As Senator Leahy has stated, “[if] we are to maintain our position at the forefront of the global economy and continue to lead the world in innovation and production, we need an efficient and streamlined patent system that issues high-quality patents while limiting wheel spinning and counterproductive litigation. ” Low quality patents have inhibited innovation and competition, resulting in the harm of consumers and businesses. Litigation of these low quality patents has been unduly costly and cumbersome. Too many questions of patent validity have been decided by the courts instead of the patent office.
This has caused a huge waste in resources at the PTO and uncertainty regarding issued patents. The threat of excessive damages in litigation has also caused a hindrance in innovation. In order to address these problems, Congress has introduced two bills that are both entitled the Patent Reform Act of 2007 (“the Act”).
These bills would amend language in Title 35 of the United States Code. This paper will first briefly introduce the history and current status of the Act. It will then discuss the parties that have formed which are either for or against the Act.
These bills, H. R. 1908 and S. 1145, respectively, call for the following changes to the patent system: •Switching from a first-to-invent system to a first-to-file system •Allows for assignee filing •Heightens standard for finding willfulness •Provides a right to interlocutory appeals to the Federal Circuit on claim construction •Requires patent applicants to submit a search report and other information relevant to patentability Although there are differences between the two bills, the main similarities are listed above.
Some of these provisions would harmonize American law with the rest of the world. Although it appears that these provisions would significantly reduce the number of problems with the current patent system, there has been much debate about whether the bill should be enacted. “[L]egal and business groups are finding themselves at odds over the legislation, with some saying it would reduce patent litigation costs and improve patent quality while others say it would do just the opposite. ” B. Current Status The Act is currently being considered for passage by Congress.
The Patent Reform Act of 2007 was introduced in both the House and Senate on April 18, 2007. As amended, S. 1145 reported out of committee on July 19, 2007. As amended, H. R. 1908 reported out of committee on July 18, 2007. The House passed H. R. 1908 on September 7, 2007. C. Parties for and against the Act 1. Coalition for patent fairness The Coalition for Patent Fairness consists mainly of large firms in favor of broad reforms to the current patent laws. They believe that the current patent laws are unbalanced because it gives small patent holders too much leverage in collecting damages.