Skyrocketing Patent Filings in the Eastern District of Texas

One would think that the propensity of the Federal Circuit in mandating transfer of patent cases out of the Eastern District of Texas (Tyler, Texarkana, Sherman, Marshall, Lufkin and Beamont, Texas) would cause a slow down in new patent case filings in that district. Indeed, out of apparent exasperation with what it describes as an "unrestrained and improper" use of mandamus by the Federal Circuit, EON Corp. IP Holdings, a patent troll, filed a petition for writ of certiorari to the Supreme Court seeking review of perceived mandamus abuse. That petition was denied yesterday.

But EON has it all wrong. Whether or not the Federal Circuit is overly aggressive in compelling the transfer of patent cases out of the Eastern District of Texas, the fact remains that this one judicial district is the recipient of more new patent case initiations than any other individual federal district in the country.

The administrative arm of the U.S. Courts published recently its annual statistics for the period ending September 2014. Regarding patent cases, the numbers show that there has been a skyrocketing increase in new patent cases filed in the Eastern District of Texas during 2014, which continues an ongoing trend. Here are the numbers:

Eastern District of Texas - New Patent Case Filings By Year

(period ending September 30)

2011     2012     2013     2014

738       1061     1386     1620

A line chart is revealing:

There has been over a 119% increase in new patent case filings in the Eastern District of Texas during the past four reporting years. No other judicial district has received this much new business from patent plaintiffs. Indeed, out of 5,686 new patent cases filed nationwide in 2014, this one district received 28% of these new filings. 

So, whether or not EON is unhappy, it appears that plenty of other plaintiffs are satisfied with the Eastern District of Texas.