Vote Smart's Synopsis:

Vote to pass a bill that amends patent laws.

Highlights:

• Requires the making or threatening to make a bad-faith assertion of patent infringement to be considered as an unfair, false, misleading, or deceptive act and an unlawful act under the Kentucky Consumer Protection Act (Sec. 1).

• Authorizes the court to consider certain factors as evidence that an individual has made a bad-faith assertion of patent infringement including, but not limited to, the following factors (Sec. 1):
• The demand letter does not contain the patent number, the name and address of the patent owner, and the factual allegations concerning the specific infringement of the patent;
• The demand letter demands payment of a license fee or response within an unreasonably short period of time; and
• Any other factors the court finds relevant.

• Authorizes the court to consider certain factors as evidence that an individual has not made a bad-faith assertion of patent infringement including, but not limited to, the following factors (Sec. 1):
• The individual makes a substantial investment in the use of the patent or in the production or sale of the item covered by the patent;
• The individual has demonstrated good-faith business practices in previous efforts to enforce the patent or substantially similar patents; and
• Any other factors the court finds relevant.

• Requires a “target” be entitled to the following remedies if he or she is successful in proving a bad-faith assertion of patent infringement (Sec. 1):
• Equitable relief;
• Damages;
• Reasonable cost of litigation that includes attorney fees; and
• Exemplary damages equal to the greater of $50,000 or 3 times the individual’s damages, costs, and fees. 

• Defines “target” as a Kentucky individual who meets the following criteria (Sec. 1):
• An individual who has received a demand letter or against whom an allegation of patent infringement has been made;
• An individual who has been threatened with litigation or against whom a lawsuit has been filed alleging patent infringement; or 
• An individual whose customers have received a demand letter asserting that the individual’s product, service, or technology has infringed a patent. 

• Prohibits the provisions of this bill from applying to a demand letter or claim for relief that is covered under certain federal laws (Sec. 1).

Full Bill Text