Dive Brief:
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Retailers including Macy's and J.C. Penney have joined tech bigwigs and several other companies to form a “super-coalition” fighting so-called “patent trolls.”
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The group, known as United for Patent Reform, includes companies beyond those in the tech sector that have long been concerned about “patent assertion” entities, also called patent trolls.
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Despite much support for reform, an anti-patent troll bill was scuttled in Congress last year over concerns of pharmaceutical companies and others with legitimate patents. The issue is expected to be a focus for the new Congress.
Dive Insight:
Retailers are increasingly seeing lawsuits by patent trolls, so this issue is no longer just a problem for tech companies. In fact, it is only becoming more of a hassle for retailers. Even when retailers have prevailed in court against such lawsuits, the process is painful and sometimes expensive, and may go through several decisions. Sears and Overstock, for example, recently lost in court over the software they use for their shopping cart and in-store pickup web features, a ruling they will appeal because they say their operations have nothing to do with the plaintiff's patent.
And while a few higher court decisions have helped deter these patent lawsuits, there’s general agreement that Congress must address the issue to stem the tide of frivolous patent suits.