A bill recently signed into law by Gov. Nathan Deal to reduce frivolous litigation by “patent trolls” — people or companies that own patents for the sole purpose of filing lawsuits — takes effect July 1. For Peach State businesses, House Bill 809 is a huge win.
Patent trolls levy costly legal fees on American businesses by filing often frivolous lawsuits and threats. Revenue spent defending these charges could be reinvested in a company, spurring growth and creating jobs in our state and elsewhere.
Perhaps this is why the U.S. Senate still hopes to mark up the Patent Transparency and Improvements Act, a counter bill to the adopted Innovation Act in the House of Representatives that similarly seeks to limit “troll behavior.” I hope that our leaders in Washington can come to some compromise and lead, as Georgia leaders did in April.
I also hope the conversation is broadened to the international business community, because a number of foreign governments have set up their own government-sponsored patent trolls. Privately owned, foreign patent trolls also wreak havoc.
Last fall, at a Senate Commerce Committee hearing, Cisco’s General Counsel Mark Chandler said these entities “are intended to serve national economic objectives in taxing our industries to generate a return for their industries. They will likely harm U.S. companies and consumers.”
His example: The Australian government’s Commonwealth Scientific and Industrial Research Organization has sued Cisco and other American companies with one goal in mind: Every time wireless devices — including cell phones, wireless routers, laptops and more — are sold in the United States, the Australian troll will be paid a portion of the cost. The troll has already settled other lawsuits with technology companies like AT&T, Dell and Nintendo, winning awards totaling $430 million.
Such activity has been seen in Taiwan, Japan, Korea and France. France Brevets, a patent investment fund, has been particularly brazen by publicly stating its bias toward protecting French assets over potential foreign competitors.
On the private side, Sisvel, an Italian-based patent licensing outfit, has garnered media attention for taking trolling actions to the next level: It coordinates with foreign authorities to raid alleged infringers’ displays and seizes their products at trade shows.
It is important that we recognize the scope of patent trolls. In the many industries where patents are essential including consumer technology, the market should remain the driver of innovation and competition. The United States government must protect the American economy and worker from trolls — foreign and domestic.
As our federal lawmakers push forward legislation addressing private domestic patent trolls, they must also address unscrupulous foreign activity. The American economy and worker depend on it.
Stephen DeMaura is the president of Americans for Job Security.
