In June the Supreme Court issued a decision in TC Heartland v. Kraft Food Group Brands that might lead one to believe that the Eastern District of Texas will no longer be the go-to district for patent infringement claims, and companies facing what they believe to be frivolous claims against them will not be forced to defend themselves outside of their home state. But the long-term effect of TC Heartland is still unclear. In TC Heartland, the Supreme Court held that “[residence]” under 28 U.S.C. § 1400(b), the patent specific venue statute that determines where a suit can be filed, refers only to the state of incorporation for domestic corporations.
At the end of May this year, the Supreme Court unanimously clarified the law on venue in patent infringement lawsuits (see here). For 27 years, litigants had relied on a Federal Circuit decision, VE Holding Corp. v. Johnson Gas Appliance Co. (1990), that allowed patent owners to file suit virtually anywhere an infringing product was sold. In TC Heartland v. Kraft Foods Group Brands, the Supreme Court limited venue, and district courts are reaching different conclusions about whether litigants have waived venue arguments by not asserting them before TC Heartland.
Remember when Plano was famous for being the headquarters of Frito-Lay, Dr. Pepper, J.C. Penny, and Pizza Hut? Those were the good old days, and folks were proud of the hometown. Then, something happened. Alien creatures began to descend from outer space, or other states, and things started to change.