Corporate Defendant in Patent Infringement Suit Does Not Necessarily Reside in All of the Judicial Districts in a State with Multiple Districts

May 25, 2018

Reading Time : 2 min

In the two underlying patent infringement lawsuits, the corporate defendant had been sued by two different plaintiffs in the Eastern District of Texas. The defendant was incorporated in Texas and had its headquarters and principal place of business in Austin, which lies in the Western District. The defendant had no place of business in the Eastern District. The district court denied the defendant’s motions to dismiss one suit and transfer the other, both motions being premised on improper venue in the Eastern District. The district court reasoned that being incorporated in the state meant that the defendant resided in each of the state’s districts. Subsequently, the defendant petitioned the Federal Circuit for writs of mandamus, challenging the venue rulings.

To reach its decision, the Federal Circuit analyzed the statute’s text and history, the Supreme Court’s decisions involving the statute and its predecessor, and the patent owners’ arguments based on policy and practical application. First, the court reasoned that the text of § 1400(b) referred to a single district for a defendant’s residence, but allowed multiple districts to be where the defendant maintained regular and established places of business. The court also found that the text of the predecessor to § 1400(b) supported this interpretation.

Second, the court found support for its interpretation in the Supreme Court’s decision in Stonite Products Co. v. Melvin Lloyd Co., 315 U.S. 561 (1942). There, the Supreme Court held that the predecessor to § 1400(b) did not allow a corporate defendant to be sued in the Western District of Pennsylvania when that defendant only had a principal place of business in the Eastern District.

The Federal Circuit rejected the patent owners’ policy argument that it should adopt a flexible approach based on the “realities of modern business” in which corporations were “fluid, amorphous entities,” stating that those arguments were “best directed to Congress.”  Finally, the Federal Circuit found there was no difficulty applying the statute when a defendant is incorporated in a state but has no operations or facilities there, and held that venue is proper in the district where the defendant keeps its registered office “as recorded in its corporate filings.”  Such an office is “a universally recognized requirement of corporate formation,” and is intended to “serve as a physical presence” within the state of incorporation.

In re BigCommerce, Inc., Nos. 2018-120, -122, 2018 WL 2207265 (Fed. Cir. May 15, 2018)

[Linn (opinion), Reyna , and Hughes]

Share This Insight

Previous Entries

IP Newsflash

June 6, 2025

In a precedential opinion, the Federal Circuit definitively held that the Patent Trial and Appeal Board has jurisdiction over IPRs that concern expired patents.

...

Read More

IP Newsflash

June 6, 2025

In a patent infringement litigation in the U.S. District Court for the Eastern District of Texas, Judge Rodney Gilstrap denied a joint motion to stay the litigation pending resolution of inter partes review when it was uncertain that all defendants would be bound by the statutory estoppel provision of 35 U.S.C. § 315(e).

...

Read More

IP Newsflash

May 30, 2025

A district court recently dismissed a patent infringement complaint for improper venue under 28 U.S.C. § 1400(b), finding that the storage and distribution of products from an Amazon warehouse was not sufficient to establish that warehouse as a regular and established place of business in the district.

...

Read More

IP Newsflash

May 27, 2025

The Federal Circuit affirmed a District of Delaware finding of non-infringement in an ANDA litigation due to the patentee’s clear and unmistakable disavowal of claim scope during prosecution. Specifically, the court held that statements made during prosecution of a parent application before the asserted claims were allowed amounted to a prosecution disclaimer that extended to subsequent patents in the family. In reaching this conclusion, the court rejected an attempt by the patentee to resurrect the claim scope through a unilateral, self-serving statement made in later applications in the family.

...

Read More

IP Newsflash

May 13, 2025

The Federal Circuit recently affirmed a district court’s holding that patent term extension (PTE) for a reissued patent was properly based on the issue date of the original patent and not that of the reissued patent. The Federal Circuit concluded that, where both the original and reissued patents claimed a drug product under regulatory review, using the issue date of the original patent to calculate PTE comports with both the purpose of the Hatch-Waxman Act and the related statutory context.

...

Read More

IP Newsflash

May 12, 2025

The Patent Trial and Appeal Board recently declined to institute a petition for IPR that was filed on the same day that the petitioner filed another petition challenging the same claims of the same patent. The board was not persuaded by petitioner’s arguments that a second petition was needed due to alleged claim construction issues or the number, length or scope differences of the challenged claims.

...

Read More

IP Newsflash

May 9, 2025

The USPTO Director vacated the board’s decision to institute inter partes review based on an erroneous application of the Fintiv factors. Specifically, the Director found that the board placed too much emphasis on Petitioner’s Sotera stipulation, and not enough emphasis on the investment in the parallel litigation. Weighing the factors as a whole, the Director determined that institution should be denied.

...

Read More

IP Newsflash

May 9, 2025

In an institution decision following the USPTO’s withdrawal of its Fintiv Memo, the board addressed discretionary denial of an IPR under Fintiv in view of a parallel ITC investigation. The board noted it would not consider the now-rescinded June 2022 memo from then-director Vidal which instructed that the PTAB would not deny institution of an IPR or PGR under Fintiv when the request is based on a parallel ITC investigation. The board conducted a Fintiv analysis in view of the ITC investigation, but ultimately determined that discretionary denial was not warranted in this particular situation.

...

Read More

© 2025 Akin Gump Strauss Hauer & Feld LLP. All rights reserved. Attorney advertising. This document is distributed for informational use only; it does not constitute legal advice and should not be used as such. Prior results do not guarantee a similar outcome. Akin is the practicing name of Akin Gump LLP, a New York limited liability partnership authorized and regulated by the Solicitors Regulation Authority under number 267321. A list of the partners is available for inspection at Eighth Floor, Ten Bishops Square, London E1 6EG. For more information about Akin Gump LLP, Akin Gump Strauss Hauer & Feld LLP and other associated entities under which the Akin Gump network operates worldwide, please see our Legal Notices page.