Patent filings in Eastern District of Texas fall 68% after TC Heartland decision

For many years, plaintiffs in patent infringement cases flocked to the Eastern District of Texas, spurred by welcoming judges, rocket docket scheduling, and a belief that they would find plaintiff-friendly juries. Defendants in the same cases naturally chafed at having to defend in the Eastern District, especially when there was little, if any, connection between that location and the allegedly infringing activity.  This led to hundreds of defense motions to transfer venue to another federal district court–motions that were usually denied by the local judges who wanted to keep the cases in their district. The Eastern District dominated the national patent docket, with well over a thousand infringement cases filed in the district each year.

That all changed last year, when the Supreme Court’s in TC Heartland v. Kraft Foods read the federal venue statutes to severely limit where patent infringement cases could be brought. No longer could a plaintiff assert a reasonable connection to the Eastern District of Texas just because some defendant sold an allegedly infringing product there. Unsurprisingly, the new restrictions have led to a drastic drop in filings in the Eastern District, and a growth in filings in the District of Delaware (where many business defendants are incorporated), among other venues.

It will be interesting to see where things settle in the coming years.

 

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