The crackdown against "patent trolls" continued in Washington D.C. with the introduction of legislation aimed to protect job opportunities.

Politicians, from Congress to the White House, have been trying to improve efforts to strengthen the patent system in the United States (U.S.). The White House recognizes an "explosion of abusive litigation" have taken place in recent years with the intent to not reward innovation and extract settlements based on questionable statements. Companies under such actions are referred to as "patent trolls," also known as Patent Assertion Entities (PAEs), and they may cost the economy billions of dollars.

Sen. Claire McCaskill (D-Mo.) introduced the "Transparency in Assertion of Patents Act." The legislation would help the Federal Trade Commission (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.

"By requiring transparency and basic, common sense disclosures, this bill cracks down on the commercial practice of mailing hundreds, if not thousands, of misleading letters that seek to extort money from small businesses," said Sen. Rockefeller. "The bill isn't about patent law or patent rights; it's simply about protecting unsuspecting victims from bad actors and their despicable behavior."

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.

"All told, the victims of patent trolls paid $29 billion in 2011, a 400 [percent] increase from 2005 -- not to mention tens of billions dollars more in lost shareholder value," noted Sperling.

As Latin Post reported, the White House launched a new website with the U.S. Patent and Trademark Office. The new website aims to help consumers and businesses understand their rights and answers to common questions if they were to receive a demand letter. The website provides information about related lawsuits, glossary, and what's patent infringement. The information on the website, however, should not be considered as a replacement to legal advice.

"Patent trolls are costing American businesses tens of billions of dollars a year," added McCaskill. "That's money that could be going to hiring new employees or expanding a business. While the administration and some states are taking steps to address the problem, only a federal law can provide the basic transparency small business owners need in these demand letters to determine whether they should be taken seriously, challenged, or simply thrown in the trash."

__

For the latest updates, follow Latin Post's Michael Oleaga on Twitter: @EditorMikeO