Press

NAFCU Letter to House Judiciary Subcommittee on Courts, Intellectual Property & the Internet in Advance of Tomorrow’s Hearing on Abusive Patent Litigation

March 24, 2015

The Honorable Darrell Issa
Chairman
Subcommittee on Courts,
Intellectual Property
& the Internet
Committee on the Judiciary
United States House of Representatives
Washington, D.C. 20515

The Honorable Jerry Nadler
Ranking Member
Subcommittee on Courts,
Intellectual Property
& the Internet
Committee on the Judiciary
United States House of Representatives
Washington, D.C. 20515

Re: “Protecting American Innovators and Job Creators from Abusive Patent Litigation”

Dear Chairman Issa and Ranking Member Nadler:

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 the subcommittee’s scheduled hearing on abusive patent litigation. On behalf of NAFCU member credit unions and the 100 million credit union members across the country, we appreciate the committee’s continued attention to patent reform and addressing abuses in the current 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. Unfortunately, too many credit unions and their members are victims of this abusive practice.

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. We urge the subcommittee to take action to address this abusive practice.

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 Subcommittee on
Courts, Intellectual Property & the Internet

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