Bill > S2367

This bill establishes new regulations in Massachusetts to combat "bad-faith assertions of patent infringement," which occur when someone falsely claims another party is infringing on their patent, often to extort money or licenses. The bill defines key terms like "demand" (a communication asserting patent infringement), "institution of higher education," and "interested party" (someone with a financial stake in a patent beyond just legal representation). It outlines specific criteria that courts can consider to determine if an assertion of patent infringement was made in bad faith, such as a demand lacking essential information about the patent, the patent owner, or how the target's product infringes, or if the assertion is demonstrably meritless. Conversely, the bill also lists factors that suggest a good-faith assertion, like providing all requested information and making a genuine effort to negotiate. Certain entities, including institutions of higher education and non-profit research organizations, are exempt from these provisions, as are demands related to specific federal laws or made by "operating entities" (businesses primarily engaged in research, manufacturing, or providing goods/services, not just patent licensing). If a court finds a bad-faith assertion, it can require the alleged infringer to post a bond to cover the target's legal costs, and the Attorney General is empowered to investigate and bring civil actions, with potential remedies including equitable relief, damages, attorney's fees, and exemplary damages. The bill also allows for the joinder of "interested parties" who may be held jointly and severally liable for abusive patent assertions if the party making the claim has no substantial interest in the patent beyond making demands.