• About Us
  • Activity
  • Advertising
  • Books
  • Business
  • Contact
  • Dashboard
  • EB5
  • Entertainment
  • feedback
  • Forgot Your Password?
  • Government
  • Home
  • Interviews
  • Login
  • Members
  • Meme generator
  • National
  • Nevada
  • Nevada News and Views
  • Newsmax
  • NN&V Ads
  • Opinion
  • Pick a New Password
  • Politics
  • Polls
  • Privacy Policy
  • Profile
  • Recent comments by me
  • Recent comments on my posts
  • Register
  • Submit post
  • Subscribe
  • Subscription Confirmation
  • Survey
  • Survey
  • Terms of Service
  • Today’s Top 10
  • Travel
  • Travel
  • Travel
  • Welcome!
  • Yop Poll Archive
Nevada News and Views
  • About Us
  • Contact
  • More
    • Nevada
    • Opinion
    • Business
    • Travel
    • News
    • Sports
  • Facebook

  • Twitter

  • Pinterest

  • RSS

Business

New bill designed to stop egregious venue shopping by patent trolls

New bill designed to stop egregious venue shopping by patent trolls
Chuck Muth
April 2, 2016

[the_ad id=”25740″]

Norvegian Troll. (Courtesy: R Street Institute)

Norvegian Troll. (Courtesy: R Street Institute)

 

(Nathan Leamer, R Street Institute) – Abusive patent litigation siphons tens of billions of dollars from the economy every year. In addition to burdening American entrepreneurs with lost revenues and great uncertainty, the scourge of frivolous lawsuits depletes funds that otherwise could have used toward research and development, venture-capital investment, and other essential business activities.

While it isn’t the kind of comprehensive corrective to America’s “patent troll” problem that we’d like to see, the newly introduced Venue Equity and Non-Uniformity Elimination Act would address one small piece of the problem. The bill, S. 2733, would curtail rampant venue shopping that unfairly distorts legal outcomes by allowing plaintiffs to select friendly judges in advance.

According to research, from George Mason University’s Mercatus Center, nearly half of all patent cases are filed in the U.S. District Court for the Eastern District of Texas. Through the first half of 2015, the Tyler, a Texas-based court heard 1,387 patent cases, compared with an average of 19 such cases in other federal judicial districts.

The district has become so notorious as a magnet for “patent troll” litigation that Samsung ramped up its giving to charities near the court, and even built an ice skating rink next to the court’s Marshall, Texas division, undoubtedly to present a more friendly face to local juries. The City of Tyler even advertises itself as “IP friendly” and lists the big awards the court has doled out. The current state of affairs is so absurd that John Oliver even covered it.

When the Federal Circuit heard oral arguments this month in TC Heartland, a case that deals with venue, it blamed Congress for the current mess. As the panel explained, the present situation arose from a 1990 case called VE Holding that overrode the previous, stricter, rules following an interpretation of a 1988 law. Therefore, since Congress messed it up in the first place, they should be the ones that fix it.

Yet, cracking down on venue shopping alone offers a more modest goal than the sorts of comprehensive patent-reform legislation that have stalled in Congress in recent years. The last major push for comprehensive reform – H.R. 3309, the Innovation Act of 2013 – passed the U.S. House in December of that year with broad bipartisan support and an overwhelming margin of 325-91. At the time, it held a 7-1 margin of support among Republicans.

Alas, the bill also drew host of special interests to the table, who swiftly ramped up an intense and well-funded opposition campaign (get your fill of AstroTurf at www.savetheinventor.com). After failing to clear the Senate during the 113th Congress, the Innovation Act was reintroduced last year by House Judiciary Chairman Bob Goodlatte, as H.R. 9. Both that measure and a Senate companion bill (S. 1137, the PATENT Act) included venue-reform provisions. Despite strong support from free-market groups (including R Street) and a wide variety of other organizations, a coalition of special interests has obstructed either bill from moving forward.

The holistic approach to patent litigation reform appears to have been swallowed up by fear-mongering. Opponents have gone so far as to claim that an effort pushed by some of the most conservative legislators actually represented Obama’s liberal vision for a “patent-free society.” Narrowly-targeted reform efforts like the one introduced by Sens. Jeff Flake, Cory Gardner, and Mike Lee (none of whom are even remotely considered to be on the “liberal” end of the spectrum), present a new opportunity to move forward.

The fruits of innovation should go to entrepreneurs and inventors, not trial lawyers. Addressing abusive patent litigation is essential to ensure that America’s rules to reward technological innovation remain in line with the Constitution’s mandate to “Promote the Progress of Science and the useful Arts.”

 

Column was published at R Street Institute.

Prev postNext post

Related ItemsPatent TrollTroll
Business
April 2, 2016
Chuck Muth

Related ItemsPatent TrollTroll

More in Business

Nohra: GOED vs. State Senator: A Showdown Over Tax Reductions in Nevada

NN&V StaffMay 10, 2023
Read More

Nevada Biz Execs Give Governor “B-” Grade, Want ID Requirement for Voting

NN&V StaffMay 1, 2023
Read More

Say No to SB 394: Why Increasing Property Taxes is a Bad Idea

NN&V StaffApril 13, 2023
Read More

Budweiser Spreading Transgender Poison

NN&V StaffApril 11, 2023
Read More

Senators Push for Permanent Repeal of Death Tax

NN&V StaffApril 11, 2023
Read More

EU Serves as Example of What NOT to Do on Sugar Imports

Chuck MuthDecember 15, 2022
Read More
Scroll for more
Tap

Subscribe Free By Email

Looking for the best in breaking news and conservative views? Let Chuck do all the work for you! Subscribe to his FREE "Muth's Truths" e-newsletter.

* indicates required
Nevada News and Views
Nevada News & Views is an educational project of Citizen Outreach Foundation, a non-partisan IRS-approved 501(c)(3) organization. It is not associated or affiliated with any political party or group. Nevada News & Views is accessible by the public at no cost. It funds its operations through tax-deductible contributions from donors and supporters and does not accept government money or grants.

TAGS

Featured Article Nevada Politics business Muth's Truths government Muth’s Truths Opinion Government Obama Ron Knecht News Donald Trump GOP Republicans

Copyright © 2023 Citizen Outreach | Maintained by VirtualAlly

Setting the Record Straight on Fracking
$85 Million Patent Verdict, Largest Ever Against Google, Wiped Out On Appeal