PacTec Holdings v. Shanghai Zhongyan Information etc. CA2/5

FACTS AND PROCEDURAL BACKGROUND

I. Facts

A. Relationship of PacTec Software (Shanghai) Co., Ltd. (PacTec Shanghai) to California Plaintiff PacTec Holdings, LLC (PacTec Holdings) is a Delaware-based limited liability company and “resident of California.” It claims to be the successor to OemTec, LLC (OemTec) and PacTec Shanghai.1 OemTec is a software development company that calls itself a “technology incubator.” Between 2005 and 2008, OemTec had a physical office in Marina del Rey, California. In 2005, OemTec’s parent company opened PacTec Shanghai as a subsidiary to “support [the] research and development efforts” of OemTec. PacTec Shanghai hired its employees locally in China, but those employees worked “regularly and closely” with OemTec employees. Indeed, this “opportunity to work remotely, but closely, with a California tech

Although PacTec Holdings never adduced any evidence supporting its allegation of being OemTec and PacTec Shanghai’s successor, Zhongyan did not challenge its standing.

2 company” was one of PacTec Shanghai’s “selling points” when recruiting employees in China. As part of their work together, OemTec “provided PacTec Shanghai with…