Sec. 5. Bad-faith demand letters
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Chapter 29 of title 35, United States Code, as amended by section 4 of this Act, is amended by adding at the end the following: In this section, the term affiliated person means a person affiliated with the intended recipient of a written communication. It shall be an unfair or deceptive act or practice within the meaning of section 5(a)(1) of the Federal Trade Commission Act ( 15 U.S.C. 45(a)(1) ) for a person, in connection with the assertion of a United States patent, to engage in the widespread sending of written communications that state that the intended recipients or any affiliated persons are infringing or have infringed the patent and bear liability or owe compensation to another, if— the communications falsely threaten that administrative or judicial relief will be sought if compensation is not paid or the infringement issue is not otherwise resolved; the assertions contained in the communications lack a reasonable basis in fact or law, including, for example, because— the person asserting the patent is not a person, or does not represent a person, with the current right to license the patent to, or to enforce the patent against, the intended recipients or any affiliated persons; or the communications seek compensation on account of activities undertaken after the patent has expired; or the content of the written communications is likely to materially mislead a reasonable recipient, including, for example, because the content fails to include such facts reasonably necessary to inform the recipient of— the identity of the person asserting a right to license the patent to, or enforce the patent against, the intended recipient or any affiliated person; the patent issued by the United States Patent and Trademark Office alleged to have been infringed; and the reasons for the assertion that the patent may be or may have been infringed.
The engaging of a person in an act or practice described in subsection
(b)shall be treated as a violation of a rule defining an unfair or deceptive act or practice described under section 18(a)(1)(B) of the Federal Trade Commission Act ( 15 U.S.C. 57a(a)(1)(B) ). The Federal Trade Commission shall enforce this section in the same manner, by the same means, and with the same jurisdiction, powers, and duties as though all applicable terms and provisions of the Federal Trade Commission Act ( 15 U.S.C. 41 et seq. ) were incorporated into and made a part of this section. Any person who engages in an act or practice described in subsection
(b)shall be subject to the penalties and entitled to the privileges and immunities provided in the Federal Trade Commission Act ( 15 U.S.C. 41 et seq. ). . The table of sections for chapter 29 of title 35, United States Code, as amended by section 4 of this Act, is amended by adding at the end the following: Sec. 299B. Bad-faith demand letters. . Nothing in any amendment made by this section shall be construed to limit the authority of the Federal Trade Commission under any other provision of law or to provide the Federal Trade Commission with any additional authority.
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