South OC Times

Washington – This week, Congressman Darrell Issa (CA-48), Chairman of the House Judiciary Subcommittee on Courts, Intellectual Property, and the Internet, convened a hearing entitled “The U.S. Intellectual Property System and the Impact of Litigation Financed by Third-Party Investors and Foreign Entities.”

The hearing examined the impact of secretive, profit-motivated third-party litigation fueling frivolous patent lawsuits and exploiting the legal system, as well as the national security risk presented by funding from foreign adversaries. Additionally, Chairman Issa led discussions on the role Congress ought to play in addressing this practice.

“Unlike traditional funding aimed at making victims whole, third-party litigation funding prioritizes investor profits over litigant need and often involves foreign interests from China and Russia. This practice, notably employed by ‘patent trolls’, undermines the integrity of our legal system and Congress should determine the necessary transparency and disclosure measures to curb these abuses,” said Rep. Issa.

The hearing featured witnesses including:

Hon. Bob Goodlatte, former Chairman of the House Judiciary Committee

Paul Taylor, Visiting Fellow at the National Security Institute, George Mason University

Donald Kochan, Professor of Law and Executive Director of the Law and Economics Center at Antonin Scalia Law School, George Mason University

Professor Victoria Sahani, Associate Provost for Community and Inclusion and Professor of Law at Boston University

Several organizations submitted statements and letters supporting transparency and disclosure in third-party litigation funding:

American Property Casualty Insurance Association

Unified Patents

Cisco Systems

Center for Climate Integrity

National Association of Mutual Insurance Companies

U.S. Made

National Association of Manufacturers

Chairman Issa’s opening remarks can be found here.

A recording of the hearing can be found here.