Leahy, Sessions, Hatch, Schumer, Kyl, Kaufman Unveil Details Of Patent Reform Agreement

WASHINGTON – Leaders of the Senate Judiciary Committee Thursday announced details of an agreement on long-pending legislation to make needed reforms to the nation's patent system.

This is the third consecutive Congress in which Senator Patrick Leahy (D-Vt.), the chairman of the panel, and Senator Orrin Hatch (R-Utah), a former committee chair, have introduced patent reform legislation. A bipartisan majority of the Committee advanced the legislation last April. In the months since, Leahy, Hatch, and Senators Jeff Sessions (R-Ala.), the Committee's ranking Republican, and Chuck Schumer (D-N.Y.), Jon Kyl (R-Ariz.), and Ted Kaufman (D-Del.) have continued to work toward an agreement to make the legislation ready for Senate consideration.

"With this agreement, we are closer than ever to advancing patent reform legislation through the Senate," said Leahy. "Senator Hatch and I have worked through many Congresses to make meaningful reforms to the nation's patent system, and I appreciate his commitment to this effort. This compromise may not be everything that everyone wants, but it makes important reforms to the outdated patent system. Strengthening American patents will improve the quality of our inventions and innovations, which will translate into jobs and economic growth in Vermont and across the country. Congress is committed to strengthening our economy, and the Patent Reform Act is an important component of that effort. I hope the leaders will soon schedule floor time for this important legislation."

"This important bipartisan agreement would institute reforms that significantly streamline and strengthen the U.S. Patent System," said Sessions. "In doing so we are strengthening our ability to protect Americans' ideas and inventions—developments that have done, and will continue doing, so much to improve and to enrich the world. These reforms would guard individuals, small businesses, and universities from frivolous legal challenges and help prevent abuse of the administrative process. They would also provide greater clarity and cut red tape that needlessly wastes time, money, and resources. American innovation goes to the heart of our economy, and our success as a nation must be protected. I urge the Senate to consider and act on this legislation and hope these needed reforms will soon be signed into law."

"Senator Leahy has worked tremendously hard to get this proposal where it is today and he should be commended for it. This bill doesn't include all the changes I originally sought, but I believe we must come together to reform our patent system," said Hatch. "It's the right thing to do. If the United States is to maintain its position at the forefront of the world's economy and continue to be the global leader in innovation, then we must have an efficient and streamlined patent system. As this legislation moves forward, the full Senate will have an opportunity to weigh in, make changes and see if we can garner even greater support for this proposal."

The proposed agreement makes changes to first-window post-grant review, inter partes review, willfulness, interlocutory appeals, Patent and Trademark Office funding, and supplemental examinations. The agreement retains several critical improvements in the Committee-reported bill, including the transition to a first-inventor-to-file system, the gatekeeper compromise on damages, the new district court pilot program, and more. The full text of the substitute amendment is available online.

Leahy and Hatch introduced the Patent Reform Act in March 2009. Judiciary Committee reported the legislation in April 2009. The legislation proposes the first major reforms to the nation's patent system in more than 55 years. The bill makes needed updates to the system to improve patent quality and increase certainty among parties in litigation. 

Since the Judiciary Committee reported the legislation to the full Senate for consideration, industries and stakeholders from all sectors of the patent community have urged action on the legislation.

The Judiciary Committee held a hearing last year to examine proposed reforms to the patent system. A Committee Report to accompany the reported legislation was filed in May.