Darrell Issa | Serving California's 49th District

Issa and Chu Introduce Bipartisan Bill to Protect Innovators from Frivolous Patent Litigation

July 22, 2013

Washington, D.C. – Reps. Darrell Issa (CA-49) and Judy Chu (CA-27) today introduced bipartisan legislation which provides patent holders tools to fight against patent assertion entities (PAE) and patent trolls in order to encourage American innovation and growth.  The STOP Act (H.R. 2766) makes improvements to the Transitional Business Method Program by broadening the definition beyond “a financial product” to include “an enterprise” or “a product.”  This change will allow the U.S. Patent and Trademark Office to determine the extent of the validity of a number of patents, particularly those related to software and computers, where litigation abuse has run rampant.

“Right now, patent trolls are manipulating the overly broad and poorly determined patent definition to win settlements and damages from tens of thousands of real American innovators,” said Rep. Issa.  “As a patent holder, I know how harmful and expensive these aggressive litigation tactics are for American entrepreneurs.  Instead of spending money on new hires or technology, innovators are faced with millions of dollars in legal fees to resolve these baseless lawsuits.  The STOP Act provides tools for legitimate patent holders to put an end to the abuse.”

“Patent trolls are a drain on our national productivity and economic output. Their manipulation of our patent system threatens the ability for businesses to create jobs, and encroaches on the right of the public to consume legally purchased goods and services,” said Rep. Chu. “The STOP Act will deter abuse and arm smaller entities with the support they need to fight back.”

The STOP Act tracks closely with Senate legislation introduced by Sen. Chuck Schumer (D-NY).

 

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