NAFCU’s Thaler urges legislative solution to bad patent practices
WASHINGTON, DC (July 13, 2017) — National Association of Federally-Insured Credit Unions (NAFCU) Vice President of Legislative Affairs Brad Thaler noted the growing problem of credit unions receiving deceptive demand letters claiming patent infringement and, in a letter today, urged a House Judiciary subcommittee to pursue a legislative solution.
The Subcommittee on Courts, Intellectual Property and the Internet today will hold a hearing Thursday looking at the impact of bad patents on American businesses.
“These deceptive letters are confusing and misleading, as they often allege that the use of everyday technology violates the patent holders’ rights,” Thaler wrote in a letter to subcommittee Chairman Darrell Issa, R-Calif., and Ranking Member Jerry Nadler, D-N.Y.
Thaler explained that since the cost of litigation is often more expensive than paying to settle, “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.”
He continued, “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.”
The National Association of Federally-Insured Credit Unions is the only national trade association focusing exclusively on federal issues affecting the nation’s federally-insured credit unions. NAFCU membership is direct and provides credit unions with the best in federal advocacy, education and compliance assistance. For more information on NAFCU, go to www.nafcu.org or @NAFCU on Twitter.