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Trade body, universities row over US patent troll act proposals

Academics: legislation goes ‘well beyond what is needed’

A spat has erupted between US universities and the trade body representing the $286bn (£193bn) consumer electronics industry, over a proposed crackdown on patent trolls.

The row is centered upon the proposed Innovation Act, a bill which collapsed and died last spring in the Democratic-controlled Senate, but which has now been resurrected, and is intended to make vexatious patent claims more difficult.

However, 145 US universities — including a number of Ivy League institutions — oppose the plans.

They argue the act would do little to deter patent trolls and instead make it more costly for legitimate patent holders to defend their intellectual property.

The Consumer Electronics Association, the standards and trade organization, has written to the universities to say the bill is "fair, common-sense legislation that would curb abusive patent litigation".

Gary Shapiro, president and CEO, said: “It is disappointing to see universities reject common-sense reform, especially since many universities are licensing publicly-funded patents."

He added: “Universities should focus on strengthening our nation’s patent system to ensure taxpayer-funded patents are not being used to extort the very companies and entrepreneurs that hire graduates, and contribute to university research or support these institutions as alumni donors.”

The CEA claims trolls cost the economy an estimated $1.5bn (£1bn).

In February, the Association of American Universities wrote a letter to the House and Senate Judiciary Committees arguing that much of the patent legislation currently being discussed in Congress "goes well beyond what is needed to address the bad actions of a small number of patent holders". ®

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