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The Supreme Court sparked a seismic shift in patent litigation recently when it upset the long-standing interpretation of 28 U.S.C. §1400(b), the special patent venue statute. TC Heartland held that for the purposes of patent venue, the meaning of “resides” in Section 1400(b) is not supplemented by the broad definition of “resides” in the general venue provision, 28 U.S.C. §1391. TC Heartland LLC v. Kraft Foods Group Brands LLC, 581 U.S. __ (2017).
Under §1400(b), “resides” is defined once again only as the state of incorporation as originally held by the Supreme Court in Fourco Glass Co. v. Transmirra Products Corp., 353 U.S. 222, 226 (1957). This dramatic change has immediate consequences for patent litigation, with many commentators expecting a deluge of motions for transfer of venue and a rapid shift in new filings from popular fora like the Eastern District of Texas to other districts, including Northern California, Delaware, and New Jersey.
Receiving less attention thus far is §1400(b)'s sister provision governing venue for copyright claims: Section 1400(a). Unlike the patent venue statute, §1400(a) allows plaintiffs to bring suit where defendants “reside” or “may be found.” Section 1400(a)'s additional “may be found” language and the longstanding interpretation of what those terms mean will likely spare copyright holders from serious venue restrictions. Nonetheless, questions regarding the proper scope of copyright venue post-TC Heartland may very well be raised.
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