Relating to creating a private cause of action for bad faith claims of patent infringement.

89(R) HB 5543 - House Committee Report version - Bill Text

89R22175 BCH-D

By: Meyer

H.B. No. 5543

Substitute the following for H.B. No. 5543:

By: Button

C.S.H.B. No. 5543

A BILL TO BE ENTITLED

AN ACT

relating to creating a private cause of action for bad faith claims

of patent infringement.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 17.955, Business & Commerce Code, is

amended to read as follows:

Sec. 17.955. [
NO
] PRIVATE CAUSE OF ACTION
: DECEPTIVE TRADE

PRACTICE
.
(a) A
[
This subchapter does not create a private cause

of action for a
] violation of Section 17.952
is a deceptive trade

practice under Subchapter E and is actionable by an aggrieved end

user under that subchapter
.
Notwithstanding Section 17.45(4), for

purposes of an action brought under Subchapter E and this section,

"consumer" includes a business consumer that has assets of $25

million or more or that is owned or controlled by a corporation or

entity with assets of $25 million or more.

(b)

Upon motion by an end user and a finding by the court

that an end user has established a reasonable likelihood that a

person has made a bad faith assertion of patent infringement in

violation of this chapter, the court shall require the person to

post a bond in an amount equal to a good faith estimate of the end

user's fees and costs to litigate the claim.

(c)

A bond ordered under this section may not exceed

$500,000.

(d)

The court may waive the bond requirement under this

section if the court finds that the person has available assets

equal to the amount of the proposed bond or for other good cause

shown.

SECTION 2. This Act takes effect September 1, 2025.