Patent Trolls in Texas Take Another Hit

Plaintiffs in patent lawsuits used to flock to the Eastern District.of Texas because they could sue anywhere in the United States and the Eastern District has long been notoriously friendly to plaintiffs. In 2016, Marshall, Texas with a population of only 24,000, was home to an astonishing 25 percent of all patent filings in the U.S. In May of 2017, however, the Supreme Court ruled unanimously in TC Heartland v. Kraft Foods that plaintiffs can’t forum shop to find a friendly court. Instead patent plaintiffs must file in districts where the company  being sued is incorporated or where it has an established place of business.

Businesses are now responding to the Supreme Court’s rule by shifting their establishments. Apple, for example, looks like it will close both of its retail stores within the Eastern District of Texas and instead open a new store in Dallas, just south of the Eastern District of Texas border.