Patent reform bill clears the Senate Judiciary Committee
US politicians on the Senate Judiciary Committee have passed a bipartisan bill that aims to curb abusive patent litigation from non-practising entities (NPEs).
The Protecting American Talent and Entrepreneurship Act ( PATENT Act) passed yesterday (June 4) in a 16-4 vote. It gained support from both Republican and Democrat Party members.
The bill is primarily aimed at clamping down on NPEs that engage in frivolous litigation.
If approved by the full Senate, the bill would require litigating parties to disclose details of the patent that they claim has been infringed.
Also, if a court determines that an asserting party’s claim is not “objectively reasonable” and it loses the case, then that party may be forced to pay the litigation costs of the defendant.
Further amendments to the bill are expected when it is heard in the full Senate.
During the initial hearing, concerns were raised about the impact the bill would have on patents that are subject to the Hatch-Waxman Act.
The Hatch-Waxman Act enables drugs companies to submit an Abbreviated New Drug Application with the intention of putting a generic version of a patented product on the market.
Chuck Grassley, a member of the Republican Party and co-sponsor of the bill, said he and other co-sponsors have agreed to further discuss tabled amendments to the PATENT Act that affect patents covered by the Hatch-Waxman Act.
In addition, the judiciary committee considered and requested further discussion on an amendment that seeks further clarity on the costs that litigating universities and inventors would have to bear if they lose a patent claim.
Grassley said: “Abusive patent litigation is a threat to our economy and costs consumers and businesses billions of dollars each year.
“The bill we approved today achieves a strong balance and brings needed improvements that will ensure the US patent system remains the envy of the world,” he added.
Patrick Leahy, a member of the Democrat Party and another of the bill’s co-sponsors, said: “When businesses are threatened with patent suits just for using a scanner they purchased, or website owners face threats simply for using basic software in e-commerce, the patent system is not working as intended.
“I am proud that our measures to address these problems are a key piece of the PATENT Act,” he added.
The bill will now be discussed in the full Senate.
