Texas Legislature Expands Business Court Role in IP Matters with Passage of HB 40

Established in 2023, the Texas Business Court provides a specialized forum for complex business disputes, aiming to deliver more efficient and expert decisions in such cases. Prior to HB 40, the court’s jurisdiction was primarily focused on high-value business and commercial litigation. Now, however, lawmakers have broadened the court’s authority, including certain IP matters. 

HB 40, specifically Section 45, amends the Texas Government Code by adding Section 25A.004(d)(4). This new provision grants the Business Court concurrent jurisdiction over actions “arising out of or relating to the ownership, use, licensing, lease, installation, or in performance of intellectual property.” This expansion means that the Business Court now can hear cases involving disputes over the ownership and licensing of intellectual property, as well as cases alleging trade secret misappropriation. The court’s jurisdiction is concurrent, meaning that parties still may have the option to file such cases in other courts, but the Business Court is now a viable and potentially attractive venue for these matters. For more information, click here.