US patent system braced for a shake-up
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Still handing out daft patents, though The US patent system is set for a thorough review, according to reports, with the aim of improving the quality of patents awarded, and thus reducing the number of patent lawsuits.â¦
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The Rules Committee of the US House of Representatives is scheduled to meet on Thursday to discuss how the latest sweeping patent reform legislation, H.R. 1908, is to be introduced to the floor of Congress. Pending the registration of proposed amendments, it could be introduced as soon as Friday.
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The Patents (Third) Amendment Bill, which might be tabled in Parliament during the coming winter session, is a Bill which will pave the way for a new patent law.
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Judges weigh IP liability A US court case that threatens to ramp-up damages against US technology companies which lose patent infringement suits has entered its final stages.â¦
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How significant is the US Patent and Trademark Office&#39;s initial rejection of Microsoft&#39;s FAT (file allocation table) file system patent claims?
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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.
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(InfoWorld) - 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. "This is a big fight about winners and losers," said Sen. Tom Coburn, R-Okla., adding that he is not entirely satisfied with the pending Patent Reform Act of 2007, which was introduced in the Senate in April. "The question is how do we strike the balance." The Patent Reform Act legislation would make the requirements for obtaining a new patent more stringent, make it easier for rivals to challenge patents, and reduce the penalties for patent violations. Committee chairman Patrick Leahy of Vermont said that he, Sen. Orrin Hatch, R-Utah, and a number of other colleagues have been working on the nonpartisan bill for several years and that the existing patent system was designed for a bygone era. A decision by the Supreme Court in April in the case of KSR International vs. Teleflex marked a major clarification of the court's thinking about the granting of patents for new inventions and set a higher bar for what qualifies as an original invention. The ruling has already prompted legal wrangling between VoIP vendor Vonage in its ongoing dispute with Verizon over Internet telephony patents, and legal experts say that the ruling was a direct rebuke to lower courts that have tended to favor patent owners over those challenging the legality of patents that have been issued. Despite strong support from Democratic and Republican leaders in both chambers for change in the patent system, however, passage of the bill into law is not assured.Â  IT behemoths, including Cisco, Apple, Dell, HP, Microsoft, and Oracle, have aligned as the Coalition for Patent Fairness to press for the sweeping changes envisioned in the bill. They maintain that reforms are necessary to reduce costly, sometimes frivolous litigation. However, other technology companies, including InterDigital Communications and Qualcomm, have banded together as the Innovation Alliance and joined the biotechnology and manufacturing sectors to limit changes to the system. They argue that the bill would give patent infringers an advantage. The high stakes involved in the patent issue were illustrated June 6 at a hearing of the Senate Committee on the Judiciary, which was briefly delayed as committee aides tried to locate an extra room for the overflowing crowd. "What we're trying to do here is move the process forward," Sen. Orrin Hatch said in an appeal to lobbyists for compromise once the hearing got started. "There are a number of organizations who could stop this bill." The bill's two main sticking points are a provision that would give the public a new opportunity to review patents after they've been granted, and a provision granting the right for an immediate appeal to the Court of Appeals for the Federal Circuit after a district court has made a pre-trial ruling on the framework that will be used to determine infringement (known as a "claim construction"). Large IT companies and the financial industry support the "post-grant review" of patents, which would allow for a reevaluation of suspect patent claims before companies are forced to go through lengthy, costly litigation, John Squires, chief intellectual property counsel at Goldman, Sachs & Co., told the committee. Opponents countered that the proposed post-grant review process would create an essentially limitless opportunity for rivals to challenge patents. "If a patent can be easily challenged at any time under a low standard of proof, (then) patents will have much less value, and investment predicated upon them will inevitably be diminished," Kathryn Biberstein, senior vice president of Alkermes, a biotechnology company, told the committee in her testimony. "This, in turn, will likely result in fewer cures for diseases and other breakthrough biotechnology products." The biotech industry and the Innovation Alliance also oppose the right for an immediate appeal after a claim construction ruling, arguing that it would encourage appeals, further prolonging cases. But advocates, including Palm senior vice president Mary Doyle, said it would reduce the chance of conducting unnecessary trials and cut down litigation costs. The witnesses were eager to raise two other controversial provisions in the legislation, regarding how damages in patent cases are determined and the expansion of the Patent and Trademark Office's authority to make rules. Doyle and Squires, supporting the bill's "mandatory apportionment" of damages provision, told the committee that damages today can be unreasonably high because the calculation is based on the value of an entire product, not just the patented feature at issue. Countering that argument, Biberstein and Bruce Bernstein, chief intellectual property and licensing officer at InterDigital, said that the provision would replace today's market-oriented valuation of inventions with subjective jury findings. Debate on expanding the PTO's rulemaking authority mirrored the rest of the patent debate with representatives from the financial sector and the Coalition for Patent Reform joining forces in support, while witnesses from the biotechnology sector and the Innovation Alliance cautioned against the change. An identical House version of the Patent Reform Act is pending, having recently won approval by the House Judiciary Subcommittee on Intellectual Property. Leahy said he is eager to prepare the legislation for a vote by the Senate Judiciary Committee, but he did not indicate when that vote might occur.ADVERTISEMENTIBM Information On Demand 2006Industrial Industry Leaders, please join us at IBM's premier information management global event, IBM Information On Demand 2006, October 15-20, Anaheim, CA. More IBM business and technical solutions content in one place than ever before! Select from  over 800 sessions. Register today!
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As reforms trickle in, the telecom industry is still subject to patent abuse.
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Next year, technology will continue breaking out of its molds, but not without a struggle over who controls intellectual property - at home and abroad.
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Companies on both sides of a patent overhaul debate in the U.S. Congress are stepping up the pressure on lawmakers, as some observers expect a vote soon in the Senate.Two groups, one supporting patent legislation before the Senate and one against it, held dueling media briefings on patent reform on Capitol Hill Thursday. Members of the Coalition for Patent Fairness, including lawyers from Hewlett-Packard, Cisco Systems, and SAP, said they see broad support for the Patent Reform Act in the Senate and hope senators will soon&#160;follow the House of Representatives&#39; lead and pass the bill.The coalition sent a letter to Senate leaders Wednesday, calling on them to pass the Patent Reform Act. The bill will &quot;benefit all American workers and American consumers,&quot; said the letter, signed by 128 companies and organizations, including Amazon, Dell, eBay, and Intel.But another group, the Innovation Alliance, sent a letter to Senate leaders Tuesday urging them to reject the legislation.&quot;No compelling case has been made for a bill written in this fashion,&quot; read the Innovation Alliance letter, signed by 430 companies and organizations. &quot;It is based on claims of a crisis in the current patent system that does not exist, supported by selective assertions which do not hold up under scrutiny.&quot;Among the companies and organizations signing the Innovation Alliance letter were the Institute of Electrical and Electronics Engineers-USA, the NanoBusiness Alliance, Cargill, Coca-Cola, and Qualcomm.Both the House and Senate versions of the Patent Reform Act would overhaul the U.S. patent system, but two pieces of the legislation have generated the most controversy. The bills would create a new way to challenge patents after they&#39;ve been granted, and it would allow courts to change the 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 legislation would allow courts to base damages only on the value of the infringing piece.Those changes would create uncertainty about the validity of patents and drive venture capital money away from innovative companies, said Joe Kiani, CEO of Masimo, a medical equipment vendor in Irvine, Calif.Combined with recent U.S. Supreme Court rulings, including one limiting the use of injunctions by plaintiffs in patent infringement lawsuits, the Patent Reform Act would significantly decrease the value of many patents, argued Kiani and other participants in an Innovation Alliance forum.The bill &quot;opens the way for other countries like China to bring technology here that will be a fraction of the cost and will be copies of our technology,&quot; Kiani said.Panelists at the Innovation Alliance forum said they&#39;d support patent reform that gives more money to the U.S. Patent and Trademark Office (USPTO), allowing examiners to better research patent applications. &quot;We support prudent patent reform,&quot; said Sean Murdock, executive director of the NanoBusiness Alliance, a trade group representing nanotech companies. &quot;Simply stated, the current bill, in its current form, is not prudent.&quot;But members of the Coalition for Patent Reform, in a press briefing a couple of hours later, said Congress needs to fix problems with &quot;patent speculators&quot; suing established companies. The Supreme Court rulings and more money for the USPTO aren&#39;t enough, said Tim Crean, chief intellectual property officer for SAP.In the past two years, the Supreme Court has ruled on several patent issues, including a case involving eBay. In May 2006, the court overturned a long-term U.S. court practice of issuing injunctions against infringing products in nearly all patent cases.Despite the Supreme Court rulings, the number of patent lawsuits continues to grow, said Crean and Michael Holston, general counsel for HP. This year is shaping up to be a record year for patent lawsuits, Holston said.The coalition found about 625 patent lawsuits in 20 selected U.S. district courts in 1990. Through Sept. 30, the same 20 courts have seen about 1,550 patent lawsuits in 2007, the coalition said.HP will spend about $75 million defending against patent lawsuits this year, Holston said. More than half of those lawsuits come from patent &quot;speculators&quot; -- companies that buy patents for the purpose of filing lawsuits, he added.The patent system is &quot;being exploited through litigation games,&quot; added Mark Chandler, general counsel for Cisco.
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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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Legislation designed to overhaul the U.S. patent system was approved by the House Committee on the Judiciary.
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Blog: Panel approves slight changes to divisive patent proposal applauded by Silicon Valley firms but leaves key sticking points intact, signaling more political battles lie ahead.
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(InfoWorld) - Opponents of legislation that wouldÂ overhaul the U.S. patent system have enlisted new allies who may cause majority Democrats in Congress to rethink their support of the proposals. Since late July, three labor unions -- the AFL-CIO, the International Federation of Professional and Technical Engineers (IFPTE), and the United Steelworkers -- have sent letters to lawmakers saying they oppose two current patent reform bills. Patent reform opponents say they hope their alliance with organized labor, which has a long history of supporting Democrats, will stall the legislation. But representatives ofÂ large tech vendors that are pushing for patent reform say they're confident there will be support for the legislation when Congress returns from summer recess in early September. The committees in both the Senate and the House of Representatives approved versions of a sweeping patent reform bill in July, and House leaders have targeted the patent reform bill for passage by the end of the year. "I think the momentum exists for this thing to move forward," said Joshua Ackil, vice president of government relations for tech trade group the Information Technology Industry Council (ITI). "As folks [in Congress] dive in a little deeper on this issue, they will come around and understand how important patent reform is to the tech sector." In recent sessions of Congress, then-majority Republicans were tugged in two directions when they focused on patent reform bills similar to ones introduced in the current session of Congress. Several high-profile Republicans pushed for patent reform, and won praise from many large tech vendors, but the Republican friendly pharmaceutical industry was staunchly opposed to the bills. By enlisting labor unions, patent reform opponents are trying to put Democrats "in the same situation the Republicans were in," said Ronald Riley, president of the Professional Inventors Alliance, which represents small inventors. Riley's group, along with the American Ingenuity Alliance and other groups, have focused getting unions to back their cause in recent months. Riley portrays patent reform as enabling large tech vendors to steal the ideas of small inventors. "We're tired of these transnationals ripping off our people's work," he said. "We're just warming up." Tech vendors including Microsoft Corp., IBM Corp., and Cisco Systems Inc. have argued that the U.S. Patent and Trademark Office (USPTO) too 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. In many cases, patent lawsuits are brought by companies that make all their money by owning patents, critics have said. Cisco spends US$45 million a year defending itself against patent lawsuits, Matt Tanielian, director of government relations for the company, said during a forum in June. "There's a lot of bad patents out there," he said. "When you get sued, you ought to get a fair shake." The letters to Congress from the AFL-CIO and the United Steelworkers focused on two controversial sections of the patent reform legislation in both the House and the Senate. The two groups objected to the way the legislation would change how courts apportion damages when a company is found to infringe a patent. 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 groups also questioned how the legislation would allow a new way of challenging patents after they're issued, called post-grant review. The bills would allow companies sued for patent infringement a new way to file challenges with USPTO. Representatives of the of the AFL-CIO and United Steelworkers didn't return messages or declined to comment on their recent interest in patent reform. But the AFL-CIO letter alluded to recent efforts of the U.S. government and the U.S. tech industry to prod China to strengthen its intellectual property protections. These two changes "may have a negative impact on innovation and research," the AFL-CIO letter said. "At a time when the Chinese government is constantly being challenged to live up to its intellectual property obligations, we do not want to take actions that may weaken ours." 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. ITI's Ackil and representatives of two other tech groups said they doubted the unions' opposition would kill patent reform, although Ackil acknowledged that "anyone should be concerned" with opposition from large labor groups. Ackil and a representative of another tech trade group, who spoke on background, questioned the depth of the opposition from the labor unions. "The AFL-CIO has been nowhere on this issue for three years," Ackil said. Democrats knew of the labor concerns before the House Judiciary Committee approved the patent reform bill, added a spokesman for Representative Howard Berman, a California Democrat and primary sponsor of the House patent bill. "Weâre working now to try to understand and deal with any concerns labor may have," said spokesman Gene Smith. "We think that labor will not be opposing the bill when it comes to the floor soon after the House returns from recess." But the labor opposition could lead to changes in the bills, said Bill Mashek, a spokesman for the Coalition for 21st Century Patent Reform, a group that has opposed parts of the current patent bills. "Laborâs voice in the debate is significant and influential," Mashek said. "It shows, in our view, that the bill needs further work to ensure that U.S. manufacturing and innovators have the incentives to invest and develop new products. The concerns of ... organized labor resonate with members across the country and of all political stripes."
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WASHINGTON -- The Supreme Court is ready to hear from lawyers from Microsoft and AT&T as it considers a long-running patent dispute between the industry giants.
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The House Committee on the Judiciary approved far-reaching legislation to reform the nation's patent system Wednesday.
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Watch out when litigation trumps innovation.