US News US proposes 'loser pays' system to deal with patent trolls

[tom_mai78101]

A "loser pays" update to the proposed Shield Act in America would make patent trolls financially liable for all legal costs in unsuccessful lawsuits.

The revised version of the backronym-tastic Saving High-Tech Innovators from Egregious Legal Disputes bill was introduced by its original sponsors, representatives Jason Chaffetz and Peter DeFazio. It aims to discourage "frivolous" lawsuits from those holding patents but not actually creating anything with them.

"Patent trolls add no economic benefit to our nation," said Chaffetz speaking at a press conference. "They have captured part of the system, and they're exploiting it for their own financial gain. They're hampering the innovation that our country deserves. Literally every segment of our society's business is being attacked by these patent trolls."

According to the updated version of the bill, defendants would be allowed to file a motion to have the plaintiff ruled a patent troll. If successful the legal action could still go ahead but with the caveat that if the patent holder was unsuccessful they would be liable for all legal costs -- in some cases, millions of dollars.

Read more here.

 

[Dan]

I hate trolls. This is refreshing.

 

[Accname]

I dont know if this is going to work. Only time will tell.

 

[FireCat]

Well, let's Just wait and see and what happens.
Just hope, It stop them to "suck money away from others"

 

[TFlan]

Last sentence of the article:

But despite the fact that patent trolling has been repeatedly called out for criticism, recently by Barack Obama, govtrack.us -- a site set up to enable interested parties to track legislation through the US system -- gives the Shield Act just a one percent chance of being enacted.