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Federal Circuit Throws Out District Court's Test for “Place of Business” for Purposes of Determining Venue in Patent Cases
On Sept. 21, 2017, a Federal Circuit panel of Judges Lourie, Reyna and Stoll issued a unanimous opinion, authored by Judge Lourie, in In re: Cray Inc., Case Nos. 2017-129. The panel granted Cray's petition for a writ of mandamus, holding that the district court abused its discretion by refusing to transfer a patent suit against Cray Inc. to another court.
Raytheon Co. brought suit in the Eastern District of Texas, accusing Cray of infringing patents covering supercomputers used in scientific research. Cray is a Washington incorporation with its principal place of business located there. Although Cray has no sales offices or manufacturing facilities in the Eastern District of Texas, it allowed a sales executive to work remotely from his home in that district. U.S. District Judge Rodney Gilstrap ruled that this was enough to establish that Cray had a place of business in the district.
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