By a bipartisan 24-8 vote, the House Judiciary Committee yesterday approved the Innovation Act (H.R. 9), which would seek to reduce abuse of the patent system. ABA is currently analyzing the amendments adopted during the committee vote to ensure the bill includes language sufficient to address bank and other small business concerns about vague demand letters sent by patent trolls. An ABA-supported amendment to extend the Covered Business Method program — which protects the rights of legitimate patent holders while providing an efficient alternative to patent litigation over questionable patents — failed.
Similar legislation that included ABA-backed demand letter language passed the Senate Judiciary Committee last week. ABA will continue to work with both houses of Congress to win relief for banks from abusive patent litigation threats. For more information, contact ABA’s Bill Boger.