Legislation Targeting Non-Practicing Entities (NPEs) Passes In House By Comfortable Margin

On Thursday, December 5, 2013, the U.S. House of Representatives approved the "Innovation Act" (H.R. 3309), a bill principally aimed at curtailing certain patent infringement litigation practices of non-practicing entities (NPEs). The legislation's sponsor, Judiciary Committee Chairman Bob Goodlatte (R-Va.), explained the impetus behind the bill: "Abusive patent litigation is a drag on our economy. Everyone, from independent inventors to startups, to mid and large size businesses face this constant threat. The tens of billions of dollars spent on settlements and litigation expenses associated with abusive patents suits represents truly wasted capital, wasted capital that could have been used to create new jobs, fund research and development, and create new innovations and technologies that would promote the progress of science and useful arts." The House passed the bill by a sound margin, 325-91; it now goes to the U.S. Senate for consideration.