Ryan K. Yagura

Ryan Yagura, the chair of O’Melveny’s Intellectual Property and Technology Practice, leads some of the world’s most prominent technology companies through their most complex patent infringement cases.

Yagura and a team of O’Melveny lawyers secured a significant win for Hyundai in the Federal Circuit Court of Appeals. On March 9, 2022, the court issued a writ of mandamus, which found that the venue was improper in W.D. Tex. The court compelled the district court to either dismiss or transfer the case to the Central District of California.

This decision provides crucial new guidance on venue and agency. StratosAudio, Inc. v. Hyundai Motor America, 6:20-cv-01125 (W.D.Tex., filed Dec. 11, 2020) and 2:22-cv-01712 (C.D. Cal., filed March 15, 2022).

“The case, filed against our client Hyundai Motors of America, alleged that plaintiff’s choice of forum — the Western District of Texas — was fine because our client was ‘in control’ of dealerships in the venue,” Yagura said. “But, Texas Law restricts the control that a car company has over its dealerships in order to maintain dealer independence. We relied on that law, and the policy behind it, to transfer venue to California where Hyundai Motor America actually has facilities.”

The district court’s refusal to transfer the case could have significantly expanded the patent venue and created a risk that distributors and manufacturers in many industries would be responsible for the acts of retailers. This would have had a negative impact on the industry as a whole.

The decision provides important guidance on venue and agency, which will have a positive impact on the industry as a whole. Ryan and his team’s legal expertise has undoubtedly helped Hyundai to protect its interests and achieve a successful outcome.

“The Federal Circuit’s mandate to transfer the case is important because it forges an area of law that says, if Company A does business through Company B, and Company B is sufficiently independent, then a plaintiff cannot establish venue over Company A,” Yagura said. “That’s significant for car companies and their dealerships in Texas, but the principle may also apply more broadly. For example, electronics manufacturers often sell products through retailers across the country. Under this decision, that relationship will not confer venue over the manufacturer in the retailer’s state, as long as the retailer is sufficiently independent from the manufacturer.”

In addition to the Hyundai cases, Yagura is lead counsel in patent cases for Display, AMD, HP, JPMorgan Chase, Solidigm, and Clear Channel.

—Douglas Saunders