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New Bill Would Require Patent Trolls to Pay Defendants' Attorneys

Zordak (123132) writes | about a year and a half ago

Patents 0

Zordak writes "According to Law 360, H.R. 845, the "Saving High-Tech Innovators from Egregious Legal Disputes" (SHIELD) Act of 2013 would require non-practicing entities that lose in patent litigation to pay the full legal costs of accused infringers. The new bill would define a "non-practicing entity" as a plaintiff that is neither the original inventor or assignee of a patent, and that has not made its own "substantial investment in exploiting the patent." The bill is designed to particularly have a chilling effect on "shotgun" litigation tactics by NPEs, in which they sue numerous defendants on a patent with only a vague case for infringement. Notably, once a party is deemed to be an NPE early in the litigation, they will be required to post a bond to cover the defendants' litigation costs before going forward."
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