Threatening letter sufficient to establish actual controversy
Epic Systems Corporation v. Acacia Research Corporation et al., No. 06-255-JJF, Nov. 16, 2006.
Farnan, J. Motion to dismiss or transfer venue is granted in part and denied in part.
The patent-in-suit relates to a method and system for scheduling, monitoring and dynamically managing resources. Defendants informed plaintiff that its “cadence” product infringes and would require a license. Plaintiff brought this declaratory judgment action. Defendants claim the court lacks subject matter jurisdiction due to no actual controversy. A letter indicating that defendants intended to add parties to pending lawsuits was sufficient for plaintiff to reasonably conclude defendants were ready to bring suit. Thus an actual controversy existed. Claims against Acacia were dismissed since Acacia had no standing to bring suit against plaintiff. Research Scheduling Corporation owned the rights to the patent and remains in the suit.
A copy of the full opinion is available here.
