Summary: More non-solutions to an actual severe (and growing) problem which boils down to low patent quality, notably software patents
The VENUE Act was covered here several times earlier this month and it's now the word (or term) on many people's lips, even friends of patent trolls, who in unrelated articles state: "The Venue Equity and Non-Uniformity Elimination Act 2016 would restrict patent suits to district courts where the parties are incorporated or where they have physical facilities tied to either the development of the technology at issue or alleged infringement."
A recently proposed bill in the U.S. Senate may be the key to curbing the rampant patent lawsuit abuse in the plaintiff-friendly Eastern District of Texas jurisdiction.
Proposed by Republican Sens. Jeff Flake (Ariz.), Cory Gardner (Colo.) and Mike Lee (Utah), the Venue Equity and Non-Uniformity Elimination Act (VENUE Act) targets a very specific part of the problem with patent abuse known as forum shopping.
“The VENUE Act would make it harder for companies to file a suit in districts that don’t have meaningful connection to the suit,” Daniel Nazer, staff attorney with the Electronic Frontier Foundation and Mark Cuban Chair to Eliminate Stupid Patents, told the Southeast Texas Record. “This bill is really about making sure disputes are filed somewhere that makes sense.”
Instead of allowing a patent owner to file wherever they would like, the bill requires an individual to bring a lawsuit in the city where the invention was created or where the company being sued is based or manufactures its product. In other words, small California startups would no longer be sued by a California inventor in the Eastern District of Texas if the VENUE Act was signed into law.
The last couple of weeks have seen two good patent bills introduced, first the VENUE Act, and now the Trade Protection Not Troll Protection Act. This bipartisan bill closes loopholes at the International Trade Commission that patent trolls have been exploiting.
The International Trade Commission (ITC) is an agency whose main job is to protect American industries from unfair competition abroad. If a U.S. company thinks another company is importing goods unfairly produced, it can ask the ITC to investigate. If the Commission finds that the importer (called the respondent) has violated the trade laws (which include infringing U.S. patents), it can issue an exclusion order. The order instructs customs to block the products in question at the border.
The ITC handles a fair number of patent cases, because the ability to get an exclusion order is essentially the same as an injunction in district court. And that is where patent trolls come in.