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===Discovery limits===
The act would limit discovery in litigation until after a claim construction ruling. This provision is aimed at reducing the costs of litigation.
==Analysis Notes (not organized yet)==
Before: The court may conclude that the patent claim is not valid if it is shown that the claimed invention was disclosed in a prior patent or patents, a book, a magazine, a newspaper, a television show or movie, a webpage or other published work before the date of the claimed invention.
After: Innovation Act removes a provision that prohibits a patent from being deemed invalid based on novelty, prior art, or nonobvious subject matter solely because a defense is raised or established based on prior commercial use.
===Current Patent System [http://knobbe.com/pdf/2010-December-The-US-Patent-Litigation-Process.pdf]===
American Intellectual Property Law Association reported in 2009 that the median cost of a patent infringement suit was 650,000 if less than 1 mil was at risk; 2.5 million if 1 mil to 25 mil at risk; 5.5 million if more than 25 mil at risk.
*More than 95% of patent cases resolved before trial
“Typical patent infringement lawsuit begins with complaint filed by patent owner in a US district court. Complaint identified alleged infringers, and the US patent or patents alleged to be infringed.”
*Usually includes a brief statement of the alleged infringing act
*Doesn’t identify specific products or processes that are accused of infringement
*Average time from filing a case to judgement is 33 months, or 2 years 9 months
Some districts (northern district of CA, Eastern district of TX) have local patent rules that require plaintiffs to identify the specific claims being asserted, and specify where each limitation of each asserted claim is found in each accused product.
A sizable majority of patent troll lawsuits (some say as high as 90%) involve patents on software
the problem to patents of low quality having “unclear property rights, overly broad claims, or both.” The problem is inherent in software because, unlike a mechanical device, it is intangible and difficult to clearly define.[https://www.bestlawyers.com/Article/patent-trolls-separating-myth-reality/539/]
Issues/cricism of the innovation act [http://www.ipwatchdog.com/2015/05/20/study-should-pause-patent-reform/id=57946/]:
*Apparent automatic fee-shifting in lawsuits
*Heightened pleading standard
*Discovery stay
*Broad ‘customer stay’ provision could shield retailers/importers from infringement claims
*Pierce corporate veil with “ownership transparency”
Indirect infringement:
*Someone who has contributed to the infringement of a patent is liable
*Can only arise when the indirect infringer has some knowledge and intent regarding the patent and infringement
*ex. someone who actively induces infringement of patent by encouraging, aiding, or causing another person to infringe a patent. Inducer must be aware of patent and intend for their actions to result in third party infringing that patent
*Contributory infringement: seller provides part of component that itself does not infringe on a patent, but has a particular use as a part of some other machine that is covered by a patent
===Detailed Summary of the Bill===
'''Section 3'''
[[Pleading Requirements]]
The party alleging patent infringement must include in the initial complaint (unless the information is not reasonably accessible to such party):
*Identification of each patent allegedly infringed
*All claims (heart of the patent, defines the limits of exactly what the patent does) necessary to produce the identification of each process, machine, manufacture, or composition of matter (accused instrumentalities) that infringe the patent
*The name, model number, description of each AI
*How each limitation of each claim is met by the AI
*For indiret infringement, the acts of the infringer that are inducing a direct infringement
*Authority of the party to assert each patent
TL;DR If you believe your patent has been infringed on, you must write in your initial complaint letter VERY SPECIFIC information regarding exactly which parts of your patents have been violated and by what model/device.
[[Fees and Other Expenses]] [https://www.govtrack.us/congress/bills/114/hr9/summary]
"Requires courts to award prevailing parties reasonable fees and other expenses incurred in connection with such actions, unless:
(1) the position and conduct of the nonprevailing party was reasonably justified in law and fact; or
(2) special circumstances, such as severe economic hardship to a named inventor, make an award unjust.
Directs courts, upon a motion of a party, to require another party to certify whether it will be able to pay any award of such fees and expenses. Allows the court, if a nonprevailing party is unable to pay such a fee, to make a joined party liable for the unsatisfied portion.
Subjects a party claiming a patent in a civil action who subsequently unilaterally seeks dismissal of the action without consent of the other party, and who extends to such other party a covenant not to sue for infringement, to a motion for attorney's fees as if it were a nonprevailing party, unless:
(1) the party asserting such claim would have been entitled, at the time that such covenant was extended, to dismiss voluntarily the action without a court order; or
(2) the interests of justice require otherwise.
Removes a provision that prohibits a patent from being deemed invalid based on novelty, prior art, or nonobvious subject matter solely because a defense is raised or established based on prior commercial use."
TL;DR Encourages courts to make the losers pay for the winner’s court fees/associated fees
[[Joinder of Interested Parties]]
*If the prevailing party is the side defending against an allegation of infringement, and the nonprevailing party can’t pay the award of fees and expenses, then the prevailing party can signal a motion to have a joinder of interested parties, if they show that the nonprevailing party has no substantial interest in the subject matter
**Substantial interest is defined as interest if the party invented the subject matter or commercially practices, made substantial preparations directed particularly to commercially practicing, or is engaged in R&D in the subject matter
[[Discovery Stay]] [https://www.govtrack.us/congress/bills/114/hr9/summary]
Establishes procedures to stay discovery pending a preliminary motion, subject to exceptions for: (1) motions to sever, drop a party, dismiss, or transfer; (2) actions in which a patentee is granted a preliminary injunction to prevent competitive harm; (3) consent of the parties; or (4) certain drug and biological product applications.
