Anti-Patent Trolling Legislation Considered

The Judiciary Committee is considering a proposal aimed at stopping (or at least reducing) patent trolling– frivolous patent infringement claims–in Connecticut. SB 258 would bar patent infringement claims made in bad faith.

CBIA is working with various industry representatives to improve SB 258 so that Connecticut’s consumer protection laws safeguarding intellectual property rights remain strong.

The changes being sought would still discourage meritless patent infringement claims, but allow companies with good-faith claims to effectively navigate the state’s consumer protection and intellectual property laws.

Patent trolls are individuals and groups who attempt to wrest undeserved settlement payments from legitimate companies by making false claims of patent ownership related to various business tools and practices.

These bad-faith actors often attempt to coerce legitimate businesses into paying a settlement for the erroneous claim by asking for a settlement amount that is less than the anticipated cost of litigation necessary to defend their interests.

Targets of patent trolls often are small companies, sometimes family-owned, with little or no experience in dealing with intellectual property rights issues. Small companies can be intimidated by these patent trolls and, fearing litigation, agree to their demands.

The fight against patent-trolling is not just a Connecticut issue, but part of a national movement that also will be considered in Congress.

SB 258 will combat patent trolling by providing various forms of relief for victims of bad faith patent infringement claims, and empowering the state attorney general to take action against patent trolls.

CBIA is encouraging the committee to incorporate the recommendations of the various industries to improve this legislation.

For more information, email Eric George.