We’ve also written about East Texas (here, here and here), specifically the town of Marshall, which, partly because of its reputation as a plaintiff-friendly venue in patent-infringement suits, has boomed in popularity.
So what happens when these two Blog topics collide? That is, how would the judges of East Texas treat the KSR ruling? Earlier this week, we got ever so slight a hint that KSR might change the landscape when Judge Leonard Davis, of Tyler, Texas, cited the decision in ruling for the defendants in a patent infringement suit. Here’s a copy of Judge Davis’s opinion.
The patent at issue involved a business method for financing and repaying credit-card receivables. The patent was invented by Barbara Johnson, who operated a Gymboree franchise and faced difficulty in getting loans based on her credit-card receivables.
In light of KSR, Judge Davis ruled, Johnson’s patent was invalid because it was, well, obvious. Although Johnson “implemented an aggressive marketing and business development program that brought this financing method to widespread use, she did not invent a new business method,” the judge concluded.
“The Eastern District is such a hotbed for patent cases, it is significant that this is how it views KSR,” says Brian Buss, a Vinson & Elkins partner who represented the winning defendants.
“We respectfully disagree with the Court’s findings on [the patent’s] validity,” said AdvanceMe, the named plaintiff. ” We filed a notice of appeal of the court’s decision in that regard.”
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