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Texas Laws | Business and Commerce Code

Added by Acts 2015, 84th Leg., R.S., Ch. 856 (S.B. 1457), Sec. 1, eff. September 1, 2015. (6859)


(a) A person may not send to an end user located or doing business in this state a written or electronic communication that is a bad faith claim of patent infringement. (6861)

(b) A communication is a bad faith claim of patent infringement if the communication includes a claim that the end user or a person affiliated with the end user has infringed a patent and is liable for that infringement and: (6862)

(1) the communication falsely states that the sender has filed a lawsuit in connection with the claim; (6863)

(2) the claim is objectively baseless because: (6864)

(A) the sender or a person the sender represents does not have a current right to license the patent to or enforce the patent against the end user; (6865)

(B) the patent has been held invalid or unenforceable in a final judgment or administrative decision; or (6866)

(C) the infringing activity alleged in the communication occurred after the patent expired; or (6867)

(3) the communication is likely to materially mislead a reasonable end user because the communication does not contain information sufficient to inform the end user of: (6868)

(A) the identity of the person asserting the claim; (6869)

(B) the patent that is alleged to have been infringed; and (6870)

(C) at least one product, service, or technology obtained by the end user that is alleged to infringe the patent or the activity of the end user that is alleged to infringe the patent. (6871)

Added by Acts 2015, 84th Leg., R.S., Ch. 856 (S.B. 1457), Sec. 1, eff. September 1, 2015. (6872)


(a) If the attorney general believes that a person has violated or is violating Section 17.952, the attorney general may bring an action on behalf of the state to enjoin the person from violating that section. (6874)

(b) In addition to seeking an injunction under Subsection (a), the attorney general may request and the court may order any other relief that may be in the public interest, including: (6875)

(1) the imposition of a civil penalty in an amount not to exceed $50,000 for each violation of Section 17.952; (6876)

(2) an order requiring reimbursement to this state for the reasonable value of investigating and prosecuting a violation of Section 17.952; and (6877)

(3) an order requiring restitution to a victim for legal and professional expenses related to the violation. (6878)

Added by Acts 2015, 84th Leg., R.S., Ch. 856 (S.B. 1457), Sec. 1, eff. September 1, 2015. (6879)

Sec. 17.954. CONSTRUCTION OF SUBCHAPTER. (6880)(Text)

This subchapter may not be construed to: (6881)

(1) limit rights and remedies available to the state or another person under any other law; (6882)

(2) alter or restrict the attorney general's authority under other law with regard to conduct involving claims of patent infringement; or (6883)

(3) prohibit a person who owns or has a right to license or enforce a patent from: (6884)

(A) notifying others of the person's ownership or right; (6885)

(B) offering the patent to others for license or sale; (6886)

(C) notifying any person of the person's infringement of the patent as provided by 35 U.S.C. Section 287; or (6887)

(D) seeking compensation for past or present infringement of the patent or for a license to the patent. (6888)

Added by Acts 2015, 84th Leg., R.S., Ch. 856 (S.B. 1457), Sec. 1, eff. September 1, 2015. (6889)

Sec. 17.955. NO PRIVATE CAUSE OF ACTION. (6890)(Text)

This subchapter does not create a private cause of action for a violation of Section 17.952. (6891)

Added by Acts 2015, 84th Leg., R.S., Ch. 856 (S.B. 1457), Sec. 1, eff. September 1, 2015. (6892)


Sec. 20.01. DEFINITIONS. (6895)(Text)

In this chapter: (6896)

(1) "Adverse action" includes: (6897)

(A) the denial of, increase in a charge for, or reduction in the amount of insurance for personal, family, or household purposes; (6898)

(B) the denial of employment or other decision made for employment purposes that adversely affects a current or prospective employee; or (6899)

(C) an action or determination with respect to a consumer's application for credit that is adverse to the consumer's interests. (6900)

(2) "Consumer" means an individual who resides in this state. (6901)

(3) "Consumer file" means all of the information about a consumer that is recorded and retained by a consumer reporting agency regardless of how the information is stored. (6902)

(4) "Consumer report" means a communication or other information by a consumer reporting agency relating to the credit worthiness, credit standing, credit capacity, debts, character, general reputation, personal characteristics, or mode of living of a consumer that is used or expected to be used or collected, wholly or partly, as a factor in establishing the consumer's eligibility for credit or insurance for personal, family, or household purposes, employment purposes, or other purpose authorized under Sections 603 and 604 of the Fair Credit Reporting Act (15 U.S.C. Sections 1681a and 1681b), as amended. The term does not include: (6903)

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