Google has escaped a patent infringement lawsuit after the US Court of Appeals for the Federal Circuit ruled that data servers do not constitute a “place of business” in the district where the complaint was filed.
The Federal Circuit said that a “place of business” must have an employee or agent working at the site on behalf of the defendant, and that contractors such as internet service providers (ISPs) do not count.
The decision may resolve confusion over whether businesses which store data or lease shelf space in a district, but do not have any employees on the ground, may be sued for patent infringement there.
The suit was filed at the US District Court for the Eastern District of Texas, which has gained a reputation as a hotspot for patent infringement suits, proving popular with non-practising entities (NPEs) or ‘patent trolls’.
Source: World IP Review
