Relating to creating a private cause of action for bad faith claims of patent infringement.
If enacted, HB5543 would significantly modify the landscape of patent infringement claims in Texas. It would empower end users to approach courts with claims of bad faith, thus allowing them to mandate accused infringers to post a bond. This bond could cover reasonable litigation costs, limited to a maximum of $500,000. The new requirement for posting a bond serves as a financial barrier against frivolous patent infringement claims, potentially discouraging entities from making unsupported assertions.
House Bill 5543 aims to create a private cause of action specifically for bad faith claims related to patent infringement. This legislation proposes amendments to Section 17.955 of the Business and Commerce Code, which currently restricts private causes of action under deceptive trade practices. By enabling end users who have been subjected to bad faith assertions of patent infringement to seek legal recourse, the bill intends to bolster protections for individuals and businesses against exploitative patent claims.
Opposition to HB5543 may stem from concerns that the ability to enforce a bond requirement might create an additional hurdle for legitimate patent holders asserting their rights. Critics might argue that this could dissuade patent enforcement, hindering innovation and legitimate intellectual property protection. Conversely, supporters uphold that this bill aids in curtailing the misuse of patent rights by introducing accountability measures, thereby fostering a more equitable climate for innovation and entrepreneurship.