Press
NAFCU letter in advance of hearing tomorrow on H.R. 9, The Innovation Act
April 13, 2015
The Honorable Bob Goodlatte
Chairman
Committee on the Judiciary
U. S. House of Representatives
Washington, DC 20515
The Honorable John Conyers
Ranking Member
Committee on the Judiciary
U. S. House of Representatives
Washington, DC 20515
Re: Tomorrow’s Hearing: “H.R. 9, The Innovation Act”
Dear Chairman Goodlatte and Ranking Member Conyers:
On behalf of the National Association of Federal Credit Unions (NAFCU), the only trade association exclusively representing the interests of our nation’s federal credit unions, I write today in advance of tomorrow’s hearing, “H.R. 9, The Innovation Act.” On behalf of NAFCU member credit unions and the 100 million credit union members across the country, we appreciate the committee’s continued efforts to seek a legislative solution to the problems plaguing our nation’s patent system.
A growing number of credit unions are reporting receipt of demand letters from law firms representing patent assertion entities, claiming patent infringement, with the option to settle or face litigation. These deceptive letters are confusing and misleading as they often allege that the use of everyday technology violates the patent holders’ rights. Further, these letters typically state vague or hypothetical theories of infringement, and often overstate or misinterpret the patent in question. Because the cost of litigation is often more expensive than paying a settlement amount, these “patent trolls” use the threat of litigation as leverage to extract payment from the recipient business who settles in lieu of running the risk of a complex and lengthy legal battle.
NAFCU believes a legislative solution is necessary to alter the intimidating business model used by these patent assertion entities and will continue to be supportive of any Congressional effort to curb these practices. As you consider The Innovation Act, we urge you to address this issue in the most comprehensive way possible.
Again, thank you for holding this important hearing. If my staff or I can be of assistance to you, or if you have any questions regarding the impact of patent trolls on credit unions, please feel free to contact myself, or NAFCU’s Director of Legislative Affairs, Jillian Pevo, at 703-842-2836.
Sincerely,
Brad Thaler
Vice President of Legislative Affairs
cc: Members of the House Judiciary Committee