Advancing American Innovation Act

(o) Transparency of third party litigation funding in patent infringement proceedings

(1) In general. A complainant in a proceeding alleging infringement of a patent under this section shall—

(A) file with the Commission, and serve on all other named parties in the proceeding, the identity, address, and, with respect to a legal entity, the place of incorporation and principal place of business of any third party funder with respect to that proceeding; and

(B) except as otherwise ordered by the Commission, or stipulated by all named parties, file with the Commission, and provide to all other named parties in the proceeding for inspection and copying, any agreement between the complainant and any third party funder with respect to that proceeding that—

(i) establishes a relationship described in subparagraph (A) or (B) of paragraph (5); or

(ii) otherwise relates to—

(I) the proceeding; or

(II) any patent that the complainant, in the action, alleges to be infringed.

(2) Timing of disclosures. A complainant that is required to make the disclosures under paragraph (1) shall make those disclosures not later than the later of—

(A) the date that is 10 days after the date on which a relationship described in subparagraph (A) or (B) of paragraph (5) is established between the complainant and the applicable third party funder; or

(B) the date on which process with respect to the proceeding is first served.

(3) Correction of disclosures. A complainant that submits the disclosures required under paragraph (1) shall, in a timely manner, supplement or correct any element of such a disclosure if the complainant learns that the element is, or has become, incomplete or incorrect.

(4) Sanctions. The Commission in a proceeding described in paragraph (1) shall impose appropriate sanctions on any complainant that fails to comply in full with the requirements of this subsection.

(5) Third party funder defined. In this subsection, the term third party funder means, with respect to a proceeding described in paragraph (1), any individual or entity, other than the complainant in the proceeding (or the counsel of record with respect to that complainant)—

(A) that—

(i) provides, or agrees to provide, anything of value to—

(I) that complainant or the counsel of record with respect to that complainant; or

(II) another individual or entity that provides, or agrees to provide, anything of value to that complainant or the counsel of record with respect to that complainant; and

(ii) receives, or has been promised, a financial interest, the existence or value of which is contingent upon, or would be materially affected by, the receipt by that complainant of a monetary payment or monetary relief as a result of the proceeding, whether through settlement, a judgment, or otherwise; or

(B) that has an equity stake of not less than 5 percent in an individual or entity described in subparagraph (A).