Canada, EU are Models for US Patent Reform Says Report

According to a recent report, "Reforming U.S. Patent Policy", from the Council on Foreign Relations (the US-based, independent, non-profit organization that publishes Foreign Affairs), the US patent system is harming innovation and international competitiveness in that country. The author claims that the US system protects low quality patents with overly strong domestic rights, a policy which leads to economically absurd transfers of wealth, such as in the recent RIM-NTP settlement. The report points to both the Canadian and EU systems as better at achieving the appropriate balance between innovation and protection than does the current US system. The Report calls for reform of US patent policy both at a domestic and an international level. On the domestic front, it stresses the importance of a patent system that provides appropriate incentives for innovation. Some of the domestic reforms suggested include:

• changing to a first-to-file system
• permitting third parties to file prior art in respect of a pending application
• limiting "willful infringement", and
• creating a post-grant opposition proceeding administered through the USPTO, and not through the courts.

The Report also calls for reform of US foreign policy with respect to patents. The author is critical of the current US agenda, which seeks to harmonize global patenting standards with the US system. Some of the suggested reforms are reflected in the proposed Patent Reform Act of 2006, discussed in an earlier article in E-TIPS®: "Proposed Bill to Reform US Patent Act", Vol 5, No 4, August 16, 2006 For articles on the Report, visit: The Globe and Mail For the text of the Report, see: http://www.cfr.org/publication/by_type/special_report.html Summary by: James Kosa