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Patent Reform Is Coming, but Not From Congress

By Christian Mammen
October 02, 2014

The case is all too familiar. A Texas LLC, founded just a few months ago, sues 10 ' or 20, or 30 ' defendants for patent infringement at the same time. Lay the complaints side-by-side and they are virtually identical, with perhaps only the defendant's name changed. They also contain the barest of allegations: that the plaintiff owns the patent, that one or more of the defendant's products infringe the patent and that the plaintiff has suffered damages.

Often, the connections between the patent and the products are so tenuous that defendants are left scratching their heads about how they possibly could have infringed. In other cases it's clear that the plaintiff is a nonpracticing entity, known more notoriously as a patent troll.

It's well established that the number of lawsuits filed by patent trolls in the last decade has increased dramatically, from fewer than 150 in 2001 to more than 2,900 in 2012. This increase comes at considerable expense to defendants of all stripes. But as widely reviled as this trend may be among operating companies that often find themselves as defendants in patent troll litigation, legislation that would curb this practice has made little progress. In fact, patent reform passed the House of Representatives in 2013, but appears to have stalled in the Senate, with no clear prognosis for its revival. See, “Patent Reform Group Streamlines Lobbying Efforts,” Corporate Counsel.

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