30-13-152. Bad faith assertion of patent right. (1) A person may not, in connection with the assertion of a United States patent, send or cause a person to send a written or electronic communication stating in bad faith that the intended recipient or an affiliated person is infringing or has infringed a patent and bears liability or owes compensation to another person if:

Ask a legal question, get an answer ASAP!
Click here to chat with a lawyer about your rights.

(a)the communication falsely states that litigation has been filed against the intended recipient or threatens litigation if compensation is not paid or the infringement issue is not otherwise resolved; or

(b)the assertions contained in the communication lack a reasonable basis in fact or law because:

(i)the person asserting the patent is not or does not represent a person with the current right to license the patent to or enforce the patent against the intended recipient or an affiliated person;

(ii)the communication seeks compensation for a patent that has been held to be invalid or unenforceable in a final judicial or administrative decision;

(iii)the communication seeks compensation on account of activities undertaken after the patent has expired; or

(iv)the content of the communication fails to include information necessary to inform an intended recipient or affiliated person about the patent assertion by failing to include one of the following:

(A)the identity of the person asserting a right to license the patent to or enforce the patent against the intended recipient or an affiliated person;

(B)the patent number issued by the United States patent and trademark office for a patent that is alleged to have been infringed; or

(C)the factual allegations concerning the specific area in which the intended recipient’s or affiliated person’s technology, products, or services infringed the patent or are covered by the claims of the patent.

(2)It is not a violation of this section for a person who owns or has the right to license or enforce a patent to:

(a)advise others of that ownership or right of license or enforcement;

(b)communicate to others that a patent is available for license or sale;

(c)notify another of the infringement of the patent; or

(d)if the person is not acting in bad faith, seek compensation for past or present infringement or for a license to the patent.

(3)Sections 30-13-151 through 30-13-154 do not apply to a written or electronic communication sent by:

(a)an owner of a patent or a licensee who is using the patent in connection with substantial research, development, production, manufacturing, processing, or delivery of products or materials;

(b)an institution of higher education; or

(c)a technology transfer organization whose primary purpose is to facilitate the commercialization of technology developed by an institution of higher education.

(4)This section does not apply to a demand letter or civil action that includes a claim for relief arising under 35 U.S.C. § 271(e)(2).