ASHI Hails U.S. House Passage of Patent Trolling Legislation
ASHI Hails U.S. House Passage of Patent Trolling Legislation
The American Society of Home Inspectors (ASHI) applauds U.S. House action on December 5, 2013 ,to pass HR3309, the Innovation Act.
The purpose of the Innovation Act is to reduce the negative impacts of “patent trolling” – the shady practice of plaintiffs making scurrilous legal claims of patent infringement to extract cash settlement payments from innocent defendants.
The practice has become rampant in the last two years, prompting an outcry for action by Congress to inhibit patent trolling.
“ASHI would like to thank House Judiciary
Chairman Bob Goodlatte and Ranking Member Zoe Lofgren for their successful efforts to move this important issue through the House in a
bipartisan and expeditious manner,” said Bill Jacques, ASHI [resident. “ASHI is greatly appreciative when both parties work together to pass substantive legislation that is needed by small businesses like home inspectors.”
Bill Loden, ASHI’s incoming president for 2014, charged that “patent trolls are relying upon weak patents, aggressive litigation threats and more to extract monies from small businesses around the country. This is a peril for ASHI members as well.” Loden said, “ASHI is pleased to lead the effort among home inspectors, energy auditors and water remediation specialists to wage a legislative attack on the heart of patent trolling – the profit motive.”
HR3309 would address several issues of key
interest in protecting ASHI members. The bill would expand “fee-shifting” — the possibility that plaintiffs might have to pay for the court costs of innocent defendants, vastly increasing the risk of launching baseless patent claims.
Further, the bill would do much to help protect end-users of technology from patent claims that should be brought instead against the manufacturers of the disputed technology. Typically, patent trolls use the tactic of threatening actions against small business end-users because they have lesser resources to defend themselves in court.
Law firms who represent patent trolls and are materially involved in preparing inappropriate demand letters may be inadvertently crossing ethical and legal boundaries, potentially exposing such law firms to jeopardy with their bar associations and their licenses to practice law. While the patent trolling legislation does not yet address the issue of the law firms involved, it is an argument of intense interest to organizations like ASHI.
Regarding HR3309, Frank Lesh, ASHI’s executive director, commented that “ASHI mounted a
strategic response by joining forces with the leading Washington, D.C. coalition that is fighting patent trolling. ASHI determined that this is a fight that may be best fought on behalf of home inspectors with federal legislation, using our government affairs program. The House action demonstrates that our decision is bearing fruit. We urge further progress on the patent trolling legislation.”
Randall Pence of Capitol Hill Advocates, ASHI’s Washington lobbyist, said the focus now shifts to the U.S. Senate. “The Innovation Act is a good start, but ASHI will be supporting even more aggressive controls on such matters as the threatening demand letters that are foisted on innocent small businesses, and how to limit the impact of overly broad, weak patents.”
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