“The Supreme Court on Monday limited the ability of patent holders to bring infringement lawsuits in courts that have plaintiff friendly reputations, a notable decision that could provide a boost to companies that defend against patent claims,” Brent Kendall reports for The Wall Street Journal.
“The high court, in an opinion by Justice Clarence Thomas, ruled unanimously that a lower court has been following an incorrect legal standard for almost 30 years that made it possible for patent holders to sue companies in almost any U.S. jurisdiction,” Kendall reports. “Instead, the Supreme Court said, claims of patent infringement must be brought in the state where a corporate defendant is incorporated.”
Kendall reports, “The ruling could significantly shift patent-infringement lawsuits out of some federal districts, including in east Texas, that have been home to large numbers of patent cases because patent holders believed those courts provided a favorable venue for their claims.”
Read more in the full article here.
MacDailyNews Take: Boom! The rocket docket has just exploded in flight!
Suck it, patent trolls.
Now, how much time and money has been wasted over the past 30 years…
U.S. appeals court tosses $533 million patent verdict against Apple – March 1, 2017
Apple makes excellent progress in bid to squelch $533 million verdict – June 1, 2016
On heels of $532.9 million verdict, Apple hit with second lawsuit from Smartflash – February 27, 2015
Apple plays the odds for overturning rocket docket’s $533 million verdict – February 26, 2015
Rocket docket jury orders Apple ordered to pay $532.9 million in patent trial; Apple to appeal – February 25, 2015
[Thanks to MacDailyNews Readers “Fred Mertz” and “Arline M.” for the heads up.]
What is to keep the patent trolls from incorporating in Texas? This changes a little but isn’t life changing.
The ruling is the lawsuit has to be brought in the state where the DEFENDANT is incorporated.
“Instead, the Supreme Court said, claims of patent infringement must be brought in the state where a corporate defendant is incorporated.”
So now the majority of patent infringement suits will be in Delaware?
Good point. Perhaps the wording should be changed to “Where the corporate defendant is HEADQUARTERED”.
No, actually, it is where the corporate defendant is incorporated. If you look at typical legal boilerplate, any disputes between a corporation and a customer are often required to be adjudicated in the state where the corporation is incorporated. Now, in Apple’s case, that would be CA, because Steve and Steve didn’t have the fancy-schmantzy wherewithal to go to Delaware, they just incorporated locally. But many corporations are going to need to be sued in Delaware or Nevada.
Good work, Clarence.
In other news, thousands of companies have suddenly decided to relocate out of Texas.