In re: Cray, Inc.

by
Raytheon filed a patent infringement action against Cray in the Eastern District of Texas. Cray is a Washington corporation with its principal place of business there. It also maintains facilities in Minnesota, Wisconsin, California, and Texas. Although Cray does not rent or own any property in the Eastern District of Texas, it allowed Harless, a sales executive, and Testa, a senior territory manager, to work remotely from their homes in that district. Harless provided price quotations to customers, in communications that identified his home telephone number as his “office” telephone number with an Eastern District of Texas area code. Cray never paid Harless for the use of his home nor advertised or otherwise indicated that his home was a Cray place of business. Cray moved to transfer the suit. The district court denied a transfer. The Federal Circuit directed the transfer of the case, citing the Supreme Court’s 2017 holding, “TC Heartland, effectively reviving Section 1400(b) as the focus of venue in patent cases.” Section 1400(b) provides that “[a]ny civil action for patent infringement may be brought in the judicial district where the defendant resides, or where the defendant has committed acts of infringement and has a regular and established place of business.” Cray does not maintain a regular and established place of business in the district. View "In re: Cray, Inc." on Justia Law