Diverse Coalition of Industries Endorses Bipartisan CLEAR Act to Reform Patent Litigation and Protect Main Street Businesses

WASHINGTON, D.C. – Today, United for Patent Reform (UFPR), whose member companies represent over 90 million U.S. employees, announced widespread industry support for the Customer Legal Ease and Relief Act (CLEAR Act) which if enacted will create uniform rules for patent disputes nationwide and protect U.S. businesses from being sued multiple times over the same product. Introduced by Representatives Laurel Lee (FL-15) and Zoe Lofgren (CA-18), the bipartisan CLEAR Act establishes a fair and efficient framework that protects patent owners' rights while preventing wasteful litigation that targets Main Street businesses rather than the manufacturers responsible for product design and production.

"The CLEAR Act represents a careful balance between protecting patent rights and preventing litigation abuse," said Chris Mohr, co-chair of UFPR. "Patent trolls have weaponized our legal system, targeting everyone from Main Street retailers to hotels to car dealerships – businesses that have no control over product design but face crippling legal costs simply for selling, or even just using, everyday technology. If left unchecked, these abusive practices will drive up costs for consumers while burdening legitimate businesses with defensive legal fees. This bill appeals across industries because it solves a universal problem: it ensures patent owners can enforce their rights against the parties actually responsible for developing products, while protecting end-users from being used as litigation pawns. We urge Congress to act swiftly to pass this vital legislation."

Essential Components of the CLEAR Act

The legislation includes three critical provisions:

• A clear and uniform presumption that courts will stay a patent case when the manufacturer is already defending the same product in court, thus preventing duplicative litigation.

• Preservation of patent owners' rights, with the retailer agreeing to be bound by the outcome of the manufacturer's case, including any damages and injunctions.

• Necessary exceptions allowing the court to lift the stay in unusual circumstances where the manufacturer cannot adequately represent the interests at stake.

Industry Leaders Voice Support

The CLEAR Act has garnered endorsements from a diverse array of industries affected by abusive patent litigation practices:

"For too long, retailers have been caught in the crossfire of patent disputes that have nothing to do with our business operations," said Stephanie Martz, Chief Administrative Officer and General Counsel, National Retail Federation (fellow co-chair of UFPR). "We simply use and sell products manufactured by others. The CLEAR Act recognizes this reality and ensures that patent disputes are resolved where they belong – with the manufacturers who designed and created the products. This legislation will save countless small retailers from being driven out of business by litigation costs alone."

“We commend Reps. Lee and Lofgren for introducing this bill, which will strengthen the patent system by directing disputes to where they can be most effectively resolved,” said Hilary Cain, Senior Vice President of Policy, Alliance for Automotive Innovation. “This is a balanced approach to make sure patent disputes involving automotive technology are resolved efficiently with the parties responsible for product design and development.”

United for Patent Reform is calling on Congress to swiftly pass the CLEAR Act to provide relief to businesses across America while maintaining strong patent protections that encourage innovation.

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About UFPR

UFPR is a coalition of businesses, trade associations, and advocacy groups dedicated to promoting fair and efficient patent litigation practices that protect innovation while preventing abusive lawsuits targeting end-users and small businesses.