Small Business Reading Room

Wednesday, December 10, 2003

Technology Disputes now heard in DE Chancery Court

Anyone who has done some research on incorporating in the State of Delaware knows that there are some advantages to incorporating in the "First State". In fact, we tout 8 good reasons to Incorporate in Delaware on our own website.

Now there are 9.

On May 29, 2003 Governor Ruth Anne Minner signed into law legislation that extends the jurisdiction of the world-renowned Delaware Court of Chancery to cover "technology disputes."

"Technology disputes" is defined in the law as involving the purchase or lease of computer hardware; the development, use, licensing or transfer of computer software; information, biological, pharmaceutical, agricultural or other technology of a complex or scientific nature that has commercial value, or the intellectual property rights pertaining thereto; the creation or operation of Internet web sites; and rights or electronic access to electronic, digital, or similar information. On September 29, 2003 the Rules of the Delaware Court of Chancery were amended ¹ to be consistent with the law Governor Ruth Ann Minner singed creating the "technology court" four months earlier.

Governor Minner said the legislation "keeps Delaware on the cutting edge of dispute resolution, and positions Delaware for further growth in the still emerging technology field. It provides further encouragement for entrepreneurs and investors to make Delaware their corporate home."²

But to take advantage of this generously broad definition of "technology disputes", you will need not only to consent to litigate, but also need to certify that the dispute is valued at least at one million dollars. Does this really provide "encouragement for entrepreneurs and investors to make Delaware their corporate home" as Gov. Minner stated? "Absolutely", says Delaware Attorney Larry D. Sullivan. "A million dollars isn’t what it used to be. It is very easy to qualify for this amount in technology disputes- even mom & pop businesses may find themselves in this category."

Score one more for Delaware, the Corporate Gateway to the World.

- Russell Rozanski

¹You can view the Chancery Court Order adding Rules 79.1, 91. 92, 93, 94 and 95 as an Adobe .pdf document here or
²read the press release regarding the "Technology Court" from May 29, 2003, at the State of DE’s website press release archives

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Small Business Reading Room

Technology Disputes now heard in DE Chancery Court

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