Tech Execs Ask Patent Reform
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Patent reform tops the Congressional wish list of U.S. industry executives at summit.
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(InfoWorld) - The U.S. Supreme Court heard arguments Tuesday in a case that could make it harder to obtain patents, with technology giants Microsoft Corp. and Cisco Systems Inc. supporting a change. The case, involving a patent on gas pedals for vehicles, has the Supreme Court examining how lower courts arrive at a decision that an invention was obvious, and therefore not patentable. In the case, Teleflex Inc. and Technology Holding Co., holders of the electronic gas pedal patent, sued KSR International Co. for patent infringement, but the defendant argued the courts should invalidate the gas pedal invention for obviousness. After oral arguments Tuesday, some patent lawyers said they expected the Supreme Court to overturn a 4-decade-old approach to deciding obviousness often called the teaching-suggestion-motivation test. The U.S. Court of Appeals for the Federal Circuit has used this test, saying that there must be some proven teaching, suggestion or motivation to lead a person of ordinary skill to combine "prior art" products into a new invention for that invention to be declared obvious. Other patent lawyers said they expect little movement from the Supreme Court, although any change would have a huge impact on patent holders. If the Supreme Court throws out the motivation test, all current patents could be suspect, said Paul Andre, an intellectual property lawyer with Perkins Coie LLP, in an interview. A change in the motivation test could mean fewer patent infringement cases brought by patent holders, because they would fear that courts would rule their patents invalid, he said. "The alleged infringer would have an easier time challenging a patent," he added. But most patent lawyers seem to believe the Supreme Court won't change the law, with the court last acting on the obvious standard in a 1966 ruling, he said. "If the Supreme Court wanted to do it, they'd have changed it by now," he said. But justices asked several questions about the obviousness standard, with Chief Justice John Roberts suggesting courts needed more flexibility to determine obviousness. The court will likely require the Federal Circuit to come up with a new standard, said Sharon Barner, an intellectual property lawyer with Foley and Lardner LLP, in an interview apart from the court hearing. Cisco and Microsoft, joined by three other companies, filed a brief in the case saying the motivation standard makes it too hard to prove obviousness, leading to bad patents. Microsoft and Cisco have been sued for "allegedly infringing dozens of questionable patents," wrote their attorney Peter Sullivan, of Hughes, Hubbard and Reed LLP. The motivation test "establishes too lenient a standard for patentability, and it has had a stifling effect on true innovation because it encumbers ideas well beyond the limits imposed by Congress for patentable inventions," Sullivan wrote in his brief to the Supreme Court. But a group of patent lawyers filed a brief opposing a change in the law, saying a change in the obviousness standard could make it difficult to get a patent on any invention that combines old products. The current standard is established and well-thought, wrote lawyers for the American Intellectual Property Law Association. Without the motivation test, there's no standard to determine obviousness, said Ronald Riley, president of the Professional Inventors Alliance, in an interview. "Things are often obvious in hindsight when they weren't that obvious," he said. "Big un-innovative ... are trying to make the invention game a king's sport because they hate having to compensate inventors."
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Ziff Davis - Opinion: It's time for other Linux vendors to follow Red Hat's lead and offer patent infringement protection to their customers.
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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.In the last couple of weeks, large tech companies have renewed their push for patent reform legislation in the U.S. Congress, despite opposition from U.S. President George Bush&#39;s administration and some labor unions.The Computing Technology Industry Association (CompTIA) is concerned that a congressional debate over an economic stimulus package, plus typical election-year gridlock, could hurt the prospects for patent reform and other tech priorities, said Michael Wendy, a spokesman for the trade group.The House of Representatives&#39; economic stimulus package includes tax write-offs for small business purchase of equipment, which could include computers, Wendy said. That&#39;s a good move, but patent reform, a research and development tax credit, H-1B visa reform, and other issues remain undone, he said.&quot;We hope that Congress -- assuming they pass an [economic stimulus] package -- doesn&#39;t just say, &#39;Well, we gave you some favorable tax provisions that will help boost industry activity and have a long-tail effect on the economy, so that should be enough for you guys this session,&#39;&quot; Wendy said last week. &quot;One thing we&#39;re concerned about is that the economic stimulus bill may be seen by Congress as a &#39;get out of jail free&#39; card when it comes to other of our tech policy agenda.&quot;The House in September passed a patent reform bill -- supported by many large tech vendors, but&#160;opposed by several small tech companies&#160;-- but similar legislation has been stalled in the Senate. Large tech vendors, including Microsoft, IBM, and Symantec, have&#160;called for patent reform, saying it&#39;s too easy for companies with no intention of creating products to buy up patents and file multimillion-dollar infringement lawsuits against other companies.On Jan. 22, Senate Majority Leader Harry Reid, a Nevada Democrat, said patent reform was a priority, but it was in a line behind several other bills, including an economic stimulus package and a government surveillance authorization bill. The Senate would turn to patent reform, &quot;time permitting,&quot; he said then.&quot;On patent reform, we must carefully strike the right balance with a bill that promotes rather than blocks innovation from enterprising entrepreneurs,&quot; Reid added.The Senate Judiciary Committee approved its version of the Patent Reform Act on Jan. 24, and the bill is awaiting action in the full Senate.But earlier this week, the U.S. Department of Commerce sent a letter to the Senate Judiciary Committee raising concerns about the bill. The letter, outlining the Bush administration&#39;s views, focused on a section of the bill that would apportion infringement damages in a new way. 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.The wide-ranging bill would also allow a new way to challenge patents after they are issued.That provision would &quot;create more problems than it solves,&quot; said the Commerce Department letter, signed by Nathaniel Wienecke, the agency&#39;s assistant secretary for legislative and intergovernmental affairs. &quot;The administration believes that such a dramatic change from current jurisprudence may have the unintended consequence of reducing the rewards of innovation and encouraging patent infringement,&quot; Wienecke wrote.Both sides can still work out their differences, Wienecke added.In addition, 14 labor unions, including the United Steelworkers, the Patent Office Professional Association and the Communications Workers of America, sent a letter to Senators Wednesday, saying they were concerned about the patent bill. &quot;Key parts of the proposed legislation may have the effect of increasing the likelihood of American inventions being stolen by our international competitors and, consequently, inhibiting sorely needed new investment in domestic manufacturing,&quot; the letter said.Still, some representatives of the tech industry say they&#39;re hopeful that patent reform can move forward.Senators, representatives of the Bush administration and other interested parties have been meeting regularly &quot;to find balanced solutions on all the issues,&quot; said Mark Isakowitz, spokesman for the Coalition for Patent Fairness, a group representing several large tech companies. &quot;We respectfully disagree [with the Bush administration] on damages, but we are confident ... we can work through concerns and achieve broad consensus on the bill, which would be a victory for the administration, the Congress and our economy,&quot; he added.
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The Software Freedom Law Center says the "junk patent" threatens open-source projects. The holder says it's willing to deal--but the group asks too much.
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(InfoWorld) - The U.S. House of Representatives hasÂ passed a bill to overhaul the nation's patent system, overcoming objections by many Republicans, small inventors and some labor unions. Passed on Friday, the Patent Reform Act,Â supported by several large tech vendors including Microsoft and IBM, 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; the bill would allow, but not require, courts to base damages only on the value of the infringing piece. The bill would also allow a new way to challenge patents within one year after they've been granted. The HouseÂ passedÂ the ActÂ by a vote of 225-175. The Senate has not yet acted on a similar piece of legislation. However, the White House Office of Management and Budget (OMB) issued a statement on Thursday saying it opposes the bill. It said that the changes in assessment of damages would "introduce new complications and risks reducing incentives to innovate." The OMB objections raise the possibility that President George Bush could veto the legislation. Large tech vendors have been pushing for patent reform for close to five years. The Software & Information Industry Association (SIIA), the Business Software Alliance, and the Computing Technology Industry Association, all praised the House for passing the bill. House passage is a "significant step toward improving our patent system," said Mark Bohannon, SIIA's senior vice president of public policy. Asked about the OMB's opposition to the bill, Bohannon said recent changes have addressed many concerns. Apportionment of damages, one of the OMB's major concerns, needs to change, he added. "If we don't address the problem, we're not going to improve the system," he said. Many Democrats and some Republicans argued 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 argued. The patent system "is getting near broken," said Representative Howard Berman, a California Democrat and primary sponsor of the bill. "Doing nothing is not a good answer for a Congress that wants the economy strong." Opponents argued the bill favors tech giants at the expense of small inventors. "The legislation ... helps a small group of powerful people," said Representative Dana Rohrabacher, a California Republican. Representative Marcy Kaptur, an Ohio Democrat, noted that between 1993 and 2005, four major tech vendors supporting the bill paid out US$3.5 billion in patent infringement settlements. But those same unnamed tech vendors had revenues of $1.4 trillion during that time period, she said. Tech vendors want to reduce patent infringement costs "not by changing their obviously unfair and often illegal business practices, but by persuading Congress and the Supreme Court to weaken U.S. patent protections," she said. "We ought to stand up for American inventors." The bill also sets into motion a change in the way patents are awarded, from the first-to-invent system unique to the U.S. to the first-to-file system used by the rest of the world.
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A group of technology companies is offering to share some of its patents to encourage the development of environmentally friendly technologies.
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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.
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Experts tell lawmakers the broken patent system chills innovation and feeds lawyers and trolls. Will something finally be done? Luke O'Brien reports from Washington.
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Tech politics watcher Brian Kahin says the patent system should suit different needs, granting one sort of patent for software, for instance, and another for drugs.
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Legislation that would overhaul the U.S. patent system would hurt innovation and decrease the value of patents, representatives of two tech companies said Wednesday.
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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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Intel's general counsel calls for patent reform to move forward in Congress.
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(InfoWorld) - Five consumer groups have given their support to legislation that would overhaul the U.S. patent system, saying the bill would create fairer penalties for infringement. The Patent Reform Act of 2007 could come before the U.S. House of Representatives for a vote as soon as this week despiteÂ objections from some labor unions, small inventors, and some small tech vendors. The bill, backed by several large tech vendors, also found support from Consumer Federation of America, Electronic Frontier Foundation, Knowledge Ecology International, Public Knowledge, and U.S. Public Interest Research Group. "Numerous flaws have emerged within the current patent system that can foster poor quality patents and invite uncertainty that inflates the risk and cost of litigation, especially in the areas of software and online services," the consumer advocacy groups said in a Friday letter to congressional leaders. The groups support two controversial sections of the bill that allow for a new way to challenge patents after they've been granted and change the way patent awards are calculated based on apportionment of damages. Currently, courts generally consider the value of the entire product when a small piece of the product infringes a patent, but supporters of the bills want Congress to base damages only on the value of the infringing piece. The apportionment provision would "encourage courts to limit damages for infringement so that they bear some relationship to the actual value of the damage to the patent owner," the groups said. The bill's post-grant review process would allow challenges within a year of a patent being granted by the U.S. Patent and Trademark Office. "This provision would provide a comparatively inexpensive and quick means to ensure the validity of issues patents before litigation becomes necessary," the groups said. Tech vendors, including Microsoft, IBM, and Cisco, have argued that the USPTO often approves questionable patents and that it's too easy for patent holders to sue, collect huge damages, and shut down product lines that have a small infringing piece. But since late July, three labor unions, including the giant AFL-CIO, have written letters to congressional leaders raising objections to the patent-reform legislation. The United Steelworkers letter said nearly 70 percent of patents filed in the U.S. come from manufacturing firms. "These bills would allow an endless loop of legal challenges after patents are awarded that will make it more difficult for U.S. patent holders to prevail against frivolous challenges," the letter said. The Coalition for 21st Century Patent Reform, whose members include Motorola, SanDisk, and Texas Instruments, has also opposed the legislation. "We believe a number of senators and members of Congress ... have expressed concerns with the bill and a desire to further work on the bill," coalition spokesman Bill Mashek, said earlier this month. The Senate Judiciary Committee has approved its own version of the Patent Reform Act, and that bill is awaiting action in the full Senate.
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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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At two tech-focused gatherings yesterday, industry companies, lobbying groups and politicians mulled over the IT industry's legislative agenda, including concerns about a move to force companies to expense stock options.
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Proposed patent reform legislation would kill the value of patents and allow the theft of U.S. intellectual property, a group of inventors says.