Crackdown in the Works on Abusive Patent Demand Letters

The U.S. House Energy and Commerce subcommittee approved a bill last week that would crack down on abusive patent demand letters. The Hill reports the bill was sent to the full committee on a party-line vote of 10-7, but is still far from being enacted.

The bill would provide more disclosure requirements in patent demand letters and allow the Federal Trade Commission to fine companies that send abusive letters, which advocates say are a major tool of so-called “patent trolls.”

Groups such as United for Patent Reform, which has called for demand-letter reform, are opposing the bill for now. The group, composed of technology and retail companies, encouraged the committee to make fixes but “none of the changes” were adopted, the group said.

Public Knowledge (PK), said that any federal bill on demand letters shouldn’t stop states from taking “stronger, more innovative actions” to protect their citizens. “This bill should be a floor, not a ceiling,” said PK’s Charles Duan.

“The door of course remains open as we continue to move forward,” subcommittee Chairman Michael Burgess (R-TX) said. “I hope we can do so together as opposed to splintering off and dividing at a crucial time.”

Lawmakers on the Judiciary Committee are working on broader legislation meant to reform patent litigation practices. That proposal largely avoids the issue of demand letters.

Jon Kinzenbaw, President and CEO of Kinze Manufacturing in Williamsburg, Iowa, and an Association member, shares his thoughts on patent reform in the May issue of Ag Innovator. S