Patent Troll Bills Vie for Committee's Favor
Both bills prohibit someone from sending a demand letter making a bad faith claim of patent infringement and allow the Texas AG to sue violators. But the bills' definitions of a "bad faith claim" vary greatly.
April 20, 2015 at 01:36 AM
5 minute read
Senators must make a policy decision to choose between two bills aimed at reining in nonpracticing entities, or patent trolls, that send demand letters in bad faith to Texas residents or businesses, said Sen. Joan Huffman, R-Houston, chairwoman of the Senate State Affairs Committee.
The committee held public hearings April 9 for both proposals. Senate bills 1187 and 1457 have some similarities, but also major differences. Both add a chapter to the Texas Deceptive Trade Practices Act to prohibit someone from sending a demand letter making a bad-faith claim of patent infringement. But the bills' definitions of “bad faith claim” vary greatly. Both authorize the Texas attorney general to sue those who violate the bills' provisions.
Nelson Roach, speaking for the Texas Trial Lawyers Association, noted that the federal courts have exclusive jurisdiction over patent law. State lawmakers are limited in what they can do because of the constitution and federal preemption. He said that SB 1457 would pass muster, but SB 1187 might not.
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