Rep. David Schweikert joined Rep. Susan Delbene to introduce the Advancing America’s Interests Act, legislation that aims to help prevent the International Trade Commission (ITC) from being misused. The ITC has the power to ban products from entry into the U.S. marketplace. However, this power is abused by patent licensing entities, also known as patent trolls, which buy up patents with the sole intent of using them to extract profits or stifle competition.
According to U.S. News.com, a patent troll is “a company that owns the intellectual property (IP) for products and services that it doesn’t actually provide. Instead, it monetizes that IP by suing companies for infringement upon its patents, claiming a violation of an intellectual property right.”
The legislation explains, “Patent licensing entities, which produce no goods or services, have used the ITC as a forum to file expensive patent cases against American companies. These entities are abusing the ITC legal process and its powerful ability to block products from entering the U.S. to shake down American companies in search of large multi-million-dollar payouts. The result is that significant ITC resources are wasted on unnecessary and costly patent litigation that has nothing to do with protecting U.S. industry and American jobs from unfair foreign competition.”
Schweikert stated, “Ensuring the International Trade Commission cannot be used as a venue for misuse by patent licensing entities is paramount for protecting consumers and promoting strong global market competition. This legislation is an important step in reforming the ITC’s unfair import processes, and will help to ensure America can continue being a leader in advancing innovation.”
Specifically, the bill will:
- Establish an appropriate “domestic industry” standard, which would require that a U.S. company cannot be used as a plaintiff/complainant unless they voluntarily join a complaint requesting the ITC’s relief. This refined standard would also clarify that companies whose only industry is licensing (no research, development, or manufacturing) must show that its patent has led to the adoption or development of products that actually incorporate the patent.
- Reaffirm the ITC’s public interest obligation. The ITC will be required to consider public interest as paramount to the exercise of its remedial powers (regarding an exclusion order) and affirmatively determine that any exclusion serves the public interest.
Rep. Delbene commented, “As we begin to rebuild our economy, one of our top priorities must be protecting and prioritizing American workers and industries through strong trade policy and enforcement. In recent years, patent licensing entities have taken advantage of the ITC process for financial gain. By modernizing the ITC with this bill, we can help ensure the public interest is always put first as the commission adjudicates.”
