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

Alabama attorney Miya Aladebumoye has launched a new firm built on ‘big law’ experience and a personal touch approach
A UKIPO campaign aimed at combating fakes in the pre-loved fashion market and registration of the first Portuguese craft and industrial geographical indication were also among the top talking points
Chris Adams, Managing IP’s research lead, joins us to explain what practitioners need to know ahead of our first rankings release of 2026
Another IP litigator joins Winston & Strawn in Dallas as firm seeks to keep pace with ‘rapid’ growth of Texas market
Anthony O'Malley will replace Andrew Blattman at IPH, which owns several large IP firms across Australia, Asia and Canada
Barry Greenbaum, partner at Olshan Frome Wolosky, explains how in-house teams can update their approach to brand development, and where AI can add value
Christine Chiramel, who joins a full-service law firm after 17 years of working at specialist firms, says she’s excited to explore how corporate commercial issues are blurring into IP
Practitioners say increasing the pecuniary jurisdiction of India’s most popular IP litigation forum to around $2 million would spark unpredictability and make it difficult for SMEs to benefit
The Spain-based firm has appointed an industry veteran to lead the group, which it hopes will strengthen its ability to support clients in ‘disruptive technologies’
Shaina Haria, a final-seat trainee at an international law firm’s UK office, shares how she fell in love with IP and why the area of law has changed the way she views the world
Gift this article