PFF: Patent Venue Proposals Are Vague
Recommendations for changing the patent litigation venue regime put forward by the last Congress are vague and subjective, which could result in confusion and excessive litigation, according to a report released Wednesday by the Progress and Freedom Foundation. PFF visiting fellow Sidney Rosenzweig's paper proposes simplified legislative language to address so-called "forum-shopping" as leaders of the House and Senate Judiciary Committees resume discussions about reintroducing patent legislation in the 111th Congress. The enactment of either bill from last session would "cause a tidal wave of venue-related disputes to drown the federal courts," he wrote.
Rosenzweig proposes the following revision to 28 U.S.C. § 1400(b) to address the only concrete problem identified by Congress, "namely the lax standard for venue against corporate defendants" --
'Notwithstanding subsection 1391(c) of this title, any civil action for patent infringement may be brought against a corporation only in a judicial district--
'(1) where the defendant has its principal place of business or where the defendant is incorporated;
'(2) where the defendant has committed a substantial portion of the acts of infringement and has a regular and established physical facility that it controls;
'(3) where any defendant has committed a substantial portion of the acts of infringement and has a regular and established physical facility that it controls, if there is no other district in which the action may be brought under subsections (1) or (2); or
'(4) where any defendant has its principal place of business, where any defendant is incorporated, where any defendant may be found, or where any defendant has committed acts of infringement, if there is no other district in which the action may be brought under subsections (1), (2) or (3).'
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