High Court Ends Texas' Grip on Patent Infringement Cases

High Court Ends Texas' Grip on Patent Infringement Cases

WASHINGTON — In a ruling that deals a giant blow to patent trolls, the U.S. Supreme Court today ruled that a company’s site of incorporation determines its residency for the purposes of being sued.

The decision is expected to dramatically reduce the number of cases filed with federal courts in the Eastern District of Texas, which oftentimes have sided with patent holders in quick trials involving Texas-sized multimillion-dollar judgments.

The U.S. District Court in Marshall, Texas, has been venue for scores of lawsuits filed by trolls against the biggest names in adult entertainment businesses in infringement cases over various technologies, including those for video-indexing processes, electronic tokens functioning as micropayments, live streaming and popunder ads.

In past years, companies such as MindGeek and all of its web brands, as well as FriendFinder Networks, Adam & Eve, Vivid Entertainment LFP Video Group, Elegant Angel, New Sensations and Girlfriends Films, among scores of others, have been summoned in lawsuits filed in Marshall.

With today’s high court ruling, patent infringement suits now will be spread across the country, especially in California for adult companies where they are based, as well as Delaware, where many are incorporated.

The ruling's outcome could likely mean higher plaintiff’s litigation costs and an increasing risk of inconsistent outcomes of suits filed by trolls, typically shell companies that buy up patents and force businesses to pay license fees or face expensive litigation.

The decision also makes it much more challenging for patent plaintiffs to bring parallel patent suits against multiple defendants in a single district.

The case decided upon today involved an appeal from TC Heartland, an Indiana-based food sweetener company sued by Kraft Foods in Delaware. Lower courts refused to transfer the case to Indiana.

Justice Clarence Thomas, writing for an 8-0 court in the case, said “a domestic corporation ‘resides’ only in its state of incorporation for purposes of the patent venue statute.”

In a statement today, the Electronic Frontier Foundation said: “While today’s decision is a big blow for patent trolls, it is not a panacea. Patent trolls with weak cases can, of course, still file elsewhere. … [I]t does not address the root cause of patent trolling: the thousands of overbroad and vague software patents that the Patent Office issues every year."

Related:  

Copyright © 2026 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

Cherry Candle Makes Her Elegant Angel Debut in St. Paddy's Day Release

Cherry Candle has made her Elegant Angel debut alongside Danny Mountain in a St. Patrick’s Day-themed scene titled "For Fucks Sake!"

Brazzers Debuts New Series 'Glory House: Next Penetration'

2026 XMAs Best Lead Actor Ryan Reid, Tia Maria, and Beca Barbie star in the first episode of a new Brazzers limited series, “Glory House: Next Penetration.”

Andylynn Payne, Sasha Tatcha Lead Latest From TransSensual

Andylynn Payne and Sasha Tatcha star with Derek Kage in the latest scene from Mile High Media studio imprint TransSensual, titled “Gym Jail Bangarama.”

'Legal Impact' Webinar Unpacks North Carolina's New Consent Law

Industry attorney Corey D. Silverstein on Thursday held a webinar focused on North Carolina’s HB 805, a new law that has significantly altered performer consent requirements in the state.

Jennifer White Reflects on a Breakthrough Year in X3 Magazine

Newly crowned XMAs Female Performer of the Year Jennifer White takes center stage in the March issue of X3 magazine, the premier publication spotlighting the real personalities, passions, and stories behind top stars.

Abi James, Laynee James Star in Latest From TeamSkeet

Abi James stars with Laynee James and Connor Kennedy in the latest installment of TeamSkeet series “BadMilfs,” titled “Need Some Mommy Time?”

FSC Launches Privacy-First Age Verification Solution for Members

The Free Speech Coalition (FSC) announced today that it has granted members exclusive access to the PrivateAV age verification solution.

Kasey Kei, Ameena Green Star in Latest From Evil Angel

Kasey Kei and Ameena Green star in a new release from Evil Angel.

Evil Angel Debuts Proxy Paige's 'All Aboard The Trans Express'

Evil Angel has released director Proxy Paige’s new title, “All Aboard The Trans Express.”

Brazil: New AV Requirements Set to Take Effect March 17

President Luiz Inácio Lula da Silva this week gave final approval to new regulations requiring adult websites to age-verify users located in Brazil starting March 17.

Show More