Bonum Certa Men Certa

Companies Now Have the Incentive to Remove/Move All Operations Out of the Eastern District of Texas (If Not Texas in General)

Deviation from the law can lead to that

Rodney Gilstrap



Summary: The 'karma' of the Eastern District of Texas' aggressive policy is a diaspora or mass exodus of businesses, for any presence in the area may prove costly after TC Heartland (a year-old SCOTUS decision)

THE POOR patent trolls...

Earlier this morning we saw one such troll (Texas-based, obviously!) celebrating the USPTO's new chief, adding a cowboy hat to it. Such is their level of maturity and mentality; this particular troll and his boss, as we noted before, refuse to act like grownups.

"Cases continue to pile up regarding litigation venue."But there's a reason for their reliance on Mr. Iancu (USPTO Director appointed by Trump after he had worked for Trump). They just aren't getting their way and some have gone out of business; many are about to. Texas court cases (regarding patents) are running low; the dockets dry up.

Cases continue to pile up regarding litigation venue. The Federal Circuit, for instance, at the middle of May delivered a couple of key rulings which we covered here before. Watchtroll wrote about the first one nearly a fortnight late. It is about the Eastern District of Texas and in a nutshell:

After the case was filed in the Eastern District of Texas, ZTE filed a motion to transfer the case to the Northern District of Texas under 28 U.S.C. €§ 1404(a) and filed a motion to dismiss for improper venue under 28 U.S.C. €§ 1406 and €§ 1400(b). The district court ruled that the Eastern District of Texas was a proper venue. Relying on Fifth Circuit law, the district court denied ZTE’s motion to dismiss, finding that ZTE “failed to meet its burden to show that it does not have a regular and established place of business in the District.” ZTE filed a petition for a writ of mandamus alleging that the district court improperly placed the burden of proof on the defendant.


The subject of litigation venue trended more than a week ago; here's another one covered at the time and belatedly by Watchtroll:

The Court found that a corporation resides only in one judicial district, not all dsitricts within the state where it is incorporated. First, the plain reading of “the judicial district” indicated that Congress had in mind one particular judicial district where the defendant had committed acts of infringement and had a regular and established place of business. Additionally, other venue rules promulgated near the same time as €§ 1400(b) included a clear statement that venue could lie in multiple districts when Congress intended that result. Although Fourco established that incorporation within the state is necessary for venue purposes and sufficient for venue in single-district cases, it did not imply that venue was proper in every district within the state.


This comes almost exactly a year after TC Heartland.

How about when the venue is Dallas (also Texas)? Watch this new article labeled "Dallas Invents". This isn't "Dallas Invents" but "Dallas attracts patent trolls by ruling in their favour in nearby towns" (so that these trolls become Texas-based). The article says: "Patents granted include Nuvectra Corporation’s paired communication between an implanted medical device and an external control device; Toyota’s "cloaking" apparatus and method for making an object appear transparent; and NewVoiceMedia’s workflow triggering that uses real-time analytics for intelligent sales engagement."

"One might joke that James Rodney Gilstrap, who boasted that he was helping his town, actually accomplished the exact opposite thing. He has become a death knell to job opportunities in the whole region."It's just one of those 'shopping list' articles and it has little or nothing to do with Dallas. Some of these companies aren't even American, let alone Texan.

Meanwhile we learn that the University of Texas still goes after companies where they aren't really based! See this update on Board of Regents, The University of Texas System et al v. Medtronic, Inc. et al:

The court denied a defendant's motion to dismiss plaintiffs' patent infringement action for improper venue because defendant had a regular and established place of business in the district by ratifying its subsidiary's manufacturing and research facility as its own place of business.


As readers may recall, courts in Texas grossly misused their power last year. The "reprehensible" [1, 2] Judge Gilstrap, for example, got reprimanded for ignoring the Rule of Law (or courts above him) to keep lawsuits in an improper venue (his own). Behaviour such as this is only likely to discourage companies from opening branches in Texas; moreover, it might encourage them to leave or shut down existing branches. They're making an error by making the "selling point" of this place patent litigation; they temporarily attract many patent trolls and defendants (accused parties) and in the long run they lose both, as well as actual businesses. One might joke that James Rodney Gilstrap, who boasted that he was helping his town, actually accomplished the exact opposite thing. He has become a death knell to job opportunities in the whole region.

Recent Techrights' Posts

IBM's Payroll: Cannot Even Pay the People What They're Legally Entitled to
How financially-stressed is IBM at this point?
IBM 'Dinobabies' Speak Out
"They want newbies out of school at a much cheaper rate"
 
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Wednesday, March 11, 2026
IRC logs for Wednesday, March 11, 2026
Gemini Links 12/03/2026: "on Urbit" and the True Cost (or Criticism) of "Social Control Media"
Links for the day
Slop About "linux" in Google News
Once people recognise that those sites are fake it's hard to 'unsee' what they are
An American War on GNU/Linux, Software Freedom, and British Investigative, Science-Based Reporting - Part V - Attempts to Take Down and Suppress Criticism of Back Doors Controlled by Microsoft and the American Government
The cost of maintaining illusions
Slides From the European Patent Office (EPO) Explain Why They're Striking, How They're Striking, and What Comes Next
A week from now the strike will go ahead
GAFAM Datacentres Are Facilities of War, So Risk of Downtime by Missiles or State-Sponsored Cracking Has Vastly Increased
How safe is your business in "clown computing" or DCs marked as some "legitimate targets" at wartime?
Companies That Take Away Blood and Sweat From the Community to Sell a Ponzi Scheme to Everybody
We need Free software that is run by communities
1,234 People Gather Online to Plan Next EPO Strikes and Other Industrial Actions
yesterday an online gathering orchestrated the next moves by EPO staff
Links 11/03/2026: Fake Videos Swarm YouTube, "Ukraine Can Now Manufacture ‘China-Free’ Drones"
Links for the day
Gemini Links 11/03/2026: Lagrange for iOS and Android and "Turning a Folder of Git Repos Into Project Launcher"
Links for the day
Kafkaesque: Unlawful Activities in the UK to Cover Up Unlawful Activities in the United States of America
Why is bribery and even extortion seen is OK? Because rich people do those things?
Former IBM Executive, Ron Hovsepian, Doomed S.u.S.E. (SUSE)
SUSE is like a child nobody wants to raise
Quiet Layoffs or Silent Layoffs Alleged at Microsoft
Will some investigative journalists do their job now and ask Microsoft tough questions?
After a Long Lull LinuxTeck (linuxteck.com) Came Back Only as a Slopfarm
Unlike Linuxiac, LinuxTeck wasn't very active in recent years
Links 11/03/2026: EPO and USPTO Software Patents Thrown Out Again, Copyright Concerns Over Slop (Plagiarism Using Buzzwords)
Links for the day
Microsofters' SLAPP Censorship - Part 9 Out of 200: 5RB Barrister Does Not Even Know the Name of His Own Client (That He Was Paid Well Over $200,000 to 'Speak' or 'Cover' for)
If you assault women in the United States, there's a barrister available for you in the UK
IBM's Fedora is Now Led by GAFAM Slop
The official word of Fedora is partly slop
Links 11/03/2026: "Drill, Baby, Drill" and Social Control Media Recognised as Threat to Democracy
Links for the day
5 Years Since Freenode Conflict
IRC isn't going away
A Week Ahead of Next EPO Strike the Staff Representatives Show the Administrative Council That the Office Lost the Best Staff, It's No Longer Attractive
the message circulated regarding the open letter to the Administrative Council
Jeff Bezos as an Individual Said to Have Enough Capital to Buy IBM
Assuming a market capitalisation of 234.70 billion
Starting Soon: Another New Series About Richard Stallman
There are some inside stories we can tell
Gemini Links 11/03/2026: School, Code Slop, and "Fancy Weapons"
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Tuesday, March 10, 2026
IRC logs for Tuesday, March 10, 2026
Geminispace Continues to Grow
Geminispace Will Soon Have 5,000 Capsules
Very Little Slop About "Linux"
We hope to see slop eradicated by year's end
BBC Lied for Its Longtime Sponsor (Bribes for 15+ Years) Bill Epsteingate, in Effect Covering Up Sex Trafficking of Underage Girls
The state of the media is truly awful
Microsoft GitHub is Not Free Hosting and It Won't Last
Not for much longer [...] Microsoft is afraid to say that it is pulling the plug, but it seems inevitable
Mass Layoffs at Microsoft, March 2026
When will the media properly investigate this?
An American War on GNU/Linux, Software Freedom, and British Investigative, Science-Based Reporting - Part IV - Escalating to Ministers, Explaining the Severity of These Matters
British Sovereignty at Stake
"The Lost Generation" Came Back, This Time Literally
Based on my limited experience with young people ("alphas"), they're lost
IBM is Not Likely to Survive Another Decade
Despite having already survived over a century [...] Last week we saw claims that some company would likely acquire IBM for its remaining assets
IBM Has Just Been Sued Again by Its Own Staff (This Time a Manager, Stephen P. Gutierrez)
IBM's behaviour towards its staff can prove costly
When a Company Says Its Layoffs are "Due to AI" Check the Debt (Typically the Real Reason for Mass Layoffs)
The mass layoffs at Microsoft continue, but Microsoft hides those in some of the same ways IBM does
Doing More With Less
primacy of concepts rather than bells and whistles
Andy and Helen in Cybershow on Divesting From the United States' Technology and Politics
It is no longer considered a taboo to say this and it's not "anti-American" because many Americans can relate to and agree with such criticism
Links 10/03/2026: "GEMA v. Suno Copyright Case" and "Valve Faces PRS Lawsuit Over Allegedly Unlicensed Steam Music"
Links for the day
Gemini Links 10/03/2026: Woods in UK, Slop Laziness, and "Small Technology and Small Economic"
Links for the day
Garrett Announces LibreLocal Instance in Northampton, Massachusetts (USA)
his message was the only one last month
Microsofters' SLAPP Censorship - Part 8 Out of 200: Gross Misuse of UKGDPR to Protect the Agenda of American Back Doors (Mass Surveillance)
Responding to bunk claims regarding UKGDPR and claims of 'analytics' in our sites
Links 10/03/2026: Oil Prices Rising, South Korean/US Military Assets Redirected
Links for the day
Links 10/03/2026: Rust Rewrites by Slop "20,171 Times Slower", "You MUST Review LLM-generated Code"
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Monday, March 09, 2026
IRC logs for Monday, March 09, 2026