FOR IMMEDIATE RELEASE: May 22, 2013
WASHINGTON, D.C. – The Coalition for Patent Fairness (CPF) thanks Senator Cornyn for his leadership in confronting the problem of abusive patent litigation through the introduction of the “Patent Abuse Reduction Act of 2013.” This legislation represents an important step forward in improving the patent system in such a way that allows America’s innovative industries to flourish.
Patent assertion entities (or patent trolls), which prey on companies to profit off of their innovation, cost the American economy more than $29 billion in 2011 alone – and this estimate does not even begin to measure the indirect costs of lost innovation. It is likely that this figure will only increase as patent trolls set their sights on a growing range of industries, as has happened in recent months.
FOR IMMEDIATE RELEASE: May 21, 2013
WASHINGTON, D.C. – The Coalition for Patent Fairness (CPF) applauds the efforts of Congressman Ted Deutch (D-Fla.) for introducing H.R. 2024, the End Anonymous Patents Act. Members of CPF believe that America’s patent system needs to be updated, and Congressman Deutch’s legislation is yet another example of the growing interest in passing common sense patent reform. This common sense legislation will bring needed transparency to the patent system.
Patent assertion entities (PAEs), commonly referred to as “patent trolls,” have operated in the shadows of the U.S. patent system for too long, profiting off the market innovation of others and lining their pockets because of loopholes in the law. Now is the time to expose these anonymous patent trolls to the light of day and restore transparency to the laws governing our patent system. This is an important step in the comprehensive approach needed to strengthen the U.S. patent system and protect the very job creators who are working hard to power America’s economic recovery.
WASHINGTON, D.C. – The Coalition for Patent Fairness (CPF) applauds Chairman Bob Goodlatte, Subcommittee Chairman Howard Coble, and the members of the Subcommittee on Courts, Intellectual Property and the Internet for holding today’s hearing on the economic impact of abusive patent litigation in the United States. The witness testimonies spoke to the heart of the problem with America’s outdated patent system, underscoring that the economic consequences of abusive patent litigation extend far beyond Silicon Valley and are increasingly affecting American innovation and job creators on Main Street.
As today’s testimonies showed, Patent Assertion Entities (PAEs), commonly referred to as “patent trolls,” are not limited in their targeting. For large companies, the costs inflicted by patent trolls are significant and burdensome, and for small companies and startups, the financial fallout can be absolutely devastating. Studies find that the victims of this game of patent extortion are often the small and medium-sized businesses that are essential to innovation and job creation in the United States, and the impact on them is growing.
WASHINGTON, D.C. – The Coalition for Patent Fairness (CPF) is pleased to support HR 845, the bipartisan SHIELD Act (“Saving High Tech Innovators from Egregious Legal Disputes Act of 2013”), sponsored by Congressmen Peter DeFazio and Jason Chaffetz. Members of CPF believe that America’s patent system needs to be updated, and introduction of the SHIELD Act is a step in the right direction.
For too long, patent assertion entities (PAEs), commonly referred to as “patent trolls,” have taken advantage of our litigation system to seek quick profits from bad patents. The SHIELD Act will restore the proper financial accountability by removing the incentives from filing unnecessary, abusive and burdensome litigation. Quite simply, patent trolls can't have a free roll of the dice, and SHIELD would help to ensure that they do not.
This common-sense reform will strengthen the U.S. patent system by allowing independent inventors to seek their rewards through our judicial system while curbing the patent abuse from patent profiteers. America’s innovative businesses deserve a chance to flourish; as one of several needed updates to the patent system, SHIELD will help to provide that chance.
WASHINGTON, D.C. – The Coalition for Patent Fairness, comprising leading companies in the manufacturing and information technology industries, today released the following statement regarding comments that President Obama made in support of doing more to fix the patent system:
“The members of the Coalition for Patent Fairness commend President Obama for his suggestion that there is still significant work to be done toward updating and improving America’s patent system.
“Despite the passage of the America Invents Act (AIA), many of America’s most innovative companies are still plagued by patent assertion entities (PAEs), commonly referred to as “patent trolls.” According to recent research, patent trolls cost the American economy $29 billion in 2011 – and this estimate did not take into account the indirect costs of lost innovation. In fact, the problem is growing. Increasingly, patent trolls target the vulnerable small- and medium-sized businesses that are often unable to assume the cost of litigation. These are future job creators in America, and should be protected so that they can grow.
Coalition for Patent Fairness Statement on One-Year Anniversary of Signing of The America Invents Act
WASHINGTON, D.C. – The Coalition for Patent Fairness (CPF) issued the following statement to commemorate the one-year anniversary of the signing of the Leahy-Smith America Invents Act.
“The Coalition for Patent Fairness has spent the last year working closely with the Congress and the Patent and Trademark Office (PTO) on successful implementation of The America Invents Act. The PTO has led a strong and inclusive effort to get the various implementation items completed on time.
“The Coalition for Patent Fairness and its members will continue to work with Congress to pass a needed technical corrections bill and appreciate the leadership of Chairman Leahy and Chairman Lamar Smith in that effort.
“Innovators continue to face challenges in the patent system. Patent assertion entity abuses continue to escalate and we are increasingly seeing small business and innovative startups become their targets. We look forward to working with policymakers and all stakeholders to ensure the system can address those concerns.”
“Patent Trolls” Cost Productive Companies $29 Billion in 2011, Stall Innovation, and Hurt Small Businesses
Washington, D.C. – “Patent Trolls” cost the American economy $29 billion in 2011, not including the indirect costs to the defendant’s business such as diversion of resources, delays in new products and loss of market share, according to a study released today by James Bessen and Michael Meurer of the Boston University School of Law.[i]
The study, titled “The Direct Costs from NPE Disputes,” found that NPE litigation is growing rapidly, and affected 5,842 defendants in 2011. Building on the research of their 2011 study, “The Private and Social Costs of Patent Trolls,” the study released today estimates the direct cost portion of total costs using survey data gathered directly from defendants, and provides information on companies not publicly listed, including small companies.
WASHINGTON, D.C. – The Coalition for Patent Fairness (CPF) issued the following statement following the House Judiciary Committee's Subcommittee on Intellectual Property, Competition and the Internet hearing titled, “Prior User Rights: Strengthening U.S. Manufacturing and Innovation":
“We applaud the Committee for examining the next steps necessary to fine tune the patent system in ways that protect the intellectual property of US innovators. As the Committee has continually recognized, prior user rights are an integral piece of a robust modern and balanced patent system. We look forward to working with the Committee and other stakeholders to move forward with productive solutions.”
WASHINGTON, D.C. – The Coalition for Patent Fairness (CPF) issued this statement following the signing of the Leahy-Smith America Invents Act.
“The Coalition for Patent Fairness congratulates President Obama on the signing of the Leahy-Smith America Invents Act. This bill is an important step forward for the nation’s patent system and represents consensus among many key stakeholders and broad support across various industries.
“Included in this bill are critical provisions to strengthen and modernize the patent system, including: ensuring prior user rights under the new first-to-file system, preserving the sanctity of attorney client privilege, and adding needed misjoinder rules for litigation. These provisions will harmonize America’s patent system and allow us to continue to compete in the international marketplace.
“Today’s multi-patent technologies and complex global economy present new challenges that require a modern patent system. That system will require the work of not only Congress, but also the judicial branch, the International Trade Commission, the U.S. Patent and Trademark Office, companies, and inventors. The Coalition for Patent Fairness is looking forward to working with all the stakeholders to implement this bill.”
WASHINGTON, D.C. – September 8, 2011: The Coalition for Patent Fairness (CPF) issued the following statement after Senate passage of H.R. 1249, the Leahy-Smith America Invents Act.
“The Coalition for Patent Fairness congratulates Chairman Leahy, Chairman Smith, and additional key Members of Congress on the passage of H.R. 1249, the Leahy-Smith America Invents Act. We’re looking forward to President Obama signing this important piece of legislation into law.
“Today’s passage marks the end of more than six years of debate and represents a consensus amongst many critical stakeholders. The bill contains critical provisions that will advance and harmonize our patent system, while making the U.S. more competitive in the international marketplace. We applaud the House and the Senate for passing a bill that takes significant steps toward strengthening America’s patent system and promoting innovation.”