The high court, in an opinion by Justice Clarence Thomas, ruled unanimously that a specialized appeals court has been following an incorrect legal standard for almost 30 years that made it possible for patent holders to sue companies in almost any U.S. jurisdiction.
Under the relevant statute interpreted by the court, companies can be sued for patent infringement where they reside, or where they have committed regular acts of patent infringement and have a regular and established place of business.
The high court’s ruling Monday focused on the “reside” prong of that test, saying a corporate defendant resides only in the state where it is incorporated, a much narrower standard that lower courts had been using.
