98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
SB3405
 
Introduced 2/14/2014, by Sen. Daniel Biss
 
SYNOPSIS AS INTRODUCED:
 

 
815 ILCS 505/2RRR new

     Amends the Consumer Fraud and Deceptive Business Practices Act. Provides that it is an unlawful practice to claim that another has infringed upon a United States patent if the claim falsely threatens adverse administrative or judicial action, the assertions lack a reasonable basis in fact or law, the person making the assertion is not, or does not represent, a person with a current right to license the patent, or the claim fails to make certain other disclosures. Effective January 1, 2015.
  


LRB098 19175 JLS 54327 b

 
 
A BILL FOR
 

  
SB3405LRB098 19175 JLS 54327 b


  
1    AN ACT concerning business.
  
 
2    Be it enacted by the People of the State of Illinois,
 
3represented in the General Assembly:
  
 
 
4    Section 5. The Consumer Fraud and Deceptive Business 
5Practices Act is amended  by adding Section 2RRR as follows:
 
6    (815 ILCS 505/2RRR new)
7    Sec. 2RRR. Unfair or deceptive patent infringement demand 
8letters.
9    (a)   As used in this Section, "affiliated person" means a 
10person affiliated with the intended recipient of a written 
11communication. 
12    (b)  It is an unlawful practice under this Act for a person, 
13in connection with the assertion of a United States patent, to 
14send any written, including electronic, communication that 
15states that the intended recipient or any affiliated person is 
16infringing or has infringed a patent and bears liability or 
17owes compensation to another person, if:
18        (1)  the communication falsely threatens that 
19    administrative or judicial relief will be sought if 
20    compensation is not paid or the infringement issue is not 
21    otherwise resolved;
22        (2)  the assertions contained in the communication lack 
23    a reasonable basis in fact or law because:
 
 
SB3405- 2 -LRB098 19175 JLS 54327 b

1            (A)  the person asserting the patent is not a 
2        person, or does not represent a person, with the 
3        current right to license the patent to or enforce the 
4        patent against the intended recipient or any 
5        affiliated person; or
6            (B)  the communication seeks compensation on 
7        account of activities undertaken after the patent has 
8        expired;
9        (3)  the content of the communication fails to include 
10    information necessary to inform a recipient or any 
11    affiliated person about the patent assertion by failing to 
12    include the following:
13            (A)  the identity of the person asserting a right to 
14        license the patent to or enforce the patent against the 
15        intended recipient or any affiliated person;
16            (B)  the patent issued by the United States Patent 
17        and Trademark Office alleged to have been infringed; 
18        and
19            (C)  the factual allegations concerning the 
20        specific areas in which the intended recipient's or 
21        affiliated person's products, services, or technology 
22        infringed the patent or are covered by the claims in 
23        the patent; or
24        (4) the communication is deceptive.
 
 
25    Section 99. Effective date. This Act takes effect January 
261, 2015.