Demand Letters and Consumer Protection: Examining Deceptive Practices by Patent Assertion Entities

SCom: CommunicationsWASHINGTON, D.C.— The U.S. Senate Committee on Commerce, Science, and Transportation today announced the Subcommittee on Consumer Protection, Product Safety, and Insurance will hold a hearing on Thursday, November 7, 2013, at 10:00 a.m. to examine the impact of demand letters — sent by patent assertion entities (PAEs) or “patent trolls” — on small businesses, consumers, and innovators. The hearing will consider whether legislation is needed to provide increased protection for these individuals and groups.

It is estimated that some patent trolls can send upward of hundreds – or even thousands – of letters to small businesses with threats of litigation for alleged patent infringement and demand for payment. Lately, many small businesses have paid the demands, even if they have not violated any patents, because of the high costs associated with the patent dispute process and potential litigation. Compounding the problem is the lack of basic disclosures and specificity in the demand letter that would allow recipients to make informed decisions, leaving consumers vulnerable to abuse. 

Please note the hearing will be webcast live via the Senate Commerce Committee website. Refresh the Commerce Committee homepage 10 minutes prior to the scheduled start time to automatically begin streaming the webcast.

Individuals with disabilities who require an auxiliary aid or service, including closed captioning service for webcast hearings, should contact Stephanie Gamache at 202-224-5511 at least three business days in advance of the hearing date.

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Testimony

  • The Honorable Jon Bruning

    Attorney General
    State of Nebraska
  • Mr. Jon Potter

    President
    Application Developers Alliance
    Download Testimony (253.08 KB)
  • Mr. Mark Chandler

    Senior Vice President, General Counsel, and Chief Compliance Officer
    Cisco Systems, Inc.
    Download Testimony (106.07 KB)
  • Ms. Julie P. Samuels

    Senior Staff Attorney
    Electric Frontier Foundation
    Download Testimony (174.92 KB)
  • Mr. Larry Sinewitz

    Executive Vice President
    BrandsMart USA
  • Mr. Adam Mossoff

    Professor of Law, Center for the Protection of Intellectual Property
    George Mason University School of Law
    Download Testimony (117.24 KB)