The Immediate Effects of Ratification of the Patent Reform Act of 2011

Author: Andre

Despite President Obama's commitment to make innovation a serious priority in the US, and despite his penchant for ensuring the long-term competitiveness of America, the President is supportive of legislation that will seriously hinder innovation and R&D in America. This bill is the Patent Reform Act of 2011.

The proposed legislation will have the opposite effect than the one intended by its supporters, as unfortunately, the Act will send jobs overseas while it defers innovation. The following are examples of the problems with the current proposal:

New fees will be collected, but all of them will not be used by the Patent Office! Last year the U.S. Patent and Trademark office collected over $50 million in fees in excess of the agency's 2010 authorized budget. However, the USPTO could not use these extra fees as the office only could spend its authorized budget (as set by Congress). The funds over and above the agency's spending limit went elsewhere and were used by the Treasury for other projects. This practice taxes innovation and uses the proceeds to pay for other governmental functions.

The United States has always used a "first-to-invent" system, where a patent naturally goes to the first person who actually invents a product. If two separate parties file for the same invention, the party who actually invents it first will get the patent. In other countries, a "first-to-file" method is used. This causes would-be inventors to rush to patent offices with poorly devised applications, merely so that they could be first. The American "first-to-invent" system is rooted in the US Constitution, and the Patent reform Act of 2011 would drastically alter it.

The Act also includes provisions that can devalue patents by designating judges as gatekeepers. Under the Act, judges would be required to prevent juries from punishing a patent infringer with large judgments.

The proposed Patent Act of 2011 also attempts to make it more difficult for legitimate patent holders to prove willful patent infringement in order to receive damages. Since this will benefit infringers and will give them fewer reasons to settle out of court, the courts will become clogged with many cases and much litigation.

False patent marking lawsuits would be prohibited, except for those filed by the US Government, or by a competitor who could actually prove competitive injury. This again devalues innovation by a general weakening of patent law.

Post-grant review would be initiated. Although this is said to create a way to evaluate a patent's validity more cost effectively, in actuality it would add more work to the already overburdened Patent Office and likely increase the already large patent backlog.

The patent process is already expensive, and anything that drives up the costs of obtaining a patent will diminish intellectual property rights as many inventors will simply abandon their plans. The Patent Reform Act of 2011 will hinder the process of innovation.

Article Source: http://www.articlesbase.com/patents-articles/the-immediate-effects-of-ratification-of-the-patent-reform-act-of-2011-4888319.html

About the Author

The America Invents act stands to change the playing field for all inventors.