US Litigation Reform Comes Closer
The Innovation Act is an attempt to deal with perceived abuses of the patent system in the US. It is designed to discourage frivolous and abusive patent litigation. The bill was introduced in October and has bipartisan support. On 20 November it cleared its first major political hurdle; the bill has been passed to the full House of Representatives after being approved by the House Judiciary Committee.
The Innovation Act would make it easier to shift fees to the losing party in patent litigation easier and require patentees to disclose more details of the alleged infringement with their initial pleading. It is hoped that these measures would make patent litigation a less attractive option for patentees, particularly those with weak patents. Parties would be required to reveal information about who has an interest in the patents with the aim of increasing transparency. Discovery would be limited until after a ruling on claim construction and the bill would make it easier to obtain stays in customer suits.
As we reported in June, it is estimated that an astonishing 62% of US patent litigation in 2012 was initiated by Patent Assertion Entities. With the Innovation Act having been resoundingly approved by the House Judiciary Committee, it would seem that momentum is gathering to make life a good deal less comfortable for the trolls in future.
