Law

"Shield Act" Introduced to Thwart NPEs ...

By Ralph A. Dengler and Todd M. Nosher, Gibbons

We previously reported on the new 35 U.S.C. § 299 of the America Invents Act. This statute aims, inter alia, to reduce the ability of a patent owner to join multiple, unrelated defendants in a single action, which is a tactic often employed by non-practicing entities ("NPEs"), sometimes referred to as "patent trolls," who press defendants for nuisance value settlements.

Last week, a bipartisan bill entitled "Saving High-Tech Innovators From Egregious Legal Disputes Act of 2012," ("Shield Act ") was introduced in the House of Representatives to permit fee-shifting in patent litigations involving computer hardware and software.

The proposed legislation, introduced as HR 6245, states in pertinent part that "upon making a determination that the party alleging the infringement of the patent did not have a reasonable likelihood of succeeding, the Court may award the recovery of full costs to the prevailing party, including reasonable attorney's fees, other than the United States." Aimed to curb suits brought by NPEs that are frivolous or otherwise lacking merit, HR 6245, if passed, could have significant ramifications going forward in the field of computer hardware and/or software patents.



Dengler R 121x160pxRalph A. Dengler, Cousel
Gibbons P.C., One Gateway Center, Newark, NJ 07102-5310
T: 973-596-4825, F: 973-639-6381
M: This email address is being protected from spambots. You need JavaScript enabled to view it. W: www.gibbonslaw.com








NosherT 121x160pxTodd M. Nosher,
Associate
Gibbons P.C., One Gateway Center, Newark, NJ 07102-5310
T: 973-596-4671; F: Fax: 973-639-6462
M: This email address is being protected from spambots. You need JavaScript enabled to view it. W: www.gibbonslaw.com

GGI Logo 70x50px

GGI Geneva Group
International AG

Schaffhauserstrasse 550
P.O. Box 286
8052 Zurich
Switzerland

Contact

T: +41 44 2561818
F: +41 44 2561811
This email address is being protected from spambots. You need JavaScript enabled to view it.
www.ggi.com