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In addition to these federal legislative efforts, several state attorneys general (AGs) haveresponded to the outcry from small and medium size businesses, who are often the targetsof PAEs, who know that these business cannot afford the millions of dollars that a litigationdefense costs. The AGs of Vermont, Minnesota, and Nebraska have relied on state unfairtrade practice statutory powers to go after PAEs who engage in the mass mailing of ceaseand desist letters to smaller businesses. The Vermont legislature also passed a billpermitting the recipient of a “bad faith” infringement claim to sue the PAE in state court.The Nebraska Attorney General, using state consumer protection laws, launched a suit in2013 against NPEs MPHJ and Activision TV. In September of 2014, a federal court ruledthat the Nebraska Attorney General’s attempt to curb cease and desist letters was aviolation of the NPEs First Amendment Rights and that federal law preempts stateconsumer protection laws. It even awarded the NPE $750,000 in attorneys’ fees againstthat state. 21The Nebraska Attorney General has vowed to fight on.In contrast, the Minnesota AG obtained a consent decree from one PAE requiring that itstop sending infringement demand letters to state business unless it first gives the AGnotice and obtains its consent to proceed. The Attorney General in Vermont has faredbetter in at least one attempt to use state consumer protection laws to restrain NPEs. As ofDecember, 2014 that case is proceeding in state court in Vermont. 2221 Bernard Nash & Christopher Allen, A Tale of Two ’Patent Troll’ Cases: Contrasting RecentDevelopments in the Vermont and Nebraska AGs’ Litigations, State AG Monitor (Dec. 18, 2014)http://www.stateagmonitor.com/2014/09/05/.22 Lisa Shuchman, Vermont AG Beats Appeal By Accused Patent Troll MPGH, ALM (Aug. 11, 2014),http://www.law.com/sites/articles/2014/08/11/vermont-ag-beats-appeal-by-accused-patent-troll-mphj/10951932.2 10

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