Antitrust Law Daily Wrap Up, STATE UNFAIR PRACTICES NEWS: Oregon legislature passes legislation to curb patent assertion abuse, (Feb 26, 2014)
Organizations Mentioned:Oregon Department of Justice
By Cheryl Beise, J.D.
The Oregon state legislature this week adopted legislation to prohibit bad faith assertions of patent infringement. The state House of Representatives voted on Monday to approve SB 1540, which was passed by the state Senate earlier this month. The bill is currently awaiting the signature of Governor John Kitzhaber.
SB 1540 would amend the Oregon Unlawful Trade Practices Act (“UTPA”) to prohibit a person or person’s affiliate from communicating or causing another to communicate “a demand to a recipient that alleges, asserts or claims in bad faith that recipient has infringed or contributed to infringing a patent or the rights that patentee has, or has granted to an assignee or licensee, has under patent.”
The measure would allow recipients of a bad faith demand to bring a private action under the UTPA and would allow investigations and enforcement by the Oregon Department of Justice. SB 1540 also includes a list of specific factors that courts may consider when determining whether a patent owner has acted in bad faith in making a demand. The new law will take effect 91 days from enactment.
Oregon Attorney General Ellen Rosenblum issued a statement yesterday applauding the measure. “Patent trolling stifles innovation and entrepreneurship,” Rosenblum said. “I applaud the legislature for taking this action, and Senator Winters in particular for her leadership on this issue.”
If signed by the governor, Oregon will become the second state to enact legislation prohibiting bad faith patent enforcement claims. Vermont passed a similar measure last year.
News: StateUnfairTradePractices OregonNews