Makes certain changes related to application and licensing for sale of cannabis, Cannabis Regulatory Commission activity, municipal ordinances, and alternative treatment centers.

2024-2025 Regular Session Introduced by Nick Scutari

Adds a narrow good faith exception to fines under 35 U.S.C. 41(j) and 123(f): if an assertion or certification was made in good faith, fines may not be imposed.

Introduced in the Senate, Referred to Senate Judiciary Committee

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Purpose

S. 3960 amends Title 35 of the United States Code to create a narrow “good faith” exception to the imposition of statutory fines that arise from certain false assertions and certifications. The amendment protects entities that can show their relevant assertion or certification was made in good faith from being subject to those fines.

Key provisions

Amendments to 35 U.S.C. (two locations):

Section 41(j): inserts the phrase ", unless the entity shows that the assertion was made in good faith," immediately before the words "be subject".
Section 123(f): inserts the phrase ", unless the entity shows that the certification was made in good faith," immediately before the words "be subject".

The statutory language is limited and textual — no other substantive modifications or definitions (e.g., of “good faith”) are added in the text of the law as enacted.

Who is affected

Entities covered by the fines or penalties referenced in 35 U.S.C. 41(j) and 35 U.S.C. 123(f). This generally includes patent applicants/owners and other parties whose assertions or certifications are governed by those statutory provisions.

Patent practitioners and applicants who make assertions or certifications to the United States Patent and Trademark Office (USPTO) or in relation to patent rights may see reduced exposure to fines for unintentional or reasonable mistakes, provided they can demonstrate good faith.

Government agencies and courts that administer or apply these statutory fines will apply the new good‑faith exception when assessing whether fines should be imposed.

Procedural history and effective date

Introduced in the Senate: March 14, 2024 (sponsored by Sen. Christopher A. Coons).

Passed Senate (Unanimous Consent): June 20, 2024.

Received, considered, and passed by the House under suspension of the rules: December 3, 2024.

Presented to the President: December 6, 2024.

Signed into law and became Public Law No. 118‑151: December 17, 2024.

Potential implications and considerations

The amendment narrows the statutory basis for imposing fines by adding an affirmative defense: if an entity can show the assertion/certification was made in good faith, fines provided by the amended subsections should not be imposed.

The law does not define the standard or evidentiary burden for “shows” or describe what constitutes “good faith”; these issues may be resolved through implementing regulations, USPTO procedures, or case law.

The change is textual and targeted; its practical effect will depend on how courts and the USPTO interpret and apply the “good faith” exception in specific enforcement contexts.

Related bill: H.R. 7803 (companion).

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