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Bill > S1612


US S1612

US S1612
Patent Litigation Integrity Act of 2013


summary

Introduced
10/30/2013
In Committee
10/30/2013
Crossed Over
Passed
Dead
01/03/2015

Introduced Session

113th Congress

Bill Summary

Patent Litigation Integrity Act of 2013 - Requires courts to award a prevailing party reasonable fees and other expenses, including attorney fees, incurred in connection with a civil action in which any party asserts a claim for relief arising under any Act of Congress relating to patents, unless the court finds that the position and conduct of the nonprevailing party were substantially justified or that special circumstances make an award unjust. (Currently, in exceptional cases, the court is permitted but not required to award reasonable attorney fees.) Authorizes courts, in response to a motion, to order the party alleging infringement to post a bond sufficient to ensure payment of such fees and expenses of the accused infringer. Directs a court, in determining whether such a bond would be unreasonable or unnecessary, to consider whether: the bond will burden the ability of the party alleging infringement to pursue activities unrelated to the assertion, acquisition, litigation, or licensing of any patent; the party alleging infringement is an institution of higher education or a non-profit technology transfer organization; a licensee, who has an exclusive right under a patent held by such an institution of higher education or non-profit organization, conducts further research or development to make the subject matter more licensable; the party alleging infringement: (1) is a named inventor of or an original assignee to an asserted patent, (2) makes or sells a product related to the subject matter described in an asserted patent, or (3) can demonstrate that it has and will have the ability to pay the accused infringer's fees and other expenses if so ordered; and any party will agree to pay the accused infringer's shifted fees and other expenses, provided that the party can demonstrate an ability to pay.

AI Summary

This bill, the Patent Litigation Integrity Act of 2013, aims to curb frivolous patent lawsuits by altering the rules for awarding legal costs and requiring potential security bonds. Specifically, it mandates that courts must award reasonable legal fees and expenses, including attorney fees, to the winning party in a patent lawsuit, unless the losing party's position was substantially justified or special circumstances make the award unfair; this is a shift from the current system where such awards are discretionary. Furthermore, the bill allows courts, upon a motion from the accused infringer, to order the party alleging patent infringement to post a bond to cover potential legal costs, but this power is tempered by several factors the court must consider, such as whether the bond would hinder the patent holder's ability to conduct unrelated business, whether the patent holder is an educational institution or non-profit technology transfer organization, if a licensee is further developing the technology, if the patent holder is an inventor or assignee, makes or sells a related product, or can demonstrate the ability to pay the costs, and if another party is willing to cover those costs.

Committee Categories

Justice

Sponsors (1)

Last Action

Committee on the Judiciary. Hearings held. (on 12/17/2013)

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