H1032 - Abusive Patent Assertions Act

• Creates new state law prohibiting bad-faith assertions of patent infringement, establishing factors courts may consider including incomplete demand letters, lack of infringement analysis, meritless claims, and unreasonable licensing fees.

• Allows targets of abusive patent assertions to sue in North Carolina Superior Court and recover equitable relief, damages, costs, attorney's fees, and exemplary damages of $50,000 or three times actual damages (whichever is greater).

• Permits courts to require patent asserters to post bonds up to $500,000 upon finding reasonable likelihood of bad-faith assertion, conditioned on payment of target's litigation fees and costs.

• Exempts certain patent enforcement by higher education institutions, nonprofit research organizations, operating entities, and subject matter governed by federal agricultural, plant, food and drug, and biotechnology patent laws.

• Grants Attorney General authority to investigate violations and bring enforcement actions, and allows joinder of interested parties with financial interests in the patent if the primary party lacks substantial interest beyond making demands.