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Many feel that the U.S. patent system is in need of serious revisions. On top of the fact that it breeds rampant infringement litigation, and arguably stifles innovation by providing for broad, non-specific “inventions” to be approved, it also does not line up with the way many other countries deal with patent protection.

In a rare non-partisan decision, the House has decided to put forward a bill that would revise patent law, much to the approval of the high-tech sector.

Changes Abound

From ZDNet’s coverage, the bill would contain the follow,

• A “first to file” patent system: Critics argue that the existing “first to invent” standard is problematic because the identity of an inventor can be hard to prove. The bill would change the process to a “first to file” system, bringing it in line with all other foreign patent systems, while laying out a process for contesting an applicant’s entitlement to that protection.
• A new way to challenge patents out of court: The bill would create a “postgrant opposition” board within the U.S. Patent and Trademark Office, which is designed to replace what can be costly, time-consuming court challenges of newly issued patents. Under the bill, such challenges could occur up to a year after a patent is granted.
• Limits on findings of “willful” infringement: If a jury decides that an accused patent infringer did so willfully, damages can be tripled. This provision would require the patent holder to show that the infringers were aware that they had copied the patent. One way of doing that would be through showing that the patent holder had notified the infringer in writing of the alleged infringement before filing a lawsuit.
• Limits on courts where patent cases could be filed: Certain court districts, such as the Eastern District of Texas, have earned a reputation for being more favorable to patent holders, so a disproportionate number of suits have been brought there in recent years.
• A ban on “tax planning” patents: Since a 1998 court ruling that allowed patents on business methods, the U.S. Patent and Trademark Office has awarded some 50 such patents that relate to tax strategies, including how to minimize or defer one’s tax liability. A narrow provision in this bill attempts to prohibit such inventions from gaining protection.

Web 2.0 Roundup

The bill is still fighting an uphill battle. Disagreements in the Senate may cause it to be stalled or substantially changed before it is approved. Not to mention the fact that many, many groups believe that patent law is exactly as it should be.

Since it has been nearly 50 years since any substantial changes to the way people deal with intellectual property, it might be time to look at how we can make patent law align more meaningfully with our highly technological culture. It may be months (if not years) until we see the real fruits of this legislation, but hopefully some changes are eventually made as patent law as it stands now is in serious need of a once over.

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