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Senate Panel Backs Patent Overhaul Bill

mvar writes "A bill to reduce the likelihood of massive damage awards in patent disputes took a step forward with approval by the Senate Judiciary Committee. The committee voted 15-0 to back the legislation that would give judges a major role in determining how important a particular patent is to a product, so that infringing minor patents would not lead to huge damages. The bill (PDF) also gives patents to the first inventor to file, rather than the first to invent, making the patent application process easier for companies who apply for patents in multiple countries. This year, Microsoft, the Pharmaceutical Research and Manufacturers of America and the Biotechnology Industry Organization support the patent legislation, while Dell, Cisco and others oppose it." Microsoft's blog post in support of patent reform calls for a quick review period for newly-granted patents and the acceptance of prior art submissions from third parties.

33 of 243 comments (clear)

  1. It's a start by TaoPhoenix · · Score: 2

    Well this is interesting. Do we like the track record of judges, or will they all file in East Texas where "a big corp clearly has better ideas on what to do with an idea that they were (second) to sell"?

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  2. Prior Art is No More by Gr33nJ3ll0 · · Score: 2

    Well..... that fixes all the problems with prior art, now there is none!

    1. Re:Prior Art is No More by Java+Pimp · · Score: 4, Insightful

      First-to-file does not negate or eliminate prior art. First-to-file applies to parties independently coming up with the same invention (without existing public knowledge of such an invention) and granting the patent to the first to file.

      Prior art can still be used to show that the first to file didn't actually do the inventing.

      Interestingly enough, the Microsoft blog linked to in the article specifically mentions and endorses the use of prior art in countering patents.

      --
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    2. Re:Prior Art is No More by nschubach · · Score: 3, Interesting

      I vote for making it open knowledge (common/no patent) because if two people come up with the same solution, it must not be that unique.

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    3. Re:Prior Art is No More by Java+Pimp · · Score: 2

      Currently, if two or more parties are attempting to patent the same invention the burden of proof of who invented first lies with the inventors and is decided in the courts. This is the problem first to file is to eliminate.

      Note that most of the time there is only one inventor trying to patent an invention so first to file or first to invent is moot.

      Prior art still holds to invalidate patents and patent applications regardless if there is one party or more than one party filing.

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    4. Re:Prior Art is No More by dgatwood · · Score: 3, Interesting

      I would argue that independent invention without exposure to the other's work should simply invalidate the patent right off the bat. If two people are filing a patent on the same invention, unless they were working together at some point in the past or one of them stole research from the other in some way, that means the patent covers something that is obvious to a practitioner in the field, and is not patentable in the first place.

      We need a lot more patents thrown out for failing the obviousness test. Like about 98% of all patents filed. If we had stricter application of the obviousness test at the patent office instead of in the courtroom, patents wouldn't need reforming. That one single change in policy would almost completely eliminate patent trolls.

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  3. WTF? by Cyberax · · Score: 4, Insightful

    "The bill (PDF) also gives patents to the first inventor to file, rather than the first to invent"

    WTF?

    1. Re:WTF? by a_n_d_e_r_s · · Score: 5, Insightful

      Perfect now big companies can steal ideas from other countries and patent them in the USA. And the smaller damages means it won't cost as much for Microsoft and other big companies when they are convicted of infringing on others patents. This is really good for big companies that like to infringe on smaller companies patents.

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    2. Re:WTF? by Svartalf · · Score: 5, Informative

      That only benefits the big companies... Filing is friggin' expensive. Tens of thousands of dollars are involved with the filing of a Patent. First to file means whomever has the resources will get to it first. That's NOT reform.

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    3. Re:WTF? by Sonny+Yatsen · · Score: 5, Insightful

      Well, there are two major reasons why a first-to-file system may be advantageous. First, the United States is unique among the nations of the world in having a first-to-invent system. This means an inventor can gain priority over another inventor who filed before the first inventor if he can prove that they invented something first. Every single other country in the world uses a first-to-file system. To change US law to permit the first-to-file system would harmonize US law with every single other country's laws, simplifying the matter for inventors. It also gets rid of weird results like a family of patents that protect in every other country but the US.

      Secondly, it's cheaper for all parties. A first-to-file system can determine who gains priority in a patent by simply looking at the dates. On the other hand, a first-to-invent system almost always devolves into massive lumbering multi-million dollar litigation suits where hundreds of attorneys and document reviewers pour though millions of pages of notes to prove one party reduced something to practice before another party. It also takes years to go through the courts, which is not helped by the already heavy backlog of cases in the Federal Courts. Plus, while a first-to-file system doesn't help the small inventor, a 102(g) fight priority fight in the courts REALLY doesn't help small inventors. They can't afford the potential millions of dollars that may be lost permanently if they lose such a case, or even to settle.

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    4. Re:WTF? by Cyberax · · Score: 4, Interesting

      I'm reading it and it's horrible.

      For comparison, Russia has a 'first-to-file' patent system. However there's a clause that earlier inventors receive an automatic license to use the patent, and it also could lead to patent's invalidation. I don't see anything like this in the new bill.

    5. Re:WTF? by Nerdfest · · Score: 2

      Doesn't this screw over people who invent something and don't want it patented, or can't afford to?

    6. Re:WTF? by Yvanhoe · · Score: 4, Interesting

      But after 3 years of UK success, the UK manufacturer wants to compete in US. "No" says the patent troll, you got to pay the "foreigner tax" first.

      Having to pay a license to lawyers to be authorized to sell your own invention is not really what the patent system is supposed to be.

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    7. Re:WTF? by Sonny+Yatsen · · Score: 2

      I keep seeing this type of argument here, but this is untrue. Prior art isn't being abolished by a first-to-file situation. Remember, prior publications constitute prior art. The open source project, by virtue of being earlier and published (wouldn't be much of an open source project if it wasn't) to the public would constitute as prior art to Big Company (tm)'s patent and can be used to invalidate Big Company (tm)'s patent or application.

      Also, in regards to business model patents - they are rather weak now after the In Re Bilski case, which essentially invalidated a hedge fund business model as unpatentable subject matter. Same thing with algorithms, by statute, mathematical algorithms and other similar things like physical laws, things found in nature, etc, etc, are not patentable subject matter. Also, pure software patents are also found by the USPTO to be unpatentable (they must be tied to a device or some sort of transformation).

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    8. Re:WTF? by Sonny+Yatsen · · Score: 2

      Only if it's within the 1 year bar after publication. The US Patent system doesn't want people to dedicate new inventions to the public (by publication) and then, after some indeterminate time, take it back from public domain by filing a patent on it. If you published and more than a year went by before you file a patent, then your own publication will act as prior art against you.

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    9. Re:WTF? by MysteriousPreacher · · Score: 2

      (a) NOVELTY; PRIOR ART.—A person shall be enti- tled to a patent unless—
      ‘‘(1) the claimed invention was patented, de- scribed in a printed publication, or in public use, on sale, or otherwise available to the public before the effective filing date of the claimed invention

      There's more to it than that, but there's the most relevant section of the bull.

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    10. Re:WTF? by cmarkn · · Score: 3, Insightful

      No, you missed the point. The guy who invented the sprocket and got the patent on it in the UK but not the US. US Widgets Inc sees the UK patent and files it in the US -- even though they didn't invent it. Now the UK inventor wants to expand his sales into the US. Bam! He gets hit with a patent suit because US Widgets owns the patent here. The judge decides that the inventor has to pay to sell his own invention, because he was not the first to file, merely the first to invent.

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    11. Re:WTF? by DrgnDancer · · Score: 2

      If you want to give your invention as a gift to the world you should patent it and licence the patent for free. Yes, it sucks, paying for the patent process if you just want to release it for free, but that's the way it is when you have patents, no matter if the priority goes to the first to invent of to the first to file.

      Theoretically they don't need to file. Simply publish your invention specifics (online would do I'm sure), and you've established prior art. No one else can patent your idea, because it's already existent in the public domain. If, as the second article in the summary suggests, they also change the law to allow third party submission of prior art, then it wouldn't even be difficult to defend your public domain invention.

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    12. Re:WTF? by Archangel+Michael · · Score: 2

      Two words invalidate your whole post ...

      PRIOR ART

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    13. Re:WTF? by coldfarnorth · · Score: 4, Insightful

      I disagree, this also helps the little people. If you file a patent for a cool idea, and IBM files for the same idea two days later (Keep in mind that the important date here is the postmark), you win. There's no expensive and lengthy court case (where you can lose by running out of money) to determine who invented it first. The debate will be over the day that they look at the postmarks. Keep in mind that prior art applies here also: if you publish a patent in another country, that is prior art, and you can use it to invalidate patents that are filed at a later date in the USA.

      Now, if you want to stick with a system where a court case is necessary to determine who gets the patent, I guarantee that will primarily benefit the side with the most cash available for lawyers.

      Food for thought, the rest of the world uses a first-to-file system, and it does not appear to have destroyed society yet.

      Oh, one more thing: if you, as a "small entity", are willing to do the legwork and write up the patent application yourself, you can have a patent of reasonable length for less than $1000. The current fee schedule is available here:

      http://www.uspto.gov/web/offices/ac/qs/ope/fee2009september15.htm

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    14. Re:WTF? by amliebsch · · Score: 2

      Except they can't do that. "First to file" changes the method used to decide who "wins" who two people claim to have independently invented something. But you STILL have to be the inventor, and so the existence of prior art is STILL a bar to obtaining the patent. So in your scenario, US Widgets can't get the patent, because they obviously didn't invent it, as demonstrated by the prior art of the UK widgets.

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    15. Re:WTF? by Lloyd_Bryant · · Score: 2

      There's no expensive and lengthy court case (where you can lose by running out of money) to determine who invented it first. The debate will be over the day that they look at the postmarks.

      That's a nice theory. But in reality, a major corp with a suitable (i.e. ethically deficient) legal team can tie up anyone but another major corporation in court until they go bankrupt. The fact that all evidence is against them is only a minor problem - look at how long SCO was able to tie things up without ever producing any real evidence to back up their claims.

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    16. Re:WTF? by Jane+Q.+Public · · Score: 3, Insightful

      But that's a narrow definition of "prior art", and it does not seem like a fair method. As I understand it, that would give companies an advantage over garage inventors.

      Let's say I invent gadget G in my basement. I have kept meticulous records of the lab and shop work I put in over time to invent it. It took me 5 years.

      I want to patent it, but it takes me a year and a half to get the funding to do a proper patent search and file for a patent. In the meantime, my next-door neighbor, who works for Corporation X, saw my invention, and the corporation filed for a patent right on G away, 8 months before I did.

      My invention is not yet "public knowledge". Yet clearly I was the inventor. Why should Corporation X be awarded the patent?

      If that's the way it would truly work, I am strongly against it.

    17. Re:WTF? by Jane+Q.+Public · · Score: 2

      That's the objection I see, too. Your typical backyard inventor, for example, might need time to fund a patent search and the patent application, while a company with money could file right away... so the actual inventor gets screwed out of it.

      That would be a terrible situation. It would stifle innovation. Most inventions -- ultimately belonging to corporations or not -- are created by individuals or small teams. Giving someone first shot just because they are better funded seems contrary to the whole principle.

    18. Re:WTF? by Jane+Q.+Public · · Score: 2

      But what if you're poor, or at least have to struggle to come up with the $1000? And while you are trying to dig up the funds, IBM files their version?

      That gives too much priority to whoever is better funded. That is contrary to the whole principle of patents, which are supposed to go to the first inventor.

  4. Wolf in sheep's clothing by locallyunscene · · Score: 3, Insightful

    legislation that would give judges a major role in determining how important a particular patent is to a product, so that infringing minor patents would not lead to huge damages

    Okay that sounds good, what's the catch?

    patents to the first inventor to file, rather than the first to invent, making the patent application process easier for companies who apply for patents in multiple countries

    ... and making it much harder for anyone who is not a large company with money to throw at patent applications. Also could someone familiar with patent law explain how changing this one particular law in the U.S. makes it easier for companies to file in other countries?

    Schumer's amendment would have allowed companies sued over such patents to ask the U.S. Patent and Trademark Office to declare them invalid without resorting to litigation.

    "I feel very strongly about this issue," said the Democrat from New York. He could not guarantee he would vote for patent reform once it hit the Senate floor if it was not in the bill.

    So 90% of what would have protected smaller innovative companies was removed and what is left is further patent domination for the bureaucratic styled corporations.

    Other provisions in this year's 99-page bill aim to prevent bad patents from being issued by allowing third parties to provide information on why an application should be rejected.

    Useful, but not nearly as useful as the above proposed amendment.

    The U.S. Patent and Trademark Office has asked for the right to set its own fees in order to hire more examiners and upgrade technology so it can chip away at a massive backlog of patent applications.

    The bill would give the patent office authority to set fees, but requires that the smallest applicants get relief on application fees.

    They'll need it with the flood of "first to file" applications coming in.

  5. Helps companies but leaves individuals out by ciaran_o_riordan · · Score: 2

    Large companies, who can afford to defend themselves in court, will benefit from this. Same is true for Microsoft's case against i4i where they want to make it easier to invalidate patents in court.

    For small and medium-sized companies, and for individuals, this won't help.

    In software, people need the freedom to use the commonly used video formats, and the freedom to make a website to sell stuff. For a small company, the court case would cost more than the profits they'd be trying to protect.

    Patents simply don't work for software. They *might* work for things where all mass production is done by large companies (e.g. pharma, cars), but for things which ordinary people do, such as writing books and writing software, patents don't work and must be abolished. Reform is not enough.

    * http://en.swpat.org/wiki/Why_software_is_different
    * http://en.swpat.org/wiki/Why_abolish_software_patents

  6. Re:code for "death to prior art" by ThosLives · · Score: 4, Insightful

    "First to file" doesn't eliminate the "novel, useful, unobvious" requirements on a patent. If an invention is already in the field and in use, first to file won't be the thing that locks it up. Instead, it will be the same thing that happens today when people get patents on obvious or preexisting "inventions".

    First to file simply eliminates the fights over who invented things first. Of course, I'm of the opinion that if there is a "who invented it first" fight then the patent under question should immediately be invalidated or rejected, because near-enough simultaneous development by disparate parties means the invention is "obvious to those skilled in the art" QED.

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  7. First to file is very bad for academia. by seeker_1us · · Score: 4, Insightful
    You need to be able to publish your stuff in academia as fast as possible, once you have good results. Waiting for the patent filing process (just the filing) can delay it badly. If you have first to invent, you can do your invention, then publish while you are doing the patent filing.

    This will cripple innovation in America's Universities as researchers are forced to choose between publishing and patenting.

    1. Re:First to file is very bad for academia. by kanweg · · Score: 2

      But then, those scientist were shooting themselves in the foot because they were denying themselves patent protection abroad (outside the US).

      Getting your article published takes a while. You can send it to the editor with a note that it should be kept confidential for patenting purposes and as far the patent office is concerned you're fine.

      Bert

  8. Patents reward publication, not invention by zzatz · · Score: 2

    The Constitution authorizes the government to issue patents to reward the publication of inventions. Making information widely available to the public is the ONLY reason for the government to be involved at all with inventions. Government has no business rewarding invention itself.

  9. Re:We also need by Grond · · Score: 2

    The courts have been tightening the rules on venue for a while now. East Texas in particular is starting to lose cases. Example 1. Example 2. Example 3.

    Not sure if having to file where you live or possibly where the corporate HQ is would help....

    In cases with large corporations with offices all around the country there may be more important factors than the location of the corporate HQ. Consider a company based in Washington state with a research office and production facility in Florida. Sure, corporate HQ is in Washington, but all of the witnesses (e.g. the inventors) are in Florida. Important documents related to production costs and the like are in Florida. So in that case perhaps Florida makes more sense as the venue rather than forcing all of the witnesses to fly to Washington. Venue is complicated, and it can be hard to make the rules flexible enough without being so overinclusive that places like East Texas become available.

  10. Re:Doesn't this kill prior art defense? by MysteriousPreacher · · Score: 2

    Depends on how a court interprets the phrase "public use". If the invention is used in secret by the inventor and his buddies sworn to secrecy, and the business cards incinerated to avoid disclosure, then it's probably not public use. If the invention is used reasonably openly in the company and being use to create products that are distributed outside of the company then I'd expect a judge to rule it as prior art. Of course that isn't guaranteed, which is possibly why the phrase could be better defined. The problem I think they try to avoid is that by defining things too tightly a law becomes more prone to loopholes or ageing. e.g. a law that specifically tackled the transmission of death threats via telex would probably not cover the same things done by fax.

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