Innovation Act

Floor Speech

Mr. VAN HOLLEN. Mr. Chairman, I rise in support of the Innovation Act (H.R. 3309). While this legislation is not perfect, it represents an important step in our efforts to prevent patent assertion entities (PAE), commonly referred to as patent trolls, from extracting unfair and exorbitant settlements from innocent businesses through the threat of frivolous and expensive patent litigation.

This legislation ensures that when alleging infringement in a lawsuit, a party must at least identify what patents and claims are being infringed upon, and provide specificity as to how they are being infringed. This will provide more clarity and integrity to patent infringement claims, shining a light on the disingenuous claims from patent trolls.

Additionally, this legislation will help to protect the small businesses that have been accused of patent infringement for purchasing ubiquitous products and who are clearly not involved in the alleged infringement in a patent lawsuit. H.R. 3309 will allow for the action against the downstream customers to be stayed as the manufacturer of the product litigates the lawsuit. This is done so those with the knowledge of the production process, and not the innocent consumer, can argue the case--and it is only allowed if the customer agrees to be bound by the final judgment of the court.

I do, however, continue to have reservations with several provisions in this bill. Primarily, I oppose the provision that allows in some cases for the shifting of court and legal fees from the prevailing parties. I believe this provision has the potential to discourage legitimate patent infringement lawsuits by inventors and owners of intellectual property that may not be deep pocketed. I am also worried about the precedent that this reform could set with respect to protecting access to the courts for all Americans. I voted for the substitute amendment proposed by Ranking Member Conyers and Congressman Watt, which I believe strikes a more equitable balance than this legislation and which did not contain any fee shifting provisions. I look forward to continuing to work with our colleagues in the Senate to produce an ultimate agreement that stops patent trolls and continues to protect the pursuit of legitimate patent infringement claims.

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