Federalism on Trial: Idaho's Attempt to Regulate Patent Litigation
Briefly

Federalism on Trial: Idaho's Attempt to Regulate Patent Litigation
"Back in 2022, Katana, an affiliate Longhorn, sued Micron for patent infringement in the W.D.Tex. Micron responded in two ways: it asserted a counterclaim under Idaho's statute in the Texas case and, one month later, filed a separate Idaho action against Longhorn under the same theory. The cases were later consolidated in Idaho, and Judge David Nye ordered Longhorn or Katana to post an $8 million bond under the Idaho law before the case could move forward."
"Idaho is the only state whose anti-troll statute expressly regulates complaints filed in federal court. Most states, including Vermont, explicitly exclude litigation conduct from their statutes. Vt. Stat. Ann. tit. 9, § 4197(a). Idaho's statute also authorizes an uncapped bond when a target shows "reasonable likelihood" of bad faith, without requiring findings equivalent to either the Federal Circuit's established standard for bad faith assertion liability"
An Idaho statute criminalizes bad-faith patent assertions and uniquely reaches complaints filed in federal court. In 2022 Katana, an affiliate of Longhorn, sued Micron in W.D. Tex.; Micron counterclaimed under Idaho law and then sued in Idaho, leading to consolidation. Judge David Nye found a reasonable likelihood of bad-faith assertion and upheld the statute against preemption and First Amendment challenges, ordering an $8 million bond. Idaho's law allows an uncapped bond upon a showing of reasonable likelihood without requiring the Federal Circuit's objective-baselessness-plus-subjective-bad-faith findings, raising questions on federal preemption, constitutional limits, and appellate review.
Read at Patently-O
Unable to calculate read time
[
|
]