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Full Text of HB4052  100th General Assembly

HB4052 100TH GENERAL ASSEMBLY

  
  

 


 
100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB4052

 

Introduced , by Rep. Keith R. Wheeler

 

SYNOPSIS AS INTRODUCED:
 
New Act

    Creates the Ethics in Patent Litigation Act. Prohibits an attorney from receiving any compensation directly or indirectly for legal services related to litigation derived from a patent owned by the attorney, either individually or through an entity owned or controlled by the attorney. Provides, however, that an attorney may receive compensation for patent litigation derived from a patent owned by the attorney if the attorney or an entity owned or controlled by the attorney is actively engaged in producing a product or service for marketing and sale from the invention claimed by the patent.


LRB100 12894 JLS 26717 b

 

 

A BILL FOR

 

HB4052LRB100 12894 JLS 26717 b

1    AN ACT concerning attorneys.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Short title. This Act may be cited as the Ethics
5in Patent Litigation Act.
 
6    Section 5. Public policy. The State of Illinois declares as
7a matter of public policy the following:
8        (1) attorneys admitted to practice law in Illinois are
9    held to high ethical standards;
10        (2) current ethical standards prohibit attorneys from
11    taking a financial interest in an underlying case and from
12    splitting their fees with a non-attorney;
13        (3) the recent practice of attorneys personally
14    acquiring the legal rights of their clients' patents and
15    litigating on behalf of those patent rights in order to
16    earn personal remuneration above and beyond the
17    compensation for legal services is a violation of the high
18    ethical standards for attorneys; and
19        (4) these concerning practices are particularly
20    problematic in patent litigation where the threat of
21    litigation from attorneys who have acquired patent rights
22    from their clients have forced many of the country's most
23    innovative technology companies to pay in the aggregate

 

 

HB4052- 2 -LRB100 12894 JLS 26717 b

1    more than $30,000,000,000 by some estimates to avoid the
2    cost and risk of litigation, no matter how spurious the
3    claim.
 
4    Section 10. Prohibition on certain compensation for
5litigation services relating to patents. No attorney shall
6receive any compensation directly or indirectly for any legal
7services related to litigation derived from any patent owned by
8the attorney, either individually or through an entity owned or
9controlled by that attorney. However, an attorney may receive
10compensation for patent litigation derived from a patent owned
11by the attorney if the attorney or the entity owned or
12controlled by the attorney is actively engaged in producing a
13product or service for marketing and sale from the invention
14claimed by the patent.