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Apple closes stores to avoid Texas patent trolls

by on25 February 2019


After all, it can't be because Texans don't buy Apple

The Tame Apple Press is claiming that Apple is closing both of its retail stores in the Eastern District of Texas to protect itself from patent trolls.

Apple Willow Bend in Plano, Texas and Apple Stonebriar in Frisco, Texas, both located in the northern suburbs of Dallas, are expected to permanently close in mid-April. Employees were briefed about the plans earlier this week.

Apple plans to open a new store at the Galleria Dallas shopping mall in Dallas, just outside the Eastern District of Texas border.

The theory is that since US law states that patent infringement lawsuits may be filed "where the defendant has committed acts of infringement and has a regular and established place of business" is a risk. By closing its stores in Eastern Texas, Apple is ending its established place of business in the district. In May 2017, the Supreme Court shifted precedent by ruling that a US corporation resides only in its state of incorporation. Apple is incorporated in California, not Texas, satisfying this clause.

The Eastern District of Texas has been a hotbed for patent litigation over the past few decades due to well-established rules for patent infringement cases, experienced judges, lower probability of cases being transferred to another district, and quicker jury verdicts.  Although another way of defining it is that it has clueless juries who lack opposable thumbs and are ill-equipped to handle any form of justice that does not involve a lynching and tend to resolve cases based on the tried and tested "you'all not from around here are ya".

Patent infringement lawsuits against Apple will likely shift to US district courts in Northern California and Delaware.

One source said Apple had offered employees opportunities to transfer to other stores, work from home for AppleCare, or severance to those who are not interested in working at another Apple location.

Apple did not provide a specific reason for the store closures beyond consolidation.

Last modified on 25 February 2019
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