Major hurdles remain in patent reform legislation

Senators Leahy (D-Vt.) and Hatch (R-Utah), along with Congressmen Conyers (D-Mich.) and Smith (R-Tex.), today announced the introduction of major patent reform legislation in both chambers of Congress with bipartisan support. The House and Senate Judiciary Committees have been working on patent reform for the last 4 years, and in the last Congress the House was able to pass the legislation, while it stalled in the Senate. The Congressmen today all expressed hope that the legislation would become law this time around, though all admitted there were major issues to be worked out.

Last time the Senate took up the bill, debate deadlocked over how to reform damage calculations and the handling of inequitable conduct, which occurs when a party tries to enforce a patent it obtained without being completely honest with the U.S. Patent and Trademark Office. While these disagreements are large, all parties today expressed hope. Senator Leahy, asked what had changed since the last time the Senate took up the bill, responded that there is “urgency” to get the bill through. The Senators and Congressmen linked the bill to the economic downturn, saying that reforms were important to improving the economy.

The bill as introduced picks up where discussions left off last time. It includes several major changes, including switching the U.S. to a first-to-file system from a first-to-invent system, creating a post-grant opposition system to allow challenges to patents within 12 months after they have been issued, and eliminating the publication of pending patent claims. Further, it streamlines many of the forms and procedures in the patent application process.

Senate Judiciary Chairman Leahy said that hearings on the new bill will begin next week. Because the bill stalled in the Senate last time, the House Judiciary Committee is waiting for Senate action before bringing the bill up for consideration.