The Eastern District of Texas in Raytheon Co. v. Cray, Inc., 2017 WL 2813896 threw a curve ball at those who prematurely called the end of the district as a popular venue for patentees when Judge Gilstrap issued an opinion that took a broad view on venue. In TC Heartland, the Supreme Court held that a domestic corporation "resides" only in its State of incorporation. The patent venue statute 28 USC 14000(b) states that venue is proper "in the judicial district where the defendant resides" or "where the defendant has committed acts of infringement and has a regular and established place of business." Subsequent to TC Heartland, some courts have focused on the second half of the statute, namely the "place of business" provision for venue purposes.
In Raytheon, Judge Gilstrap articulated a four factor test for determination of whether a defendant has a regular and established place of business in the district for venue purposes. The four factors are: (1) physical presence; (2) the extent to which the defendant represents, internally or externally, that it has a presence in the district; (3) the extent to which a defendant derives benefits from its presence in the district, including but not limited to sales revenue; and (4) extent to which the defendant interacts in a targeted way with existing or potential customers, consumers, users, or entities within the district.
Judge Gilstrap's venue decision was harshly criticized by Rep. Darrell Issa (R-CA) as a "reprehensible" end-run around the Supreme Court's TC Heartland.
In Raytheon, Judge Gilstrap articulated a four factor test for determination of whether a defendant has a regular and established place of business in the district for venue purposes. The four factors are: (1) physical presence; (2) the extent to which the defendant represents, internally or externally, that it has a presence in the district; (3) the extent to which a defendant derives benefits from its presence in the district, including but not limited to sales revenue; and (4) extent to which the defendant interacts in a targeted way with existing or potential customers, consumers, users, or entities within the district.
Judge Gilstrap's venue decision was harshly criticized by Rep. Darrell Issa (R-CA) as a "reprehensible" end-run around the Supreme Court's TC Heartland.
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