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

A decision on a licensing rate payable by Warner Bros and Paramount, and a survey outlining UK businesses’ lack of IP preparation ahead of launching abroad, were among other major talking points
A fresh wave of deals highlights why investors favour IP firms and why independent outfits may soon have to rethink their strategy
King & Spalding has now hired 15 partners from Winston Taylor and legacy firm Winston & Strawn in offices spanning Texas, San Francisco, and Chicago
Firm says its work with a biotech client could signal a sea change in how - and when - law firms enter the drug development process
Evan Lazerowitz, attorney in Robinson + Cole’s bankruptcy and reorganisation group, offers key takeaways for IP interested parties in bankruptcy and insolvency proceedings
While the UK sees heavy IP rankings movement, Germany’s new tiered UPC table signals a shift from early adoption to market maturity
In an exclusive interview, Bernard Ledeboer reveals how a Consolid-backed group of firms wants to expand across Europe, invest in AI and centralise operations to compete at the top tier
Not all private equity firms are the same, so leaders at four externally backed IP firms came together to discuss the frameworks they followed and how they ensured a cultural fit
Top-tier German and Spanish firms are among the advisers on a Europe-wide copyright and licensing tussle concerning the design of the track circuit in Madrid
Partners Alex Wilson and Andreas Kramer say bigger law firm rivals don’t necessarily gain by having a wider jurisdictional reach
Gift this article