Written by Forrest Wall, CAE, Staff Vice President
and Industry Relations
U.S. Senate Bill Targets Patent Trolling
Legislation before the United States Senate proposes a reform to help end frivolous lawsuits by so-called “patent trolls.” In recent years the business community – the apartment industry included – has seen a dramatic rise in fraudulent patent infringement claims. Typically the troll purchases a patent with no intent to produce a good or perform a service, but simply to attempt to enforce their rights against anyone they can associate as an infringer. The end goal is to intimidate the target into a settlement so the time and expense of a legal fight can be avoided. To address this, the VENUE Act, which stands for Venue Equity and Non-Uniformity Elimination Act of 2016, was introduced in March. The bill targets the ability of the trolls to utilize forum shopping in filing suit. It would require infringement claims to be filed in courts where the invention was created or where the company being sued is based or manufactures its product. The legislation is supported by a broad-based coalition of business groups called United for Patent Reform Coalition (UFPR). Both the National Association of Home Builders (NAHB) and the National Apartment Association (NAA) are a part of this coalition.
Fire Signage Legislation Passes House
Legislation amending the Stille-DeRossett-Hale Single State Construction Code Act to require warning signage for most new apartment buildings of 3 stories or more has passed the Michigan House of Representatives. House Bill 5121, which has seen significant revision from its original version, would apply to all newly constructed multifamily residential structures of 3 stories or more (as well as commercial and industrial buildings) in which light-frame truss construction is used. The rationale for the bill is that, in the event of a fire, the signage will help firefighters identify the type of construction before engaging in fire suppression. Under the revised bill, a sign would be permanently affixed to each main entrance. Sign specifications and placement are detailed in the legislation, along with a non-compliance provision (state civil fine of no more than $100 or municipal civil infraction determined by local ordinance). HB 5121 will now go to the Michigan Senate for consideration. You may recall from my previous articles on this issue that a second bill – House Bill 4740 – proposes the same mandate for most existing apartment buildings in Michigan. AAM is opposing this legislation and at present it is not moving in the legislature.