Venue Reform Critical to Improving Patent Guidelines in the United States
The Taxpayers Protection Alliance (TPA) recently placed Congress on notice reminding them of the opportunity for and importance of getting something done on patent litigation reform. Reforms would help to strengthen intellectual property (IP), which would boost the competitive economy all while benefitting consumers, businesses and taxpayers. As part of any legislation there are many parts and “venue reform” remains an important component to any legislation that would move through Congress. Venue reform refers to moving the current patent litigation system away from courts that generally favor patent trolls. Patent trolls are generally one or two individuals hiding behind a fictitious shell corporation. They scour the Internet trying to find vague, near-end patents, buying them up with the goal of filing lawsuits to extort settlements from businesses or individuals who can’t afford the high cost of litigation. They issue threatening letters, demanding payment through licensing fees for the use of ambiguous or commonly-utilized technologies, or threaten to sue. Most small businesses can’t afford the steep costs of litigation and instead are bullied into paying excessive licensing fees. Right now most patent disputes are dealt with in just one court in Texas, that’s right a single court hears most patent disputes in the country. In 2015 the Eastern District of Texas handled 2,540 cases of the total 5,830 (43.6%). That is a higher percentage than of all districts outside the top 3 (41.9%).