Can a Court Reach Patent Eligibility After Dismissing for Improper Venue?
Patent cases often begin with several threshold motions at once. A defendant may argue that the lawsuit was filed in the wrong district while also arguing that the asserted patent is ineligible under 35 U.S.C. § 101. If the court agrees that venue is improper, must it stop there? In AML IP, LLC v. Bath & Body Works Direct, Inc., decided August 28, 2026, the U.S. Court of Appeals for the Federal Circuit said no. A district court had discretion to decide both grounds when they were properly raised, even though either ground independently supported dismissal. The precedential opinion is primarily about judicial authority and case management. It does not establish a new test for patent eligibility, and it does not decide which district was proper. Its practical importance lies in what patent litigants should expect at the opening stage of a case. The dispute AML IP sued Bath & Body Works, The Buckle, and Big Lots in the Eastern District of Texas. It alleged infringement of U.S. Patent No. 6,876,979, involving an e-commerce “bridge computer.” The defendants moved to dismiss on two grounds: under Federal Rule of Civil Procedure 12(b)(3), because venue was improper; and under Rule 12(b)(6), because the asserted claims were patent-ineligible under Section 101. The district court agreed with both arguments and dismissed the actions. On appeal, AML did not challenge the merits of either the venue ruling or the eligibility ruling. Instead, it argued that once the court found venue improper, it should not have reached eligibility. The Federal Circuit affirmed The Federal Circuit rejected that procedural argument. A federal court with jurisdiction over the case can consider multiple properly presented dismissal grounds. Finding improper venue did not strip the [...]









