As Latin Post reported, "patent trolls" have received notoriety for suing major tech companies over alleged patent infringements. The patent trolls, however, might have a new target: retailers.

According to the National Retail Federation (NRF), patent trolls, also known as Patent Assertion Entities (PAEs), are "shadowy entities" that tend to purchase "overly-broad patents" with the intent on suing retailers and end-users of technology due to suspected infringement. The NRF are now urging Congress to address the roll of patent trolls.

"Trolls' claims not only affect e-commerce applications and the everyday use of technology, but also ... the storefront operations of traditional brick and mortar retailers," said NRF Senior Vice President David French. "Some real world examples ... cover point of sale and inventory control equipment, including; scanning barcodes, printing receipts, the sale of gift cards, and the connection of ... a computer or printer to an Ethernet network."

The NRF senior vice president, along with the National Council of Chain Restaurants and Shop.org, submitted a statement to the House Energy and Commerce Subcommittee. According to French's statement to the subcommittee, retailers do not have enough resources to fight back again patent trolls due to "less technological expertise" and "operating on thin profit margins." French added that the demands of the patent trolls have hindered innovation and adoption of technology as well as impede job growth. Many retailers would rather settle out of court than spend several months and millions if they challenge the patent trolls in court.

The NRF has therefore announced its support of legislation that would give the Federal Trade Commission further control to investigate the demand letters issued by the patent trolls.

"Patent trolls should not have free reign to assert expired patents, make repeated and false threats of litigation to extort fees, and materially mislead the recipients of these demands," wrote French. "At the very least, patent trolls should be required to provide more details in their letters. Currently, the letters are effective because they lack specificity. Requiring more complete truthful disclosure will provide greater certainty to businesses, saving them time and money as they investigate the person or entity asserting the patent and determine the overall merits of the infringement claim."

Sen. Claire McCaskill (D-Mo.) introduced the NRF-backed legislation known as the Transparency in Assertion of Patents Act. The legislation would help the FTC combat against patent trolls by requiring more transparency such as disclosures in demand letters by PAEs to businesses they alleged patent violations.

"Patent trolls are stifling innovation, endangering jobs, and harming businesses and consumers," said Sen. McCaskill, who also serves as chairman of the Consumer Protection Subcommittee. "Acting now and giving the FTC the tools it needs to properly address this serious problem will send a message to these bottom-feeders -- they will understand that we plan to do whatever it takes to protect American consumers and small businesses from scam artists trying to make a quick buck."

The bill is co-sponsored by Sen. Jay Rockefeller (D-W.Va.), chairman of the Senate Commerce Committee.

According to the Director of the National Economic Council and Assistant to the President for Economic Policy Gene Sperling, the number of lawsuits by patent trolls has tripled in the last couple years and attribute to 62 percent of all patent lawsuits in the U.S.

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