Sec. 4. Customer stay
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/bill/113/s/1720/is/section-4·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Chapter 29 of title 35, United States Code, is amended by adding at the end the following new section: In this section— the term covered customer means a party accused of infringing a patent or patents in dispute based on a covered product or process; the term covered manufacturer means a person who manufactures or supplies, or causes the manufacture or supply of, a covered product or process, or a relevant part thereof; and the term covered product or process means a component, product, process, system, service, method, or a relevant part thereof, that— is alleged to infringe the patent or patents in dispute; or implements a process alleged to infringe the patent or patents in dispute.
In a civil action in which a party asserts a claim for relief arising under any Act of Congress relating to patents (other than an action that includes a cause of action described in section 271(e) of this title), the court shall grant a motion to stay at least the portion of the action against a covered customer that relates to infringement of a patent involving a covered product or process if— the covered manufacturer and the covered customer consent in writing to the stay; the covered manufacturer is a party to the action or a separate action involving the same patent or patents relating to the same covered product or process; the covered customer agrees to be bound under the principles of collateral estoppel by any issues finally decided as to the covered manufacturer in an action described in paragraph
(2)that the covered customer has in common with the covered manufacturer; and the motion is filed after the first pleading in the action but not later than the later of— 120 days after service of the first pleading in the action that specifically identifies the covered product or process as a basis for the alleged infringement of the patent by the covered customer, and specifically identifies how the covered product or process is alleged to infringe the patent; or the date on which the first scheduling order in the case is entered. A stay issued under subsection
(b)shall apply only to those asserted patents and products, systems, methods, or components accused of infringement in the action. A stay entered under this section may be lifted upon grant of a motion based on a showing that— the action involving the covered manufacturer will not resolve a major issue in suit against the covered customer; or the stay unreasonably prejudices and would be manifestly unjust to the party seeking to lift the stay. In the case of a stay entered under this section based on the participation of the covered manufacturer in a separate action described in subsection (b)(2), a motion under paragraph
(1)may only be granted if the court in such separate action determines that the showing required under paragraph
(1)has been made. If, following the grant of a motion to stay under this section, the covered manufacturer in an action described in subsection (b)(2)— seeks or consents to entry of a consent judgment involving one or more of the common issues that gave rise to the stay; or fails to prosecute, to a final, non-appealable judgment, a final decision as to one or more of the common issues that gave rise to the stay, the court may, upon motion, determine that such consent judgment or unappealed final decision shall not be binding on the covered customer with respect to one or more of such common issues based on a showing that such an outcome would unreasonably prejudice and be manifestly unjust to the covered customer in light of the circumstances of the case. Nothing in this section shall be construed to limit the ability of a court to grant any stay, expand any stay granted pursuant to this section, or grant any motion to intervene, if otherwise permitted by law. . The table of sections for chapter 29 of title 35, United States Code, is amended by adding at the end the following new item: 299A. Customer stay. .