News Summary
The Texas Business Court is set to expand its jurisdiction to include intellectual property matters, following the passage of House Bill 40. This change allows the court to handle a variety of IP disputes that were previously assigned to other courts, marking a significant shift in Texas’s legal landscape. The new provisions will take effect on September 1, providing businesses with a more efficient venue to resolve conflicts related to ownership, licensing, and trade secrets. Texas aims to enhance its role as a leader in business litigation, ensuring accessible solutions for companies involved in intellectual property cases.
Austin, Texas — The Texas Legislature has officially expanded the jurisdiction of the Texas Business Court to include intellectual property matters with the passage of House Bill 40 (HB 40). This significant amendment, signed into law by Governor Greg Abbott on June 20, 2025, marks a strategic move to enhance the state’s legal framework concerning complex business disputes.
The newly amended law, which goes into effect on September 1, 2025, allows the Texas Business Court to hear a variety of cases related to intellectual property (IP). This includes issues of ownership, use, licensing, leasing, installation, and performance of IP. As such, disputes surrounding IP ownership, licensing agreements, and trade secret misappropriation will now fall under the court’s jurisdiction.
Prior to HB 40, the Texas Business Court primarily focused on high-value business and commercial litigation. Its specialization in these areas was aimed at delivering more efficient and expert legal decisions. With the addition of intellectual property matters, the court seeks to provide an effective avenue for litigating specific IP disputes in Texas, benefitting businesses operating in an increasingly IP-intensive economy.
While parties may still choose to file intellectual property cases in other courts, the Texas Business Court will now be a viable and likely venue for such matters. Notably, patent infringement lawsuits will remain under the domain of federal courts, which maintain authority over issues related to patent validity and infringement.
The amendments made by HB 40 also extend to various contract disputes associated with software, data security, and biotechnology, thus acknowledging the growing complexities of technology and information in today’s marketplace.
The legislative changes reflect Texas’s commitment to evolving its judicial system to better address the modern challenges of business and intellectual property litigation. Elevating the Texas Business Court’s role is anticipated to position Texas as a more prominent forum for businesses involved in IP disputes, potentially attracting more business to the state as companies seek favorable and knowledgeable adjudication regarding their intellectual property rights.
The Texas Business Court was established in 2023 as a specialized forum to address complex business litigation efficiently. With the incorporation of intellectual property matters through the amendments specified in HB 40, the court aims to leverage its expertise in these increasingly intricate cases. The legislative body recognizes the necessity of an efficient and knowledgeable approach to IP disputes, which are crucial to the growth and innovation of Texas’s economy.
In summary, the passage of House Bill 40 represents a noteworthy development in the Texas legislative landscape regarding the handling of intellectual property. By extending the Business Court’s jurisdiction, the state fosters an environment that is not only conducive to resolving complex disputes but also underscores Texas’s aspirations to become a leading hub for business and technological advancements.
Deeper Dive: News & Info About This Topic
- Jackson Walker: Insights on HB 40 and Texas Business Court
- Dykema: Can Texas Business Courts Handle More Cases?
- Norton Rose Fulbright: HB 40 Expands Business Courts Jurisdiction
- Vinson & Elkins: Potential Changes to Texas Business Courts
- Wikipedia: Texas Business Court
- Google Search: Texas Business Court
Author: STAFF HERE COLLEGE WRITER
The COLLEGE STATION STAFF WRITER represents the experienced team at HERECollegeStation.com, your go-to source for actionable local news and information in College Station, Brazos County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Brazos Valley Fair & Rodeo, Chilifest, and Aggie Muster. Our coverage extends to key organizations like the Bryan-College Station Chamber of Commerce and United Way of the Brazos Valley, plus leading businesses in education, biotechnology, and retail that power the local economy such as Texas A&M University, Fujifilm Diosynth Biotechnologies, and H-E-B. As part of the broader HERE network, including HEREAustinTX.com, HEREDallas.com, HEREHouston.com, and HERESanAntonio.com, we provide comprehensive, credible insights into Texas's dynamic landscape.
