Industry-backed groups are coalescing in support of a...
Industry-backed groups are coalescing in support of a bill to curb vague patent demand letters. The Innovation Alliance, a tech research and development coalition, said in a statement that the bill “appropriately targets abusive behavior rather than particular types of…
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patent owners, while maintaining the integrity of legitimate patent enforcement practices for all patent holders"(http://bit.ly/1mJkk6p). Application Developers Alliance President Jon Potter said the bill rightly targets “patent trolls,” who send deceptive demand letters to “extort unjustified payments from companies that cannot afford to fight back in court” (http://bit.ly/1qkdwKj). Alliance staff members have previously testified on patent legislation, the organization said. The Coalition for 21st Century Patent Reform (21C), which includes many large pharmaceutical companies, called the bill a “welcome step” in updating patent laws. The coalition would like more explicit language in the bill, however. The bill, from Rep. Lee Terry, R-Neb., would give the FTC the authority to go after companies for sending patent demand letters written in “bad faith.” 21C worried the term “bad faith” itself was too vague, and should be clarified “in order to make it more effective in targeting bad behavior while safeguarding legitimate patent licensing and enforcement communications.” The House Commerce, Manufacturing and Trade Subcommittee is expected to vote on the measure Tuesday at 10 a.m. (CD July 9 p15).