Abstract
Synopsis
The question presented in this case, which is discussed in the current Holman Report, is where proper venue lies for a patent infringement lawsuit brought against a domestic corporation. The patent venue statute, 28 U.S.C. § 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.” In 1990, the Federal Circuit held in VE Holding Corp. v. Johnson Gas Appliance Co. that, for purposes of venue in a patent infringement case, a corporate defendant “resides” in any district where there would be personal jurisdiction over the defendant at the time the action is commenced. In the present decision, the Supreme Court held that for purposes of patent venue a domestic corporation only “resides” in its State of incorporation, thus abrogating VE Holding and limiting the venue options for patentees.
The question presented in this case is where proper venue lies for a patent infringement lawsuit brought against a domestic corporation. The patent venue statute, 28 U.S.C. § 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.” In Fourco Glass Co. v. Transmirra Products Corp., this Court concluded that for purposes of § 1400(b) a domestic corporation “resides” only in its State of incorporation.
In reaching that conclusion, the Court rejected the argument that § 1400(b) incorporates the broader definition of corporate “residence” contained in the general venue statute, 28 U.S.C. § 1391(c). Congress has not amended § 1400(b) since this Court construed it in Fourco, but it has amended § 1391 twice. Section 1391 now provides that, “[e]xcept as otherwise provided by law” and “[f]or all venue purposes,” a corporation “shall be deemed to reside, if a defendant, in any judicial district in which such defendant is subject to the court's personal jurisdiction with respect to the civil action in question.” §§ 1391(a), (c). The issue in this case is whether that definition supplants the definition announced in Fourco and allows a plaintiff to bring a patent infringement lawsuit against a corporation in any district in which the corporation is subject to personal jurisdiction. We conclude that the amendments to § 1391 did not modify the meaning of § 1400(b) as interpreted by Fourco. We therefore hold that a domestic corporation “resides” only in its State of incorporation for purposes of the patent venue statute.
I
Petitioner, which is organized under Indiana law and headquartered in Indiana, manufactures flavored drink mixes. Respondent, which is organized under Delaware law and has its principal place of business in Illinois, is a competitor in the same market. As relevant here, respondent sued petitioner in the District Court for the District of Delaware, alleging that petitioner's products infringed one of respondent's patents. Although petitioner is not registered to conduct business in Delaware and has no meaningful local presence there, it does ship the allegedly infringing products into the State.
Petitioner moved to dismiss the case or transfer venue to the District Court for the Southern District of Indiana, arguing that venue was improper in Delaware. See 28 U.S.C. § 1406. Citing Fourco's holding that a corporation resides only in its State of incorporation for patent infringement suits, petitioner argued that it did not “resid[e]” in Delaware under the first clause of § 1400(b). It further argued that it had no “regular and established place of business” in Delaware under the second clause of § 1400(b). Relying on Circuit precedent, the District Court rejected these arguments, 2015 WL 5613160 (D.Del., Sept. 24, 2015), and the Federal Circuit denied a petition for a writ of mandamus, In re TC Heartland LLC, 821 F.3d 1338 (2016). The Federal Circuit concluded that subsequent statutory amendments had effectively amended § 1400(b) as construed in Fourco, with the result that § 1391(c) now supplies the definition of “resides” in § 1400(b). 821 F.3d, at 1341–1343. Under this logic, because the District of Delaware could exercise personal jurisdiction over petitioner, petitioner resided in Delaware under § 1391(c) and, therefore, under § 1400(b). We granted certiorari, 580 U.S. ––––, 137 S. Ct. 614, 196 L.Ed.2d 490 (2016), and now reverse.
II
A
The history of the relevant statutes provides important context for the issue in this case. The Judiciary Act of 1789 permitted a plaintiff to file suit in a federal district court if the defendant was “an inhabitant” of that district or could be “found” for service of process in that district. The Act covered patent cases as well as other civil suits. In 1887, Congress amended the statute to permit suit only in the district of which the defendant was an inhabitant or, in diversity cases, of which either the plaintiff or defendant was an inhabitant.
In 1897, Congress enacted a patent specific venue statute. See Act of Mar. 3, 1897, ch. 395, 29 Stat. 695. In so doing, it placed patent infringement cases in a class by themselves, outside the scope of general venue legislation. This new statute (§ 1400(b)'s predecessor) permitted suit in the district of which the defendant was an “inhabitant,” or a district in which the defendant both maintained a “regular and established place of business” and committed an act of infringement. At the time, a corporation was understood to “inhabit” only the State in which it was incorporated.
In 1948, Congress recodified the patent venue statute as § 1400(b). See Act of June 25, 1948, 62 Stat. 936. The recodified provision, which remains unaltered today, states 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.” This version differs from the previous one in that it uses “resides” instead of “inhabit[s].” At the same time, Congress also enacted the general venue statute, § 1391, which defined “residence” for corporate defendants. That provision stated that “[a] corporation may be sued in any judicial district in which it is incorporated or licensed to do business or is doing business, and such judicial district shall be regarded as the residence of such corporation for venue purposes.”
In Fourco, this Court held that § 1400(b) “is the sole and exclusive provision controlling venue in patent infringement actions, and … is not to be supplemented by … § 1391(c).” The Court observed that Congress enacted § 1400(b) as a standalone venue statute and that nothing in the 1948 recodification evidenced an intent to alter that status. The fact that § 1391(c) by “its terms” embraced “all actions” was not enough to overcome the fundamental point that Congress designed § 1400(b) to be “complete, independent and alone controlling in its sphere.”
The Court also concluded that “resides” in the recodified version of § 1400(b) bore the same meaning as “inhabit[s]” in the pre-1948 version. Accordingly, § 1400(b) continued to apply to domestic corporations in the same way it always had: They were subject to venue only in their States of incorporation.
B
This landscape remained effectively unchanged until 1988, when Congress amended the general venue statute, § 1391(c), to provide that “[f]or purposes of venue under this chapter, a defendant that is a corporation shall be deemed to reside in any judicial district in which it is subject to personal jurisdiction at the time the action is commenced.” Judicial Improvements and Access to Justice Act. The Federal Circuit in VE Holding Corp. v. Johnson Gas Appliance Co., 917 F.2d 1574 (1990), announced its view of the effect of this amendment on the meaning of the patent venue statute. The court reasoned that the phrase “[f]or purposes of venue under this chapter” was “exact and classic language of incorporation,” and that § 1391(c) accordingly established the definition for all other venue statutes under the same “chapter.” Because § 1400(b) fell within the relevant chapter, the Federal Circuit concluded that § 1391(c), “on its face,” “clearly applies to § 1400(b), and thus redefines the meaning of the term ‘resides’ in that section.”
Following VE Holding, no new developments occurred until Congress adopted the current version of § 1391 in 2011 (again leaving § 1400(b) unaltered). See Federal Courts Jurisdiction and Venue Clarification Act of 2011. Section 1391(a) now provides that, “[e]xcept as otherwise provided by law,” “this section shall govern the venue of all civil actions brought in district courts of the United States.” And § 1391(c)(2), in turn, provides that, “[f]or all venue purposes,” certain entities, “whether or not incorporated, shall be deemed to reside, if a defendant, in any judicial district in which such defendant is subject to the court's personal jurisdiction with respect to the civil action in question.” In its decision below, the Federal Circuit reaffirmed VE Holding, reasoning that the 2011 amendments provided no basis to reconsider its prior decision.
III
We reverse the Federal Circuit. In Fourco, this Court definitively and unambiguously held that the word “reside[nce]” in § 1400(b) has a particular meaning as applied to domestic corporations: It refers only to the State of incorporation. Congress has not amended § 1400(b) since Fourco, and neither party asks us to reconsider our holding in that case. Accordingly, the only question we must answer is whether Congress changed the meaning of § 1400(b) when it amended § 1391. When Congress intends to effect a change of that kind, it ordinarily provides a relatively clear indication of its intent in the text of the amended provision.
The current version of § 1391 does not contain any indication that Congress intended to alter the meaning of § 1400(b) as interpreted in Fourco. Although the current version of § 1391(c) provides a default rule that applies “[f]or all venue purposes,” the version at issue in Fourco similarly provided a default rule that applied “for venue purposes.” Respondent argues that “‘all venue purposes’ means ‘all venue purposes’—not ‘all venue purposes except for patent venue.’” The plaintiffs in Fourco advanced the same argument. This Court was not persuaded then, and the addition of the word “all” to the already comprehensive provision does not suggest that Congress intended for us to reconsider that conclusion.
This particular argument is even weaker under the current version of § 1391 than it was under the provision in place at the time of Fourco, because the current provision includes a saving clause expressly stating that it does not apply when “otherwise provided by law.” Finally, there is no indication that Congress in 2011 ratified the Federal Circuit's decision in VE Holding.
As applied to domestic corporations, “reside[nce]” in § 1400(b) refers only to the State of incorporation. Accordingly, we reverse the judgment of the Court of Appeals and remand the case for further proceedings consistent with this opinion.
It is so ordered.
Justice GORSUCH took no part in the consideration or decision of this case.