Judge: Del. incorporation means Del. jurisdiction

AP News
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Posted: Jun 10, 2011 10:55 AM
Judge: Del. incorporation means Del. jurisdiction

A federal judge in Delaware has some words of advice for American businesses: If you choose to incorporate in the state, don't complain about being sued there.

Judge Sue Robinson this week rejected requests from defendants in two separate patent lawsuits to have their cases transferred from Delaware to California, where they have their headquarters.

One lawsuit was filed by California-based Everglades Interactive against several video game manufacturers, most of them also based in California.

The other was filed by Connecticut-based XPRT Ventures against several other e-commerce companies, including California-based eBay, PayPal and StubHub.

Robinson noted in both cases that because the defendants chose to incorporate in Delaware, they have no reason to complain about being sued there, where more than 850,000 business entities are incorporated.