Linear Technology sued equipment manufacturers after a third party claimed patent infringement on equipment Linear had purchased. The trial court dismissed the case, saying state courts lacked jurisdiction over patent-related disputes. California's Court of Appeal reversed, ruling that state courts can hear breach of contract and indemnity claims even when patent issues are involved, as long as the core dispute is about contractual obligations rather than patent law itself.
If you buy equipment or materials and later face a third-party IP claim, you can sue your supplier in state court for breach of contract or indemnification—don't assume federal court is required.
Indemnity clauses in equipment and material purchase agreements are enforceable in state court; make sure your contracts clearly state the supplier will cover losses from IP infringement claims.