S.Amdt. 3366

SA 3366, submitted by Mr. Cornyn, aims to add a section regarding covered infringement actions to bill S. 2296. This bill is for military activities of the Department of Defense, military construction, and defense activities of the Department of Energy for fiscal year 2026.

The amendment adds requirements for legal proceedings involving patent infringement when a designated entity is involved. A designated entity is defined as an entity on the Bureau of Industry and Security entity list or its parents, subsidiaries, or affiliates.

The amendment changes the following:

• Legal Pleadings: Pleadings must state specific facts and circumstances of the infringement, including all alleged patent claims, products, services, and the specific elements of each claim found in those products or services. It must also state the damages or remedies sought.

• Discovery Restrictions: Designated entities and their agents or representatives (excluding legal counsel) are barred from obtaining non-public information about the technical features or operation of a product or service.

• Government Involvement: Designated entities must notify the Department of Justice and the United States Patent and Trademark Office when an affected proceeding is filed. Additionally, the United States is given the unconditional right to intervene as a party in the proceeding.

• Patent Transaction Restrictions: Certain sales or exclusive licenses of U.S. patents are prohibited if the designated entity has not undergone review under section 721 of the Defense Production Act of 1950, or if the product/service subject to covered regulations would infringe the patent without an appropriate license.

• Notification and Listing: Sales or licenses of patents (not involving drugs or biological products) between a designated entity and a foreign entity or affiliate require notification under the Clayton Act. The Director of the United States Patent and Trademark Office must also maintain a public list of all designated entities.