Petitioners brought suit in the federal court for the northern district of Ohio against defendant corporations having regular and established places of business in that district and against two individual defendants resident there alleging infringement of patent rights and asking for injunction, damages, and an accounting. Defendants' answer denied infringement and set up a counterclaim based on a patent granted one of the defendants praying for an injunction against infringement and an accounting. Defendants' counterclaim did not allege that petitioners were inhabitants of the district where the counterclaim was to be tried or that they had regular and established places of business within the district and had there committed the acts of infringement. Plaintiffs' motion to dismiss the counterclaim because of improper venue was sustained by the district court, which decision was reversed by the circuit court of appeals. Held, decision of the circuit court of appeals affirmed. General Electric Co. et al. v. Marvel Rare Metals Co. et al., 287 U.S. 430, 53 Sup. Ct. 202 (1932).