<?xml version="1.0"?>
<law><law_id>772103</law_id><section_number>59.1-215.2</section_number><site_title>Virginia Decoded</site_title><site_url>https://vacode.org</site_url><edition url="https://vacode.org/2016/" id="11" last_updated="2016-07-24" current="TRUE">2016</edition><structure><unit level="1" identifier="59.1" url="https://vacode.org/2016/59.1/">Trade And Commerce</unit><unit level="2" identifier="18.1" url="https://vacode.org/2016/59.1/18.1/">Bad Faith Assertions Of Patent Infringement</unit></structure><catch_line>Bad faith assertions of patent infringement</catch_line><history>2014, cc. 810, 819.</history><order_by/><metadata/><court_decisions/><official_url>http://law.lis.virginia.gov/vacode/59.1-215.2/</official_url><refers_to/><url>/59.1-215.2/</url><token>59.1/18.1/59.1-215.2</token><referred_to_by/><text><section id="2488878" prefix="A"><text>A person shall not make, in bad faith, an assertion of patent infringement.</text><type>section</type><prefixes><section>A</section></prefixes><entire_prefix>A</entire_prefix><prefix_anchor>A</prefix_anchor><level>1</level></section><section id="2488879" prefix="B"><text/><type>section</type><prefixes><section>B</section></prefixes><entire_prefix>B</entire_prefix><prefix_anchor>B</prefix_anchor><level>1</level></section><section id="2488880" prefix="1"><text> The demand letter does not contain:
            
         </text><type>section</type><prefixes><section>B</section><section>1</section></prefixes><entire_prefix>B1</entire_prefix><prefix_anchor>B1</prefix_anchor><level>2</level></section><section id="2488881" prefix="a"><text> The number of the patent that is asserted, alleged, or claimed to have been infringed; or</text><type>section</type><prefixes><section>B</section><section>1</section><section>a</section></prefixes><entire_prefix>B1a</entire_prefix><prefix_anchor>B1a</prefix_anchor><level>3</level></section><section id="2488882" prefix="b"><text/><type>section</type><prefixes><section>B</section><section>1</section><section>b</section></prefixes><entire_prefix>B1b</entire_prefix><prefix_anchor>B1b</prefix_anchor><level>3</level></section><section id="2488883" prefix="2"><text/><type>section</type><prefixes><section>B</section><section>2</section></prefixes><entire_prefix>B2</entire_prefix><prefix_anchor>B2</prefix_anchor><level>2</level></section><section id="2488884" prefix="3"><text> The demand letter does not identify specific areas in which the products, services, and technology are covered by the claims in the patent.</text><type>section</type><prefixes><section>B</section><section>3</section></prefixes><entire_prefix>B3</entire_prefix><prefix_anchor>B3</prefix_anchor><level>2</level></section><section id="2488885" prefix="4"><text> The person offers to license the patent for an amount that is not based on a reasonable estimation of the value of a license to the patent.</text><type>section</type><prefixes><section>B</section><section>4</section></prefixes><entire_prefix>B4</entire_prefix><prefix_anchor>B4</prefix_anchor><level>2</level></section><section id="2488886" prefix="5"><text/><type>section</type><prefixes><section>B</section><section>5</section></prefixes><entire_prefix>B5</entire_prefix><prefix_anchor>B5</prefix_anchor><level>2</level></section><section id="2488887" prefix="6"><text> The assertion of patent infringement is deceptive, or the person threatens legal action that cannot legally be taken or that is not intended to be taken.</text><type>section</type><prefixes><section>B</section><section>6</section></prefixes><entire_prefix>B6</entire_prefix><prefix_anchor>B6</prefix_anchor><level>2</level></section><section id="2488888" prefix="7"><text> The person or its subsidiaries or affiliates have previously filed or threatened to file one or more lawsuits based on the same or similar assertion of patent infringement, the person attempted to enforce the assertion of patent infringement in litigation, and a court found the assertion to be objectively baseless or imposed sanctions for the assertion.</text><type>section</type><prefixes><section>B</section><section>7</section></prefixes><entire_prefix>B7</entire_prefix><prefix_anchor>B7</prefix_anchor><level>2</level></section><section id="2488889" prefix="8"><text> The patent alleged to be infringed was not in force at the time the allegedly infringing conduct occurred, or the patent claims alleged to be infringed have previously been held to be invalid.</text><type>section</type><prefixes><section>B</section><section>8</section></prefixes><entire_prefix>B8</entire_prefix><prefix_anchor>B8</prefix_anchor><level>2</level></section><section id="2488890" prefix="C"><text/><type>section</type><prefixes><section>C</section></prefixes><entire_prefix>C</entire_prefix><prefix_anchor>C</prefix_anchor><level>1</level></section><section id="2488891" prefix="1"><text> The person engages in a reasonable effort under the circumstances to establish that the target has infringed the patent and to negotiate an appropriate remedy.</text><type>section</type><prefixes><section>C</section><section>1</section></prefixes><entire_prefix>C1</entire_prefix><prefix_anchor>C1</prefix_anchor><level>2</level></section><section id="2488892" prefix="2"><text> The person makes a substantial investment in the use of the patent or in the development, production, or sale of a product or item covered by the patent.</text><type>section</type><prefixes><section>C</section><section>2</section></prefixes><entire_prefix>C2</entire_prefix><prefix_anchor>C2</prefix_anchor><level>2</level></section><section id="2488893" prefix="3"><text> The person has:
            
         </text><type>section</type><prefixes><section>C</section><section>3</section></prefixes><entire_prefix>C3</entire_prefix><prefix_anchor>C3</prefix_anchor><level>2</level></section><section id="2488894" prefix="a"><text> Demonstrated good faith in previous efforts to enforce the patent or a substantially similar patent; or</text><type>section</type><prefixes><section>C</section><section>3</section><section>a</section></prefixes><entire_prefix>C3a</entire_prefix><prefix_anchor>C3a</prefix_anchor><level>3</level></section><section id="2488895" prefix="b"><text> Successfully enforced the patent, or a substantially similar patent, through litigation.</text><type>section</type><prefixes><section>C</section><section>3</section><section>b</section></prefixes><entire_prefix>C3b</entire_prefix><prefix_anchor>C3b</prefix_anchor><level>3</level></section><section id="2488896" prefix="4"><text> The person is an institution of higher education or a technology transfer office organization owned by or affiliated with an institution of higher education.</text><type>section</type><prefixes><section>C</section><section>4</section></prefixes><entire_prefix>C4</entire_prefix><prefix_anchor>C4</prefix_anchor><level>2</level></section><section id="2488897" prefix="D"><text>The lists of indicia in this section are non-exclusive, and all indicia need not be present for a finding of bad faith or good faith.</text><type>section</type><prefixes><section>D</section></prefixes><entire_prefix>D</entire_prefix><prefix_anchor>D</prefix_anchor><level>1</level></section></text></law>
