02 June 2017

US corporate law news weekly: Delaware Court upholds dismissal of Books-A-Million Inc suit

On May 22, 2017, the United States Supreme Court definitively stated where a domestic corporation resides for purposes of venue in a patent infringement case. Consequently, some experts predict that the Court’s decision may make nuisance patent claims more difficult, thereby reducing the number of so-called patent trolls who often attempt to extract a quick settlement.

In its unanimous decision, the Supreme Court ruled that venue for such cases is limited to the State of incorporation for corporate defendants. Writing for the Court, Justice Thomas stated that modifications to the general venue statute, 28 U.S.C. §1391, did not change the meaning of 'resides' in, thus rejecting the argument that Congress intended to make such a change.

For more information on the TC Heartland LLC v. Kraft Foods Group Brands LLC case, see https://www.supremecourt.gov/opinions/16pdf/16-341_8n59.pdf.

Category: Blog