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P manufactured, sold, and held the patent to a type of pump. P sued Layne (D) on the grounds that D had maliciously libeled and slandered P's title to the pump by stating that the pump, and certain of its component parts, were infringements upon D's pump. P filed suit in the Arkansas state court for damages of $50,000 as well as punitive damages. P manufactured, sold, and held the patent to a type of pump. P sued Layne (D) on the grounds that D had maliciously libeled and slandered P's title to the pump by stating that the pump, and certain of its component parts, were infringements upon D's pump. P filed suit in the Arkansas state court for damages of $50,000 as well as punitive damages. D removed the suit to the federal District Court claiming that federal courts have exclusive jurisdiction over matters of patent law. P motioned to remand and the suit was dismissed by the District Court. P appealed.

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