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Google fights to keep patent lawsuit in California

Efforts made to remove a lawsuit from California court involving Google and a company called Rockstar has been unsuccessful. Rockstar wanted the suit moved to Texas where it has filed patent lawsuits against Android partners of Google.

Rockstar outbid Google when it acquired patents for $4.5 billion in 2011. It is speculated that Rockstar wanted the current dispute moved to Texas because that state is deemed to be friendlier towards patent holders.

Rockstar has apparently created an entity in this other state just before filing its lawsuits against Google. The California court referred to the creation of this new company as a "sham entity." The court ruled that Rockstar had created this new company only for jurisdictional purposes regarding where its lawsuits should be tried.

The lawsuits that Rockstar filed have apparently affected Google's relationship with its customers and also hurt sales of certain Android devices. The judge ruled in favor of Google because the company resides in California where evidence concerning this case is located.

It's yet to be seen if other Rockstar suits will be consolidated or transferred to California court. It's possible the cases could be renewed in Texas after the California lawsuit has been completed. It's said that the California case may resolve a number of issues that are tied to the Texas cases.

Business litigation matters are often lengthy and costly. Among other things, attorneys are needed to settle jurisdictional disputes like the one mentioned above so that litigation can ultimately be resolved in an efficient and cost-effective manner.

Source: PC World, "Google lawsuit against Rockstar to stay in California," April 17, 2014

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