H.R. 3269: Eliminating Thickets to Increase Competition Act

This bill, titled the Eliminating Thickets to Increase Competition Act (ETHIC Act), aims to modify existing patent laws to address what is termed "patent thickets." A patent thicket occurs when numerous patents cover the same product or technology, which can complicate the process for new competitors to enter the market, particularly in the pharmaceutical and biotechnology fields. Here’s how the bill would work:

Key Provisions

• Limitation on Patent Assertions: The bill proposes a limit on the number of patents from a single group that can be asserted in a legal action for patent infringement. Specifically, it allows a person to only bring forward one patent per Patent Group in an infringement action against certain parties.
• Definition of Patent Group: A “Patent Group” is defined as two or more patents that are commonly owned and related through disclaimers. This means if a patent is linked to another through legal disclaimers, they belong to the same group and are subject to the limitation.
• Targeted Parties: The parties to which this limitation applies include those applying for approval of a drug or biological product under U.S. drug law, as well as individuals involved in the production and marketing of those products.
• Additional Actions: A party that brings an infringement action is prohibited from initiating further actions against the same defendant regarding other patents in the same Patent Group.

Applicability of Amendments

The changes made by this bill would apply to applications that are submitted after the date the bill becomes law, affecting new patent assertions moving forward but not retroactively impacting existing applications or patent claims.

Purpose of the Bill

The primary goal of the ETHIC Act is to reduce barriers to competition in the pharmaceutical industry by limiting the complexity and scope of patent litigation that can arise from patent thickets. By making it easier for companies to navigate patent laws, the bill seeks to encourage market entry and innovation.

Relevant Companies

None found.