What would a piece of legislation be to actually solve the issue with East Texas court being so pro-patent? Something like all patent suits must be prosecuted in the jurisdiction of the company supposedly infringing?Well, we could try passing a law like this:
"Any 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."
And we tried passing such a law. The text above is 28 U.S.C. §1400 (b) and has been the law of the United States since the 1897 patent statute. The Supreme Court says, "venue in patent infringement actions is solely and exclusively governed by § 1400(b), as a special and specific venue statute applicable to that species of litigation," (Fourco Glass Co. v. Transmirra Products Corp., 353 U.S. 222 (1957)) and has never reversed or amended that opinion.
But when you live under a corrupt and openly self-interested judiciary, you can't depend on the law to protect you. In 1982, after much lobbying from the patent bar, Congress directed all appeals of patent cases away from regional circuit courts of appeal, where almost all other appeals go, to the newly created Court of Appeals for the Federal Circuit (CAFC). The patent bar wanted a court filled with appointees from its own ranks to create new case law that would force engineers and companies to pay out much more fealty and cash to the patent lawyers themselves.
And we get an explosion in patents and patent litigation. Software patents were legalized by the CAFC and the CAFC abolished the venue statute in the VE Holding case of 1990, driving patent litigation to the entrepreneurial judges of the corrupt East Texas District.
Usually a court can't just decide to abolish a statute like that, but when an appeals court has exclusive national jurisdiction, there's no check on its power. The Supreme Court justices often comment on the power and freedom from ordinary limits of the CAFC and it is the most often reversed 9-0 of the appeals courts, but the Supreme Court can rarely make time to reverse all the CAFC's messes. The CAFC takes about 2-5,000 cases a year and the Supreme Court takes a couple hundred, just a handful of those from the CAFC.
The TC Heartland case is currently under appeal to the Supreme Court asking it to reverse the CAFC abolition of this statute. If the Supreme Court takes the case, East Texas will soon be limited to cattle and civil cash forfeiture cases.