Sen. John Cornyn (R-TX), a member of the Senate Judiciary Committee, introduced a patent litigation bill yesterday, S. 1013, the Patent Abuse Reduction Act of 2013.
As filed, the bill would add a number of procedural requirements to patent infringements suits as follows:
Pleading requirements
The bill would require initial complaints to include detailed information about the plaintiff's claims, including listing the patents, asserted claims, accused devices, and other issues regarding the ownership of the patents and persons interested in their enforcement. The provision would also direct the Supreme Court to review and amend Form 18 of the FRCPs to conform with the new section.
Joinder
Section 299 would be amended to permit defendants to join most persons with an interest in the asserted patents.
Discovery limits
The bill would prohibit discovery in patent infringement cases on issues other than claim construction until the claim construction ruling. The court would have discretion to permit discovery necessary to resolve motions filed before the Markman ruling.
The bill would also define "core" discovery (which excludes computer code or electronic communications unless the court finds it should be included) and provide that for any discovery beyond core discovery discovery costs are automatically shifted to the requesting party, including attorneys fees, and the requesting party must either pay for the discovery when requested, or post a bond to cover the expenses. Courts can still determine that discovery should not be had, even if the costs are paid/posted.
Costs and expenses
Courts "shall" award reasonable costs and expenses, including attorneys fees, to the prevailing party unless: (1) the loser's position and conduct was "objectively reasonable and substanially justified"; or (2) "exceptional circumstances" would make such an award unjust. In determining whether one of the exceptions applies the court shall not consider as evidence any settlement licenses. If the losing party cannot pay the expenses, the court may make the costs and expenses recoverable against any interested party.