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Nebraska AG Invokes Consumer Protection Laws Against Patent Trolling
Practical Law Legal Update 3-535-3981 (Approx. 2 pages)
Nebraska AG Invokes Consumer Protection Laws Against Patent Trolling
by Practical Law Intellectual Property & Technology
| Published on 24 Jul 2013 • USA (National/Federal) |
The Nebraska Attorney General's Office has ordered a Texas law firm that represents patent assertion entities to cease and desist from initiating any new patent enforcement efforts in the state pending the outcome of the office's investigation into whether the firm's patent enforcement activities violate Nebraska's Consumer Protection Act and Uniform Deceptive Trade Practices Act.
On July 18, 2013, the Office of the Attorney General of the State of Nebraska sent a letter to a Texas law firm that represents several non-practicing patent assertion entities (patent trolls) in which the office:
- Noted its concern that the firm had engaged in a pattern and practice of deceptively alleging patent infringement in its demand letters and litigation on behalf of the firm's clients.
- Notified the firm of its investigation into whether the firm's demand letters alleging patent infringement contain unsubstantiated, false, misleading or deceptive statements in violation of the Nebraska Consumer Protection Act and Uniform Deceptive Trade Practices Act.
- Demanded the firm immediately cease and desist from initiating any new patent enforcement efforts in Nebraska.
- Demanded the firm respond to an enclosed Civil Investigation Demand.
These actions of the Nebraska Attorney General represent a potential alternative to Vermont's statutory approach to curbing the activities of patent assertion entities and a tool that, if successful, other states may invoke for this purpose.