CTA Praises FTC Patent Assertion Entities Report on Proposed 'Critical Reforms'

CTA President Gary Shapiro lauded the FTC report on the business activities of patent assertion entities. The report said "litigation” PAEs are responsible for 96 percent of all patent infringement lawsuits brought by entities included in the review. Patent royalties generated by litigation PAEs' licensing agreements were generally less than the threshold for patent litigation costs, which showed those entities’ suits qualify as “nuisance” lawsuits, the FTC said. The agency made several recommendations to balance the rights of defendants during the early stages of patent suits brought by PAEs (see 1610060045). The FTC report shows “how sleazy” PAEs “operate,” Shapiro said in a statement. “We are pleased that the FTC report calls for many of the critical reforms for which CTA is advocating, including heightened pleading standards and discovery reforms that would make these illegitimate troll cases more transparent and help victims fight back. Moreover, the findings from this report underscore the need to pass legislation … to preserve our nation's entrepreneurial spirit and grow our innovation economy.” The Computer & Communications Industry Association and Internet Association were among those who praised the report.