Colorado Legislature Passes 'Anti-Troll' Statute

Colorado's governor last month signed into law an “anti-troll” statute that makes illegal certain patent activities considered by many to be damaging to small businesses.

Titled “Concerning Prohibited Communications Regarding Patents,” the law targets the letter-writing campaigns that many “non-practicing entities” (generally those companies that don’t make and sell products of their own) launch, usually based on patents they have purchased. Most critically, the statute forbids these patent owners from sending out demand letters that are written in bad faith and defines circumstances that a court can consider as evidence of such bad faith.