Tuesday, June 1, 2010

Incorporation in Forum State Shortly Before Filing Patent Infringement Lawsuit "has the Appearance of Forum Shopping"

and Provides No Basis for Retaining Venue

In granting defendants' motion to transfer venue, the court rejected plaintiff's incorporation in Arkansas as a basis for retaining venue. "The only connection this case has to the Western District of Arkansas is that defendants sold the products in question [in this forum] for nationwide distribution and [plaintiff's] incorporation in Arkansas three weeks before filing suit. . . . [Plaintiff's] incorporation in Arkansas just twenty days before filing this lawsuit does not help [plaintiff] because it has the appearance of forum shopping. Indeed, defendants point to other instances where courts have transferred cases involving [plaintiff's parent's] subsidiaries because of suspicions of forum shopping."

Shared Memory Graphics, LLC v. Apple Inc. et al., 5-09-cv-05128 (ARWD May 27, 2010, Order) (Miller, J.)

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