Texas HB5543 creates a private cause of action for bad faith claims of patent infringement.

Texas HB5543 amends the Business & Commerce Code to allow an aggrieved end user to take legal action against a person who makes a bad faith assertion of patent infringement. If a court finds a reasonable likelihood of such a bad faith assertion, it must require the person to post a bond for the end user's litigation fees and costs, up to $500,000. The court may waive the bond if the person has sufficient assets or for other good cause. This Act takes effect September 1, 2025.

Texas HB5543 creates a private cause of action for bad faith claims of patent infringement.

Texas HB5543 amends the Business & Commerce Code to allow an aggrieved end user to take legal action against a person who makes a bad faith assertion of patent infringement. If a court finds a reasonable likelihood of such a bad faith assertion, it must require the person to post a bond for the end user's litigation fees and costs, up to $500,000. The court may waive the bond if the person has sufficient assets or for other good cause. This Act takes effect September 1, 2025.