The Obama administration has released a memo to Congress outlining several measures that would help curtail “patent trolling.” The White House had no qualms about using the colloquial term “patent troll” to describe entities that – rather than researching or developing technology relative to their rights -- acquire patents solely to extract payments from alleged infringers.
The suggested reforms are aimed at increasing transparency and providing defendants "better legal protection against liability." A few recommendations worth noting include (1) requiring parties to disclose the "real-party-in-interest" in lawsuits and demand letters; (2) encouraging the publication of demand letters to make them accessible to the public; (3) protecting end users using "off-the-shelf" products; and (4) make it easier for a prevailing defendant to obtain an award of attorneys' fees in a patent infringement action. The memo also recommends facilitating challenges to business method patents and restricting the circumstances under which the International Trade Commission (ITC) can issue injunctions.
While it remains to be seen what legislative action will follow, the administration has – for the time being – approved the creation of a US Patent and Trademark Office (PTO) website informing patent troll victims about their rights and defenses. For more information click here.