On May 22, 2017, the Supreme Court issued a pivotal decision for purposes of venue in patent litigation, holding that the residence of a domestic corporation refers only to its State of incorporation. As such, legislative amendments which broadened the definition of corporate residence under the general venue statute, 28 U.S.C. §1391, do not modify the meaning of corporate residence under the patent venue statute, 28 U.S.C. §1400(b), as interpreted by Fourco Glass Co. v. Transmirra Products Corp., 353 U.S. 222 (1957). As a result, patent owners can no longer file suit anywhere that a defendant makes sales, and therefore will be more limited in terms of where they may file suit. In addition, the high concentration of patent cases in the Eastern District of Texas is likely to diffuse.
The decision, TC Heartland LLC v. Kraft Food Brands Group LLC, can be accessed at the following link: https://www.supremecourt.gov/opinions/16pdf/16-341_8n59.pdf