(1) Upon motion by a target and a finding by the court that a target has established a reasonable likelihood that a sponsor has made a bad faith assertion of patent infringement in a demand letter in violation of this part, the court shall require the sponsor to post a bond in an amount equal to a good faith estimate of the target’s costs to litigate the claim under this part and amounts reasonably likely to be recovered under Subsections 78B-6-1904(1)(b)(ii) and (iii), conditioned upon payment of any amounts finally determined to be due to the target.

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Terms Used In Utah Code 78B-6-1905

  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • Demand letter: means a letter, email, or other written communication directed to a target and asserting or claiming that the target has engaged in patent infringement. See Utah Code 78B-6-1902
  • Equal: means , with respect to biological sex, of the same value. See Utah Code 68-3-12.5
  • Sponsor: means the party or parties responsible for distribution of a demand letter. See Utah Code 78B-6-1902
  • Target: means a person or entity residing in, incorporated in, or organized under the laws of this state that has received a demand letter and includes the customers, distributors, and agents of the person or entity. See Utah Code 78B-6-1902
(2) A hearing on the appropriateness and amount of a bond under this section shall be held if either party requests it.
(3) A bond ordered pursuant to this section may not exceed $250,000. The court may waive the bond requirement if it finds the sponsor has available assets equal to the amount of the proposed bond or for other good cause shown.