Judge Robinson: Motion to dismiss for lack of personal jurisdiction DENIED after the court attributed one defendant's contacts to the defendant in question
Plaintiffs filed this patent infringement action against defendants Anchen Pharmaceuticals and Anchen Inc. after the defendants filed their Abbreviated New Drug Application (“ANDA”) to manufacture generic versions of AMRIX®. In re Cyclobenzaprine Hydrochloride Extended-Release Capsule Patent Litigation, MDL No. 09-2118 (D. Del. Mar. 12, 2010). Plaintiffs are a Nevada and a Swiss corporation. Defendant Anchen Pharmaceuticals is a California corporation with a principal place of business in California. Id. at 3. Defendant Anchen Inc. is a Delaware corporation, with a principal place of business in California. The relationship between the two entities was not clear to the Court but there was an overlap of senior corporate officers and plaintiffs alleged that the two entities held themselves out in the marketplace as one company. Id.
Defendants argued that the action should be dismissed as to Anchen Pharmaceuticals for lack of personal jurisdiction. Id. at 15. Plaintiffs argued that jurisdiction was proper because the Delaware contacts of Anchen Inc. should be attributed to Anchen Pharmaceuticals under agency theory. Id. at 18. “Because the allegations demonstrate[d] a nearer than arm’s length relationship, the court agree[d].” Id. Defendants did not dispute plaintiffs’ evidence that “both entities share[d] the same address and some of the same employees. Moreover, Anchen Pharmaceuticals’ statements to the United States Patent Office during the prosecution of its mark, [that both defendants, although separate legal entities, constitute a single source to the relevant public], evince exactly this type of relationship.” Id. Although Judge Robinson concluded that Anchen Pharmaceuticals’ activities in Delaware were not sufficient to establish personal jurisdiction, she found general jurisdiction present because submission of the ANDA constituted and act of infringement and because Anchen Pharamaceuticals’ drug sales in Delaware was a “substantial revenue” source for the company. Id. at 19.