06 Dec Patent “Troll” Bill Passes House

Due largely to lobbying efforts by large technology companies, the US House of Representatives just passed a bill to make it harder for so-called patent “trolls” to sue technology companies for infringement. The bill sailed through with wide bi-partisan support. The White House has said they support something like this, and the Senate is about to take it up as well. The bill seeks to address the concern some have that there are abuses by companies that purchase patents with the primary intention of suing infringers for licensing fees and the like.

The bill seeks to address the problem where owners of patents, which sometimes are weak, file suits against tons of companies. They may do this even if they are not sure there is infringement, with the hope of a quick settlement to avoid the expense of litigation. The bill requires those bringing suits to be very specific about how their patent is used and what particular infringement is alleged. It also encourages judges to make losers of these cases pay the winners’ legal fees. And it requires a company sending a demand letter alleging infringement to identify their ultimate parent company.

As this bill progresses one hopes the Congress strikes a careful balance to ensure that legitimate small companies with patents are not unduly burdened when they seek enforcement against infringers. There are some large companies that consider these cases simply a cost of doing business and are willing to “steal” others’ technology against that risk. Let’s hope Congress recognizes that those cases need a clear path.