LES Opposes SHIELD Act Arguing it Diminishes Innovation and Compromises IP Owner Rights

WASHINGTON, June 20, 2013—The Licensing Executives Society (U.S.A. and Canada) Inc., today adopted a resolution opposing the SHIELD Act, H.R. 845, also known as "Saving High-Tech Innovators from Egregious Legal Disputes Act of 2013," which has been introduced in the U.S. House of Representatives as a means to stem the tide of ‘frivolous' patent litigation by targeting "patent trolls," or "Non-Practicing Entities" ("NPEs").

In its resolution, LES (USA & Canada) notes that the bill, in its current form, would be an ineffective deterrent, and would not establish an effective regime to prevent or remedy abusive and/or baseless patent litigation. Notably, its "loser pays" model would make every patent plaintiff a presumptive troll unless it fell within a specific exemption. (Click to view LES resolution).

In an accompanying letter to the Chairman of the House Committee on the Judiciary, Hon. B. Goodlatte, and Ranking Member, Hon. J. Conyers, Jr., LES (USA & Canada) Regional Vice President, U.S.A., Brian O'Shaughnessy asserts that "The Act would diminish invention and innovation by compromising the rights and remedies of IP owners, and invites gamesmanship in a misbegotten attempt to define troll-like behavior. Efforts to remedy such behavior are best left to courts to address on a case-by-case basis."

LES (USA & Canada) is a non-profit professional society with members throughout the United States and Canada who are engaged in technology licensing to bring the fruits of innovation to market. It is the leading licensing organization on the North American continent, and counts among its members representatives from all technological and industrial disciplines. LES is engaged in education, networking, public policy, and the sharing of best practices to promote the effective use of intellectual property regimes to the ultimate benefit of society. LES is also a member society of Licensing Executives Society International (LESI), a global society with 32 national societies, representing over 90 countries. www.lesusacanada.org

"Promoting invention and innovation through effective intellectual property laws and policies is paramount to LES (USA & Canada)," O'Shaughnessy wrote. "We look forward to working with Congress to achieve that objective."

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