A federal judge has ordered a patent infringement dispute between National Products Inc. and Pioneer Square Brands Inc. transferred from the Western District of Washington to Delaware, holding that a company's decision to incorporate in Delaware constitutes an agreement to submit itself to the jurisdiction of its courts for resolving commercial disputes.
The court granted the transfer after determining that Pioneer Square Brands Inc.'s top executives living and working in Washington did not constitute a "place of the defendant" under the patent venue statute, 28 U.S.C. § 1400(b), rendering venue improper in Washington.
The dispute centers on whether Pioneer Square Brands Inc., which is incorporated in Delaware and headquartered in North Carolina, can be sued in the Western District of Washington where its executives reside.
The court initially dismissed the case for improper venue, holding that executive homes do not satisfy the Cray framework's requirement of a "regular and established place of business."
Rather than dismiss the case entirely, which could trigger preclusion issues for the defendant, the court ordered supplemental briefing to determine the proper transferee forum.
Pioneer Square Brands Inc. requested transfer to the Middle District of North Carolina, citing its headquarters location and lower median time to trial.
National Products Inc. argued for Delaware, where the defendant is incorporated, asserting that a company's choice to incorporate in Delaware constitutes an agreement to submit to suit there.
The court agreed, holding that the defendant failed to demonstrate a "unique or unexpected burden" from litigating in Delaware, particularly given its incorporation choice.
The court held that electronic evidence and the ability to compel party witnesses mitigated concerns about convenience, noting that party witnesses can be compelled to testify regardless of where litigation occurs.
The order was issued by Judge David G. Estudillo on March 23, 2026.