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Thursday, November 21, 2024

Bipartisan legislation aims to restore injunctive relief for patent infringement

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Congressman Nathaniel Moran | Congressman Nathaniel Moran Website

Congressman Nathaniel Moran | Congressman Nathaniel Moran Website

Congressman Nathaniel Moran (R-TX-01), a member of the House Judiciary Subcommittee on Courts, Intellectual Property, and the Internet, along with Congresswoman Madeleine Dean (D-PA-04), introduced the bicameral Realizing Engineering, Science, and Technology Opportunities by Restoring Exclusive (RESTORE) Patent Rights Act of 2024. This bipartisan legislation aims to strengthen protections for U.S. inventors, entrepreneurs, universities, and startups. The Senate companion bill was introduced by U.S. Senators Tom Cotton (R-AR) and Chris Coons (D-DE).

“American innovation is only as strong as the confidence in knowing ideas cannot be stolen by competitors,” said Congressman Moran. “In the last two decades, innovators have found it harder to obtain a permanent injunction from U.S. courts, which stops bad actors from stealing their intellectual property (IP). Our legislation will restore the rights of American innovators by ensuring permanent injunctions are accessible from U.S. courts. This bill will provide greater certainty in the protection of IP and prevent cases from being taken overseas to countries like China.”

“Enforceable patents are vital to our ability to invent, improve and advance – yet today, it is increasingly difficult for patent holders to enforce their rights through permanent injunctions, even after proving infringement in court,” said Congresswoman Dean. “The bipartisan RESTORE Act addresses this issue and safeguards American innovation.”

“American ingenuity should be rewarded and protected,” said Senator Cotton. “Current patent law fails to protect inventors and leaves them vulnerable to intellectual property theft from adversaries like China.”

“As our Founding Fathers enshrined in the Constitution," added Senator Coons, "the right to exclude others from making and using a patented invention is the basic foundation of our patent system."

For over two centuries, courts granted injunctive relief in most patent cases upon finding infringement; however, this practice changed in 2006 when the U.S. Supreme Court’s decision in eBay v. MercExchange created a four-factor test for determining whether a permanent injunction is warranted.

The RESTORE Patent Rights Act seeks to undo this change by returning a rebuttable presumption that an injunction is warranted after a court rules that patent rights have been infringed.

In addition to Congressman Moran and Congresswoman Dean, cosponsors include Congressmen Chip Roy (R-TX-21), Hank Johnson (D-GA-04), and Congresswoman Deborah Ross (D-NC-02). The act has garnered endorsements from several organizations including Heritage Action, Innovation Alliance, Alliance of U.S. Startups & Inventors for Jobs among others.

Ryan Walker of Heritage Action stated: “Strong intellectual property protections foster industry competition.” Brian Pomper of Innovation Alliance emphasized that current laws allow large companies to engage in predatory infringement because it is cheaper than paying licensing fees.

Stephen J. Susalka of Association of University Technology Managers praised the act: “This legislation will truly give patent holders their full rights.” David Kappos from Council for Innovation Promotion highlighted that "the RESTORE Act changes" how IP thieves are penalized.

Andrei Iancu also supported the act stating: “Inventors cannot effectively protect their inventions without the ability to exclude.” Chris Israel remarked that restoring injunctive relief would empower American inventors significantly.

James Edwards concluded: "Conservatives for Property Rights strongly supports" this legislative effort due to its potential impact on securing exclusive rights for inventors.

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