Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Rhode Island AG’s antitrust enforcement power could extend to patent trolls, (Jun 13, 2016)

By Greg Hammond, J.D.

The Rhode Island General Assembly has passed a bill that, if signed by the governor, would empower the state’s Attorney General to bring civil actions against patent trolls under Rhode Island antitrust law and the Deceptive Trade Practices Act.

The legislation (H 7425/S2542) prohibits an individual or company from making bad faith assertions of patent infringement against a Rhode Island business or individual. Under the measure, a person or business that is the target of conduct involving bad faith assertions of patent infringement would be authorized to file a civil action in Rhode Island, seeking equitable relief; actual damages; costs and fees, including attorney fees; and exemplary damages in an amount equal to $50,000 or three times the total of actual damages, costs, and fees, whichever is greater. In addition, the Rhode Island Attorney General would be allowed to bring civil actions against patent trolls under the state’s antitrust law and Deceptive Trade Practices Act.

"This is a very important pro-business action by the General Assembly that will protect our small businesses from what are essentially boardroom shakedowns that exploit a loophole in our existing patent infringement laws," stated Rhode Island Attorney General Peter F. Kilmartin.

The stated purpose of the legislation is to "facilitate the efficient and prompt resolution of patent infringement claims, protect Rhode Island businesses from abusive and bad faith assertions of patent infringement, and build Rhode Island’s economy, while at the same time respecting federal law and being careful to not interfere with legitimate patent enforcement actions."

The bill now heads to Rhode Island Governor Gina Raimondo for signature.

News: Antitrust StateUnfairTradePractices RhodeIslandNews