CTA Adds Its Support for S-2733, Patent Litigation Reform Bill

CTA added its support to Senate patent litigation reform legislation (S-2733) that would revamp rules for placement of patent infringement lawsuits in federal courts, requiring at least one of the parties involved in the lawsuit be connected directly to the jurisdiction in which the lawsuit is filed (see 1603180057). “Limiting patent trolls' ability to ‘forum shop’ for favorable courts is one way to provide some level of relief to American innovators from frivolous patent litigation,” CTA President Gary Shapiro said in a letter Tuesday to S-2733's sponsor, Sen. Jeff Flake, R-Ariz., and its co-sponsors, Sens. Cory Gardner, R-Colo., and Mike Lee, R-Utah. The bill “specifically” would “help solve the discrepancy in the Eastern District of Texas, where 44 percent of patent cases were heard last year,” Shapiro said. “However, 44 percent of alleged patent infringement is not occurring in East Texas.” Forum-shopping “by patent abusers is unjust, particularly for small businesses that cannot afford to fight a patent case in a part of the country where they do not operate,” Shapiro said. “Roughly 80 percent of patent troll victims are small and medium-size businesses, and these smaller businesses often lack the financial resources to hire high-priced attorneys to fight the trolls’ bogus infringement claims. Our justice system cannot remain skewed for entities like patent trolls who do not create anything and make a living off of baseless threats and frivolous lawsuits.” Patent trolls “thrive by exploiting many aspects of our legal system,” and shopping “for suitable venues is one of their many tactics,” Shapiro said. “Venue reforms like those included in S. 2733, in addition to other critical reforms such as heightened pleading standards, reasonable discovery limitations, fee shifting, and customer stay, will give American innovators the tools they need to fight back against patent trolls.”