CLEAR Act

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7140 Introduced in House (IH)]

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119th CONGRESS
  2d Session
                                H. R. 7140

  To protect main street retailers and end users in secondary patent 
                    actions, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 16, 2026

    Ms. Lee of Florida (for herself and Ms. Lofgren) introduced the 
  following bill; which was referred to the Committee on the Judiciary

_______________________________________________________________________

                                 A BILL


 
  To protect main street retailers and end users in secondary patent 
                    actions, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Customer Legal Ease and Relief Act'' 
or the ``CLEAR Act''.

SEC. 2. STAY OF ACTION AGAINST RETAILER OR END USER.

    (a) Amendment.--Chapter 29 of title 35, United States Code, is 
amended by adding at the end the following:
``Sec. 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:

        ``Sec. 299A. Stay of action against retailer or end user.''.
    (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.
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