Patent appeals court rejects challenge to venue rules

Winter ice rink in Marshall, Texas. The historic county courthouse is in the background. (credit: Joe Mullin)

Patent reform advocates who were hoping to "shut down the Eastern District of Texas" face disappointment today, as the top US patent appeals court ruled (PDF) against a venue transfer in a dispute between two food companies.

Tech companies and patent reform advocates have been complaining that they don't get a fair shake in East Texas, a rural district that's been a hotspot for patent litigation for more than a decade now. The case decided today, In re: TC Heartland, doesn't directly involve tech companies or East Texas, but it could have had a big effect on both.

The lawsuit began when Kraft Foods accused rival food company TC Heartland of infringing its patents on "liquid water enhancers." Heartland's defense lawyers asked to move the case from Delaware to TC Heartland's home state of Indiana, but a Delaware magistrate judge rejected the transfer motion. According to the magistrate, the fact that TC Heartland shipped about 2% of the accused products to Delaware is enough to allow the plaintiffs to sue there.

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