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Supreme Court Expands Patent Jurisdiction

BY Thomas G. Slater Jr.
October 02, 2003

The U.S. Supreme Court recently issued a decision that will have a significant impact on the uniformity of patent law. As a result of Holmes v. Vornado, 535 U.S. 826, 122 S. Ct. 1889, 62 USPQ2d 1801 (2002), many cases involving patent counterclaims will be directed away from the Federal Circuit and into the regional circuit courts of appeals. Although this decision clarifies the jurisdiction of the Federal Circuit, it does so at the expense of consistency in patent law.

The Case

The plaintiff, Holmes, filed an action against Vornado seeking, inter alia, a declaratory judgment that it did not infringe Vornado's trade dress. Holmes did not raise patent claims in the complaint. Vornado asserted a compulsory counterclaim alleging patent infringement. The district court ruled in Holmes' favor on the trade dress claim and stayed the proceedings relating to Vornado's counterclaim. Vornado appealed to the decision to the Federal Circuit, whereupon Holmes challenged the Federal Circuit's jurisdiction. After losing the challenge, Holmes appealed to the U.S. Supreme Court.

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