Bill Text: IL SB3405 | 2013-2014 | 98th General Assembly | Chaptered

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Bill Title: Amends the Consumer Fraud and Deceptive Business Practices Act. Provides that it is an unlawful practice to claim that another has infringed upon a United States patent if the claim falsely threatens adverse administrative or judicial action, the assertions lack a reasonable basis in fact or law, the person making the assertion is not, or does not represent, a person with a current right to license the patent, or the claim fails to make certain other disclosures. Effective January 1, 2015.

Spectrum: Moderate Partisan Bill (Democrat 20-3)

Status: (Passed) 2014-08-26 - Public Act . . . . . . . . . 98-1119 [SB3405 Detail]

Download: Illinois-2013-SB3405-Chaptered.html

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Public Act 098-1119
SB3405 Enrolled LRB098 19175 JLS 54327 b
AN ACT concerning business.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Consumer Fraud and Deceptive Business
Practices Act is amended by adding Section 2RRR as follows:
(815 ILCS 505/2RRR new)
Sec. 2RRR. Unfair or deceptive patent infringement demand
letters.
(a) As used in this Section:
"Affiliated person" means a person affiliated with the
intended recipient of a written or electronic communication.
"Intended recipient" means a person who purchases, rents,
leases, or otherwise obtains a product or service in the
commercial market that is not for resale in the commercial
market and that is, or later becomes, the subject of a patent
infringement allegation.
(b) It is an unlawful practice under this Act for a person,
in connection with the assertion of a United States patent, to
send or cause any person to send any written, including
electronic, communication that states that the intended
recipient or any affiliated person is infringing or has
infringed a patent and bears liability or owes compensation to
another person, if:

(1) the communication falsely threatens that
administrative or judicial relief will be sought if
compensation is not paid or the infringement issue is not
otherwise resolved;
(2) the communication falsely states that litigation
has been filed against the intended recipient or any
affiliated person;
(3) the assertions contained in the communication lack
a reasonable basis in fact or law because:
(A) the person asserting the patent is not a
person, or does not represent a person, with the
current right to license the patent to or enforce the
patent against the intended recipient or any
affiliated person;
(B) the communication seeks compensation for a
patent that has been held to be invalid or
unenforceable in a final, unappealable or unappealed,
judicial or administrative decision; or
(C) the communication seeks compensation on
account of activities undertaken after the patent has
expired; or
(4) the content of the communication fails to include
information necessary to inform an intended recipient or
any affiliated person about the patent assertion by failing
to include the following:
(A) the identity of the person asserting a right to

license the patent to or enforce the patent against the
intended recipient or any affiliated person;
(B) the patent issued by the United States Patent
and Trademark Office alleged to have been infringed;
and
(C) the factual allegations concerning the
specific areas in which the intended recipient's or
affiliated person's products, services, or technology
infringed the patent or are covered by the claims in
the patent.
(c) Nothing in this Section shall be construed to deem it
an unlawful practice for any person who owns or has the right
to license or enforce a patent to:
(1) advise others of that ownership or right of license
or enforcement;
(2) communicate to others that the patent is available
for license or sale;
(3) notify another of the infringement of the patent;
or
(4) seek compensation on account of past or present
infringement or for a license to the patent.
Section 99. Effective date. This Act takes effect January
1, 2015.