Businesses that face complex disputes in North Carolina should prepare for significant changes to the Business Court designation process starting December 1, 2025, including renewed opportunities to get their cases before the North Carolina Business Court, even if the original deadline has passed.
To get your case before the North Carolina Business Court, it must qualify as a “mandatory complex business case” under the “Designation Statute” of North Carolina General Statute § 7A‑45.4. On December 1, 2025, some important changes to that process will take effect.
Back in July, Governor Stein signed House Bill 620 into law. House Bill 620 made several changes to the North Carolina Court system, but most notably, it changed the types of cases that can be designated as a “mandatory complex business case.” These changes could impact how and when your case ends up in the Business Court.
What’s Changing?
1. Intellectual Property Language Gets Streamlined
Currently, the Designation Statute covers disputes involving the “ownership, use, licensing, lease, installation, or performance of intellectual property.” Starting December 1, that language will shift to “rights to or performance of intellectual property.”
This change simplifies the scope but still captures disputes over software, data security, biotech, and similar technologies, and possibly expands the scope of cases that end up before the Business Court. A change like this may result in it being easier to get a case involving an intellectual property dispute into the Business Court.
2. New Categories for Mandatory Designation
Two new categories of cases will automatically qualify for North Carolina Business Court Designation:
- Cases the Chief Justice designates as “complex business” under Rules 2.1 and 2.2 of the General Rules of Practice. This gives the Chief Justice more flexibility to move cases into Business Court when appropriate. Historically, when a case was designated as “complex” under Rules 2.1 and 2.2 of the General Rules of Practice, these cases still proceeded before the North Carolina Superior Court (usually with a specific judge for the life of the case). After these changes take effect, the Chief Justice will have far greater flexibility to send a case to the Business Court.
3. Expanded Filing Options for Defendants
Under the current Designation Rules, a defendant will generally have 30 days after being served with a complaint to file a Notice of Designation and try to move a case to the Business Court. The changes to the Designation Rules add an option for defendants to seek designation as a “mandatory complex business case” contemporaneously with counterclaims, cross-claims, or third‑party claims that trigger designation.
This change helps ensure that when a case becomes a “complex business case” midstream it can still be moved promptly.
Why Does This Matter for Businesses?
These changes make it easier for certain cases to enter Business Court and clarify the rules for intellectual property disputes. If your business deals with high-value contracts, IP rights, or regulatory issues, you’ll want to understand these updates—and plan your litigation strategy accordingly.
