SB121 Alabama 2014 Session

Summary

Primary Sponsor

Arthur OrrSenator

Republican

Session

Regular Session 2014

Title

Patents, asserting claims of infringment of in bad faith prohibited, Attorney General authorized to investigate and initiate enforcement actions, targets of bad faith assertions authorized to initiate action for certain damages, filing of bond under certain conditions

Summary

SB121 aims to curb bad-faith patent infringement claims by giving the Attorney General enforcement powers and creating remedies for those harmed.

What This Bill Does

It defines what counts as a bad-faith patent infringement assertion and sets up a framework to identify targets such as people or businesses who receive demand letters or threats. The Attorney General can investigate such claims, issue subpoenas, and file enforcement actions, with cases heard in the circuit court. If a claim is found to be in bad faith, the harmed party can sue for damages, costs, fees, equitable relief, and may receive exemplary damages; the Act also lays out factors the court can consider when deciding bad faith. Actions must be brought within five years, and certain communications and legitimate patent licensing activities are exempt; the law also imposes criminal penalties for willful violations and aligns with federal patent law.

Who It Affects

• Targets of alleged patent infringement in Alabama (e.g., businesses or individuals who receive demand letters or are threatened with litigation) who could sue for damages if the assertion is found to be in bad faith.
• The Alabama Attorney General and private plaintiffs harmed by bad-faith assertions, who gain enforcement powers and the ability to seek damages, costs, and fees.

Key Provisions

• Defines 'demand letter' and 'target' to identify when a claim is under the act.
• Prohibits asserting a patent infringement claim in bad faith; authorizes the Attorney General to investigate, issue subpoenas, and file enforcement actions.
• Allows enforcement in circuit court and permits a target or aggrieved party to seek remedies including equitable relief, damages, costs and attorney's fees, and exemplary damages.
• Lists factors the court may consider as evidence of bad faith (e.g., missing information in the demand letter, lack of analysis, deceptive or meritless claims) and factors that may show good faith.
• Sets a five-year statute of limitations for actions under the act.
• Provides that certain communications and legitimate licensing activities are not violations.
• Imposes criminal penalties for willful violations (Class A misdemeanor).
• States the act does not limit other rights or the AG's authority and aligns with federal patent law.
• Excludes claims under 35 U.S.C. § 271(e)(2) from the act's requirements.
• Becomes effective on the first day of the third month after passage.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Patents