WASHINGTON—The House Judiciary Committee will hold a hearing today on "H.R. 9, The Innovation Act."
In advance of the meeting NAFCU’s Vice President of Legislative Affairs Brad Thaler sent a letter to committee members calling on the committee to find a legislative solution to the “problems plaguing our nation’s patent system.”
“A growing number of credit unions are reporting receipt of demand letters from law firms representing patent assertion entities, claiming patent infringement, with the option to settle or face litigation,” Thaler wrote. “These deceptive letters are confusing and misleading as they often allege that the use of everyday technology violates the patent holders’ rights. Further, these letters typically state vague or hypothetical theories of infringement, and often overstate or misinterpret the patent in question. Because the cost of litigation is often more expensive than paying a settlement amount, these ‘patent trolls’ use the threat of litigation as leverage to extract payment from the recipient business who settles in lieu of running the risk of a complex and lengthy legal battle.”
Thaler added that “NAFCU believes a legislative solution is necessary to alter the intimidating business model used by these patent assertion entities and will continue to be supportive of any Congressional effort to curb these practices.