Sec. 5. Customer-suit exception
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/bill/114/hr/9/ih/section-5A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 296 of title 35, United States Code, is amended to read as follows: Except as provided in subsection (d), in any civil action arising under any Act of Congress relating to patents, the court shall grant a motion to stay at least the portion of the action against a covered customer related to infringement of a patent involving a covered product or process if the following requirements are met: The covered manufacturer and the covered customer consent in writing to the stay.
The covered manufacturer is a party to the action or to a separate action involving the same patent or patents related to the same covered product or process. The covered customer agrees to be bound by any issues that the covered customer has in common with the covered manufacturer and are finally decided as to the covered manufacturer in an action described in paragraph (2). The motion is filed after the first pleading in the action but not later than the later of— the 120th day after the date on which the first pleading in the action is served that specifically identifies the covered product or process as a basis for the covered customer’s alleged infringement of the patent and that 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
(a)shall apply only to the patents, products, systems, 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 based on the participation of the covered manufacturer in a separate action involving the same patent or patents related to the same covered product or process, a motion under this subsection may only be made if the court in such separate action determines the showing required under paragraph
(1)has been met. This section shall not apply to an action that includes a cause of action described under section 271(e)(2). If, following the grant of a motion to stay under this section, the covered manufacturer seeks or consents to entry of a consent judgment relating to one or more of the common issues that gave rise to the stay, or declines to prosecute through appeal a final decision as to one or more of the common issues that gave rise to the stay, the court may, upon grant of a 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 under this section, or grant any motion to intervene, if otherwise permitted by law. 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 that manufactures or supplies, or causes the manufacture or supply of, a covered product or process or a relevant part thereof. The term covered product or process means a product, process, system, service, component, material, or apparatus, or 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. . The table of sections for chapter 29 of title 35, United States Code, is amended by striking the item relating to section 296 and inserting the following: 296. Stay of action against customer. . The amendments made by this section shall take effect on the date of the enactment of this Act and shall apply to any action for which a complaint is filed on or after the first day of the 30-day period that ends on that date.