HB 5543

relating to creating a private cause of action for bad faith claims
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Section 17.955, Business & Commerce Code, is
Sec. 17.955.  [NO] PRIVATE CAUSE OF ACTION: DECEPTIVE TRADE
PRACTICE.  (a)  A [This subchapter does not create a private cause
of action for a] violation of Section 17.952 is a deceptive trade
practice under Subchapter E and is actionable by an aggrieved end
(b)  Upon motion by an end user and a finding by the court
that an end user has established a reasonable likelihood that a
person has made a bad faith assertion of patent infringement in
violation of this chapter, the court shall require the person to
post a bond in an amount equal to a good faith estimate of the end
user's fees and costs to litigate the claim.
(c)  A bond ordered under this section may not exceed
(d)  The court may waive the bond requirement under this
section if the court finds that the person has available assets
equal to the amount of the proposed bond or for other good cause
SECTION 2.  This Act takes effect September 1, 2025.