US House of Representatives Passes Patent Reform Legislation

After much contentious debate both inside and outside Congress, by a vote of 220-175 the lower chamber has passed a Patent Reform Bill, HR 2795. The debate leading up to the vote was marked by shifting alliances between a variety of groups and industry sectors. Overall, the two camps that seemed most identified with a single position were the giant software providers such as Microsoft on one side (generally favouring the Bill) and drug and biotech companies on the other (generally opposing many of the Bill's provisions). Among other innovations, the Patent Reform Bill includes a post-grant opposition process to challenge new patents. It would also change the US system from a first-to-invent to a first-to-file system, consistent with most other developed countries. In another change, this one apparently opposed by the White House, it would make it more difficult for patent holders to obtain large damage awards based on the total market value of the product, rather than on the value of the patented component at issue. The focus will now shift to the Senate to see if the upper chamber can enact legislation which can then be reconciled with that from the House. For earlier news items in E-TIPS®, on US patent reform, see: "Canada, EU are Models for US Patent Reform Says Report", Vol 5, No 12, December 6, 2006; and "Proposed Bill to Reform US Patent Act", Vol 5, No 6, August 16, 2006 For a recent news report, visit: http://tinyurl.com/ytkj3m Summary by: The Editor