A key group pushing for change to the US patent system has come out today against a reform bill called the TROL Act, saying the bill "falls far short" of its stated goal of fighting misleading patent demand letters.

United for Patent Reform (UFPR), the main coalition of businesses seeking patent reform, laid out its position in a letter (PDF) sent this morning to the chairs and ranking members of the House Committee on Energy and Commerce, as well as the relevant subcommittee, which marked up the bill this morning.

The letter says that UFPR can't support the bill as it's currently written, pointing to language that could allow so-called "patent trolls" to continue sending out scores of misleading patent demand letters.

For instance, the bill would only ban demand letters sent in "bad faith," which will make enforcement actions harder. "Regardless of the intention of the sender, misrepresentations or omissions can be harmful to consumers," the letter points out.

The bill also requires that offenders show a "pattern of practice" of sending demand letters, which UFPR says is ambiguous language that leaves unclear how many letters need to be sent. UFPR also objects to an "affirmative defense" allowed in the bill, which could let patent owners off the hook if they show that deceptive statements in their letters were honest mistakes.

Finally, there's no requirement in the bill that a demand letter state what claims are supposedly being infringed.

The UFPR letter commends the committee for seeing the "devastating impact" of patent trolls but goes on to regret that "the current legislative product does not alleviate those concerns."

During today's mark-up hearing, subcommittee chair Rep. Michael Burgess (R-Texas) made it clear that in his view, reformers will have to balance their desires with the rights of patent holders.

"Patent rights are constitutionally protected," he said. "Any limits on patent demand letters are limits on First Amendment free speech rights."

States taking action

Interest in demand letters first sparked when patent troll Lodsys started sending out hundreds of demand letters to small app developers. In 2013, the business model reached an insane new height, as some "patent trolls" took up the practice of sending letters to thousands of small businesses, telling them to pay up for using basic technologies. A company called MPHJ sent out letters asking for $1,000 per worker from businesses that used basic scan-to-e-mail technology. The Federal Trade Commission took action in that case, but the "slap on the wrist" settlement allows MPHJ to continue sending demand letters.

Another company, Innovatio IP, became notorious for sending out patent letters to chain motels and coffee shops simply for using WiFi.

Those examples and others have inspired 20 state legislatures to pass laws against misleading patent demand letters. In Congressional hearings, trolls sending demand letters have been denounced and called "bottom feeders," but no bill has been passed.

At a hearing last week, another group pushing reform, Public Knowledge (PK), said that any federal bill on demand letters shouldn't stop states from taking "stronger, more innovative actions" to protect their citizens. "This bill should be a floor, not a ceiling," said PK's Charles Duan.

The Electronic Frontier Foundation (EFF), which has been pushing hard for action to curb demand letters—the group collects them on a website called Trolling Effects—also opposes the TROL Act.

"We continue to think this is a poor bill that opponents of reform are promoting as an alternative to real change," said the EFF's Daniel Nazer in an e-mail to Ars.

The TROL Act is a side-item to the "main dish" of patent reform, which is the re-introduced Innovation Act. The Innovation Act, which went through a committee hearing at the US House of Representatives earlier this month, would bring a variety of changes to the patent litigation system, including increased fee-shifting, transparency requirements, and protections for end users.

UFPR is an umbrella group that includes both tech groups that have long been asking for changes to the patent system as well as retailers, restaurants, and other non-tech businesses that were organized last year as the "Main Street Patent Coalition."