House Approves Patent Reform
By Roy Mark September 7, 2007 eweek.com
The legislation gets high praise from the technology sector, but sharp criticism from opponents.
The technology sector scored a significant legislative victory Friday afternoon as the House of Representatives approved the first significant overhaul of patent law in a half a century. The big win, however, may be short-lived as the legislation moves to the Senate.
Approved on a 225-175 vote that crossed party lines, the Patent Reform Act of 2007 (H.R. 1908) narrows the definition of willful infringement and limits infringement damage awards to the actual value of the technology involved instead of the overall value of the a completed product.
The bill also creates a "second window" to challenge patents issued by the Patent and Trademark Office. In addition, the legislation would create a first-inventor-to-file system to replace the current first-to-invent standard, moving the United States closer to international patent standards.
Even though the bill was approved by the House, supporters of the legislation promised opponents that further changes are likely to be made as the bill moves to the Senate, particularly the key provisions on damage awards and the chance at second reviews of issued patents.
If the bill wins approval in the Senate even more compromises are expected as the biotechnology, pharmaceutical and manufacturing industries weigh in with their strong opposition to major provisions in the bill. The White House has also indicated it is opposed to significant changes in the awarding of damages.
"We admit this bill isn't perfect," said bill co-sponsor Howard Berman, D-Calif., chairman of the House Courts, Internet and Intellectual Property Subcommittee. "This is really complicated stuff. We will continue working for compromise."
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