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Are Major Changes in Store for the U.S. Patent System? A Summary of the Pending Patent Legislation

By Roland H. Schwillinski and Benjamin Hershkowitz
January 05, 2006

In April, the House Subcommittee on Courts, the Internet, and Intellectual Property released draft patent reform legislation known as the “Patent Reform Act of 2005, HR2795.” This legislation proposes significant changes to the U.S. patent system that, if adopted, would in many respects transform the U.S. system and make it more akin to foreign patent systems. Calls for patent reform have been bandied about for a number of years, but recent criticisms of the U.S. Patent Office and the perception that it issues too many questionable patents appear to be driving the latest proposed reforms. It is worth noting, however, that a number of commentators have suggested it is not the present statutory scheme but instead the lack of adequate funding that is the main culprit behind the increase in the issuance of poor quality patents.

Congressman Howard L. Berman (D-CA) ' a co-sponsor of the legislation ' states that the proposed changes are “designed to improve patent quality, deter abusive practices by unscrupulous patent holders, and provide meaningful, low-cost alternatives to litigation for challenging patent validity.” House hearings on the legislation were held in April, and the subcommittee again held hearings in June and September. Highlights of the proposed legislation are set forth below.

Adoption of a First-to-File System

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