Legal Update
May 31, 2017
High Court Limits Where Patent Suits Can Be Filed
Any civil action for patent infringement may be brought in the judicial district where the defendant resides, or where the defendant has committed acts of infringement and has a regular and established place of business. |
In contrast to the patent venue statute, the generally applicable venue statute has undergone more recent revisions. For example, in 1988, Congress expanded the location where a defendant can and should be sued. The general venue statute modified the definition of “resides” by expanding residence to include “any judicial district in which such defendant is subject to the court’s personal jurisdiction.” Personal jurisdiction can include places where the defendant has directed its actions, for example, where the product at issue is in the stream of commerce.
Two years later, in VE Holding Corp. v. Johnson Gas Appliance Co., the Federal Circuit evaluated whether the 1988 change to the general venue statute affected the patent-specific venue provision. The end result was to make venue proper for patent litigation anywhere the defendant is subject to personal jurisdiction rather than the more restricted definition of “resides” as the place of incorporation.
- Patent litigation venue is governed solely by 28 U.S.C. § 1400(b).
- For domestic corporations, venue in patent litigation is proper only (1) where the alleged infringer is incorporated or (2) where the alleged infringer has committed acts of infringement and has a regular and established place of business.
- TC Heartland is likely to shift patent litigation away from courts with very minimal ties to the district, and toward states where many domestic corporations are incorporated.