RESOLVED, that IPO supports legislation that would make the high volume sending of bad faith demand letters, to end users who are not resellers, a deceptive act or practice within the meaning of section 5(a)(1) of the Federal Trade Commission Act, provided that such legislation is carefully tailored to differentiate between abusive activity and legitimate, lawful activity. Any legislation should include a clear identification of objective acts or practices that would deceive recipients, such as false statements of patent ownership or the right to enforce or license patents.
FURTHER RESOLVED, IPO opposes legislation that would require overly burdensome and detailed disclosures in bad faith demand letters, for example of information that could trigger declaratory judgment jurisdiction or the disclosure of confidential information, which could have the unintended result of increasing patent infringement litigation.
FURTHER RESOLVED, IPO believes that federal legislation regulating bad faith demand letters should preempt state legislation.
