[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 1612 Introduced in Senate (IS)]

113th CONGRESS
  1st Session
                                S. 1612

To deter abusive patent litigation by targeting the economic incentives 
                     that fuel frivolous lawsuits.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            October 30, 2013

   Mr. Hatch introduced the following bill; which was read twice and 
               referred to the Committee on the Judiciary

_______________________________________________________________________

                                 A BILL


 
To deter abusive patent litigation by targeting the economic incentives 
                     that fuel frivolous lawsuits.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Patent Litigation 
Integrity Act of 2013''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
                    TITLE I--MANDATORY FEE SHIFTING

Sec. 101. Litigation and other expenses.
                    TITLE II--DISCRETIONARY BONDING

Sec. 201. Motion for a bond.

                    TITLE I--MANDATORY FEE SHIFTING

SEC. 101. LITIGATION AND OTHER EXPENSES.

    (a) In General.--Section 285 of title 35, United States Code, is 
amended to read as follows:
``Sec. 285. Fees and other expenses
    ``The court shall award to a prevailing party reasonable fees and 
other expenses, including attorney fees, incurred by that party in 
connection with a civil action in which any party asserts a claim for 
relief arising under any Act of Congress relating to patents, unless 
the court finds that the position and conduct of the nonprevailing 
party or parties were substantially justified or that special 
circumstances make an award unjust.''.
    (b) Technical and Conforming Amendment.--The table of sections for 
chapter 29 of title 35, United States Code, is amended by striking the 
item relating to section 285 and inserting the following:

``285. Fees and other expenses.''.

                    TITLE II--DISCRETIONARY BONDING

SEC. 201. MOTION FOR A BOND.

    (a) In General.--Chapter 29 of title 35, United States Code, is 
amended by inserting after section 285 the following:
``Sec. 285A. Motion for a bond
    ``(a) In General.--The court, on motion by the defendant or a 
respondent in a proceeding, may order the party alleging infringement 
to post a bond sufficient to ensure payment of the accused infringer's 
reasonable fees and other expenses, including attorney fees.
    ``(b) Factors To Be Considered.--For purposes of this section, in 
determining whether a bond requirement would be unreasonable or 
unnecessary, the court shall consider--
            ``(1) whether the bond will burden the ability of the party 
        alleging infringement to pursue activities unrelated to the 
        assertion, acquisition, litigation, or licensing of any patent;
            ``(2) whether the party alleging infringement is--
                    ``(A) an institution of higher education (as 
                defined in section 101(a) of the Higher Education Act 
                of 1965 (20 U.S.C. 1001(a))); or
                    ``(B) a non-profit technology transfer organization 
                whose primary purpose is to facilitate the 
                commercialization of technologies developed by one or 
                more institutions of higher education;
            ``(3) whether a licensee, who has an exclusive right under 
        a patent held by an institution of higher education or a non-
        profit organization described in paragraph (2), conducts 
        further research on or development of the subject matter to 
        make the subject matter more licensable;
            ``(4) whether the party alleging infringement is a named 
        inventor of or an original assignee to an asserted patent;
            ``(5) whether the party alleging infringement makes or 
        sells a product related to the subject matter described in an 
        asserted patent;
            ``(6) whether the party alleging infringement can 
        demonstrate that it has and will have the ability to pay the 
        accused infringer's fees and other expenses if ordered to do 
        so; and
            ``(7) whether any party will agree to pay the accused 
        infringer's shifted fees and other expenses, provided that the 
        person or entity can demonstrate that it has and will have the 
        ability to pay the accused infringer's shifted fees and other 
        expenses.''.
    (b) Technical and Conforming Amendment.--The table of sections for 
chapter 29 of title 35, United States Code, as amended by section 101, 
is amended by inserting after the item relating to section 285 the 
following:

``285A. Motion for a bond.''.
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