Venue Reform Gets A Boost in the Senate

The clock continues to run on the short calendar that Congress made for itself in 2016.  But, that doesn’t mean that important issues should be put on the shelf. One major issue that Congress can still make an impact on is patent litigation reform. The Taxpayers Protection Alliance (TPA) has been advocating for reform in this area for years now, and Congress has made some progress with the introduction of bills in the House and Senate.

Even though there may be difference of opinion in some areas of patent reform, one specific area that there seems to be genuine agreement on when it comes to patent litigation reform is the need for reform in where patent cases are heard.  More commonly known as “venue reform,” the place where a case is heard is a real problem and the stats show why:

• Most patent disputes are dealt with in just one court in Texas,
• In 2015 43.6% of the cases were handled in the Eastern District of Texas ,
• The court’s rulings show favoritism toward patent trolls.

The good news is there could be a fix to getting venue reform done in Congress. Late last week legislation was introduced in the Senate that would specifically address venue reform:

Senators Jeff Flake (R-Ariz.), Cory Gardner, (R-Colo.), and Mike Lee, (R-Utah), have introduced a bill aimed at patent trolls filing abusive patent cases in the Eastern District of Texas, considered friendly territory for those whose main business is patent lawsuits rather than making products. The Eastern District of Texas took 44 percent of all patent cases filed in 2015. Judge Gilstrap of the Eastern District is based in Marshall, Texas, which has a population of 24,000 people, yet he hears about one-fifth of all patent cases in the United States.

The Venue Equity and Non-Uniformity Elimination Act of 2016 (which can be read here) is an opportunity to weaken the harmful impact patent trolls have on patents.  Patent trolls exist mainly to create new lawsuits and make money for those who have nothing to do with innovating or creating products or jobs. This legislation could be key to reforming the system under which patent litigation currently operates. A biased court, with mainly one-sided results favoring the trolls is the wrong way to help patent holders.

TPA applauds the introduction of legislation put forward by Sens. Flake, Gardner, and Lee.  The Senate should take up the bill so that the House can also act on the legislation. Moving toward a fairer system for how patent litigation currently operates would help to protect intellectual property and encourage more innovation. Though this debate has been contentious, venue reform continues to be an area where agreement can and should be achieved.