,i #aacth ,,congress #ast ,session ,h4 ,r4 #bfci ,,in ,,the ,,house ,,of ,,representatives ,july #aj1 #bjac ,mr4 ,jeffries 7for himself and ,mr4 ,farenthold7 introduced the following bill2 which was referred to the ,committee on the ,judiciary ,a ,,bill ,to amend title #ce1 ,united ,states ,code1 to add procedural requirements for patent infringement suits1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,patent ,litigation and ,innovation ,act of #bjac4 #b4 ,pleading requirements 7a7 ,in general ,chapter #bi of title #ce1 ,united ,states ,code1 is amended by inserting after section #bha the following3 #bha;,a4 ,pleading requirements for patent infringement actions ,in a civil action arising under any ,act of ,congress relating to patents1 a party alleging infringement shall include in the initial complaint1 counterclaim1 or cross-claim for patent infringement-- 7#a7 an identification of each patent allegedly infringed2 7#b7 an identification of each claim of each patent identified under paragraph 7#a7 that is allegedly infringed2 7#c7 for each claim identified under paragraph 7#b71 an identification of each accused apparatus1 product1 feature1 device1 method1 system1 process1 function1 act1 service1 or other instrumentality 7referred to in this section as an accused instrumentality7 alleged to infringe the claim2 7#d7 for each accused instrumentality identified under paragraph 7#c71 an identification with particularity1 if known1 of-- 7,a7 the name or model number of the accused instrumentality2 and 7,b7 the name of each accused method1 system1 process1 function1 act1 or service1 or the name or model number of each apparatus1 product1 feature1 or device that1 when used1 allegedly results in the practice of the claimed invention2 7#e7 for each accused instrumentality identified under paragraph 7#c71 an explanation of-- 7,a7 where each element of each asserted claim identified under paragraph 7#b7 is found within the accused instrumentality2 7,b7 whether each such element is infringed literally or under the doctrine of equivalents2 and 7,c7 with detailed specificity1 how the terms in each asserted claim identified under paragraph 7#b7 correspond to the functionality of the accused instrumentality2 7#f7 for each claim that is alleged to have been infringed indirectly1 a description of-- 7,a7 the direct infringement2 7,b7 any person alleged to be a direct infringer known to the party alleging infringement2 and 7,c7 the acts of the alleged indirect infringer that contribute to or are inducing the direct infringement2 7#g7 a description of the right of the party alleging infringement to assert each-- 7,a7 patent identified under paragraph 7#a72 and 7,b7 patent claim identified in paragraph 7#b72 7#h7 a description of the principal business of the party alleging infringement2 7#i7 the identity of any person1 other than the party alleging infringement1 who is known to the party alleging infringement1 and who-- 7,a7 owns or co-owns a patent identified under paragraph 7#a72 7,b7 is the assignee of a patent identified under paragraph 7#a72 or 7,c7 is an exclusive licensee to a patent identified under paragraph 7#a72 and 7#aj7 the identity of any person1 other than the party alleging infringement1 who is known to the party alleging infringement1 and who has a legal or financial right to enforce a patent identified under paragraph 7#a74 4 7b7 ,technical and conforming amendment ,the table of sections for chapter #bi of title #ce1 ,united ,states ,code1 is amended by inserting after the item relating to section #bha the following3 #bha;,a4 ,pleading requirements for patent infringement actions4 4 7c7 ,review of form #ah ,not later than #ab months after the date of the enactment of this ,act1 the ,supreme ,court shall review and amend ,form #ah of the ,federal ,rules of ,civil ,procedure to ensure that ,form #ah is consistent with the requirements under section #bha;,a of title #ce1 ,united ,states ,code1 as added by subsection 7a74 7d7 ,rule of construction ,nothing in this section or the amendments made by this section shall be construed to alter existing law or rules relating to joinder4 #c4 ,joinder of interested parties ,section #bii of title #ce1 ,united ,states ,code1 is amended by adding at the end the following3 7d7 ,joinder of interested parties 7#a7 ,definition ,in this subsection1 the term interested party1 with respect to a civil action arising under any ,act of ,congress relating to patents-- 7,a7 means a person described in paragraph 7#i7 or 7#aj7 of section #bha;,a2 and 7,b7 does not include an attorney or law firm providing legal representation in the action if the sole basis for the financial interest of the attorney or law firm in the outcome of the action arises from an agreement to provide that legal representation4 7#b7 ,joinder of interested parties ,in a civil action arising under any ,act of ,congress relating to patents1 the court shall grant a motion by a party defending an infringement claim to join an interested party if the defending party files the motion to join within #abj days after the first complaint1 answer1 or counterclaim and shows that the interest of the plaintiff in any patent identified in the complaint1 including a claim asserted in the complaint1 is limited primarily to asserting any such patent claim in litigation4 7#c7 ,limitation on joinder ,the court may deny a motion to join an interested party under paragraph 7#b7 if-- 7,a7 the interested party is not subject to service of process2 or 7,b7 joinder under paragraph 7#b7 would deprive the court of subject matter jurisdiction or make venue improper4 4 #d4 ,stay of action against secondary parties 7a7 ,in general ,chapter #bi of title #ce1 ,united ,states ,code1 is amended by adding at the end the following3 #cjj4 ,stay of action against secondary parties 7a7 ,stay of action 7#a7 ,in general ,in any civil action arising under any ,act of ,congress relating to patents1 the court shall grant a motion to stay all or part of the action as to a secondary party with respect to infringement related to a primary party in the same or another action concerning the same apparatus1 product1 feature1 device1 method1 system1 process1 function1 act1 service1 or other instrumentality1 in whole or in relevant part1 of the disputed patent of the primary party1 if-- 7,a7 the primary and secondary parties consent to the stay in writing2 7,b7 the motion is filed not later than #abj days after service of the first complaint in the action of the primary party that is asserted as the basis for the secondary party's alleged infringement2 and 7,c7 the secondary party agrees to be bound by any judgment entered against the primary party to the same extent as such primary party may be bound with respect to issues that the primary and secondary parties have in common4 7#b7 ,treatment of secondary party ,during a stay under paragraph 7#a71 the secondary party shall be treated as a nonparty to the action against the primary party for purposes of discovery1 hearings1 trial1 or otherwise4 ,the stay shall continue until such time that a final adjudication in the action against the primary party has been entered and all appeals thereof exhausted4 7b7 ,other authority not affected ,nothing in this section shall be construed as abrogating a court's discretion to grant any stay or expand any stay granted pursuant to this section where otherwise permitted by law4 7c7 ,definitions ,in this section3 7#a7 ,primary party ,the term primary party means a person who manufacturers or supplies1 or causes the manufacture or supply of1 an apparatus1 product1 feature1 device1 method1 system1 process1 function1 act1 service1 or other instrumentality1 in whole or in material part-- 7,a7 that is alleged to infringe a patent in dispute2 or 7,b7 that uses a process alleged to infringe a patent in dispute4 7#b7 ,secondary party ,the term secondary party means a party accused of infringing a patent in dispute based on the use1 distribution1 resale1 or consumption of a product or process by a primary party4 4 7b7 ,conforming amendment ,the table of sections for chapter #bi of title #ce1 ,united ,states ,code1 is amended by adding at the end the following3 #cjj4 ,stay of action against secondary parties4 4 #e4 ,stay of discovery 7a7 ,in general ,chapter #bi of title #ce1 ,united ,states ,code1 is amended by adding at the end the following3 #cjj;,a4 ,stay of discovery in patent infringement suits 7a7 ,in general ,except as provided in subsections 7b7 and 7c71 in a civil action arising under any ,act of ,congress relating to patents-- 7#a7 the court shall stay discovery until after the court has ruled on-- 7,a7 any motion to dismiss the action2 and 7,b7 any motion to transfer venue of the action2 and 7#b7 if the court determines that a ruling relating to the construction of terms used in a patent claim asserted in the complaint in the action is required1 the court shall stay discovery until after the court has made the ruling4 7b7 ,exception ,notwithstanding subsection 7a71 the court may1 in an action described in that subsection1 allow discovery to the extent necessary for the court to make the ruling under paragraph 7#a7 or 7#b7 of that subsection1 as the case may be4 7c7 ,discretion ,to expand scope of discovery in extraordinary circumstances ,if1 under any provision of ,federal law 7including the ,drug ,price ,competition and ,patent ,term ,restoration ,act 7,public ,law #ih-dag771 the court determines that extraordinary circumstances exist because resolution within a specified period of time of a civil action arising under any ,act of ,congress relating to patents will have an automatic impact upon the rights of a party with respect to the patent1 the court may permit discovery in addition to the discovery authorized under subsection 7b7 before the ruling described in subsection 7b7 as necessary to ensure timely resolution of the action4 7d7 ,preservation of evidence 7#a7 ,in general ,during the pendency of any stay of discovery under this section1 unless otherwise ordered by the court1 any party to the action with actual notice of the allegations contained in the complaint shall treat all documents1 data compilations 7including electronically recorded or stored data71 and tangible objects that are in the custody or control of such person and that are relevant to the allegations1 as if they were the subject of a continuing request for production of documents from an opposing party under the ,federal ,rules of ,civil ,procedure4 7#b7 ,sanction for willful violation ,a party aggrieved by the willful failure of an opposing party to comply with paragraph 7#a7 may apply to the court for an order awarding appropriate sanctions4 4 7b7 ,conforming amendment ,the table of sections for chapter #bi of title #ce1 ,united ,states ,code1 is amended by adding at the end the following3 #cjj;,a4 ,stay of discovery in patent infringement suits4 4 #f4 ,sanctions for abusive litigation 7a7 ,in general ,chapter #bi of title #ce1 ,united ,states ,code1 is amended by adding at the end the following3 #cjj;,b4 ,sanctions for abusive litigation 7a7 ,mandatory review by court ,in any civil action arising under any ,act of ,congress relating to patents1 upon final adjudication of the action1 the court shall include in the record specific findings regarding compliance by each party and each attorney representing any party with each requirement of ,rule #aa7;b7 of the ,federal ,rules of ,civil ,procedure as to any complaint1 responsive pleading1 or dispositive motion4 7b7 ,sanctions ,if the court makes a finding under subsection 7a7 that a party or attorney violated any requirement of ,rule #aa7;b7 of the ,federal ,rules of ,civil ,procedure as to any complaint1 responsive pleading1 or dispositive motion1 the court may impose sanctions on such party or attorney in accordance with ,rule #aa of the ,federal ,rules of ,civil ,procedure4 ,before making a finding that any party or attorney has violated ,rule #aa of the ,federal ,rules of ,civil ,procedure1 the court shall give such party or attorney notice and an opportunity to respond4 4 7b7 ,conforming amendments 7#a7 ,table of contents ,the table of sections for chapter #bi of title #ce1 ,united ,states ,code1 is amended by adding at the end the following3 #cjj;,b4 ,sanctions for abusive litigation4 4 7#b7 ,award of attorneys fees in exceptional cases ,section #bhe of title #ce1 ,united ,states ,code1 is amended by striking ,the court and inserting ,subject to section #cjj;,b7b71 the court4 #g4 ,effective date ,this ,act and the amendments made by this ,act shall apply to civil actions commenced on or after the date of the enactment of this ,act4