SCOTUS ruling limits venue shopping

The Supreme Court of the United States held unanimously Monday that patent infringement lawsuits may be filed only in the state in which a defendant company is incorporated. The decision is a blow against the practice of "venue shopping," or selectively bringing patent infringement cases to courts likely to hand down favorable outcomes.

In its opinion, the court interpreted language in the patent venue statue to mean that a company "resides" only in its state of incorporation, rather than applying a broader definition of "residence" used in a general venue statue. The Court said that in the absence of a signal from Congress to alter the patent venue statute, venues should be limited to states of incorporation...