MEASURE TO CRACK DOWN ON “PATENT TROLLS” ADVANCES

Senate approves Senator Haskell’s bill to protect businesses from false patent claims

 AUGUSTA—Today the Maine Senate unanimously gave initial approval to a bill sponsored by Assistant Senate Majority Leader Anne Haskell of Portland to make it harder for “patent trolls” to harass and extort money from Maine businesses.

 “It is hard enough to do business without having to deal with scammers who prey on honest businesses that are providing good jobs here in Maine,” said Senator Haskell. “This bill discourages fraud while still protecting honest patent holders.”

 A “patent troll” is a person or company that claims that a patent it holds is being infringed upon by a business, and then threatens to sue the business unless outrageous licensing fees are paid. Businesses are faced with the choice of paying off the troll or risking expensive and time consuming lawsuits.

Senator Haskell’s bill is modeled on legislation in Vermont that prohibits bad faith infringement threats. Bad faith is defined as lack of specificity of the alleged infringement, settlement demands or damage claims that include excessive licensing fees, and unreasonably short deadlines for payment of demanded monies.

The measure allows for the victims of these suits to sue and for the Attorney General to take action against the patent troll.

The bill, LD 1660, “An Act Regarding Bad Faith Assertions of Patent Infringement,” faces further votes in the House and the Senate.