Patent Reform Legislation Underway in the Senate
10 Aug 2006
Last week, Senators Orrin Hatch (Utah-R.) and Patrick Leahy (Vermont-D) introduced the Patent Reform Act of 2006. The proposed legislation introduces several substantial changes to the US patent system:
It would award patents by “first to invent” standards, in contrast to the current “first to file” system. Critics of this change argue, however, that it oftentimes can be difficult to prove who was the first to invent.
It would create a “postgrant opposition” system whereby disputes over the validity of a patent could be settled within the U.S. Patent and Trademark Office, rather than by way of traditional court proceedings. The measure presumably would curb litigation costs.
The bill would narrow the body of courts where patent cases could be filed, to prevent parties from “shopping around” for courts where judges might be likely to issue decisions favorable to them.
Perhaps most importantly, under the Act, the courts would change the way that they calculate the compensation owed by patent infringers. The compensation would be based solely on the “novel and non-obvious” features of the patent—not on the value of the product as a whole.
Proponents of the bill say it would award patents on a more equitable basis and decrease litigation costs. Opponents, such as the Professional Inventors Alliance, argue that the bill would favor “those who can afford to file quickly and often” (Ron Riley, president of PIA). Senators Hatch and Leahy stated that this bill is a first attempt to address fundamental concerns with the current U.S. patent system, and they expect to further refine the bill.
The Patent Reform Act of 2006 particularly is important in light of the House of Representative’s Patent Reform Act of 2005, which has sparked tremendous debate and discussion over the issue of patent law reform in the United States.
Source: Broache, A. Senators offer sweeping patent system changes. CNET News. August 4, 2006.
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