Last week both the U.S. House and Senate Judiciary Committees approved nearly identical versions of the Patent Reform Act of 2007. Though the proposed legislation gained significant momentum by moving into the reconciliation phase, it still faces substantial opposition by major corporations in more traditional manufacturing fields, while the high-tech industry has thrown its weight solidly behind the Act. Supporters say the proposal would go a long way toward staving off expensive court litigation, limiting what are perceived as excessive damage awards, and keeping questionable patents off the books in the first place. Opponents claim the law would stifle innovation by significantly weakening patent protection and sharply reducing existing disincentives for infringement. The bills were identical when they were unveiled with some fanfare at a press conference back in April but are now slightly different, thanks to various amendments. Those inconsistencies will have to be reconciled before the full House and Senate can approve the bills in floor votes. Core components of both measures include establishing a “first to file” patent system; a post-grant opposition procedure at the U.S. Patent and Trademark Office that would serve as a replacement for court challenges of newly issued patents; restrictions on venues for filing patent-related suits to prevent companies from “shopping” for favorable courts; and limits on damages based solely on the “contribution” that the patent in question made to a product, unless the patent holder could show the patent was the “predominant” reason for the product’s market demand. The bills also attempt to limit the definition of “willful” infringement and the treble damages associated with it by placing new obligations on patent holders to show the alleged infringers were aware they were copying the inventions. Go to: http://news.com.com/Patent-law+changes+power…

Editor’s note: The recorded CD and audiostream of Technology Transfer Tactics’ recent audioconference on the impact of patent law changes for tech transfer professionals, including discussion of the Patent Reform Act, are still available. For information, CLICK HERE.

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