Close X
Attorney Spotlight

Find out how Gardner Bell's experience promoting financial and economic development initiatives both locally and abroad informs his role as an attorney. Find out more>

Search

Close X

Experience

Search our Experience

Experience Spotlight

On December 1, 2016, Parker Hannifin Corporation and CLARCOR Inc. announced that the companies have entered into a definitive agreement under which Parker will acquire CLARCOR for approximately $4.3 billion in cash, including the assumption of net debt. The transaction has been unanimously approved by the board of directors of each company. Upon closing of the transaction, expected to be completed by or during the first quarter of Parker’s fiscal year 2018, CLARCOR will be combined with Parker’s Filtration Group to form a leading and diverse global filtration business. Bass, Berry & Sims has served CLARCOR as primary corporate and securities counsel for 10 years and served as lead counsel on this transaction. Read more here.

CLARCOR
Close X

Thought Leadership

Enter your search terms in the relevant box(es) below to search for specific Thought Leadership.
To see a recent listing of Thought Leadership, click the blue Search button below.

Thought Leadership Spotlight

Securities Law Exchange BlogSecurities Law Exchange blog offers insight on the latest legal and regulatory developments affecting publicly traded companies. It focuses on a wide variety of topics including regulation and reporting updates, public company advisory topics, IPO readiness and exchange updates including IPO announcements, M&A trends and deal news.

Read More >

Patent Trolls Who Send Bad Faith Demand Letters Are Now On The Hook for Damages and Attorneys' Fees in Tennessee

Publications

April 14, 2014

It's a familiar scenario: ABC Corporation receives a letter from a patent troll claiming that ABC Corporation is infringing a patent through a routine office activity. The letter claims that the damages for infringement could be enormous, but the troll will settle the case without litigation if ABC Corporation pays $1,000 per employee. Today, the Tennessee General Assembly sent a strong message that these types of letters will not be tolerated in Tennessee if sent in bad faith.

House Bill 2117/Senate Bill 1967 attempts to curtail abuse of the patent system by patent assertion entities (PAEs), pejoratively known as "patent trolls," which are typically non-practicing entities that acquire patents not to manufacture products or supply services based upon the acquired patents but to enforce the patents against alleged infringers in an attempt to collect licensing fees.  The bill, effective upon Governor Haslam's signature, which is expected within ten days, creates a cause of action for recipients of demand letters that assert patent infringement in bad faith.

The bill prohibits communications that:

  1. Threaten litigation if the recipient does not pay a license fee and the sender has demonstrated a consistent pattern of making similar threats without subsequently filing litigation;
  2. Falsely state that litigation has been filed; or
  3. Contain assertions without a reasonable basis in fact or law because:
    1. The person asserting the patent does not have the right to enforce the patent;
    2. The patent is invalid;
    3. The patent is expired; or
    4. The communication fails to include the identity of the patent owner, the patent number, or factual allegations concerning the specifics of the alleged infringement.

Under the bill, intended recipients of communications that meet any of these requirements may file suit in any Tennessee circuit or chancery court. Those who prevail shall be awarded litigation costs and fees, including attorneys' fees, and may be awarded actual damages as well as punitive damages equal to three times the amount of actual damages. In addition, the office of the attorney general is empowered to enforce the bill through its investigative and prosecutorial authority. 

By passing this bill, Tennessee joins several other states in their efforts to decrease the financial burden imposed on businesses by patent assertion entities. Kentucky, Oregon, Vermont, Virginia, Maine, Utah and Wisconsin are among the other states that have passed similar legislation or currently have such legislation pending.

On the federal legislative front, the U.S. Congress is also working to address abusive patent litigation. As we discussed in an earlier Alert, at least six patent reform bills are being considered by the current Congress. The House passed the Innovation Act in December 2013 and the Senate Judiciary Committee will consider the Patent Transparency and Improvements Act, sponsored by Sen. Patrick Leahy, when Congress resumes at the end of April. Similar to the Tennessee legislation, both Acts require greater transparency in patent infringement demand letters and include loser-pays provisions allowing courts to award reasonable fees and expenses of frivolous patent litigation to the prevailing party.

For more information on House Bill 2117/Senate Bill 1967 or any other aspect of Intellectual Property Litigation, please contact one of the authors of this alert.


Related Professionals

Related Services

Notice

Visiting, or interacting with, this website does not constitute an attorney-client relationship. Although we are always interested in hearing from visitors to our website, we cannot accept representation on a new matter from either existing clients or new clients until we know that we do not have a conflict of interest that would prevent us from doing so. Therefore, please do not send us any information about any new matter that may involve a potential legal representation until we have confirmed that a conflict of interest does not exist and we have expressly agreed in writing to the representation. Until there is such an agreement, we will not be deemed to have given you any advice, any information you send may not be deemed privileged and confidential, and we may be able to represent adverse parties.