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Speaker 1: Now it's time for our daily Bloomberg Lab Brief, exploring

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Speaker 1: legal issues in the news, and today Bloomberg La host

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Speaker 1: Gregg's Store dessis as a Supreme Court case which decided

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Speaker 1: that companies must bring patent cases in the states where

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Speaker 1: they are incorporated, rather than choosing a favorable court in

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Speaker 1: another part of the country. He speaks with Sue Decker,

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Speaker 1: a patent reporter for Bloomberg News. Talk first just about

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Speaker 1: what the rule had been before this decision from the

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Speaker 1: Supreme Court this week. Basically, it was patent owners could

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Speaker 1: file wherever they want to. I used to refer to

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Speaker 1: it as the Walmart rule. If the product was sold

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Speaker 1: out a Walmart, that was enough to give jurisdiction that

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Speaker 1: in whatever court you wanted. So tell us about Martiall Texas.

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Speaker 1: That's uh in Eastern Texas, and it is a place

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Speaker 1: where patent owners have apparently just loved to file their lawsuits.

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Speaker 1: And it's been that way for more than a decade now.

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Speaker 1: The entire Eastern District of Texas, which is a rather

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Speaker 1: large area, is three point five million people, but Martial

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Speaker 1: only twenty people, and yet more than nineteen hundred patent

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Speaker 1: suits were filed there last year, and as the Supreme

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Speaker 1: Court decision going to end all that just cut of

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Speaker 1: back a little. What do we know it's We believe

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Speaker 1: it's going to significantly detail it. There is because of

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Speaker 1: the fact that they say, oh, domestic, domestic corporations have

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Speaker 1: to be sued in the in the areas in which

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Speaker 1: they're incorporated. That's going to put a lot of tech

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Speaker 1: company cases back in California, for instance. It's going to

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Speaker 1: put a lot of cases in Delaware. There's the caveats there.

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Speaker 1: One is that it only applies to domestic corporations, and

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Speaker 1: the other is that, um, it's going to overwhelm those

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Speaker 1: two courts. So there may be some legal arguments to

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Speaker 1: keep the cases in Texas or perhaps some other courts.

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Speaker 1: Talk to me about who the winners and losers are

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Speaker 1: in this, Who who benefits? Because it is now harder

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Speaker 1: to sue in places like Marshall, the Silicon Valley companies

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Speaker 1: in particular, they get sued a lot in Texas. Um,

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Speaker 1: you will have what I refer to as pay me

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Speaker 1: to go away cases where it's a patent owner who

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Speaker 1: doesn't make a product, probably bought the patent from the

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Speaker 1: inventor and it's just looking for a quick by, you know,

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Speaker 1: quick sellout. UM. The tech companies can say, no, no, no,

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Speaker 1: you have to have these cases filed in California, which

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Speaker 1: is going to be inconvenient, it's going to be more expensive,

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Speaker 1: and you're going to have more tech savvy juries, so

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Speaker 1: they won't be able to get as much money. Um.

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Speaker 1: The So the tech companies will love it, as some

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Speaker 1: of the smaller independent, um, what they refer to as

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Speaker 1: nonpracticing entities pejoratively as trolls, are not going to like it.

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Speaker 1: And that's Sue Decker, a patent reporter for Bloomberg News,

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Speaker 1: speaking with the Bloomberg Lah host Gregg's Store. You can

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Speaker 1: listen to Bloomberg Law week days at one pm Wall

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Speaker 1: Street Time here on Bloomberg Radio, and that is this

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Speaker 1: morning's Bloomberg Lawbrary. If you can find more legal news

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Speaker 1: at Bloomberg Law dot com and Bloomberg b NA dot com.

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Speaker 1: Attorneys will find exceptional legal research and business development tools

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Speaker 1: there as well. Visit Bloomberg Law dot com and Bloomberg

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Speaker 1: BNA dot com for more information