By Insue Kim – Edited by Elise Young
Elcommerce.com, Inc. v. SAP AG, No. 2011-1369 (Fed. Cir. Feb. 24, 2014)
In re Barnes & Noble, Inc., No. 13-162 (Fed. Cir. Feb. 27, 2014)
In re Apple Inc., No. 13-156 (Fed. Cir. Feb. 27, 2014)
The United States Court of Appeals for the Federal Circuit upheld the transfer of venue of Elcommerce, Inc. v. SAP AG, from the Eastern District of Texas to the Eastern District of Pennsylvania. In response to Elcommerce’s claim that the declaratory counterclaims could not be transferred to the Pennsylvania court without voluntary or personal jurisdiction, the court emphasized that there is “‘no requirement under § 1404(a) that a transferee court have jurisdiction over the plaintiff . . . [as long as] the transferee court ha[s] jurisdiction over the defendants in the transferred complaint.’” Elcommerce.com, slip op. at 10 (quoting In re Genentech, 566 F.3d 1338, 1346 (Fed. Cir. 2009)). As plaintiff, Elcommerce was subject to the declaratory counterclaims filed by SAP in Texas, and “jurisdiction was preserved when the entire action was transferred to Pennsylvania . . . .” Id. at 9.
The case was one of many “patent troll” cases regularly filed in the District Court of the Eastern District of Texas. Because of the treatment plaintiffs receive in the Eastern District of Texas, many defendants attempt to transfer their cases to another district. This has made procedural decisions from the Federal Circuit increasingly significant. ArsTechnica discusses why the Eastern District of Texas is such a popular venue for patent trolls. (more…)