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HB 5543

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

89th Legislature (2025) Introduced by Morgan Meyer

Texas bill creates private lawsuit right against parties making bad faith patent infringement claims, targeting frivolous "patent troll" litigation tactics and protecting defendants from malicious enforcement.

Committee report sent to Calendars
#business&commerce--copyright #patents #&trademarks(i0004) #business&commerce--tradepractices(i0006) #civilremedies&liabilities(i0065) #courts--general(i0160)
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Bill Summary · HB 5543

Legislative bill overview

HB 5543 creates a private right of action in Texas law allowing individuals or businesses to sue parties who make bad faith claims of patent infringement against them. The bill establishes legal remedies for defendants who are wrongfully accused of patent violations through frivolous or malicious litigation tactics. This addresses the practice of "patent trolling," where entities file dubious infringement claims primarily to extract settlement money rather than pursue legitimate IP protection.

Why is this important

Patent infringement litigation is costly and can devastate small businesses and startups even when claims lack merit. Currently, defendants have limited recourse against parties making baseless patent claims. Creating a private cause of action could deter frivolous litigation, reduce litigation costs for legitimate businesses, and provide compensation for those harmed by bad faith enforcement. Texas's technology sector has particular interest in this protection as a competitive advantage.

Potential points of contention

  • Definition ambiguity: "Bad faith" is legally subjective and difficult to prove; defendants may face high evidentiary burdens, limiting the bill's practical utility
  • Chilling effects on legitimate patent holders: Risk of countersuits may discourage smaller patent holders from asserting valid IP rights, potentially undermining intellectual property protections
  • Damages scope: Unclear whether damages are limited to litigation costs or include lost profits and punitive damages, which could expose plaintiffs to substantial liability and create unintended consequences

Compiled from official sources — confirm details with the bill’s official record.

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