“Cisco applauds introduction of the Innovation Act, legislation which aims to address the growing problem of patent assertion entities, often called patent trolls.
“According to a new study released this week, the problem is getting worse. Nearly 60 percent of new patent lawsuits are being filed by patent assertion entities, up from 25% in 2007. They are targeting legitimate businesses with threat letters and costly lawsuits, in the hope for a quick and easy settlement. According to one estimate, these profiteers cost American businesses $29 billion in 2011. This is a problem that cries out for legislative action.
“The legislation introduced today by Chairman Goodlatte and others goes a long way toward addressing the issues. It helps dry up the financial incentives that have allowed patent trolls to thrive and significantly increases transparency.
“We stand ready to work with Chairman Goodlatte and his cosponsors as the bill moves through the legislative process, and we are especially grateful for the support of Cisco’s local Representatives Eshoo, Holding and Lofgren for their cosponsorship of this important legislation to address a major challenge faced by America’s technology industry.”