Source: https://www.iplitigationcurrent.com/2016/03/31/proposed-patent-venue-legislation-could-have-a-dramatic-impact-on-plaintiffs-ability-to-bring-suit-in-the-eastern-district-of-texas/
Timestamp: 2019-04-22 23:02:48+00:00

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This month, three United States Senators introduced the “Venue Equity and Non-Uniformity Elimination Act of 2016.” The bill would dramatically narrow the venue statute that applies to patent cases and, it appears, prevent most cases from being litigated in the popular venues for patent cases, such as the Eastern District of Texas.
a party operates a regular physical facility and has engaged in the management of significant research and development of an invention claimed in a patent-in-suit prior to the effective date, or manufactured a product or implemented a process claimed in a patent-in-suit.
The question has been rattling around since 1957, when the Supreme Court held in Fourco Glass Co. v. Transmirra Prods. Corp. (353 U.S. 222) that “the residence of a corporation for purposes of [Section] 1400(b) is its place of incorporation.” Then, in 1988 Congress amended § 1391(c) to begin “[f]or purposes of venue under this chapter.” As referenced above, the Federal Circuit in VE Holding interpreted that change to mean that § 1391(c) should be read into § 1400(b), meaning a patent infringement action can be brought in any forum where the defendant is subject to personal jurisdiction. In 2011, Congress passed the Federal Courts Jurisdiction and Venue Clarification Act of 2011, which replaced “for the purposes of venue under this chapter” with “[f]or all venue purposes.” According to Heartland, because the Federal Circuit had relied on the now amended language of § 1391(c) in deciding VE Holding, the decision should be treated as a nullity and § 1391(c) should no longer be interpreted to define the term “resides” in § 1400(b).
Ironically, during oral argument in early March on Heartland’s Federal Circuit mandamus petition, Judge Moore mused that the request to overturn VE Holding “feel[s] like something a legislature should do.” Congress may now indeed address the issue. Just yesterday, Judge Bryson, sitting by designation in the Eastern District of Texas, denied a motion to dismiss in which Amazon was also attempting to argue its way out of the Eastern District by also attacking the holding of VE Holding. See Script Security Solutions LLC v. Amazon.com, Inc. et al. (15-cv-01030 (E.D Tex.)).

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