Bill Protects Against Bad-Faith Patent Infringement Claims

A state Senate panel is considering legislation aimed at protecting Michigan businesses from bad-faith patent infringement claims.

Bill sponsor, Senate Republican Margaret O’Brien, says often times a small business that receives a demand letter claiming patent infringement, will settle with the claimant rather than face an expensive lawsuit.

She says her legislation sets up criteria for a demand letter, which would help a court determine whether the claim is valid or made in bad-faith.

Supporters told the Senate Judiciary Committee the measure would protect Michigan industries from so-called “patent trolls” that make vague infringement claims in hopes of getting a payout.

But opponents say patent law is handled by the federal government an state laws can interfere.