House Science, Space and Technology Committee Chairman Rep. Lamar Smith (R-Texas) and House Judiciary Committee Chairman Bob Goodlatte (R-Va.) introduced bipartisan legislation on Wednesday that would reduce the number of patent lawsuits by addressing patent trolls.
The Innovation Act would build on reforms made by the Leahy-Smith America Invents Act in 2011.
“Patent trolls engage in legalized extortion by using weak patents and frivolous lawsuits to demand settlements from companies and businesses across the U.S.,” Smith said. “These patent predators stifle economic growth, leaving companies with less capital to invest, innovate and create jobs.”
According to Boston University School of Law, patent litigation costs the economy $80 billion per year, while lawsuits have doubled in the past three years.
“The Innovation Act helps protect innovators and job creators from abusive litigation, while preserving the rights of legitimate patent infringement claims,” Smith said.
The legislation would target abusive patent litigation in order to prevent individuals from taking advantage of loopholes in the system, heighten pleading standards and transparency provisions, modernize fee shifting, provide education for small businesses, and provide more clarity on initial discovery, case management and common law doctrine.
“The tens of billions of dollars spent on settlements and litigation expenses associated with abusive patent suits represent truly wasted capital,” Goodlatte said. “These important actions will help fuel the engine of American innovation and creativity, creating new jobs and growing our economy.”