Venue “Status Quo” Preserved By Federal Circuit

Without additional legislation that would lead to a change, venue in a patent case is proper in any jurisdiction in which the defendant does business—so says the US Court of Appeals for the Federal Circuit.

In a case decided in April 2016, TC Heartland was accused by Kraft Foods of infringing Kraft’s patents with respect to sales by the defendant of water-enhancing products in Delaware. TC Heartland argued in its response that the case should be dismissed or transferred, saying Congress intended for such cases to be heard where a defendant company “resides”, in this case, Indiana. The district court rejected the case, and TC Heartland filed a writ of mandamus with the Federal Circuit.

In its rejection, the Federal Circuit noted the consistency with which the broad interpretation of corporate “residence” as written in VE Holding v. Johnson Gas Appliance has been considered prevailing law, and that Congress has no intent to change it. The Federal Circuit called TC Heartland’s argument “utterly without merit or logic”.

 

Credit: McDermott Will & Emery via the National Law Review. Read the full story here.