Vermont passes controversial new law targeting patent trolls

Managing IP is part of Legal Benchmarking Limited, 1-2 Paris Gardens, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2026

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Vermont passes controversial new law targeting patent trolls

Vermont enacted a new law on Wednesday, believed to be the first of its kind in the US, in an effort to crack down on so-called patent trolls

The legislation, known as Bad Faith Assertions of Patent Infringements, was signed into law by Vermont Governor Peter Shumlin. It is unclear whether states have the authority to regulate patent activity, due to federal preemption doctrines.

The law allows parties who are threatened by trolls to sue for damages, even if the patent owner has filed no lawsuit against them.

It also enables the state’s Attorney General to pursue civil enforcement against parties believed to be asserting patents in bad faith.

In addition, the patent owner can be required to post a bond of up to $250,000 under the new law, to cover any attorneys’ fees a court may later award to an alleged infringer. The court can deny the bond if the defendant lacks “available assets” equivalent to the amount of the bond.

Rather than define bad faith assertions, the law lists factors to help judges separate legitimate claims from illegitimate ones.

Under the new law, factors that might lead a court to conclude that a claim is illegitimate would include:

  • Not identifying the patents in question, who owns the patent, and to precisely how the patent has been infringed;

  • Demanding an unreasonable amount of money, and/or demanding payment in an unreasonably short amount of time;

  • Making “deceptive” or “meritless” claims.

Factors that might lead a court to conclude that a claim is legitimate include:

  • The claim being made by the original inventor, an educational institution or someone who has commercialised the invention;

  • Having demonstrated “good faith business practices” in previous efforts to enforce the patent, or one that is “substantially similar”

  • Previous success in enforcing the patent through litigation.

The law also grants courts leeway to consider any other factors they believe to be relevant.

more from across site and SHARED ros bottom lb

More from across our site

Monetisation is standing at the forefront of patent development, and one firm says AI is increasingly being deployed
Data centres are being built across the US, prompting patent disputes, but Texas’s thriving tech industry and patent-ready courts make the state particularly ‘ripe’ for litigation
Carpmaels & Ransford is set to bolster its UK attorney team with the appointment of Simmons & Simmons’s head of IP in the UK
Updates on Nokia’s licensing strides and a surge in patent activity around battery recycling in Australia were also among the top talking points
To mark International Day Against Child Labour, Matteo Amerio at Corsearch says the people inside businesses who can identify counterfeiting risks must be given the tools and authority to act
With genuine equity at IP firms becoming rarer, securing partnership is harder than ever, but increased transparency is also making climbing the ladder more predictable
Yossi Sivan explains how Israeli judgment is a pro-brand owner departure from the norm and why it sends a strong message that corporate structures are not always a shield
Halim Shehadeh, group CEO of IP firm CWB, says that in the rush to discuss what AI can do, IP firms are overlooking the more important question of whether they are ready
Caitlin Heard, who formally joined the firm from CMS last month, says she is excited by the ‘energy’ of the London office
Ranjna Mehta-Dutt, who moved to Chadha & Chadha after 25 years at Remfry & Sagar, says the firm plans to expand its life sciences practice through targeted recruitment and dedicated teams for bigger clients
Gift this article