Newsroom
July 10, 2014
Patent bill reported, concerns remain
July 11, 2014 – A House Energy and Commerce subcommittee favorably reported out draft legislation advancing patent reform Thursday, but NAFCU maintains some concerns about the measure and hopes it can be improved as it moves through the process.
The "Targeting Rogue and Opaque Letters (TROL) Act" aims to provide further protection for businesses from so-called patent trolls, which profit from frivolous demand letters and lawsuits. The bill was authored by Commerce, Manufacturing and Trade Subcommittee Chairman Lee Terry, R-Neb.
The subcommittee amended the bill to clarify the civil penalties section; the bill will now proceed to the full committee.
On Wednesday, NAFCU and other financial trades jointly wrote the leaders of the subcommittee asking that it consider strengthening the legislation. The letter was from NAFCU, CUNA, the American Bankers Association and the Independent Community Bankers of America.
"In particular, expanding the definition of ‘bad faith,' or removing the requirement altogether, would help ensure more small businesses can enjoy the protections of the bill," the groups wrote. "In addition, we note that states have proven to be effective laboratories for developing and furthering robust policy relating to patent trolls. While most states could see a reduction in unsubstantiated bad faith demand letters if this legislation were to be enacted, the bill should also allow states that have proactively enacted laws to discourage bad faith demand letters to continue to enforce them."
NAFCU has been working for patent reform as a growing number of credit unions report the receipt of demand letters from patent assertion entities. These often target the use of commonly used technology. NAFCU views the above legislation as a positive step forward but believes more work is needed to strengthen credit unions' ability to defend themselves against frivolous claims.
The "Targeting Rogue and Opaque Letters (TROL) Act" aims to provide further protection for businesses from so-called patent trolls, which profit from frivolous demand letters and lawsuits. The bill was authored by Commerce, Manufacturing and Trade Subcommittee Chairman Lee Terry, R-Neb.
The subcommittee amended the bill to clarify the civil penalties section; the bill will now proceed to the full committee.
On Wednesday, NAFCU and other financial trades jointly wrote the leaders of the subcommittee asking that it consider strengthening the legislation. The letter was from NAFCU, CUNA, the American Bankers Association and the Independent Community Bankers of America.
"In particular, expanding the definition of ‘bad faith,' or removing the requirement altogether, would help ensure more small businesses can enjoy the protections of the bill," the groups wrote. "In addition, we note that states have proven to be effective laboratories for developing and furthering robust policy relating to patent trolls. While most states could see a reduction in unsubstantiated bad faith demand letters if this legislation were to be enacted, the bill should also allow states that have proactively enacted laws to discourage bad faith demand letters to continue to enforce them."
NAFCU has been working for patent reform as a growing number of credit unions report the receipt of demand letters from patent assertion entities. These often target the use of commonly used technology. NAFCU views the above legislation as a positive step forward but believes more work is needed to strengthen credit unions' ability to defend themselves against frivolous claims.
Share This
Related Resources
Add to Calendar 2024-03-26 09:00:00 2024-03-26 09:00:00 Ensuring Safety and Soundness with AI Listen On: Key Takeaways: [03:48] The regulators are very focused on fairness in lending especially when it comes to using AI and outside models. The industry is moving very fast. [08:25] Articulating a business use case and how partnering with a Fintech can support it is the first step in having a successful conversation with your board. [10:30] Talk to your account executive at your Fintech and have them help you overcome objections. [15:01] Plan for oversight. It is not set and forget it. Your regulators are going to want to know how you are overseeing that from a 3rd party risk management standpoint. [15:47] Have a handle on your reserves and capacity for lending and start small and grow slowly. Web NAFCU digital@nafcu.org America/New_York public
Ensuring Safety and Soundness with AI
preferred partner
Upstart
Podcast
Help Ease Your Members' Loan Payment Concerns
Planning, Auto Loans, Research
preferred partner
TruStage
Blog Post
The Value of Risk Management in Cybersecurity
preferred partner
DefenseStorm
Video
Add to Calendar 2024-03-13 14:00:00 2024-03-13 14:00:00 Digital Assets in Credit Unions: What Are the AML Risks? The digital asset boom is upon us. Like it or not, you have to deal with it effectively with your members, credit unions are on the frontlines of crypto adoption. Even the NCUA has been providing more and more guidance on different aspects of digital assets. You need to be prepared. How? By understanding the core basics of digital assets (specifically cryptocurrencies) the risks that it poses to credit unions and how you can be better prepared to handle issues when they arise. In this webinar, Understanding the Digital Assets Boom, you’ll focus on the basics of digital assets, a background of cryptocurrencies and types, the regulations that are established and the proposals that are being considered and how to position yourself to understand all of these components and include them in your day-to-day roles. Key Takeaways Comprehend the basics of digital assets including cryptocurrencies Understand currently established regulations and what the future has in store, specifically in 2024 Identify and remediate issues that arise in your credit union Register Now $295 Members | $395 Nonmembers(Additional $50 for USB)One registration gives your entire team access to the live webinar and on-demand recording until March 13, 2025Go to the Online Training Center to access the webinar after purchase » Who Should Attend NCCOs NCRMs Compliance and risk titles Education Credits NCCOs will receive 1.0 CEUs for participating in this webinar NCRMs will recieve 1.0 CEUs for participating in this webinar Web NAFCU digital@nafcu.org America/New_York public
Digital Assets in Credit Unions: What Are the AML Risks?
Credits: NCCO, NCRM
Webinar
Get daily updates.
Subscribe to NAFCU today.