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Venue in Patent Litigation

The Federal Circuit has clarified the rules concerning venue in patent litigation.  In In re Cray Inc., the Federal Circuit ruled that an employee who telecommutes from a particular judicial district does not create a "regular and established place of business" in that district.  If the defendant does not have a "regular and established place of business" in the judicial district, venue is not proper.  In reaching the decision, the Federal Circuit considered factors such as whether the employee may move without the consent of the employer; whether the defendant owned, leased or exercised any control over the home; whether living in the judicial district was a requirement of employment; and other factors.  The ultimate decision rests on the idea that the "regular and established place of business" must be of the defendant, not the defendant's employees.  This decision will make it harder for plaintiffs to file suit in friendly venues.