Sunday, April 21, 2019 9:56:41 AM
"These are also signs that the Eastern District, if it’s going down, will go down swinging. In late June, Judge Gilstrap of the Eastern District issued new ground rules for maintaining venue in a dispute between supercomputing competitors Raytheon and Cray. Raytheon had sued Seattle-based Cray in the Eastern District in 2015, accusing the supercomputer giant of infringing four of its patents. In the wake of the TC Heartland decision, Cray sought a change of venue, arguing that its only tie to the district was a single salesperson working out of his home in Athens, Texas. But for Gilstrap, that was enough to find that Cray had “regular and established” business in the Eastern District, and so would have to face trial there. Gilstrap’s ruling set forth a four-factor test for deciding venue disputes. Noting that “technological advances have significantly changed the way businesses operate throughout our nation,” Gilstrap wrote that, while a fixed physical presence like a store, warehouse, or employees would be considered, so would other factors. Factors like, “the extent to which a defendant represents … that it has a presence in the district” such as through advertising would be weighed, Gilstrap said. So would “targeted interactions within the district,” such as customer support or targeted marketing, as well as “the extent to which a defendant derives benefits from its presence in the district, including but not limited to sales revenue.”
Gilstrap’s ruling was sharply criticized by proponents of patent reform like California Rep. Darrell Issa, who called his ruling “reprehensible.” House Judiciary Chairman Rep. Bob Goodlatte of Virginia accused Gilstrap of reinterpreting the law “to keep as many patent cases as possible in his district in defiance of the Supreme Court and congressional intent.”
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