Patent law overhaul gets House panel OK
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Blog: Measure calls for the most sweeping changes to U.S. patent system in decades, but its path forward could be jeopardized by lingering reservations from other sectors, including venture capitalists and biotech.
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(InfoWorld) - TheÂ U.S. congressman who chairs a House Judiciary subcommittee says Congress could pass an immigration reform bill by July, including lifting the limit on how many high-tech engineers can come to the U.S. for jobs. Representative Howard Berman, a Democrat from California, made the prediction while speaking at the first ever Tech Industry Summit in San Jose, California. "It could pass both houses by July, go to conference, and be on the president's desk by September," Berman said. Immigration reform deals largely with the 12 million illegal immigrants living and working in the U.S., but another provision of the bill affects technology companies in particular. Tech companies want the limit on H1-B visas raised to 115,000 per year, from 65,000, a limit that has already been reached for 2007. H1-B is the type of visa granted to skilled foreign workers in "specialty occupations," including IT, so that they can work in the U.S. "There is significant urgency on this issue," said Pamela Passman, vice president of global corporate affairs for Microsoft, also speaking at the summit. About half the students enrolled in engineering schools in the U.S. are foreign nationals who have to return to their home countries after earning their degrees, depriving U.S. companies of the chance to hire them,Â  Passman said. Republican President George W. Bush proposed a guest worker program for illegal immigrants, but opposition from within his own party kept the legislation from passing in 2006. Now, with Democrats in control of both houses of Congress and Democrats generally endorsing the guest worker program, passage is more likely, Berman said. Berman is chairman of the Judiciary Subcommittee on Intellectual Property, which will be considering patent reform legislation. Tech companies have long complained about people who buy up patents just to collect license fees, but many small inventors own patents and don't have the means to bring the patented products to market, so they license the patents to others. Reform is also expected to focus on the quality of patents granted. Tech groups have pushed for better funding for the U.S. Patent and Trademark Office and a post-patent review process as a way to challenge patents that may not be deserved. "I think determining validity and infringement could be settled more quickly in a nonfederal court system environment," said Berman. The Tech Policy Summit is expected to draw 300 people to Silicon Valley, including technology industry figures, organizers of technology lobbying groups in Washington, D.C., and lawmakers. Technology companies had not been active in lobbying the federal government 20 years ago but have been forced to get involved as Internet-related issues like privacy protection, cybersecurity, and intellectual property disputes have emerged, said Gary Fazzino, vice president of governmental affairs at Hewlett-Packard.
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Legislation meant to improve the  government&#39;s drug safety oversight cleared a U.S. House of  Representatives subcommittee on Tuesday without a controversial  limit on television advertisements.
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(InfoWorld) - Patent reform legislation before the U.S. Congress would kill the value of patents and allow companies from other countries to steal U.S. intellectual property, a group of inventors said Thursday. About 20 inventors and U.S. company executives, visiting Washington, D.C., encouraged Congress to defeatÂ the Patent Reform Act, a version of which passed the House of Representatives earlier this month. The Senate has not yet voted on its version of the bill. The legislation "will weaken the patent system," said Dean Kamen, inventor of the Segway and the AutoSyringe. "It will devalue patents. It will be a disincentive for people to invest in the future." Several large tech vendors, including Microsoft, IBM, and Cisco, support the legislation, which would allow courts to change they way they assess damages in patent infringement cases. Currently, courts generally consider the value of the entire product when a small piece of the product infringes a patent, and the legislation would allow courts to base damages only on the value of the infringing piece. The legislation would also allow a new way to challenge patents after they've been granted. Supporters say the bill is needed because patent infringement lawsuits have gotten out of hand. It's too easy for patent holders to sue and collect huge damage awards when a small piece of a tech product is found to infringe, supporters argue. Microsoft this month praised the House passage of the legislation, saying lawmakers voted to "support American innovation and to preserve incentives for progress." But Peter Volanakis, president and COO of Corning, said the legislation would be an invitation for its competitors in Asia to repeatedly challenge his company's patents. "This encourages infringement, plain and simple," he said. "It is much easier to infringe patents with this legislation." The patent reform legislation would also "undermine" Corning's ability to invest in new products, Volanakis added. Steve Perlman, inventor of WebTV and lead developer of Apple's QuickTime, said he was surprised to learn of the legislation when he read of the House passage of the bill. As he's begun to contact lawmakers about his opposition to the legislation, their staffers are "stunned" to hear of tech startups that are opposed to the bill, Perlman said. Small inventors and startups were mostly ignored during hearings on the bill, Perlman added. One of the goals of the bill is to harmonize U.S. patent laws with the rest of the world. But the U.S. now has the best environment for startups and entrepreneurs, Perlman said. "I don't want to have the startup economy they have," he said. "I want the one we have." Perlman, founder and CEO of Rearden, and Kamen, founder of DEKA Research & Development, both said changes to the U.S. patent system are needed. But the legislation largely doesn't address the real needs -- more patent examiners and more money for the U.S. Patent and Trademark Office, they said. Perlman has a patent he applied for five years ago still awaiting examination, he said. "Let's first make the system we've got today work the way it's supposed to work," Perlman said. Congress should also wait to see the effects of a May 2006 Supreme Court ruling, in which justices overturned the long-held practice of issuing injunctions against infringing products in nearly all patent cases, Perlman said. That ruling should have a large effect on so-called patent trolls, he said. "There already has been a huge change" in U.S. patent law because of the Supreme Court ruling, he said.
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Some tech groups are beginning to worry that major IT industry priorities, including patent reform, may lose out to other priorities in the U.S. Congress this year.
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House of Reps. approve smaller fines in copyright spats A new US law which would reduce the damages to be paid out for patent infringement has been passed by one half of the US legislature. The proposed law was backed by large technology firms and banks but opposed by smaller tech companies and drug companies.â¦
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WASHINGTON -- A major rewrite of corporate tax law that would end a trade dispute with Europe won congressional negotiators' backing yesterday after House Republicans beat back efforts to increase tobacco regulation. The measure would repeal a tax break for thousands of US exporters that the World Trade Organization ruled illegal. As a replacement, it offers more than $140 billion ...
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A United States appeals court upheld a finding of patent infringement against Research In Motion Ltd. yesterday, but struck down part of the ruling and sent it back to a lower court for further proceedings.
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(InfoWorld) - Patent overhaul legislation thatÂ passed the U.S. House of Representatives FridayÂ still faces significant opposition as it heads to the Senate, opponents said. The House bill, supported by several large tech vendors, would tighten the way courts assess patent infringement damages and add a new way to challenge patents after they've been granted. Currently, courts generally consider the value of the entire product when a small piece of the product infringes a patent; the bill would allow courts to base damages only on the value of the infringing piece. DespiteÂ support from such tech vendors as Microsoft, IBM, and Symantec, the bill faces significant opposition from small inventors, many pharmaceutical companies, several small tech vendors, and labor unions. The tech supporters of patent reform have called for the changes for five years. "I would not throw a party just yet," said Bobbie Wilson, director in the litigation department at the Howard Rice Nemerovski Canady Falk & Rabkin PC law firm, based in San Francisco. "Congress has tried to address patent reform before, starting off with a bang and ending with a whimper." Wilson, who supports parts of the bill and questions other parts, said she's a "bit pessimistic" that patent reform legislation will pass before the November 2008 elections. "Remember that there is a whole cottage industry, from the so-called trolls to the patent litigators, who are heavily invested in the status quo," she added. "They will be lobbying hard and spending substantial sums of money to water down or dilute any reform." Opponents will focus hard on the debate in the Senate, added Ronald Riley, president of the Professional Inventors Alliance, a trade group that opposes the House bill. The 45-vote margin in the House is not enough for the Senate "to see it as a mandate," Riley said. Riley's group was among those recruiting labor unions to oppose the bill. In July and August, three labor unions, including the giant AFL-CIO, came out against the House bill. Groups opposed to the bill are going to target lawmakers who support the legislation during the 2008 elections, "regardless of what might happen in the end," Riley said. "We don't care if they get mad," he said. "They can't do anything worse to us than they're doing now. There has to be a price for being bought." Riley and other opponents of the bill argue that it would allow large companies to steal patented inventions from small companies without fear of repercussions. When large tech vendors steal intellectual property and "ship it off to India, everybody loses," Riley said. "This is about jobs." Supporters of the bill argue it's needed because the number of patent infringement lawsuits and size of awards have exploded in recent years. It's too easy for patent holders to sue and collect huge damage awards when a small piece of a tech product is found to infringe, supporters argue. The House passage of the bill was "a major victory for U.S. innovation and competitiveness," John W. Thompson, chairman and CEO of Symantec, said in a statement. "This landmark legislation is the first comprehensive modernization and revision of the patent law in 55 years." But Wilson said the House bill largely ignores the biggest problem with the U.S. patent system -- that an underfunded Patent and Trademark Office lacks examiners and often loses experienced employees due to poor salaries. While the bill would make "sweeping changes" in the way patents are prosecuted and whether they are litigated, the bill's post-grant review provision targets the wrong point of the patent-issuing process, she said. "That's kind of like closing the barn after the horse is gone," she said. "Most of the problem is with bad patents." Representative Howard Berman, a California Democrat and main sponsor of the Patent Reform Act, has also introduced a bill to increase funding at the Patent and Trademark Office. He said Friday he will continue to push for the legislation to be passed.
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Patent overhaul legislation thatÂ passed the U.S. House of Representatives FridayÂ still faces significant opposition as it heads to the Senate, opponents said.
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There's a brawl brewing as Congress works up the most sweeping overhaul of the patent system in half a century.
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While the US Congress continues debate on new patent reform legislation that would likely limit the amount that aggrieved parties could receive in infringement suits, the Supreme Court has agreed with a Justice Dept. request to hear a critical case. Its outcome, one way or the other, may not only impact technology patent law but also how manufacturers mix Intel and AMD parts, and also how - believe it or not - how digital music stores sell MP3 tracks.
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The U.S. House of Representatives on Friday easily passed a final bill aimed at improving education for millions of children with learning disabilities, with the Senate expected to follow as Congress rushed to complete its work for the year.
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The House of Representatives on Thursday approved a huge corporate tax bill aimed at ending a trade dispute with the European Union while giving American manufacturers a new tax break.
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In the wake of a recent landmark Supreme Court ruling, patent reform is bubbling toward a boil on Capitol Hill, where advocates in both parties and both chambers are urging timely action on pending legislation and contending with well-financed interest groups on both sides of the issue.
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The House yesterday passed the most comprehensive patent reform in half a century, delivering a victory for computer technology and financial services companies and leaving drug companies, small inventors, and the U.S. Patent and Trademark Office bracing for a bigger fight before the bill hits the...
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Key House panel is all for introducing a patent reform bill, but agreeing on details could prove a daunting task.