Tech companies, retailers, others align against patent trolls

Under the rubric United for Patent Reform, tech companies are teaming up with retailers, hospitality companies, real-estate firms, construction companies, and others to press for ending patent abuses.

“Instead of creating new jobs and investing in new technologies, businesses large and small across many industries—from national realty, construction, and technology businesses to Main Street retail shops, hotels, grocers, convenience stores, and restaurants—continue to be forced to divert scarce resources to fighting frivolous lawsuits and overly broad claims made by patent assertion entities, or ‘patent trolls,’” said Matthew Shay, president and CEO of the National Retail Federation, in a press release. “This must change.”

“Patent trolls have turned everyday business practices, like using a scanner-copier, into potential lawsuits,” added Chris Polychron, president of the National Association of Realtors. “Every industry, including real estate, is currently vulnerable to intimidation by patent trolls who use the threat of costly litigation to extract unwarranted ‘hold up’ settlements from companies that unknowingly use the products that trolls allege might infringe their patents.”

The new organization is pursuing legislative reform in seven areas:

• reform abusive demand letters,
• make trolls explain their claims,
• protect innocent customers,
• make patent litigation more efficient,
• stop discovery abuses,
• make abusive trolls pay, and
• provide less expensive alternatives to litigation.

Mario Trujillo at The Hill writes, “Beth Provenzano, a co-chair of the group, said the numerous companies and groups worked together ‘loosely’ last year on patent reform but thought their advocacy could be more efficient as part of a coalition.” She expects President Obama to raise the issue in his State of the Union address next week.