An NPE Settles With New York, Sues FTC

Over the past year, both the legislative and executive branches of the federal government have expressed increasing support for legislation and other measures targeting patent litigation abuse by non-practicing entities (NPEs), notwithstanding some opposition expressed by members of the federal judiciary. (See our previous alert here.) Given federal jurisdiction to hear patent suits, it makes sense that many states have stayed out of the debate. But a recent settlement agreement between the New York Attorney General and an NPE demonstrates that states can address litigation abuse by NPEs, even if less directly or expansively than Congress might. The settlement not only limits abuse by the NPE expressly subject to its terms, but also attempts to set standards for all NPEs targeting New York businesses.