Patent Reform Reintroduced to Congress
On Tuesday, a group of lawmakers introduced legislation that could reform the nation’s patent system. As reported by CNN Money, the Democratic and Republican leaders of the House and Senate Judiciary Committees introduced legislation that picks up where patent-reform efforts stalled last year.
The patent reform bill passed the House last year, but it couldn’t get by the Senate. The contentious part of the bill was how to calculate damages against a defendant who infringes on an inventor’s patent. But according to Senator Patrick Leahy, one of the sponsors of this bill, “We will get this passed. We will work out the differences.”
Those in favor of the bill state that reforms are needed to improve patent quality and create more certainty in patent litigation. They are supported by high-tech companies, such as Google and Apple, who want to decrease the amount of damages that infringers would have to pay. However, pharmaceutical and biotech companies oppose changing the calculation of damages, and argue that such changes would weaken patent rights and encourage more infringers.
The Senate Judiciary Committee has scheduled a hearing on the new legislation for March 10, but it should be noted that the patent system has not been overhauled in more than 50 years. If anything, those hoping for change should be cautiously optimistic.
USPTO Faces Hiring Freeze and Budget Problems
In a recent post by Gene Quinn on IPWatchdog, Quinn mentioned that the USPTO recently announced that they are extremely worried about their budget. Patent filings are currently down by 5%, and patent allowance rates have dropped to 42% for the first quarter of 2009. Such drops have started to worry the USPTO, since 70% of their budget comes from maintenance fees. As Rob Clarke, the Director of the Office of Patent Legal Administration at the USPTO, said, “FY09 will be okay, but long term the trend line is fairly negative.”
Additionally, last week rumors arose that the USPTO was laying off patent examiners. However, Quinn states that he spoke with officials at the USPTO who explained that the agency is not laying off employees. Instead, there is currently a hiring freeze.
Obviously these problems are due to the enormous financial collapse and subsequent recession that has taken place in the United States. Such problems at the PTO illustrate that even government agencies are having trouble in the current economy.
India Trying to Stop Patents on Traditional Medicine
Earlier this week, we reported on how India was trying to curb Yoga patents in America as well as the rest of Western Culture. However, that’s only part of an effort that is trying to reduce a disturbing trend.
According to Techdirt, developing nations such as India and Brazil have been hurt by big multinational conglomerates patenting traditional medicines. After patenting these medicines, the companies then sell it back to the country and claim any traditional use as infringing on their patent.
The Indian government has been trying to combat these practices by assembling a database of traditional Indian medicine and actively sharing it around the world. This database can then serve as a place to search for prior art. Hopefully, this effort will stop companies from patenting traditional medicines, and force them to be much more innovative.
USPTO Roundtable Video Now Available
On February 12th, 2009, the USPTO held a roundtable discussion on a “deferred examination” or “request for examination” procedure. The purpose of the roundtable was to obtain public input from diverse sources and different points of view. The video of the discussion has been made available for the public to view, just click here.
The roundtable was moderated by John Whealan, Associate Dean for Intellectual Property Law Studies, The George Washing University Law School. Written comments on the proposal are being solicited by the USPTO and are due by February 26, 2009. Comments may be sent by e-mail to AC6comments@uspto.gov.
Social Networking for Patents?
Times are rough at the USPTO.
Back in 2007, The Washington Post reported that if the agency shut its doors to catch up on the backlog of applications, it would take their 5,500 examiners at least two years, and countless cups of coffee to catch up.
Keeping up with the demand for patents is critical, as innovation and technological progress drive our economy. Earlier this year, researchers launched a “peer-to-patent” pilot project. Some have suggested that the addition of a social networking patent site could make the peer-to-patent program extremely efficient.
Obviously such a site would not mirror MySpace or Facebook, but the idea of a social network for patents could solve the time-consuming process of searching for prior art. This necessary process can help determine whether or not the claims made in a patent are original, or if they have already entered the public domain. If the claims of a patent are found quickly in prior art, a patent examiner can promptly move on to the next claim.
While the specifics of such a system would have to be planned out rather carefully, it could vastly improve the amount of time it takes an examiner to search through prior art. Unfortunately, since the USPTO has yet to make a presence on other social networks, such a change is still nowhere in the foreseeable future.
Microsoft Appoints Attorney to Steer IP Policy
Sometimes promoting from within can be the best policy. Microsoft certainly agrees, as the company has recently appointed one of its intellectual property attorneys, Horacio Gutierrez, to steer its IP policy and licensing programs. According to PCWorld, Microsoft confirmed on Friday that Gutierrez is now corporate vice president and deputy general counsel of intellectual property and licensing.
Gutierrez, who has been with Microsoft’s Law and Corporate Affairs department since 1998, will now lead the company’s strategic business, legal, and public policy efforts related to Microsoft’s IP assets. In addition, he will manage Microsoft’s patent portfolio and commercial licensing of IP.
Recently, Microsoft has become friendlier towards open-source interests and it has loosened some restrictions. Some have credited this change in policy to Gutierrez, who has been fostering engagement with the open-source community. Thus, one can assume that Gutierrez will continue this policy in his new role.
In addition to his involvement in IP, Gutierrez has also been involved with Microsoft’s pro bono legal program. Attorneys involved in this program donate their time to helping immigrants attain legal status in the U.S. and avoid deportation.
Should the USPTO Use Twitter?
In a recent blog post on Promote the Progress, J. Matthew Buchanan states his position that the USPTO should start utilizing Twitter. He points out that several other government agencies are already using the system like NASA, the FDA, and even President Obama.
The post states the potential advantages that could arise from the USPTO using Twitter. First of all, the office could use Twitter to post news items and other links from its news pages. Using Twitter would also be an easy avenue to instantaneously distribute critical information to Office stakeholders, who may have Twitter updates sent directly to their mobile phone. Furthermore, the USPTO could use Twitter to answer questions from the community and provide live updates from important meetings.
Yet, the USPTO may not want to use Twitter because of the stigma that could be associated with social networking. It may be thought that using systems such as Twitter would lower the reputation of the agency, because it is not an established media outlet. However, such an opinion may not hold much weight, considering how effectively President Obama utilized Twitter and Facebook during this past election.
Buchanan has stated that he has already established a USPTO account on Twitter, and that he will gladly transfer it to someone from the Office. He has also started to post items that have been made public by the Office.
Of course if you want in depth patent news, you can always follow DynamicPatents on Twitter!
Microsoft Milestone: Company Receives 10,000th Patent
Earlier this month, Microsoft received its 10,000th U.S. patent, securing its place among the top 5 patent recipients. While this milestone represents many different accomplishments, it illustrates how Microsoft stepped up its rush to the patent office several years ago.
According to Cnet News, the 10,00th patent covers a technology used in computers similar to Microsoft’s Surface that link a real-world object with a set of data or images stored on a computer. Yet, most of the attention surrounding the patent isn’t on the patent itself, but rather on the milestone it represents.
“Logging the 10,000th patent really is a testament to all of the innovation that has been taking place…Patents really are the currency of innovation in our industry,” said Microsoft chief patent counsel Bart Eppenauer.
Microsoft has definitely done its part to encourage innovation, as it gives workers up to $1,500 each time they apply for a patent as well as a cube with details on the invention. If the patent is granted, the workers then receive a plaque that includes a copy of the first page of the patent application. Microsoft currently employs 100 people in its patent group, including more than 40 attorneys, to handle the 2,500 to 3,000 U.S. patent applications it files each year.
Microsoft Exec to Release Patent Troll Study
According to Xchange, a former Microsoft executive has underwritten a study aimed at patent trolls. The study will be aimed at determining who is to blame for the large amount of patent suits -filed by non-practicing entities – that have hit the U.S. courts in the last decade.
If the study is effective, it will be interesting to see where the claims made by patent trolls originated. While it may be impossible to figure out when patent trolls first appeared (since some cases probably didn’t even make it to trial), it may shed some light on trends within the IP community.
However, one comical aspect to the study is that the executive’s former company, Microsoft, makes its money by collecting patents. To Microsoft’s credit, the company is far from a non-practicing entity.
On the Horizon: Congress to Take up Patent Reform
It has been reported that the U.S. Congress will take up patent reform in the near future, despite an ambitious patent reform failing in the Senate last year. A spokesman for Senator Patrick Leahy confirmed the Senator’s plans to bring up patent reform in the current session. The statement was echoed by Taraneh Maghame, chief patent counsel for Tessera Inc, “I believe we’ll see something out of Leahy’s office shortly after the inauguration because he wants to move things along.”
As reported on the EETimes, many large technology companies are seeking patent reform, given the rise of companies asserting general, questionable patents against them. According to RPX Corp., which is a patent licensing service, as many as 16% of patent suits in 2008 were filed by non-practicing entities, otherwise known as “patent trolls.” At the same time, smaller tech firms claim that patent reform could actually weaken the patent system.
Statistically speaking, roughly 3,000 patent infringement suits are filed every year in the U.S., but that figure has remained constant during the past decade. Of those lawsuits, only 10% actually go to trial, and as few as 50 patents a year are invalidated by court action.
Yet, the big debate is whether Congress should pass patent reform, or if it is an issue that should be left for the courts. Chief Judge Paul R. Michel recently suggested in a FTC hearing that the courts should handle patent reform. He also challenged that the rising amount of patent lawsuits are impeding innovation.
Of course, others state that the courts are only part of the problem. An unfortunate characteristic of issues such as patent reform, is that there really is no right or clear-cut answer to the problem. Perhaps the best course of action, as suggested by some, is to take a “wait and see” approach.
“We need to let the dust settle on the effectiveness of the recent cases because they went a long way to address the needs people had raised,” said Maghame of Tessera. “Putting a whole layer of patent reform on top of that could have ramifications for the economy.”
