This bill prohibits, with certain exceptions, a governmental entity or a government-funded entity from using a product that is or has ever been protected by a patent granted by the United States Patent and Trademark Office or is subject to review by certain federal agencies in a manner: (1) that is contrary to the terms of use of that product established by the current or most recent holder of the patent for the product or the manufacturer or distributor of the product; (2) that is inconsistent with any written instructions, limitations or directed uses included with the product; or (3) that exceeds the scope of the approved usage of the product, if a federal agency has approved the product for specific uses.
However, this bill authorizes a governmental entity or government-funded entity to use a product in such a manner if the governmental entity or government-funded entity, as applicable, transmits a written notice of the intended use to the patent holder and the manufacturer or distributor of the product, if different from the patent holder, that: (1) identifies the specific product at issue; and (2) describes the specific manner in which the entity plans to use the product. This bill authorizes the patent holder or the manufacturer or distributor of a product to object to the use of the product in such a manner by transmitting a written notice of the objection to the governmental entity or government-funded entity. Once the governmental entity or government-funded entity receives a notice of objection from the patent holder, manufacturer or distributor, this bill requires the governmental entity or government-funded entity, as applicable, to cease and desist from using the product in the manner to which the patent holder, manufacturer or distributor objects.