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February 25, 2014

Coakley joins other AGs to in bid to curb 'patent trolls'

Attorney General Martha Coakley has joined 41 other attorneys general in supporting federal legislation against “patent trolls” to “address frivolous and abusive patent lawsuits that threaten small, start-up businesses.”

In a statement Monday, Coakley’s office said she submitted a letter to two Senate committees addressing the issue.

“It’s crucial that we’re able to protect companies, especially those in our innovation and start-up sector, from abusive and frivolous demands that can shut a business down before it even starts,” Coakley, a candidate for governor, said.

She said the lawsuits can cost small businesses hundreds of thousands of dollars, and the costs often force those businesses to settle, regardless of whether the claims would hold up in court.

Coakley’s office said “patent trolls” don’t invent new technology, make or sell products or provide services to clients, but instead, buy patents and make money “solely by asserting infringement and extracting licensing fees and settlement payments.”

According to Coakley’s office, consumers, small businesses and nonprofits are typically targeted by the trolls because they buy or use products with a wide range of patented technology.

Coakley said she supports the Innovation Act, which was recently passed in the House and Senate and would help limit the power of patent trolls by requiring more clarity in their demand letters, among other things.

In the letter sent to the Senate Judiciary and Commerce, Science and Transportation committees, Coakley and other AGs said they’re encouraged by Congress’ action thus far, but asked for amendments to address points including states’ authority over enforcement, transparency of those filing complaints and giving state courts jurisdiction over deceptive patent letters sent to their state.

Coakley said she also intends to explore whether legislation can be enacted on the state level to help fend off patent trolls.
 

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