Press Release
Letter to Senator Hatch regarding the Patent Litigation Integrity Act of 2013
The Honorable Orrin Hatch
U.S. Senate
104 Hart Senate Office Building
Washington, DC 20510
Dear Senator Hatch:
The Coalition for Patent Fairness, which is comprised of leading companies in the manufacturing and information technology industries, writes to express our strong support for the Patent Litigation Integrity Act of 2013 (S. 1612). We believe that a strong and robust end-of-case fee shifting provision that provides for a bonding mechanism is important to providing much needed balance into the current patent system.
As drafted, the Patent Litigation Integrity Act of 2013 responds directly to well established and demonstrable abuses of the patent system while remaining flexible enough to ensure that innovators, both small and large, are able to properly defend their patent rights. This legislation addresses two of the most significant problems with the current system: (1) a high presumption against fee shifting; and (2) judgment-proof entities. Increasingly, we see patent trolls set up third-parties to pursue demand letters and infringement claims when parties will not bend to their demands. These third-parties act as shells and generally hold little or no financial resources, with only a postal address to substantiate their business activities. The potential for attorney’s fees alone will not discourage frivolous lawsuits brought by these shell entities that effectively have nothing to lose. The bonding language, which will ensure that the plaintiff has the ability to pay fees in the event fees shift (or can explain why they don’t), is the simplest way to restore the proper financial accountability in the patent system.
We welcome and support the changes that the Patent Litigation Integrity Act of 2013 would make to strengthen the Patent Code’s current fee shifting provision. We thank you and appreciate your leadership and willingness to work on this issue.
Sincerely:
The Coalition for Patent Fairness
Adobe Blackberry
San Jose, CA Dallas, TX
Cisco Systems Dell
San Jose, CA Round Rock, TX
Earthlink Google, Inc.
Atlanta, GA Mountain View, CA
Intel Corporation Intuit
Santa Clara, CA Mountain View, CA
Micron Technology, Inc. Oracle
Boise, ID Redwood Shores, CA
Rackspace SAP
Windcrest, TX Newtown Square, PA
Verizon Communications
New York, NY