Export-Import Trading Co., 84 F.3d 424 (Fed.Cir.1996) (applying the stream of commerce holding of Beverly Hills Fan Co. v. Royal Sovereign Corp., 21 F.3d 1558 (Fed.Cir.1994), in the context of a declaratory judgment action and holding that jurisdiction was proper where there were purposefully directed activities in the forum through an established regular distribution channel). The district court held that, as distinguished from Viam, â[n]o similar systematic and continuous contact by [Aten International] with Alabama has been shown by the plaintiffs.â Avocent, slip op. at 13. Avocent timely appealed. We have jurisdiction pursuant to 28 U.S.C. § 1295(a)(1).
II. DISCUSSION
A. Standard of Review
Personal jurisdiction is a matter of law that we review de novo. Genetic Implant Sys., Inc. v. Core-Vent Corp., 123 F.3d 1455, 1457 (Fed.Cir.1997) (citing Viam, 84 F.3d at 427). Moreover, we apply Federal Circuit law because the jurisdictional issue is âintimately involved with the substance of the patent laws.â Akro Corp. v. Luker, 45 F.3d 1541, 1543 (Fed.Cir.1995); see also Beverly Hills Fan, 21 F.3d at 1565 (âUnder [jurisdictional] circumstances such as these, we have held we owe no special deference to regional circuit law.â). Furthermore, we apply our own law to all of the claims where âthe question of infringement is a critical factor in determining liability under the non-patent claims.â Breckenridge Pharm., Inc. v. Metabolite Labs., Inc., 444 F.3d 1356, 1362 (Fed.Cir.2006).
In this case, â[b]ecause the parties have not conducted discovery, [Avocent] needed
B. Analysis
âDetermining whether personal jurisdiction exists over an out-of-state defendant involves two inquiries: whether a forum stateâs long-arm statute permits service of process, and whether the assertion of personal jurisdiction would violate due process.â Inamed Corp. v. Kuzmak, 249 F.3d 1356, 1359 (Fed.Cir.2001). Alabamaâs long-arm statute permits service of process âas broad as the permissible limits of due process.â Ala. Power Co. v. VSL Corp., 448 So.2d 327, 328 (Ala.1984). Thus, our jurisdictional analysis collapses into a single determination of whether the exercise of personal jurisdiction comports with due process.
1.
â[D]ue process requires only that in order to subject a defendant to a judgment in personam, if he be not present within the territory of the forum, he have certain minimum contacts with it such that the maintenance of the suit does not offend traditional notions of fair play and substantial justice.â Intâl Shoe Co. v. Washington, 326 U.S. 310, 316, 66 S.Ct. 154, 90 L.Ed. 95 (1945) (internal quotation marks omitted). While the application of this description of due process has evolved along with the increasing national and international scope of business transactions affecting citizens of this country, the Supreme Court has repeatedly cautioned that âit is essential in each case that there be some act by which the defendant purposefully avails itself of the privilege of conducting activities within the forum State, thus invoking the benefits and protections of its laws.â Hanson v. Denckla, 357 U.S. 235, 253, 78 S.Ct. 1228, 2 L.Ed.2d 1283 (1958). âThis purposeful availment requirement ensures that a defendant will not be haled into a jurisdiction solely as a result of random, fortuitous, or attenuated contacts, or of the unilateral activity of another party or a third person.â Burger King Corp. v. Rudzewicz, 471 U.S. 462, 475, 105 S.Ct. 2174, 85 L.Ed.2d 528 (1985) (internal citations and quotation marks omitted). Accordingly, â[e]ach defendantâs contacts with the forum State must be assessed individually,â Colder v. Jones, 465 U.S. 783, 790, 104 S.Ct. 1482, 79 L.Ed.2d 804 (1984), and â[t]he unilateral activity of those who claim some relationship with a nonresident defendant cannot satisfy the requirement of contact with the forum State,â Hanson, 357 U.S. at 253, 78 S.Ct. 1228.
While it may be argued that âa nonresident corporation should expect ... amenability to suit in any forum that is significantly affected by the corporationâs commercial activities,â Helicopteros Nacionales de Colombia, S.A. v. Hall, 466 U.S. 408, 423, 104 S.Ct. 1868, 80 L.Ed.2d 404 (1984) (Brennan, J., dissenting), the Supreme Court has disagreed: âAlthough it
Consistent with these principles, the Supreme Court has drawn a distinction between âspecificâ jurisdiction and âgeneralâ jurisdiction. To establish specific jurisdiction, a plaintiff must demonstrate that âthe defendant has âpurposefully directedâ his activities at residents of the forum, Keeton v. Hustler Magazine, Inc., 465 U.S. 770, 774, 104 S.Ct. 1473, 79 L.Ed.2d 790 (1984), and the litigation results from alleged injuries that âarise out of or relate toâ those activities, Helicopteros [466 U.S. at 414, 104 S.Ct. 1868].â Burger King, 471 U.S. at 472-73, 105 S.Ct. 2174. âAlthough the nexus necessary to satisfy the âarise out of or related toâ requirement of the due process inquiry has not been clearly delineated by the Supreme Court, we have stated that it is significant that the constitutional catch-phrase is disjunctive in nature, indicating an added flexibility and signaling a relaxation of the applicable standard from a pure âarise out of standard.â Inamed, 249 F.3d at 1362 (citing Akro, 45 F.3d at 1547); see also Helicopteros, 466 U.S. at 415 n. 10, 104 S.Ct. 1868 (declining to address whether there should be a âdistinction between controversies that ârelate toâ a defendantâs contacts with a forum and those that âarise out of such contactsâ); id. at 425, 104 S.Ct. 1868 (Brennan, J., dissenting).
To establish the minimum contacts necessary to establish general personal jurisdiction, plaintiffs bear a higher burden. Specifically, where a plaintiffs claims do not arise out of or relate to the defendantâs contacts with the forum State, â[w]e ... must explore the nature of [the defendantâs] contacts with the [forum State] to determine whether they constitute ... continuous and systematic general business contacts.â Helicopteros, 466 U.S. at 415-16, 104 S.Ct. 1868 (emphasis added).
In addition to the foregoing general principles of âspecificâ and âgeneralâ jurisdiction, the Supreme Court has also commented on the amenability to suit of persons engaged in activities that result in the flow of goods in commerce. The Court has explained that
if the sale of a product of a manufacturer or distributor ... is not simply an isolated occurrence, but arises from the efforts of the manufacturer or distributor to serve, directly or indirectly, the market for its product in other States, it is not unreasonable to subject it to suit in one of those States if its allegedly defective merchandise has there been the source of injury to its owner or to others. The forum State does not exceed its powers under the Due Process Clause if it asserts personal jurisdiction over a corporation that delivers its products into the stream of commerce with the expectation that they will be purchased by consumers in the forum State.
World-Wide Volkswagen, 444 U.S. at 297-98, 100 S.Ct. 559. Significant confusion
The Supreme Court has also instructed that personal jurisdiction may be âproper because of [a defendantâs] intentional conduct in [another State] calculated to cause injury to [the plaintiff] in [the forum State].â Calder, 465 U.S. at 791, 104 S.Ct. 1482. In Calder, the Supreme Court held that the author and editor of an allegedly libelous article circulated in California, albeit written and edited in Florida, which âthey knew would have a potentially devastating impact upon [the plaintiff],â and which targeted a resident of California, was not âmere untargeted negligence.â Id. at 788-90, 104 S.Ct. 1482. âRather, their intentional, and allegedly tortious, actions were expressly aimed at California,â and thus they âmust âreasonably anticipate being haled into court there.â â Id. at 789-90, 104 S.Ct. 1482 (quoting World-Wide Volkswagen, 444 U.S. at 297, 100 S.Ct. 559).
Finally, â[o]nce it has been decided that a defendant purposefully established minimum contacts within the forum State, these contacts may be considered in light of other factors to determine whether the assertion of personal jurisdiction would comport with âfair play and substantial justice.â â Burger King, 471 U.S. at 476, 105 S.Ct. 2174 (quoting Intâl Shoe, 326 U.S. at 320, 66 S.Ct. 154). Relevant factors include: â[1] âthe burden on the defendant,â [2] âthe forum Stateâs interest in adjudicating the dispute,â [3] âthe plaintiffs interest in obtaining convenient and effective relief,â [4] âthe interstate judicial systemâs interest in obtaining the most efficient resolution of controversies,â and [5] the âshared interest of the several States in furthering fundamental substantive social policies.ââ Id. at 477, 105 S.Ct. 2174 (quoting World-Wide Volkswagen, 444 U.S. at 292, 100 S.Ct. 559). While â[t]hese considerations [may] sometimes serve to establish the reasonableness of jurisdiction upon a lesser showing of minimum contacts than would otherwise be required ... where a defendant who purposefully has directed his activities at forum residents seeks to defeat jurisdiction, he must present a compelling case that the presence of some other considerations would render jurisdiction unreasonable.â Id. (internal citations omitted).
2.
Against this backdrop of Supreme Court authority, we have held in the context of patent infringement litigation that an assertion of general jurisdiction ârequires that the defendant have âcontinuous and systematicâ contacts with the forum state,â and that such activity will âconfer[ ] [general] personal jurisdic
[t]his court employs a three-prong test, in which we determine whether: (1) the defendant purposefully directed its activities at residents of the forum, (2) the claim arises out of or relates to those activities, and (3) assertion of personal jurisdiction is reasonable and fair. With respect to the last prong, the burden of proof is on the defendant, which must present a compelling case that the presence of some other considerations would render jurisdiction unreasonable under the five-factor test articulated by the Supreme Court in Burger King.
Breckenridge, 444 F.3d at 1363 (internal citation and quotation marks omitted). âThe first two factors correspond with the âminimum contactsâ prong of the International Shoe analysis, and the third factor corresponds with the âfair play and substantial justiceâ prong of the analysis.â Inamed, 249 F.3d at 1360. We have also applied the stream of commerce theory, although we have not resolved the split in authority reflected in the competing plurality opinions in Asahi. See Beverly Hills Fan, 21 F.3d at 1566.
a.
In the ordinary patent infringement suit, the claim asserted by the paten-tee plaintiff is that some act of making, using, offering to sell, selling, or importing products or services by the defendant constitutes an infringement of the presumptively valid patent named in suit. See 35 U.S.C. § 271(a). Thus, for purposes of specific jurisdiction, the jurisdictional inquiry is relatively easily discerned from the nature and extent of the commercialization of the accused products or services by the defendant in the forum. See Red Wing Shoe, 148 F.3d at 1360. In such litigation, the claim both âarises out ofâ and ârelates toâ the defendantâs alleged manufacturing, using, or selling of the claimed invention. But in the context of an action for declaratory judgment of non-infringement, invalidity, and/or unenforce-ability, the patentee is the defendant, and the claim asserted by the plaintiff relates to the âwrongful restraint [by the paten-tee] on the free exploitation of non-infringing goods ... [such as] the threat of an infringement suit.â Id. Thus, the nature of the claim in a declaratory judgment action is âto clear the air of infringement charges.â Id. Such a claim neither directly arises out of nor relates to the making, using, offering to sell, selling, or importing of arguably infringing products in the forum, but instead arises out of or relates to the activities of the defendant patentee in enforcing the patent or patents in suit. The relevant inquiry for specific personal jurisdiction purposes then becomes to what extent has the defendant patentee âpurposefully directed [such enforcement activities] at residents of the forum,â and the extent to which the declaratory judgment claim âarises out of or relates to those activities.â
In many patent declaratory judgment actions, the alleged injury arises out of the threat of infringement as communicated in an âinfringement letter,â and the patentee may have little contact with the forum beyond this letter. See generally Red Wing Shoe, 148 F.3d at 1359-61. While such letters themselves might be expected to support an assertion of specific jurisdiction over the patentee because âthe letters are âpurposefully directedâ at the forum and the declaratory judgment action âarises out of the letters,â Silent Drive, 326 F.3d at 1202, we have held that, based on âpolicy considerations unique to the patent context,â id. at 1206, âletters threatening suit for patent infringement sent to the alleged infringer by themselves âdo not suffice to create personal jurisdiction,ââ id. at 1202 (quoting Red Wing Shoe, 148 F.3d at 1359-60) (emphasis added). This is âbecause to exercise jurisdiction in such a situation would not âcomport with fair play and substantial justice.ââ Id. (quoting Red Wing Shoe, 148 F.3d at 1359-60). âPrinciples of fair play and substantial justice afford a patentee sufficient latitude to inform others of its patent rights without subjecting itself to jurisdiction in a foreign forum. A patentee should not subject itself to personal jurisdiction in a forum solely by informing a party who happens to be located there of suspected infringement. Grounding personal jurisdiction on such contacts alone would not comport with principles of fairness.â Red Wing Shoe, 148 F.3d at 1360-61; see also Silent Drive, 326 F.3d at 1206. Thus, â[f]or the exercise of personal jurisdiction to comport with fair play and substantial justice, there must be âother activitiesâ directed at the forum and related to the cause of action besides the letters threatening an infringement suit.â Silent Drive, 326 F.3d at 1202 (emphasis added); see also Calder, 465 U.S. at 788,104 S.Ct. 1482 (noting that â[i]n judging minimum contacts, a court properly focuses on âthe relationship among the defendant, the forum, and the litigation.â â (emphases added)
b.
Because declaratory judgment actions raise non-infringement, invalidity, and/or unenforceability issues central to enforcement of the patents in question, we have looked beyond the âarises out ofâ inquiry and have found jurisdiction where such âother activitiesâ in some identifiable way ârelate toâ enforcement of those patents in the forum. Recently, in Breckenridge, we summarized our precedent regarding what âother activitiesâ in addition to cease and desist letters would suffice to meet the ârelate toâ requirement for specific personal jurisdiction. 444 F.3d at 1363-67. We observed that:
[T]he crux of the due process inquiry should focus first on whether the defendant has had contact with parties in the forum state beyond the sending of cease and desist letters or mere attempts to license the patent at issue there. Where a defendant-licensor has a relationship with an exclusive licensee headquartered or doing business in the forum state, the inquiry requires close examination of the license agreement. In particular, our case law requires that the license agreement contemplate a relationship beyond royalty or cross-licensing payment, such as granting both parties the right to litigate infringement cases or granting the licensor the right to exercise control over the licenseeâs sales or marketing activities.
444 F.3d at 1366. While âthe plaintiff need not be the forum resident toward whom any, much less all, of the defendantâs relevant activities were purposefully directed,â Akro, 45 F.3d at 1547 (citing Keeton, 465 U.S. 770, 104 S.Ct. 1473 and Calder, 465 U.S. 783, 104 S.Ct. 1482), we have consistently required the defendant to have engaged in âother activitiesâ that relate to the enforcement or the defense of the validity of the relevant patents. Examples of these âother activitiesâ include initiating judicial or extra-judicial patent enforcement within the forum, or entering into an exclusive license agreement or other undertaking which imposes enforcement obligations with a party residing or regularly doing business in the forum. See Campbell Pet Co. v. Miale, 542 F.3d 879, 886 (Fed.Cir.2008) (finding jurisdiction over a patentee whose âextra-judicial patent enforcement,â namely, enlisting a third party to remove defendantâs products from a trade show that was being held in the forum state, went beyond merely informing the defendant of its alleged infringement);
While exclusive licensing agreements and other undertakings that impose enforcement obligations on a patentee or its licensee reflect the kind of âother activitiesâ that support specific personal jurisdiction in a declaratory judgment action, the defendant patenteeâs own commercialization activity does not. What the paten-tee makes, uses, offers to sell, sells, or imports is of no real relevance to the enforcement or defense of a patent, because âthe federal patent laws do not create any affirmative right to make, use, or sell anything.â Leatherman Tool Group Inc. v. Cooper Indus., Inc., 131 F.3d 1011, 1015 (Fed.Cir.1997). âThe franchise which the patent grants, consists altogether in the right to exclude every one from making, using, or vending the thing patented, without the permission of the patentee. This is all that he obtains by the patent.â Bloomer v. McQuewan, 55 U.S. (14 How.) 539, 549, 14 L.Ed. 532 (1852); see also 35 U.S.C. § 154(a)(1) (2000) (âEvery patent shall ... grant to the patentee, his heirs or assigns, ... the right to exclude others ....â) (emphasis added).
Thus, it is not surprising that several district courts have held that a defendant patenteeâs sales, even of products covered by its own patents in the forum state, do not necessarily relate to the patenteeâs amenability to specific personal jurisdiction in actions for declaratory judgment of non-infringement and invalidity of those patents. See, e.g., Polymers, Inc. v. Ultra Flo Filtration Sys., Inc., 33 F.Supp.2d 1008, 1017 (M.D.Fla.1998) (holding that the âdistribution of [the patenteeâs] own patented goods in Florida is not intimately or sufficiently connected with [the plaintiffs] action to obtain a declaration that [the plaintiffs] goods do not infringe [the pat-enteeâs] patentsâ); DP Envtl. Servs., Inc., v. Bertlesen, 834 F.Supp. 162, 166 (M.D.N.C.1993) (âThe stream of commerce theory for asserting personal jurisdiction is inapplicable in a case such as this where the cause of action did not arise from the manufacturerâs products in the forum state.â); Ryobi Am. Corp. v. Peters, 815 F.Supp. 172, 177 (D.S.C.1993) (âA declaratory judgment action involving a patent, when properly brought, does not depend on the actual manufacture of the item by
Similarly, we have held that mere evidence of sales within the forum of products covered by the relevant patent(s) is insufficient to guarantee specific personal jurisdiction over the patentee. For example, in Breckenridge we noted that specific personal jurisdiction is not proper where the patentee âhas successfully licensed the patent in the forum state, even to multiple non-exclusive licensees, but ... has no dealings with those licensees beyond the receipt of royalty income.â 444 F.3d at 1366 (citing Red Wing Shoe, 148 F.3d at 1357-58). In Red Wing Shoe, we declined to find specific personal jurisdiction over a patentee with thirty-four non-exclusive licensees selling the patented product in the forum State because ânone of [the paten-teeâs] licenses requires it to defend or pursue infringement actions involving the [relevant] patent, nor requires [the patentee] to be so nearly involved with its licensees as was the case with the exclusive licensee in Akro.â 148 F.3d at 1359, 1362.
In short, a defendant patenteeâs mere acts of making, using, offering to sell, selling, or importing products â whether covered by the relevant patent(s) or not â do not, in the jurisdictional sense, relate in any material way to the patent right that is at the center of any declaratory judgment claim for non-infringement, invalidity, and/or unenforceability. Thus, we hold that such sales do not constitute such âother activitiesâ as will support a claim of specific personal jurisdiction over a defendant patentee. While such activities may in the aggregate justify the exercise of general jurisdiction over the patentee, they do not establish a basis for specific jurisdiction in this context.
c.
While we are bound by our precedent, it is not without controversy. Even a paten-teeâs exclusive licensing and enforcement activities in the forum raise questions as to the propriety of an assertion of personal jurisdiction over a non-resident defendant. As previously discussed, the Supreme Court has declined to address the exact contours of the âarise out of or related toâ language of the specific jurisdiction analysis. See Inamed, 249 F.3d at 1362; 16 James Wm. Moore et al., Mooreâs Federal Practice § 108.42[7][a] (3d ed. 2008) (âAlthough the exercise of specific jurisdiction clearly depends on the existence of some
3.
a.
Here, Avocent primarily argues that Aten International should be subject to personal jurisdiction in Alabama based on the alleged availability of various Aten International products for sale in the forum state. See Viam, 84 F.3d at 428 (holding that the stream of commerce theory of Beverly Hills Fan could apply in the declaratory judgment context, where the patentee is the defendant). Avocent contends that Aten Internationalâs direct and indirect sales activity in Alabama demonstrates a nationwide distribution network, through which Aten International delivers products to Alabama residents and consequently is susceptible to jurisdiction in Alabama under Viam. Avocent attempts to distinguish the Red Wing Shoe line of cases as inapplicable to patentees such as Aten International that manufacture products and distribute them into the forum, either directly or through the stream of commerce. It argues that in these cases the outcome would have been different if the patentees had been defendant manufacturers of commercial products that entered the forum state.
Aten International does not dispute that products it manufactures may be purchased in Alabama but contends that it has never conducted any business in Alabama; that there is no evidence that Aten International controls the distribution of its products, acted in concert with distributors, or had any knowledge that the likely destination of its products was Alabama; and that Avocent failed to establish that any products sold in Alabama relate to this case or even to the underlying patents. It argues that any sales activity in the United States is attributable to its subsidiary, Aten Technology. Aten International cites several regional circuit cases for the proposition that a corporate subsidiaryâs contacts in the forum state cannot be imputed to the parent corporation absent clear and convincing evidence that the parent controls the subsidiaryâs activities. See, e.g., Negron-Torres v. Verizon Commcâns, Inc., 478 F.3d 19, 27 (1st Cir.2007) (declining to
As an initial matter, Avocent makes no attempt to establish that Aten Internationalâs contacts with Alabama, whether through the âstream of commerceâ or otherwise, rise to the level of âcontinuous and systematicâ activity sufficient to confer general jurisdiction. The district court rejected Avocentâs assertion of general jurisdiction under a âstream of commerceâ theory, Avocent, slip op. at 13, and Avocent apparently abandoned that argument on appeal as it pertains to general jurisdiction. See Appellantsâ Reply Br. at 16 (arguing that Aten Internationalâs reference to the âcontinuous and systematic general business contactâ jurisdictional standard is not relevant to this appeal). Accordingly, we focus our analysis on specific jurisdiction, under which Avocent must make a prima facie showing that Aten International âpurposefully directed its activities at residents of the forum,â and that Avocentâs declaratory judgment action âarises out of or relates to those activities.â Breckenridge, 444 F.3d at 1363.
The âpurposefully directedâ prong of the âminimum contactsâ analysis requires us to critically examine the roles of Aten International, Aten Technologies, and 10-GEAR. In that regard, Avocentâs complaint is fatally deficient. Avocentâs complaint does not explicitly identify Aten Technologies or IOGEAR, or explain the relationship between these corporate entities. It merely alleges that Aten International engages in unspecified sales and marketing activity âdirectly or through their agents or affiliates.â Compl. ¶ 4. But as we have held supra, the mere sale of defendantâs products â whether covered by the patents in suit or not â is not sufficient to establish specific personal jurisdiction in a declaratory judgment suit. Thus, Avocent has failed to allege âsufficient activities related to the claim of patent non-infringement and invalidityâ as to support the assertion of specific personal jurisdiction. Silent Drive, 326 F.3d at 1202.
Avocent attempts to draw a distinction between manufacturing and non-manufacturing patentees for purposes of personal jurisdiction. However, this distinction is not helpful. As previously explained, the only contacts between Aten International and Alabama that are relevant are those that relate in some material way to the enforcement or defense of the patents at issue. Regardless of how Aten Internationalâs products got to Alabama, and regardless of who sold them there, Avo-centâs complaint and the declarations it submitted to the district court â even when construed in the light most favorable to Avocent â fail to allege any connection to the patents at issue, let alone the enforcement thereof. See Compl. ¶ 4 (alleging that Aten International âtransacts business in this District and elsewhere by making, using, selling, and/or offering for sale products in this Districtâ and that these products are âKVM switch products that enable workstations to communicate with, and switch between, remote computersâ); id. ¶ 7 (alleging that Aten International âhas transacted business within the State of Alabamaâ). Nowhere in these documents does Avocent identify activities purposefully directed at the forum and related in any material way to the enforcement or defense of the validity of the patents at issue. This critically undermines its assertion of specific personal jurisdiction.
Avocentâs reliance on Viam is unavailing. In that case, the patenteeâs relevant jurisdictional activity included enforcement proceedings involving the same patent in the same court against other alleged in-fringers â a significant contact with the fo
Although we expressed concerns in Viam regarding improper attempts by foreign patentees to shield themselves from domestic litigation, e.g., id. (expressing concern that foreign patentees âwould be able to set up domestic fronts through which they could do business without subjecting their patents to the rigorous scrutiny demanded by United States patent lawâ), we cannot ignore the framework for determining jurisdiction within a given forum, see World-Wide Volkswagen, 444 U.S. at 293, 100 S.Ct. 559 (noting that the Supreme Court has ânever accepted the proposition that state lines are irrelevant for jurisdictional purposesâ). Moreover, a district courtâs refusal to exercise personal jurisdiction over a foreign patentee in a particular state does not foreclose the availability of a domestic forum. By statute, every foreign patentee is subject to jurisdiction in at least one state or in the District of Columbia. Section 293 of U.S.Code title 35 provides that foreign patentees
may file in the Patent and Trademark Office a written designation stating the name and address of a person residing within the United States on whom may be served process.... If the person designated cannot be found ... or if no person has been designated, the United States District Court for the District of Columbia shall have jurisdiction.... The court shall have the same jurisdiction to take any action respecting the patent or rights thereunder that it would have if the patentee were personally within the jurisdiction of the court. In addition to having personal jurisdic-
tion over Avocentâs patent claims under 35 U.S.C. § 293, and contrary to the dissentâs suggestion, post at 1348-49, the United States District Court for the District of Columbia would have pendent personal jurisdiction over Avocentâs non-patent claims to the extent they form part of the âsame case or controversyâ as the patent claims. 28 U.S.C. § 1367(a); see Coyle, 340 F.3d at 1348 n. 1 (Fed.Cir.2003) (stating that âthe district court would also have personal jurisdiction over defendants as to the two state law claims provided that personal jurisdiction existed as to the patent claim and there was supplemental jurisdiction pursuant to 28 U.S.C. § 1367 existed [sic] as to the state law claimsâ); Silent Drive, 326 F.3d at 1206 (stating that § 1367(a) âconfers supplemental jurisdiction with respect to both subject matter and personal jurisdiction where the âsame case or controversyâ requirement is satisfiedâ); Inamed, 249 F.3d at 1362-63 (holding that the district court had both personal jurisdiction over plaintiffs patent misuse claim and pendent personal jurisdiction over other causes of action); Oetiker v. Jurid Werke, G.m.b.H., 556 F.2d 1, 5 (D.C.Cir.1977) (â[T]he concept of pendent personal
Accordingly, Avocentâs allegation that Aten International products may be purchased in Alabama fails to establish either that Aten International âpurposefully directed its activities at residents of the forumâ or that this action âarises out of or relates to those activities.â Breckenridge, 444 F.3d at 1363.
b.
As an independent basis for personal jurisdiction over Aten International, Avo-cent also argues that jurisdiction is proper under Calder. Avocent contends that the letters sent by Aten International to Avo-cent Huntsville and to Amazon provide personal jurisdiction because the intended effect of the letters was to slow the sale of Avocentâs allegedly infringing products. This argument presumably relates to Avo-centâs Lanham Act claim for unfair competition, which alleged that Aten International made infringement allegations directly to Avocentâs customers âknowing that each patent is invalid, unenforceable and/or not infringedâ by Avocentâs products. Compl. ¶ 19.
Here, as in Breckenridge, âthe question of infringement is a critical factor in determining liability under the non-patent claims. * * * [Aten Internationalâs] letters would neither be unjustifiable nor unfair if the implication of infringement contained therein is true. Accordingly, because the non-patent issues in this case are âintimately linked to patent law,â Federal Circuit law regarding due process must be applied to the question of personal jurisdiction over [Aten International] with respect to all claims.â 444 F.3d at 1362. Aten Internationalâs only activity pertinent to Avocentâs Lanham Act claim consists of sending letters alleging patent infringement. In Breckenridge, we noted that âthe Federal Circuit provides that a patent owner may, without more, send cease and desist letters to a suspected infringer, or its customers, without being subjected to personal jurisdiction in the suspected infringerâs home state.â Id. (emphasis added). Thus, while we ultimately found jurisdiction over the paten-tee in Breckenridge based on its âadditional activities in the forum state,â namely, an exclusive license, id. at 1366, we would not have accepted jurisdiction based solely on the letters in that case, which included âbetween ten and twenty letters to vitamin distributors and retailers informing them of the Metabolite patents and PamLabâs exclusive license,â id. at 1360. Similarly, the three letters attributed to Aten International in this case do not subject it to personal jurisdiction in Alabama.
c.
Finally, because the district court did not have personal jurisdiction over Aten International with respect to the patent and Lanham Act claims, it correctly dismissed Avocentâs state law claim for intentional interference with business or contractual relations. Cf. Coyle, 340 F.3d at 1348 n. 1 (â[T]he district court would also have personal jurisdiction over defendants as to the two state law claims provided that personal jurisdiction existed as to the
III. CONCLUSION
For the above reasons, we conclude that the district court properly dismissed Avo-centâs claims against Aten International for lack of personal jurisdiction. Thus its judgment is
AFFIRMED.
. We note that while the letter states that Aten Technology owned the patent application, the published application attached to this letter shows the assignee as Aten International.
. This inquiry should not be confused with the âcase or controversyâ requirement of the Declaratory Judgment Act, 28 U.S.C. § 2201(a). While the Supreme Court recently altered the subject matter jurisdiction landscape by rejecting the "reasonable apprehension of suitâ test, see. SanDisk Corp. v. STMicroelectronics, Inc., 480 F.3d 1372, 1380 (Fed.Cir.2007) (recognizing that "[t]he Supreme Court's opinion in [MedImmune, Inc. v. Gen-entech, Inc., 549 U.S. 118, 127 S.Ct. 764, 166 L.Ed.2d 604 (2007) ], represents a rejection of our reasonable apprehension of suit testâ), the independent requirement of personal jurisdiction over the defendant remains an important and independent limit on the power of the federal courts. See Ruhrgas AG v. Marathon Oil Co., 526 U.S. 574, 583-84, 119 S.Ct. 1563, 143 L.Ed.2d 760 (1999) (distinguishing between the "two jurisdictional bed
In Viam we noted that the question of personal jurisdiction ... is a question of the power of a judicial forum to decide the issues brought before it. A patentee who seeks to enforce its patent may bring an infringement action in a proper forum, and issues regarding the validity and enforceability of the patent may be raised by the defendant. Under our law, a potential defendant in an infringement suit may, in a proper case, preempt the patentee and initiate a suit challenging the enforcement of the patent. The issues on the merits are essentially the same in either situation; the test for personal jurisdiction, for the forum's power to hear the issues, should be the same.
84 F.3d at 428. This statement should not be construed to conflate the distinct requirements of subject matter and personal jurisdiction. Nor should our commentary in Viam be construed to eviscerate the Supreme Court's longstanding requirement that the "minimum contactsâ between the defendant and the forum state must "proximately result from actions by the defendant himself that create a 'substantial connection' with the forum State.â Burger King, 471 U.S. at 475, 105 S.Ct. 2174 (quoting McGee v. Intâl Life Ins. Co., 355 U.S. 220, 223, 78 S.Ct. 199, 2 L.Ed.2d 223 (1957)).
. The dissent's comparison of this case to Campbell Pet is, with all due respect, inapt. The patentee's extra-judicial enforcement activities in Campbell Pet were directed at the forum state, where the trade show was being held. Here, by contrast, IOGEAR sent the second letter to Amazon in Seattle, Washington â not the Alabama forum. Moreover, what the dissent has generalized as a paten-tee's "commercial-type contact,â post at 1343, amounting to the mere sale of products, had no bearing on the question of specific personal jurisdiction in Campbell Pet. There, the patentee's twelve sales to forum residents were analyzed only with regard to general personal jurisdiction â not specific personal jurisdiction. 542 F.3d at 884 (holding those sales to be too "sporadic and insubstantialâ to support general personal jurisdiction).
. The dissent draws "[a]nalogyâ to Akro but fails to recognize the absence of any exclusive license or other enforcement obligation in the present case. Post at 1343.
. The dissent states that the majority is "ruling that the commercial activity of a nonresident company in the forum is always irrelevant to personal jurisdiction.â Post at 1344. We make no such sweeping ruling. With all due respect, the dissentâs statement is not only incorrect, but fails to appreciate, inter alia, the distinction between general and specific personal jurisdiction.