Texas House Bill HB3176

Texas 2015 - 84th Regular

Caption

Relating to claims of patent infringement; providing civil penalties; imposing fees.

Impact

If enacted, HB3176 is expected to strengthen protections for Texas residents against aggressive patent infringement claims that lack a reasonable basis. The bill mandates that patent holders who send 10 or more demand letters per year must register with the Secretary of State and pay a registration fee. Additionally, the Attorney General is granted authority to create databases that track these demand letters and the entities involved, facilitating better enforcement against those who violate the new regulations. This oversight intends to deter entities from sending frivolous claims, thus potentially reducing the incidence of patent trolling in Texas.

Summary

House Bill 3176 addresses issues related to patent infringement claims, aiming to regulate the sending of demand letters that allege such infringements against Texas residents. The bill sets forth definitions for terms such as 'demand letter' and 'bad faith,' notably establishing that claims of patent infringement made in bad faith are prohibited. A key component of the bill is the introduction of civil penalties for violations, and it empowers the Texas Attorney General to take legal action against those sending bad faith claims. The bill seeks to protect Texas residents from unscrupulous patent holders who may leverage the threat of litigation to extort payment unjustly.

Contention

There may be contention surrounding the enforcement of these provisions, particularly with how 'bad faith' is defined and the potential implications for legitimate patent holders. Critics may argue that the requirements placed on patent holders, like registration and transparency, could inhibit legitimate legal actions needed to protect intellectual property. Hence, safeguarding genuine patent claims while penalizing wrongful practices remains a balancing act that legislators will need to manage as they implement HB3176. The potential financial burden on smaller entities and the implications for innovation in various sectors will likely be subjects of debate.