In 2015, Congressman Bob Goodlatte and legislators from both parties in the House attempted to put the breaks on patent infringement lawsuits.
“With our current patent laws being abused in ways that are threatening the survival of American innovation, the Congress must act to curb abusive patent litigation. The bipartisan Innovation Act [1] contains commonsense reforms and makes the patent litigation process more transparent.”
By all appearances, that bill died in the 114th Congress.
However, today, the Supreme Court ruled in the case of TC Heartland v. Kraft Foods Group Brands.
In a unanimous decision [2], the court stated that a business really can only be sued in the location where it actually is. In other words, you can’t “shop around” for courts that might be favorable to your case.
Bloomberg reports [3]:
“The U.S. Supreme Court put sharp new limits on where patent-infringement lawsuits can be filed, undercutting patent owners’ ability to channel cases to favorable courts…. The high court said patent suits should be filed in the state where the defendant is incorporated.
The ruling will bar many patent owners from pressing cases in the Eastern District of Texas, a patent-friendly jurisdiction where more than one-third of all infringement suits are now filed.”
In other words, this is going to streamline the judicial system and make it much more difficult for opportunists.
Meanwhile, this is merely a judicial action. The court effectively reversed a 1990 decision, which means this decision could also be reversed. So, Goodlatte, while glad for the ruling, remains focused on legislative reform:
“Following today’s decision, I look forward to continuing discussions with stakeholders on other aspects of abusive patent litigation and how we keep our patent laws up to date to ensure a well-functioning patent system.”
The Innovation Act that Goodlatte proposed also covers much more than patent venues; there are still many more reforms needed to curb the abuses of patent trolls and ensure the patent system is working effectively said Beth Breeding, Goodlatte’s spokesperson.
“The Judiciary Committee will continue to consider how to best address these concerns,” she said.