Monday’s U.S. Supreme Court ruling that sets strict limits on where patent infringement lawsuits can be brought could mean fewer lawsuits against Maine companies.
The case stemmed from a challenge brought by a unit of Kraft Heinz Co. against TC Heartland LLC, an Indiana-based maker of water flavorings, in Delaware. Heartland had wanted the case transferred to Indiana.
In an 8-0 opinion written by Associate Justice Clarence Thomas, the Supreme Court sided with Heartland, holding that patent lawsuits can only be filed in jurisdictions where the targeted company is incorporated. It sent the case back to a lower court.
Experts say the decision throws into question nearly 30 years of established practice and makes it tougher to bring cases in plaintiff-friendly jurisdictions like the Eastern District of Texas, favored by so-called patent assertion entities often referred to as patent trolls.
“It’s not uncommon for these entities to bring 500 cases if not on the same day then over the course of a couple of months,” Robert Abrahamsen, a Portland-based partner with Pierce Atwood LLP, told Mainebiz.
He said that the Supreme Court decision was “fairly big news in the patent world” and good news for Maine firms, especially smaller ones with no out-of-state physical presence. “The likelihood of getting sued by one of these [patent assertion] companies has gone down substantially,” he said.
But he also cautioned against complacency, saying, “Companies should not stop being vigilant about making sure they are not stepping on the rights of others.”
Abrahamsen is among four recent Pierce Atwood hires in intellectual property and patent law. He was previously with Wolf Greenfield & Sacks PC in Boston.
