Dems renew call for patent reform

Two Senate Democrats are renewing their call for movement on patent legislation in the next Congress following a case settled by the Federal Trade Commission on Thursday. 

Sen. Claire McCaskill (D-Mo.) said the FTC’s first crackdown on a so-called “patent troll” was a good sign, but the agency needs broader authority.

{mosads}”This problem is bigger than one company, and this action highlights the need for clear authority for the agency to take broad, powerful action against patent trolls that are stifling American jobs and businesses,” she said in a statement Friday. 

McCaskill leads the Senate Commerce Committee’s panel on consumer protection. 

On Thursday, the FTC announced a settlement with “patent troll” MPHJ Technology Investments that would prevent the company from making misleading claims and threatening lawsuits it has no intention of carrying out. 

The FTC alleged that the company sent misleading letters to thousands of other companies threatening patent infringement lawsuits. The letters noted that many other companies in a similar position had settled. The FTC found those claims to be untrue, and that MPHJ had no intention of following through with legal action. 

McCaskill previously introduced legislation that would allow the FTC to outline specifically what makes up a deceptive demand letter. 

Similarly, Sen. Patrick Leahy (D-Vt.) touted his legislation with Sen. Mike Lee (R-Utah) that would bar misleading letters. The proposal was included in broader legislation that stalled earlier this year.  

“This problem is bigger than one company, and this action highlights the need for clear authority for the agency to take broad, powerful action against patent trolls that are stifling American jobs and businesses,” Leahy said Thursday. 

Many observers see an increasing likelihood of patent reform advancing in Congress next session as Republicans won control of the Senate. The House passed legislation last year, but Senate reform stalled, after Majority Leader Harry Reid (D-Nev.) failed to bring it to the floor.

Sen. Orrin Hatch (R-Utah), the chairman of the GOP’s High-Tech Task Force, named patent legislation as a key priority in the next Congress earlier this year.