,i #aacth ,,congress #ast ,session ,h4 ,r4 #cedj ,,in ,,the ,,house ,,of ,,representatives ,november #ai1 #bjac,mr4 ,polis 7for himself1 ,mr4 ,marino1 and ,mr4 ,deutch7 introduced the following bill2 which was referred to the ,committee on the ,judiciary1 and in addition to the ,committee on ,energy and ,commerce1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,to amend chapter #bf of title #ce1 ,united ,states ,code1 to require the disclosure of information related to patent ownership1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,demand ,letter ,transparency ,act of #bjac4 #b4 ,demand letter disclosure requirement 7a7 ,amendment ,chapter #bf of title #ce1 ,united ,states ,code1 is amended by adding at the end the following new section3 #bfc4 ,disclosure of ,information ,related to ,patent ,ownership 7a7 ,demand letter disclosure ,any entity that sends #bj or more demand letters during any #cfe-;day period shall1 not later than the disclosure deadline1 submit to the ,patent and ,trademark ,office with respect to each patent that was the subject in each such letter the following3 7#a7 ,identification of the patent and confirmation that the entity that sent the letter is the owner of the patent 7or a representative of such person7 and is the last recorded entity in the records of the ,patent and ,trademark ,office for purposes of assignment1 grant1 or conveyance under this chapter4 7#b7 ,identification of the entity that has the right to license the patent or1 in the case of a patent already exclusively licensed1 the name of the exclusive licensee4 7#c7 ,identification of each entity asserting a claim with regard to a patent in such letter in accordance with subsection 7b74 7#d7 ,identification of each obligation to license the patent on reasonable and nondiscriminatory terms1 including a copy of each letter of assurance to each standard-setting organization with respect to such obligation1 and the financial terms1 including the rate1 at which such patent has been licensed pursuant to such obligation4 7#e7 ,identification of the ultimate parent entity of such entity4 7#f7 ,identification of the number of entities that received a demand letter from the entity that sent the letter4 7#g7 ,identification of any case that has been filed by such entity relating to each such patent1 including the docket number and the court in which the case was filed4 7#h7 ,identification of any ex parte review under chapter #cj or inter partes review under chapter #ca of such patent4 7#i7 ,any required registration fee established with regard to this section4 7b7 ,information not readily accessible ,an entity required to disclose the information described under subsection 7a7 shall include with such disclosure a description of any information described under subsection 7a7 that is not disclosed1 why such undisclosed information was not readily accessible1 and the efforts made by such entity to access such undisclosed information4 7c7 ,identification 7#a7 ,publicly traded ,for purposes of subsection 7a77#c71 if the entity to be identified is owned or controlled by a corporation traded on a public stock exchange1 an identification of the publicly traded corporation and the public stock exchange shall be sufficient4 7#b7 ,not publicly traded ,for purposes of subsection 7a77#c71 if the entity to be identified is not owned or controlled by a publicly traded corporation1 the information shall identify-- 7,a7 in the case of a partnership1 the name and address of each partner or other entity1 holding more than a #e percent share of that partnership2 7,b7 in the case of a corporation1 the location of incorporation and the name of each officer of the corporation2 7,c7 in the case of an entity that is directly or indirectly controlled by another entity1 the name and address of the entity and each other entity1 and the name1 address1 location of incorporation1 and each officer or partner of the entity and each other entity2 and 7,d7 for each individual1 the name and address of that individual4 7#c7 ,number of demand letters ,the requirement under subsection 7a77#f7 shall be updated regularly by the ,director4 7d7 ,failure ,to comply 7#a7 ,monetary sanctions ,any entity that does not meet the requirements of this section with regard to a patent or the disclosure requirements with respect to a demand letter under section #bfd may be subject to monetary sanctions by a court in an action brought by such entity with regard to infringement or validity of such patent1 for an amount to be awarded to the adverse party that covers any cost incurred by the adverse party resulting from the failure of such entity to meet the requirements of this section1 including any reasonable cost incurred by such adverse party to discover the correct and complete information described under subsection 7a7 with regard to such patent1 unless such sanctions would be unjust4 7#b7 ,award of damages or fees ,a court in a case involving monetary sanctions described in paragraph 7#a7-- 7,a7 may not award treble damages under the second undesignated paragraph of section #bhd or attorney's fees under section #bhe to the entity described in paragraph 7#a71 unless the denial of such damages or fees would be manifestly unjust2 and 7,b7 shall consider good faith mistakes in a relevant demand letter when calculating attorneys fees under section #bhe and damages under section #bhd4 7e7 ,ongoing duty ,to correct or supplement ,an entity described in subsection 7a7 shall update any filing made pursuant to such subsection with correct information not later than #bj days after any change in the information described under subsection 7a74 7f7 ,exemption ,this section shall not apply to any of the following3 7#a7 ,the original inventor or joint inventor4 7#b7 ,an institution of higher education 7as that term is defined in section #aja of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajja774 7#c7 ,a technology transfer organization whose primary purpose is to facilitate the commercialization of technology developed by one or more institutions of higher education4 7g7 ,definitions ,in this section3 7#a7 ,demand letter ,the term demand letter means any written communication directed to an unaffiliated third party stating or indicating1 directly or indirectly1 that the intended recipient or anyone affiliated with that recipient is or may be infringing a patent1 or may bear liability or owe compensation to another because of such patent4 7#b7 ,disclosure deadline ,the term disclosure deadline means the lesser of #cj days after the #bjth demand letter is sent or #ae days before the earliest date of compliance described in the #bjth demand letter4 7#c7 ,ultimate parent entity 7,a7 ,in general ,except as provided in subparagraph 7,b71 the term ultimate parent entity has the meaning given such term in section #hja4a7;a77#c7 of title #af1 ,code of ,federal ,regulations1 or any successor regulation4 7,b7 ,modification of definition ,the ,director may modify the definition of ultimate parent entity by regulation4 4 7b7 ,technical and conforming amendment ,the table of sections for chapter #bf of title #ce1 ,united ,states ,code1 is amended by adding at the end the following new item3 #bfc4 ,disclosure of ,information ,related to ,patent ,ownership4 4 7c7 ,regulations ,the ,director may promulgate such regulations as are necessary to establish a registration fee in an amount sufficient to recover the estimated costs of administering section #bfc of title #ce1 ,united ,states ,code1 as added by subsection 7a71 to facilitate the collection and maintenance of the information required by such section1 and to ensure the timely disclosure of such information to the public4 7d7 ,demand letter database 7#a7 ,establishment ,not later than #ahj days after the date of the enactment of this ,act1 the ,director1 in consultation with the ,attorney ,general and the ,federal ,trade ,commission1 shall establish a publicly accessible and searchable database of the information obtained pursuant to section #bfc of title #ce1 ,united ,states ,code1 as added by subsection 7a71 to be maintained at and updated by the ,office4 7#b7 ,protection of information ,the ,director shall allow recipients of a demand letter 7as such term is defined under section #bfc7;g71 as added by subsection 7a77 to request the redaction of the company name1 company-specific information1 or any other company information from the database described in paragraph 7#a74 #c4 ,demand letter requirement 7a7 ,amendment ,chapter #bf of title #ce1 ,united ,states ,code1 as amended by section #b7;a71 is amended by adding at the end the following new section3 #bfd4 ,requirements for patent infringement demand letters 7a7 ,in general ,any entity sending a demand letter shall include in any demand letter sent to another entity the following3 7#a7 ,an identification of each patent that is or may be allegedly infringing4 7#b7 ,an identification of each claim of each patent identified under paragraph 7#a7 that is allegedly infringed4 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 claim4 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 each 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 invention4 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 instrumentality4 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 infringement4 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#b74 7#h7 ,a description of the principal business of the party alleging infringement4 7#i7 ,a list of each complaint filed1 of which the party alleging infringement has knowledge1 that asserts or asserted any of the patents identified under paragraph 7#a74 7#aj7 ,identification of any case that has been filed by such entity relating to each patent identified under paragraph 7#a71 including the docket number and the court in which the case was filed4 7#aa7 ,identification of any ex parte review under chapter #cj or any inter partes review under chapter #ca for each patent identified under paragraph 7#a74 7#ab7 ,for each patent identified under paragraph 7#a71 whether such patent is subject to any licensing term or pricing commitments through any agency1 organization1 standard-setting body1 or other entity or community4 7#ac7 ,the identity of any person other than the party alleging infringement1 known to the party alleging infringement1 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#a74 7#ad7 ,the identity of any person other than the party alleging infringement1 known to the party alleging infringement1 who has a legal right to enforce a patent identified under paragraph 7#a7 through a civil action under any ,act of ,congress relating to patents or is licensed under such patent4 7#ae7 ,the identity of any person with a direct financial interest in the outcome of the action1 including a right to receive proceeds1 or any fixed or variable portion thereof4 7#af7 ,a description of any agreement or other legal basis for a financial interest described in paragraph 7#ac74 7#ag7 ,a description of how the recipient of the demand letter can access the demand letter database of the ,patent and ,trademark ,office4 7#ah7 ,at the bottom of such letter1 a clear statement of the following3 ,you are not required to respond to this letter by law44 7b7 ,information not readily accessible ,an entity required to disclose the information described under subsection 7a7 shall include with such disclosure a description of any information described under subsection 7a7 that is not disclosed1 why such undisclosed information was not readily accessible1 and the efforts made by such entity to access such undisclosed information4 7c7 ,demand letter defined ,in this section1 the term demand letter shall have the meaning given that term under section #bfc7;g74 4 7b7 ,technical and conforming amendment ,the table of sections for chapter #bf of title #ce1 ,united ,states ,code1 as amended by section #b7;b71 is amended by adding at the end the following new item3 #bfd4 ,requirements for patent infringement demand letters4 4 #d4 ,penalties 7a7 ,amendment ,chapter #bf of title #ce1 ,united ,states ,code1 as amended by sections #b7;a7 and #c7;a71 is amended by adding at the end the following new section3 #bfe4 ,penalties 7a7 ,disclosure of information to the ,patent and ,trademark ,office violation ,any entity that receives a demand letter and that believes the requirements under section #bfc have not been met with respect to such patent may submit to the ,office in writing a petition-- 7#a7 describing the requirements that have not been met under section #bfc2 and 7#b7 anything else the ,director determines to be necessary4 7b7 ,demand letter requirement violation ,any entity that receives a demand letter that does not meet the requirements described under section #bfd may submit to the ,office in writing a petition-- 7#a7 describing the requirements that have not been included in such letter2 and 7#b7 anything else the ,director determines to be necessary4 7c7 ,notice of intent ,to abandon ,if the ,office determines that the requirements of section #bfc or #bfd have not been met with respect to a patent1 the ,office shall notify the patent owner that the patent will be voided unless a fee is paid not later than #c months after the date on which the notification is sent4 ,the ,director may accept the payment of any fee required by this subsection if the delay is shown to the satisfaction of the ,director to have been unintentional or unavoidable4 ,the ,director shall consider good faith mistakes in the determination of whether to void a patent under this section4 7d7 ,demand letter defined ,in this section1 the term demand letter shall have the meaning given that term under section #bfc7;g74 4 7b7 ,technical and conforming amendment ,the table of sections for chapter #bf of title #ce1 ,united ,states ,code1 as amended by sections #b7;b7 and #c7;b71 is amended by adding at the end the following new item3 #bfe4 ,penalties4 4 7c7 ,regulations ,not later than #ahj days after the date of the enactment of this ,act1 the ,director shall establish1 by regulation1 a fee for filing a petition under section #bfe in such amounts as the ,director determines to be reasonable4 #e4 ,federal ,trade ,commission enforcement 7a7 ,enforcement ,a violation of section #bfc or #bfd of title #ce1 ,united ,states ,code1 as added by sections #b and #c1 respectively1 shall be treated as a violation of a rule defining an unfair or deceptive act or practice under section #ah7;a77#a77;,b7 of the ,federal ,trade ,commission ,act 7#ae ,u4,s4,c4 #eg;a7a77#a77;,b774 ,the ,commission shall enforce such rules in the same manner1 by the same means1 and with the same jurisdiction1 powers1 and duties as though all applicable terms and provisions of the ,federal ,trade ,commission ,act were incorporated into and made a part of this section4 ,any entity who violates this section shall be subject to the penalties and entitled to the privileges and immunities provided in the ,federal ,trade ,commission ,act 7#ae ,u4,s4,c4 #da et seq474 7b7 ,rule of construction ,nothing in this section shall be construed-- 7#a7 to limit the authority of the ,federal ,trade ,commission under any other provision of law2 or 7#b7 except as specifically provided in this section to provide the ,federal ,trade ,commission with any additional authority4 #f4 ,definitions ,in this ,act3 7#a7 ,director ,the term ,director means the ,under ,secretary of ,commerce for ,intellectual ,property and ,director of the ,united ,states ,patent and ,trademark ,office4 7#b7 ,office ,the term ,office means the ,united ,states ,patent and ,trademark ,office4 #g4 ,effective date ,the amendments made by this ,act shall take effect upon the expiration of the #f-month period beginning on the date of the enactment of this ,act and shall apply to an entity that sends a demand letter 7as such term is defined under section #bfc7;g7 of title #ce1 ,united ,states ,code1 as added by section #b7;a77 on or after that date4