SIA’s Efforts to Mitigate a Major Threat to Innovation: Patent Trolls

SIA's Efforts to Mitigate a Major Threat to Innovation: Patent Trolls

Ask any SIA manufacturer member to state the most likely threats to future business growth and many will cite complex regulatory requirements, changing economic conditions and finding highly-skilled workers. Most manufacturers would also agree that patent trolls who prey upon the ingenuity of security technology suppliers is a threat worthy of legislative action by the states, Congress and the courts.

Security product manufacturers invest considerable time, research and development, and human capital into developing a wide range of cutting-edge security solutions. A significant threat to investment in the next generation of security offerings is the aggressive efforts of patent trolls to extort excessive license fees from businesses they alleged have committed patent infringement. These resources could be used by companies to hire more people, train existing employees, invest in new technologies, and keep America healthy, safe and prosperous.

The Security Industry Association (SIA) is part of a powerful multi-industry coalition that has joined together in support of federal legislation to combat the substantial problem of patent trolls and their unscrupulous practices, which plagues America's intellectual property system.

SIA is part of United for Patent Reform, a coalition representing an influential cross-section of more than 50 trade associations representing industries ranging from automobile manufacturing to community bankers, local broadcasters, retail establishments, and the software and IT industries. The coalition has noted that in 2012 alone, patent trolls sued more than 7,000 defendants and sent thousands of threat letters asserting infringement of patents.

With the strong support of SIA and United for Patent Reform, the House and Senate Judiciary Committees have each passed legislation to combat patent troll practices through a number of key provisions including the following:

  • Targeting abusive patent litigation: The bills target abusive patent litigation behavior and not specific entities with the goal of preventing individuals from taking advantage of gaps in the system to engage in litigation extortion. It does not attempt to eliminate valid patent litigation.
  • Protecting the patent system: The patent system is integral to U.S. competitiveness. The legislation does not diminish or devalue patent rights in any way.
  • Increasing transparency: The bills include heightened pleading standards and transparency provisions. Requiring parties to do a bit of due diligence up front before filing an infringement suit is just plain common sense. This not only reduces litigation expenses, but it saves the court's time and resources. Greater transparency and information is a good thing and it makes our patent system stronger.
  • Modernized fee shifting: The legislation includes a modernized version of Section 285 fee shifting that is fair and clear. It will ensure consistent judicial determinations on who should pay legal costs.
  • "Customer stay": This provision in both bills allows the stay of an infringement case against an end-user, while the manufacturer of the product litigates the alleged infringement. This prevents duplicative lawsuits from clogging federal court dockets and provides relief for American businesses that have been unfairly targeted.
  • Providing greater clarity: The legislation provides for more clarity surrounding initial discovery, case management, joinder and the common law doctrine of customer stays, working hand-in-hand with the procedures and practices of the Judicial Conference and the courts.

The battle over how to prevent abuse by patent trolls and restore confidence in our patent system will continue into the next session of Congress, as the coalition presses for enactment of reform legislation in 2016. The increased attention to this problem and the collective will to act by most policymakers will hopefully pave the way to curb these abuses and protect investment in R&D by security manufacturers. SIA will remain vigilant as an active member of United for Patent Reform in supporting legislation to mitigate this threat and encourage industry innovation.

Featured

  • Unlocking the Possibilities

    Security needs continue to evolve and end users are under pressure to address emerging risks and safety concerns. For many, that focus starts with upgrading perimeter openings and layering technologies—beginning at the door. Read Now

  • Freedom of Choice

    In today's security landscape, we are witnessing a fundamental transformation in how organizations manage digital evidence. Law enforcement agencies, campus security teams, and large facility operators face increasingly complex challenges with expanding video data, tightening budget constraints and inflexible systems that limit innovation. Read Now

  • Accelerating a Pathway

    There is a new trend touting the transformational qualities of AI’s ability to deliver actionable data and predictive analysis that in many instances, seems to be a bit of an overpromise. The reality is that very few solutions in the cyber-physical security (CPS) space live up to this high expectation with the one exception being the new generation of Physical Identity and Access Management (PIAM) software – herein recategorized as PIAM+. Read Now

  • Protecting Your Zones

    It is game day. You can feel the crowd’s energy. In the parking lot. At the gate. In the stadium. On the concourse. Fans are eager to party. Food and merchandise vendors ready themselves for the rush. Read Now

  • Street Smarts

    The ongoing acceptance of AI and advanced data analytics has allowed surveillance camera technology to shift from being a tactical tool to a strategic business solution. Combining traditional surveillance technology with AI-based data-driven insights can streamline transportation systems, enhance traffic management, improve situational awareness, optimize resource allocation and streamline emergency response procedures. Read Now

New Products

  • EasyGate SPT and SPD

    EasyGate SPT SPD

    Security solutions do not have to be ordinary, let alone unattractive. Having renewed their best-selling speed gates, Cominfo has once again demonstrated their Art of Security philosophy in practice — and confirmed their position as an industry-leading manufacturers of premium speed gates and turnstiles.

  • Compact IP Video Intercom

    Viking’s X-205 Series of intercoms provide HD IP video and two-way voice communication - all wrapped up in an attractive compact chassis.

  • Unified VMS

    AxxonSoft introduces version 2.0 of the Axxon One VMS. The new release features integrations with various physical security systems, making Axxon One a unified VMS. Other enhancements include new AI video analytics and intelligent search functions, hardened cybersecurity, usability and performance improvements, and expanded cloud capabilities