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A BILL TO BE ENTITLED
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AN ACT
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relating to creating a private cause of action for bad faith claims |
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of patent infringement. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 17.955, Business & Commerce Code, is |
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amended to read as follows: |
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Sec. 17.955. [NO] PRIVATE CAUSE OF ACTION: DECEPTIVE TRADE |
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PRACTICE. (a) A [This subchapter does not create a private cause |
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of action for a] violation of Section 17.952 is a deceptive trade |
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practice under Subchapter E and is actionable by an aggrieved end |
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user under that subchapter. |
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(b) Upon motion by an end user and a finding by the court |
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that an end user has established a reasonable likelihood that a |
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person has made a bad faith assertion of patent infringement in |
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violation of this chapter, the court shall require the person to |
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post a bond in an amount equal to a good faith estimate of the end |
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user's fees and costs to litigate the claim. |
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(c) A bond ordered under this section may not exceed |
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$500,000. |
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(d) The court may waive the bond requirement under this |
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section if the court finds that the person has available assets |
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equal to the amount of the proposed bond or for other good cause |
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shown. |
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SECTION 2. This Act takes effect September 1, 2025. |