For years, the small East Texas town of Marshall has held a special status in patent litigation: poster city for opportunistic “patent trolling” lawsuits brought by nonpracticing entities, firms that amass patents for the sake of pursuing license fees and litigation. Thanks to last month’s Supreme Court ruling in TC Heartland v. Kraft Foods Group, Marshall’s dominant position as a patent trolling venue may soon end. But will patent trolling be reduced overall? Unlikely.
Patent Trolling Isn’t Dead — It’s Just Moving to Delaware
The recent Supreme Court ruling wasn’t a cure-all.
June 28, 2017
Summary.
Thanks to last month’s Supreme Court ruling in TC Heartland v. Kraft Foods, patent trolling in one popular legal jurisdiction may soon end. But will this reduce patent trolling overall? Unlikely. While the TC Heartland decision will force trolls to work where their targets’ headquarters or primary operations are based, for most firms, that includes Delaware. 64% of all publicly traded firms are incorporated in Delaware, and 90% of IPOs happen there – so even under the new ruling, Delaware is a viable – and seemingly favorable – site for NPE litigation.