Bill Text: CA AJR9 | 2015-2016 | Regular Session | Chaptered
Bill Title: Patent reform.
Spectrum: Slight Partisan Bill (Democrat 46-22-1)
Status: (Passed) 2015-07-21 - Chaptered by Secretary of State - Res. Chapter 123, Statutes of 2015. [AJR9 Detail]
Download: California-2015-AJR9-Chaptered.html
BILL NUMBER: AJR 9 CHAPTERED
BILL TEXT
RESOLUTION CHAPTER 123
FILED WITH SECRETARY OF STATE JULY 21, 2015
ADOPTED IN SENATE JULY 6, 2015
ADOPTED IN ASSEMBLY MAY 18, 2015
AMENDED IN ASSEMBLY MAY 18, 2015
AMENDED IN ASSEMBLY MAY 7, 2015
INTRODUCED BY Assembly Member Chang
(Coauthors: Assembly Members Baker, Gallagher, Steinorth,
Achadjian, Alejo, Travis Allen, Atkins, Bigelow, Bloom, Bonilla,
Bonta, Burke, Calderon, Campos, Chau, Chávez, Chiu, Chu, Cooley,
Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth Gaines,
Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez,
Gordon, Gray, Grove, Hadley, Harper, Holden, Irwin, Jones-Sawyer,
Lackey, Levine, Linder, Lopez, Low, Maienschein, Mayes, McCarty,
Medina, Mullin, Obernolte, O'Donnell, Olsen, Patterson, Perea, Quirk,
Rendon, Salas, Santiago, Thurmond, Wagner, Waldron, Weber, Wilk,
Williams, and Wood)
(Coauthor: Senator Huff)
FEBRUARY 25, 2015
Relative to patents.
LEGISLATIVE COUNSEL'S DIGEST
AJR 9, Chang. Patent reform.
This measure would urge the President and the Congress of the
United States to craft a balanced and workable approach to reduce
incentives for and minimize unnecessary patent litigation while
ensuring that legitimate patent enforcement rights are protected and
maintained.
WHEREAS, The principle of intellectual property is enshrined in
the United States Constitution, specifically under clause 8 of
Section 8 of Article I of the United States Constitution, which
empowers Congress to "promote the Progress of Science and useful
Arts, by securing for limited Times to Authors and Inventors the
exclusive Right to their respective Writings and Discoveries"; and
WHEREAS, A robust patent system is critical to promote economic
growth and innovation and ensure just compensation for the labor and
proliferation of beneficial ideas and innovations; and
WHEREAS, California accounts for 25 percent of the nation's
patents; and
WHEREAS, The state recognizes and respects the importance of
patent protections and patent enforcement rights to driving continued
research, investment, technological innovation, and job creation
across multiple sectors of our economy; and
WHEREAS, Small businesses depend on patents to secure investments,
and firms with fewer than 25 employees hold nearly one-quarter of
United States-held patents in innovative emerging technologies; and
WHEREAS, Enforcement of legitimate patent rights is essential to
promoting an innovation environment that fuels economic growth; and
WHEREAS, There is increasing concern about litigation by predatory
Patent Assertion Entities (PAEs), which are built on a rent-seeking
business model that exploits the patent legal system for financial
gain without producing or manufacturing anything of value for
society; and
WHEREAS, Many PAEs attain ambiguous patents with the sole intent
of filing patent infringement lawsuits. PAEs assert these patents
against businesses of all sizes and in all industries, often years
after the product has become standard and widely used; and
WHEREAS, PAEs rarely earn successful judgments in court,
underscoring the questionable merits of these particular patent
cases. However, given the high cost and risks associated with patent
litigation, most defendants choose to settle in order to avoid
further financial loss. Indeed, many PAEs will offer royalty
settlements below market value in order to encourage settlement and
avoid trial; and
WHEREAS, Predatory PAEs have a detrimental impact on the economy
and innovation. PAE activities cost businesses $29 billion directly,
mostly borne by small- and medium-sized businesses; and
WHEREAS, The growth of patent litigation is directly tied to
aggressive PAEs in recent years. In 2010, PAEs were responsible for
29 percent of patent litigation, and by 2012 PAEs represented 62
percent of all patent suits; and
WHEREAS, The California economy is especially vulnerable to
lawsuits directed at information technology patents; and
WHEREAS, Federal legislation is necessary to prevent and deter
abusive patent litigation; now, therefore, be it
Resolved by the Assembly and the Senate of the State of
California, jointly, That the Legislature urges the President and the
Congress of the United States to craft a balanced and workable
approach to reduce incentives for and minimize unnecessary patent
litigation while ensuring that legitimate patent enforcement rights
are protected and maintained; and be it further
Resolved, That the Chief Clerk of the Assembly transmit copies of
this resolution to the President and Vice President of the United
States, the Speaker and Minority Leader of the House of
Representatives, the Majority Leader and Minority Leader of the
Senate, and each member of the California delegation to the United
States Congress.
