Sends Letter to Committee Outlining Concerns with Legislation
WASHINGTON, DC – The National Venture Capital Association (NVCA) today issued the following statement concerning H.R. 9, The Innovation Act of 2015, ahead of a House Judiciary Committee hearing today on the legislation.
“As the old adage goes, the devil is in the detail. The more our membership digs into the details of H.R. 9, the more concerned they become with the unintended consequences that will impact entrepreneurship and dry up innovation,” said Bobby Franklin, President and CEO of NVCA. “In particular, our membership is growing increasingly concerned that the fee shifting provision will have a devastating impact on startup companies trying to enforce their patents against incumbents and on small companies facing legal challenges by their larger, well-financed competitors. This blunt instrument gives a tremendous advantage to large, incumbent companies and will have a far greater impact on the ability of entrepreneurs to defend their intellectual property than it will on curbing patent troll behavior.”
“Despite our concerns with H.R. 9, we do believe the bill was written with the best of intentions to reform our patent litigation system and are in full agreement steps should be taken to curb abusive behavior by patent trolls,” added Franklin. “It’s unfortunate that many of the provisions in the bill make patent litigation more expensive by increasing the costs and risks of the litigation process. We stand ready to work with Chairman Goodlatte and his House colleagues to improve the bill as it works its way through the legislative process.”
Prior to the hearing today, NVCA sent a letter to the House Judiciary Committee outlining concerns with H.R. 9. You can access that letter here.