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

As the US reflects on 250 years of independence, patent lawyers say innovation is reshaping old hiring priorities, with firms seeking broader IP expertise over specialisation
The Nokia v Acer ruling in the UK suggests arbitration is moving from the sidelines towards the mainstream of global FRAND disputes - and could reshape forum strategy in the process
The Life Sciences Awards is thrilled to present the shortlist for the 2026 Americas Awards
From Türkiye to Poland and Nigeria, firms with deep local roots continue to dominate the top tier, proving that market expertise can outweigh international scale in many CEE, Middle Eastern and African jurisdictions
Former Hoyng Rokh partner Simon Dack takes a leading PMAC role as busy firms continue to jostle for position
Franck Fougere, founder and managing partner of Ananda IP in Thailand, describes how the firm has developed a reputation for patent work and why he believes IP practice is set to change
After two decades at Kass International, Geetha Kandiah discusses the lessons that shaped her career, building an inclusive regional firm, and AI opportunities
Manisha Singh of LexOrbis discusses the need for commercial alignment with clients and why IP lawyers need to have curiosity at their core
As firms expand into integrated IP services, recent hires show the model's appeal – but high-profile departures reveal how quickly questions of depth and durability can emerge
In-house counsel say private practice firms either aren’t conveying sustainability messaging or simply ‘don’t care’, but a mindful approach to the topic could swing pitches
Gift this article