(a) Amendment

Chapter 29 of title 35, United States Code, is amended by adding at the end the following:

299A. Stay of action against retailer or end user

(a) Entry of stay

In a civil action in which a party asserts a claim for relief for infringement of a patent, the court shall grant a motion to stay at least the portion of the action against a retailer or end user of an accused instrumentality if—

(1)

the manufacturer of the accused instrumentality is a party to the action or a separate action involving the patent and the accused instrumentality;

(2)

the retailer or end user does not manufacture, assemble, integrate, or transform the accused instrumentality or a relevant part thereof;

(3)

the retailer or end user agrees that if a final judgment on the merits is entered in the action to which the manufacturer is a party, for any future action involving the same accused instrumentality supplied by the same manufacturer, the retailer or end user—

(A)

waives all defenses under section 282(b); and

(B)

is bound by any issue decided in the action to which the manufacturer is a party; and

(4)

the retailer or end user agrees to be bound by any injunction issued with respect to the accused instrumentality in the action to which the manufacturer is a party.

(b) Lift of stay

A stay entered under this section shall be lifted upon a showing that the manufacturer cannot be made to satisfy a damages judgment.

(c) Bond or escrow

The court may conduct an initial hearing or inquiry to determine if the manufacturer can be made to satisfy a damages judgment. If the court determines that there is a substantial likelihood that the manufacturer will not satisfy a damages judgment, the court may require the retailer or end user to post a bond or place funds or other property in escrow.

(d) Stipulation as To use of accused instrumentality

The court may, as necessary in view of an infringement claim against the manufacturer, require the end user or retailer to stipulate as to the extent of the use of the accused instrumentality and allow limited discovery as to such use.

(e) Time limit

A motion for a stay under this section shall be filed not later than the later of—

(1)

six months after the service of the first pleading or paper in the action that specifically identifies the accused instrumentality and how the accused instrumentality is alleged to infringe the patent;

(2)

six months after the date on which the manufacturer becomes a party to an action involving the patent and the accused instrumentality; or

(3)

the entry of the first scheduling order in the case.

(f) Rule of construction

Nothing in this section may be construed to limit the discretion of a court to enter a stay under other authority.

(g) Definitions

In this section:

(1) Accused instrumentality

The term accused instrumentality means a product, or an instrumentality that implements a process, that is a material part of the claimed invention.

(2) Affiliate

The term affiliate means any entity that controls, is controlled by, or is under common control of another entity.

(3) End user

The term end user means an entity that does not use the accused instrumentality other than for the ordinary and intended purpose of the instrumentality and that does not direct, obligate, or induce the manufacturer to make the accused instrumentality.

(4) Manufacturer

The term manufacturer means an entity that makes, assembles, integrates, transforms, or supplies the accused instrumentality.

(5) Retailer

The term retailer means an entity that generates revenues predominantly through the sale to the public of consumer goods or services, or an affiliate of such entity.

(b) Technical and conforming amendment

The table of sections for chapter 29 of title 35, United States Code, is amended by adding at the end the following new item:

(c) Effective date

The amendments made by this Act shall take effect on the date of the enactment of this Act and shall apply to any action for which a complaint is served on and after such effective date.