Washington, D.C.— Sen. Orrin Hatch, R-Utah, chairman of the Senate Republican High-Tech Task Force, and member and former chairman of the Senate Judiciary Committee, issued the following statement following the introduction of bipartisan patent reform legislation.
“Congress has talked about addressing the problem of patent trolls since 2005, when Senator Leahy and I first began work on what is now the America Invents Act. I’m pleased that after a decade of serious policy discussions there is now strong bipartisan support for legislation to combat abusive patent lawsuits and safeguard American innovation.
Effective patent troll legislation must provide a mechanism to ensure that defendants can recover fees even against judgment-proof shell companies. With the addition of a strong fee recovery provision that I have long championed, the PATENT Act now does just that. Having worked closely with stakeholders and innovators of all sizes and across many sectors, I am confident this bill can be enacted into law and finally end the plague of patent trolls on our economy.”
Statements of Support
Dana Rao, Adobe Vice-President of IP and Litigation
“If you choose to invest in patent trolls, you should be accountable for their actions. Senator Hatch’s leadership has been instrumental in crafting a balanced but effective provision to ensure that shifted fees can actually be recovered, either from the plaintiff engaging in the misconduct, or, if a judgment-proof shell company, then from the investors funding their business model. We thank Senator Hatch and look forward to working with him and other members of Congress to ensure this important provision is enacted into law.”
Jim Greenwood, BIO President & CEO.
“BIO appreciates the leadership of Senator Hatch in building greater consensus on a more reasonable and targeted mechanism for addressing recovery of fees in frivolous patent cases, and BIO is pleased that the co-sponsors of the PATENT Act adopted this approach.”
Background
In addition to the more general principles of patent reform, Senator Hatch has led efforts to include a recovery of fees provision that will ensure that those who bring and invest in abusive patent litigation are accountable for their misconduct. In order for a fee shifting provision to have its intended deterrent effect, there must be an accountability mechanism to ensure that any shifted fees can actually be recovered, even against judgment-proof shell companies. The proposed recovery of fees language ensures that a plaintiff identifies those funding its litigation, and provides jurisdiction for the court to ensure that those parties are held accountable in the event fees are awarded and the plaintiff cannot pay. This is accomplished without the need for bonding or joinder. The provision also ensures that those who can pay any awarded fees, practicing entities, and universities can avoid any unnecessary administrative overhead.
