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Patent Infringement

By Christopher Gaspar and Sean Hyberg
July 02, 2017

Although TC Heartland LLC v. Kraft Foods Group Brands LLC, No. 16-341 (May 22, 2017), answers the question of where a domestic corporation resides in patent infringement cases, it does not fully answer the question of where proper venue lies. In a move that many patent litigators had anticipated, the Supreme Court dispensed with the venue option of suing a corporate defendant wherever it could be subject to personal jurisdiction. Now, for purposes of venue in patent lawsuits, corporate defendants reside only in the state of incorporation. But that does not necessarily mean that venue is not proper for corporate defendants outside their state of incorporation. Whereas before, venue was largely taken for granted, the threshold issue of venue and whether a defendant has a “regular and established place of business” is likely to take on a much more prominent role in patent litigation following TC Heartland.

Meaning of 'Residence'

Since 1990, corporate defendants could be sued for patent infringement wherever they were subject to personal jurisdiction. This trend began when the Federal Circuit expanded the availability of venue in patent infringement cases in VE Holding by ruling that the general venue statute 28 U.S.C. § 1391(c) as amended in 1988 redefined “resides” in the patent venue statute
§ 1400(b) so that a corporate defendant was deemed to reside wherever it is subject to personal jurisdiction. See VE Holding Corp. v. Johnson Gas Appliance Co., 917 F.2d 1574 (1990). Prior to VE Holding, however, a corporate defendant resided only in its state of incorporation for purposes of the patent venue statute.

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