The House of Representatives passed important patent reform legislation Thursday that will help protect small businesses from abusive patent trolls. Sponsored by House Judiciary Chairman Bob Goodlatte (R-VA), the Innovation Act (HR 3309) includes protections for small businesses that will shield them from expensive litigation and provide resources to properly respond to demand letters.

An effective patent system is vital for the nation's small businesses and entrepreneurs. Innovative businesses that bring new ideas and products to the market need to be protected from patent trolls that abuse the system. Every year, tens of thousands of small businesses receive threatening demand letters accusing them of violating a patent. The vast majority of these letters are blindly sent to unsuspecting businesses that are forced to respond. This can be a costly exercise for small businesses that do not have large legal departments. In fact, according to researchers at the University of Boston, patent trolls cost the U.S. economy $80 billion each year.

Recently, eBay submitted a letter of support to Chairman Goodlatte and Reps. Zoe Lofgren (D-CA) and Howard Coble (R-NC) thanking them for all of their hard work on this issue. 

Focus now shifts to the Senate where Senate Judiciary Chairman Patrick Leahy (D-VT) is expected to hold a hearing on December 17th about the impact patent trolls have on the small business community.