Congress Aiming to Reduce Abuse from "Patent Trolls"

US Congress is considering more protection for the high-tech industry from so-called "patent trolls" who buy patent rights cheaply, often with no expectation of practicing the patent, but hoping to later sue an alleged infringer if and when a possible infringement arises. A bill recently introduced in the House of Representatives (HR 2795) would raise the threshold for obtaining injunctive relief – an injunction would be stayed pending appeal "upon an affirmative showing that the stay would not result in irreparable harm" to the patent owner and that the "balance of hardships from the stay does not favor the owner of the patent". Support for the change comes from a recently-formed tech industry coalition comprising, among others, Cisco, Intel, eBay, Symantec, Chiron, Microsoft and Genentech. Intel recently faced a claim for $8 billion in damages and a permanent injunction from a plaintiff who purchased the patent for $50,000 from a bankrupt company. Although the claim was eventually dismissed, it cost Intel $3 million to defend the litigation. The push for legislative change comes after a doubling in patent lawsuits between 1998 and 2001. Another change in HR 2795 (the Patent Act of 2005) would legislate the adoption of a "first-to-file" patent system, as favoured by the American Bar Association (see an earlier issue of E-TIPS®, Vol 3 No 22, April 27, 2005). For more information, see: http://makeashorterlink.com/?U5D652D4B For background on the patent troll situation, visit: http://news.bbc.co.uk/1/hi/business/3722509.stm For a copy of HR 2795, visit: http://thomas.loc.gov/ and search for bill "HR 2795" and the Patent Act of 2005 will appear. Summary by: Nyall Engfield