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The U.S. Supreme Court's May 22, 2017, decision in TC Heartland LLC v. Kraft Foods Group Brands LLC, 137 S.Ct. 1514 has dramatically impacted the demographics of patent infringement lawsuits in the United States. Since the TC Heartland decision, the patent bar has observed a major shift in where plaintiffs choose to file new patent cases. Far fewer patent lawsuits have been filed in the Eastern District of Texas while far more have been filed in venues like the District of Delaware and the Northern District of California. This article examines the impact of TC Heartland with a focus on recent Federal Circuit decisions applying TC Heartland and further clarifying the scope of where patent cases may be filed.
Background
The patent venue statute, 28 U.S.C. §1400(b), provides that “[a]ny civil action for patent infringement may be brought [1] in the judicial district where the defendant resides, or [2] where the defendant has committed acts of infringement and has a regular and established place of business.” The general venue statute, 28 U.S.C. §1391(c), provides that a corporation shall be deemed to reside in any judicial district in which the corporation is subject to the court's personal jurisdiction. The issue at the heart of TC Heartland was whether the patent venue statute incorporates the broad definition of “residence” contained the general venue statute.
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