Tuesday, December 01, 2015

Breitbart wrong on "loser pays" provisions of proposed Innovation Act

A post at Breitbart emphasized the importance of "loser pays" to some patent reformers:

“Loser pays” is one of the most critical components of any good reform. This provision will stop patent trolls from filing frivolous lawsuits just to fish for out-of-court settlements. Most small companies cannot afford the $200,000 plus in legal fees to defend themselves in court, even when they know they’re not in the wrong. In fact, the median legal cost for most major patent cases is $5 million–a cost too large even for some major corporations. And that attitude is patent trolls bread and butter; they bank on the fact that the vast majority of their victims will give in to their demand payments. It’s extortion at its best–or worst.

Legislation being considered in Congress would address this issue, and would shift the costs onto the losing plaintiffs if a judge finds that they are abusing the system and filing overly-frivolous lawsuits indiscriminately. Companies like NewEgg would no longer have to pay $215,000 for a “win.”

The background presumption in the "loser pays" provision of the proposed Innovation Act is simply that the loser does pay, unless the judge determines the loser should not pay.

Breitbart is describing the CURRENT system.

link: http://www.breitbart.com/big-government/2015/12/01/patent-trolls-fraudsters-make-easy-money-due-american-law/


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