Bill: HB 2386 – Patent Troll Prevention Act
Primary Sponsor: Rep. Eddie Farnsworth
Status: Passed House 57-0; Ready for Senate consideration
Summary: The Arizona Patent Troll Prevention Act is modeled after legislation that has been enacted in 26 states. Under this act, a person may not make assertions of patent infringement in bad faith. An “assertion of patent infringement in bad faith” is defined as a person sending a demand threatening a target with litigation while asserting that the target infringed a patent or that the target should obtain a license in order to avoid litigation.
Recommendation: The Greater Phoenix Chamber of Commerce supports this bill as an important business protection mechanism against bad faith lawsuits.
“Patent trolling” is the process of filing a claim of patent infringement against an entity, despite the fact that the claimant does not manufacture or supply the product or service in question. The risk of abusive patent infringement claims impacts nearly every industry, and is a serious concern for banks, technology companies and other businesses of all sizes across the country.
We urge the members of the Legislature to join us in supporting HB 2386.