The U.S. House passed a bill 220-175 Sept. 7 that could drastically change patent law by instituting a “first-to-file” standard and a post-grant review procedure. The bipartisan Patent Reform Act of 2007 (H.R. 1908), sponsored by Rep. Howard Berman (D-Calif.) and Rep. Lamar Smith (R-Texas) and 23 co-sponsors, also aims to limit the venues of patent suits and curb damages.

“The current patent system has become bogged down by delays, prolonged disputes and confusing jurisprudence,” Jonathan Yarowsky, policy counsel and spokesperson for the Coalition for Patent Fairness, said in a statement. “This comprehensive legislation is much needed and will help drive innovation.”

Adoption of the first-to-file system would bring the U.S. in line with most other foreign patent systems. H.R. 1908 would award the patent to the first person to file with the Patent and Trademark Office rather than the first inventor. The first-to-file standard would eliminate the need for long disputes over identifying the first inventor.

The post-grant review process would allow third parties to challenge patent applications they deem unpatentable, thereby avoiding future litigation. When patent litigation does go forward, civil action would be limited to the jurisdiction where either party resides or where the accused has committed the acts of infringement. And if an accused is found to infringe, under the Patent Reform Act, damages may not be based upon the entire market value of the patent.

Lawmakers amended H.R. 1908 following its introduction in April in reaction to strong opposition, especially from the pharmaceutical industry. The Patent Reform Act was introduced in the Senate in April.

In a Sept. 6 Statement of Administration Policy, the White House said, “The Administration strongly supports the passage of patent modernization legislation that fairly balances the interests of all innovators by improving patent quality and reducing patent litigation. … However, the Administration continues to oppose H.R. 1908's limits on the discretion of a court in determining damages adequate to compensate for an infringement.”

The U.S. House passed a bill 220-175 Sept. 7 that could drastically change patent law by instituting a “first-to-file” standard and a post-grant review procedure. The bipartisan Patent Reform Act of 2007 (H.R. 1908), sponsored by Rep. Howard Berman (D-Calif.) and Rep. Lamar Smith (R-Texas) and 23 co-sponsors, also aims to limit the venues of patent suits and curb damages.

“The current patent system has become bogged down by delays, prolonged disputes and confusing jurisprudence,” Jonathan Yarowsky, policy counsel and spokesperson for the Coalition for Patent Fairness, said in a statement. “This comprehensive legislation is much needed and will help drive innovation.”

Adoption of the first-to-file system would bring the U.S. in line with most other foreign patent systems. H.R. 1908 would award the patent to the first person to file with the Patent and Trademark Office rather than the first inventor. The first-to-file standard would eliminate the need for long disputes over identifying the first inventor.

The post-grant review process would allow third parties to challenge patent applications they deem unpatentable, thereby avoiding future litigation. When patent litigation does go forward, civil action would be limited to the jurisdiction where either party resides or where the accused has committed the acts of infringement. And if an accused is found to infringe, under the Patent Reform Act, damages may not be based upon the entire market value of the patent.

Lawmakers amended H.R. 1908 following its introduction in April in reaction to strong opposition, especially from the pharmaceutical industry. The Patent Reform Act was introduced in the Senate in April.

In a Sept. 6 Statement of Administration Policy, the White House said, “The Administration strongly supports the passage of patent modernization legislation that fairly balances the interests of all innovators by improving patent quality and reducing patent litigation. … However, the Administration continues to oppose H.R. 1908's limits on the discretion of a court in determining damages adequate to compensate for an infringement.”