Innovation Asset Blog

More groups ask Congress to address patent assertion entities

A letter sent to the leaders of the U.S. House of Representatives and Senate judiciary committees requests legislation to combat patent assertion entities. The signatories to the letter include the Computer & Communications Industry Association, National Retail Federation, National Grocers Association, American Gaming Association, Printing Industries of America and the American Hotel and Lodging Association.

The letter argues patent assertion entities exploit "the patent system for financial gain to the detriment of innovation." The signatories also point out that the expense of proving the validity of one's own patents, or the invalidity of those held by a patent assertion entity, is very high, as is the expenditure of time necessary to engage in legal battles.

Those organizations that signed the letter are requesting an alternative to litigation that would allow them to challenge the patents of patent assertion entities for less cost and in less time. The Covered Business Method review program is one such option, which would allow smaller businesses to pool resources to pay for a patent reviewed. Under this scheme, once a patent is determined invalid, it can't be used in litigation targeting other businesses. The letter's signatories want this review process to be available for more industries, as it is currently only open to financial services patents.

Peter Ackerman

Peter Ackerman

Founder & CEO, Innovation Asset Group, Inc.