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Patent Reform: On the Agenda Again

By Arundeep Pradhan posted 03-18-2009 10:31

  
Patent reform was reintroduced in the 111th Congress earlier this month by Senator Leahy (S. 515) and Rep. John Conyers (H.R. 1260) in two separate bills. 

These bills are similar to those introduced in the 110th Congress and I see that some issues will need to be addressed again. You can read about the previous bills in the public policy section of the AUTM Web site. 

Some provisions in the current bills would not affect technology transfer but a few of these provisions warrant our attention. Fundamentally, the constitution guarantees a patent holder certain rights – specifically the right to exclude others from practicing the patented technology. Taken together, the post grant review challenges and the apportionment of damages in the bills are areas of particular concern. 

How does this affect us? Well, if the value of patents is reduced, then we will have fewer companies willing to invest in innovation because significant clouds will hover over the certainty and strength of the patent. The cost of defending a patent increases. The number of potentially questionable “challenges” increases. And these in turn will discourage industry from investing in the development of early stage university technologies. The net effect is a reduction in transferring technologies from academia to industry, not an increase. I urge you to work with your government relations staff to communicate these points to your senators and congressmen. AUTM is working closely with AAU, NASULGC and COGR on these issues and will bring you updated information and resources in the coming days since it is expected the Senate Judiciary Committee will schedule a mark up of S. 515 very soon. 

Bottom line, I believe that the United States has a great patent system that may need tweaks from time to time but has been the foundation on which we built (and continue to build) our innovation-based economy. Any reform that replaces subjective standards with objective ones is a good start. Under the last session of Congress, legislators listened to the voice of the university community, as well as others, and some of that is reflected in the current bills.  However, some parts of the bills still merit further review and discussion. Patent reform legislation should support all patent owners alike, regardless of the types of technologies and business models, and not disproportionately affect particular technology sectors.  

How do you think the bills in their current state would affect the development of academic research? Your input is important.  I invite you to share your comments here.
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Eric Guttag
03-19-2009 07:38

It is very alarming and distressing that the Judiciary Committee of the Senate is apparently intent on ramming S.515 through as quickly as possible, with minimal testimony from a select panel just a week ago. Given the potential significant adverse impact this legislation could, and will likely, have on American innovation, and most importantly American jobs, such “haste” by the Senate Judiciary Committee is completely uncalled for, and expresses an arrogance that is all too common from Congress. We need to make known (and quickly) to our Senators, Congressman, and others having potential impact on the passage of S.515 (and it's evil twin H.R. 1260): (1) why these bills are grossly deficient and will adversely impact important American interests (especially American jobs); and (2) what really needs to be done to create “true” patent law reform in the U.S. patent system. As they say in sports, "the time is now."
Eric Guttag