This week, the senate judiciary committee passed a bi-partisan patent reform legislation that if enacted, would encourage precisely what a strong patent system should – research and development of innovative products and technologies throughout the economy.
The Patent Lawsuit Reform Act (S.23) was introduced by Senators Chris Coons (D-DE), Jon Kyl (R-AZ), Amy Klobuchar (D-MN), Jeff Sessions (R-AL), Patrick Leahy (D-VT), Charles Grassley (R-IA), Joe Lieberman (I-CT), and Orrin Hatch (R-UT).
The House Version, H.R. 243, introduced by Representative Robert E. Latta (D-OH), amends federal patent law to specify that the fine for falsely marked articles (articles falsely labeled or advertised to deceive the public into believing such articles are patented) is limited to $500, in the aggregate, for all offenses in connection with the same articles. It also requires a person bringing a civil action against a violator to have suffered a competitive injury and limits such person’s damages to $500. Since the bills were recently introduced, the full text is not available yet. H.R. 243 does not have any cosponsors yet.
In response to the proposed legislation, AstraZeneca offered its support of the Senate Bill on its blog, for a variety of reasons, including:
- It transitions the U.S. patent system to a first-inventor-to-file system, which simplifies the application system and brings it in line with the rest of the world.
- It improves patent quality by instituting a new procedure for reviewing patent validity in the months after it is granted.
- It provides a process by which additional information regarding prior art can be submitted to the U.S. Patent and Trademark Office, making patents stronger and more likely to withstand a challenge.
- Finally, the legislation also makes it more difficult to establish that an alleged patent infringer willfully intended to infringe on a patent, while providing more certainty in damages calculations and enhanced damages when a patent has been infringed.
Discussion
In analyzing the impact of the legislation, Senator Leahy asserted that “The Patent Reform Act provides the tools the USPTO needs to separate the inventive wheat from the chaff. It will allow our inventors and innovators to flourish.” Senator Leahy also pointed to a report from the Department of Commerce, which indicated that “these reforms will create jobs without adding to the deficit.”
These provisions are important to pharmaceutical companies and medical device makers because “it will establish a strong and effective patent system that will provide for high quality patents that provide more certainty to inventors. This, in turn, will
For now, the bill on the calandar for the full Senate to vote on and the House Committee on the Judiciary. The next steps will likely include senate votes, house votes and reconcillation.
It will be important for stakeholders from all industries, especially the life sciences community, to make their voices heard while this legislation is being considered to ensure that whatever policies are made, encourage the development of new technologies that lead to advances in medicines, information technology, and countless other fields.