House Passes Bill Aimed at Patent 'Trolls'

The House overwhelmingly passed legislation aimed at discouraging frivolous lawsuits by patent holders who hope to extract settlements from companies wary of litigation costs. By a vote of 325-91, the House approved the Innovation Act from House Judiciary Chairman Bob Goodlatte (R-VA), setting the stage for the Senate to act in the coming months.

The bill would require patent holders who file lawsuits to disclose more information upfront on the patents involved and the nature of the alleged infringement. It would also give judges more discretion to limit discovery or award legal fees when a lawsuit fails to prove infringement. Companies that pushed for the bill describe the patent-holding entities that file lawsuits as patent "trolls." Critics of the bill said it could hinder innovation and prevent inventors from upholding their rights. A large, bipartisan contingent spoke out in favor of the bill, arguing that small-business owners and startups are frequently the target of patent assertion entities seeking a quick settlement. However, the main support for the bill has come from large technology companies like Google, as spending on patent litigation has risen in recent years. Opposition came from a small but vocal minority led by the Judiciary Committee's senior Democrat, Rep. John Conyers (D-MI), as well as Reps. Mel Watt (D-NC), and Dana Rohrabacher (R-CA). They said the bill would impose an undue burden on patent holders seeking to enforce their rights.