Trade Agency ‘Patent Troll’ Bill Seen as Harmful for IP Owners

Congressmen Don Beyer (D-Va.) and David Schweikert (R-Ariz) recently introduced the Advancing America’s Interest Act, which would impose new restrictions on “non-practicing entities” (NPEs) that generate revenue through patent licensing and litigation. The measure would limit their access to the International Trade Commission (ITC) to block imports that infringe US patents.

Counsel believe that the ITC was created to protect U.S. business from unfair foreign competition, but as of late, it has been misused by patent licensing entities that target U.S. companies. As a result, there has been an increase in ITC complaints filed by NPEs.

Finnegan partner Elizabeth Niemeyer told Bloomberg Law that the exact extent of the increase and the prevalence of licensing entities remain unclear because the data sample is relatively small. She added that given the low number of complaints the ITC receives each year, a change of even a few cases would be significant.

“Its kind of hard to tell, like, is it really just something that’s become an NPE haven or if it’s just kind of a small blip over one year,” she said.

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