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Rep. Steny Hoyer

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Speeding Up the Patent Process

Posted: 09/16/11 10:03 AM ET

The patent that led to the telephone was approved in one month. The patent that led to the cell phone, as former White House economic advisor Austan Goolsbee recently observed, was approved in three years. Today, patents are held up for even longer -- and jobs and growth are held up with them. At this moment, more than 700,000 patents are caught in the backlog. Could one of those 700,000 new ideas be the next iPhone, the next breakthrough drug, the key to the next great American industry? We'll have to wait a long time to find out.

With millions of Americans still out of work, Democrats are working to advance a plan to rebuild American industry and create the solid, middle-class jobs our country needs. We call it the Make It In America plan: it's a legislative program to help American businesses stay here, grow here, build more products here, and sell them to the world. And a crucial part of that effort is ensuring we are the world's leader in innovation, so that we can outpace our competitors and stay at the job-creating forefront of the world economy. America is still the world's most innovative country -- but it's a sobering fact that Japan has recently overtaken us in patent applications. China, too, is on pace to overtake us soon. If we want to regain our innovation edge, we have to make it easier for American inventors to patent new products here and manufacture them here.

That's why it's so important that President Obama will today sign into law the America Invents Act, the most significant patent reform in half a century. It's also the first Make It In America bill to become law this year. If we want to put more Americans back to work, it can't be the last.

The America Invents Act creates a markedly more efficient patent system. It significantly reduces the backlog of ideas by hiring more patent examiners, modernizing technology in the Patent and Trademark Office, and speeding up the review process. It also institutes a new, "first-to-file" system for resolving disputes over priority. Such disputes have often been bogged down in costly, time-consuming legal cases. But this new legislation cuts down on that litigation by asking a simple question: who filed for a patent first? While the old system was weighted in favor of the largest corporations with the biggest legal teams and the most money to burn, the new system levels the playing field for small businesses and individual inventors, the kind of people who gave us revolutionary ideas like the personal computer.

Speeding up the patent process will get American ideas to market faster, and that unlocks tremendous opportunities for our economy to grow. But a wealth of other innovation-promoting ideas are also part of Democrats' Make It In America plan, and Congress should build on this success by passing more of the plan into law.

We should expand and make permanent the research and development tax credit, so that companies have stronger incentives to invest in new technologies here at home.

We should promote high-tech, advanced manufacturing by passing the JOBS Act, which builds job-training partnerships between colleges and advanced manufacturing businesses. These partnerships will help more Americans find job opportunities in fast-growing fields -- and help American businesses satisfy their demand for workers without looking overseas.

We should create a more efficient corporate tax code, with lower rates and fewer loopholes. That would help businesses make decisions based on their best economic judgment, not based on maximizing their tax deductions.

And we should keep pace with international competitors by creating a National Infrastructure Development Bank. It would leverage private investment in much-needed projects from energy delivery systems to broadband networks to modern ports, projects that would create jobs in the short term while laying the foundation for long-term growth.

There's no doubt that America still has the qualities that made its economy the strongest in the world -- the work ethic, the competitive drive, and the innovative spirit that have made this country great. I believe in the Make It In America plan because it's the best way of putting those qualities to work, so that we can out-build, out-educate, and out-innovate our competitors. Today's far-reaching patent reform is a big step in the right direction. And I can't wait to see the American innovations that come to market faster as a result.

 
 
 
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oilfield
large employer per obamacare
11:12 PM on 09/18/2011
the guy with the deepest pockets will still win in the patent wars.....how will this help the little guy?
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mrclark
I search for the America I believed in as a boy.
09:02 AM on 09/18/2011
All hail the power of "special interests" which control both parties and help them right bills that are not in the peoples best interests.
04:55 AM on 09/18/2011
There is a way around the American Patent laws. File for your patent in Canada which has a "first to file recieves the patent" rule. The NAFTA agreement recognizes any patent filed in one country automaticly makes it legal in the other. You don't even have to file through the cumbersome USPTO.
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LunaPark
Don't believe it until it's officially denied
08:25 PM on 09/17/2011
This will have the opposite effect. Shows how completely out of touch the politicians are. Ask any Engineer in Silicon valley; patents destroy start ups. Actually, you don't have to ask, NPR already did...

http://www.npr.org/2011/08/26/139924549/patent-wars-could-dull-techs-cutting-edge

Note that someone was even granted a patent on toast in 2001.
01:19 AM on 09/18/2011
I disagree. I'm in Silicon Valley, have quite a few startups under my belt, am doing another, and yes we file patents too.

I do see areas where there is busy IP space, but we think there are many ways to work around problems. Also, just because there is a patent doesn't mean you can't license it.
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hrpmap
Retired man still active..
04:21 PM on 09/17/2011
orrection! The next big Chinese industry.
07:34 PM on 09/17/2011
not really. China doesn't honor patents.
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Bill Duckworth
It is a DOOZY
09:26 AM on 09/17/2011
Patting ourself on the BACK for being the greatest is so dam trite. We are what we and we are nothing else. Droning the world makes you a DRONER, Taking the LAND for Indians and Mexicans makes us Land Barons. Invading Iraq and Aghanistan make us INVADERS , OCCUPIERS and INSURGENCE

Creating a smother and quicker process does not address the Patent problem IMO. Graham Bell was one of the Worlds greatest inventors BEFORE he found there was more money in having a Patent than INVENTING ANYTHING.

We all no this to be true. Reward the GENIUS and not the CLEVER and a better process for the CLEVER and not the GENIUS
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lipps
Snopes is going to be busy editing errors soon
11:56 PM on 09/16/2011
I am skeptical... What kind of damage does this law do to the little guy?
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hrpmap
Retired man still active..
04:22 PM on 09/17/2011
Makes it useless for him to develop an idea.
07:37 PM on 09/17/2011
B.S.
Do you have any patents? I do.
Have you raised money for a startup based upon your patents? I have.
I'm doing it now.
Yes, I'm a little guy who then assembled a little team which raised a little money and buil a functional prototype that is creating a freaking HUGE NEW TECHNOLOGY that if you're a 1 in 3 chance of being needed in your lifetime to save your life.

You may see it featured in the next few months on TV news shows, not ads, but the press beating down our door due to our scientific publications and patent applications.

That's why small guys can be the big guys
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Robert SF
09:55 PM on 09/16/2011
So what if the patent for the next iPhone is hung up in limbo? Since when do patents benefits ordinary Americans? How is America a better place to live because of the iPhone?
07:40 PM on 09/17/2011
Uh Robert, next time you head to the doctor because you have diabetes, COPD/asthma, hypertension, cancer, or myriad other medical conditions your life is likely to be extended by medical devices, drugs and methods developed by inventors in the U,S.

The iPhone is like Lady Gaga, it gets a lot of attention but at the end of the day it's just another attractive time waster. (with minor apologies to my former Apple coworkers)
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09:31 PM on 09/16/2011
Sadly, almost half of US patents are granted to inventors who assign their inventions to foreign corporations. To make matters worse, a large percentage of US patents are granted to a human who has not solved a well-known and difficult problem in a new way, but rather, is the first to study a new problem. Through clever claiming, the assignee is able to claim all of the future potential solutions to the new problem. The resulting patent monopoly exists for twenty years, or more through re-issue patents. The first-to-file rule, which has already been the de-facto informal policy at the US patent office and in the courts for many years, creates a justified incentive for a corporation to hire a large number of foreign engineers to file US patent applications. These corporations will enjoy the rewards of a US monopoly for two or more decades on each patent. In effect, this patent regulation is just another step in the eventual control of worldwide human intellect to the benefit of the humans who own corporations, foreign or US. Arguably, patent assignment and first-to-file laws are unconstitutional, because the constitution only grants a limited monopoly to the human who makes the discovery. Humans must retain their natural right to independently innovate and practice their discoveries, if the human species is to survive.
02:21 PM on 09/17/2011
Have you created any patentable idea, filed a patent, had it issued, raised money to build it, created a company, built the company, obtained customers, and then sold the company and the patent?

I've done it several times. I've also sat in many courtrooms during patent litigation and working with expert witnesses to clarify the points for summary judgment motion or long term litigation where the parties mutually create a bonfire that uses lawyers to throw $5-10 million to stoke the flames of litigation over 4-5 years.

I can flip your argument 180 degrees and say "What prevents US companies from hiring lots of engineers...." which is what we have done here as well.

I had a discussion yesterday with a patent litigator about this topic and several patentable technologies our team is developing. At the end of the day it will little change what we've been doing for several decades. There will be greater parallel between US and EU patent law. But in Europe we deal with Civil Law no Common Law.

We will find that patent mills attend scientific conferences and race out to file a patent. We will then discover a few years later that their patent has been issued with no supporting understanding of the science, technology or innovation. At which point we can respond to their attorney with a big raise middle finger (my favorite) or we can pay to be mugged again and again.
09:02 PM on 09/17/2011
Imagine what you could do without having to waste all your time dealing with patents. Just build the product and serve your customers and you will do well.
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ZeraLee
A Citizen's View from Main Street
08:55 PM on 09/16/2011
I agree with everything except the first-to-file, which favors the bureaucrat over the inventor. It is now open season on stealing ideas, which will inevitably bog down the creative aspects of the invention process as inventors now must observe extraordinary secrecy in the invention process. Precisely the opposite of what the Patent process is intended to do.
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09:37 PM on 09/16/2011
Species survived on the planet because they copied the best ideas of their members. Humans selfishly fight each other over the ownership of an idea and will suffer as a result.
10:56 PM on 09/16/2011
You're right. While those inventions are in the patent process, they are leaked to foreign intellectual property thieves who take it to a foreign country and manufacture them as original ideas. A lot more is going on than people know.
06:49 PM on 09/16/2011
Here's all that needs to be said:

"It really doesn't create jobs for anybody except maybe patent lawyers," says James Besson, a lecturer at Boston University School of Law and a fellow at Harvard's Berkman Center on Internet and Society.
06:47 PM on 09/16/2011
This as a serious growth issue is totally laughable and shows you've basically run out of ideas . . .
07:42 PM on 09/17/2011
No, you're totally clueless and one doesn't need a 150 IQ to discern you've never filed a patent or perhaps had an original idea.

Patents and intellectual property (IP) protection is a key American value going back to Ben Franklin. IP protection was a fundamental part of the US constitution enabling the little guy to be on par with the big guy.
09:10 PM on 09/17/2011
Intellectual Property is an oxymoron. Property by definition is a scarce resource. If I take your property you cannot have it. IP is really just a government granted temporary monopoly. Ideas are not property. I can take your idea without you losing it.

The US Constitution also allowed slavery but we fixed it. We soon will with this concept of IP as well.
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JackWhistle
01:32 AM on 09/18/2011
I'd just like to point out first that I've read a bunch of your posts and you are obviously quite knowledgeable on the patent system. The real complaint (at least mine) isn't the basic concept, it's the current BROADNESS with which these patents are applied. The result of years of erosion on the original concept. Its a design problem not a conceptual one. You're the original thinker, :P fix it! Or at least that is the way I perceive the situation. If you truly think that is not a realistic concern, please inform me. I will do more research into the subject.
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ameriki00
04:22 PM on 09/16/2011
There will be patents for air and windows and belts. Has anyone patented the tin can telephone yet?
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KenGirard
"American" is my religion. I have faith in it.
03:22 PM on 09/16/2011
Seems to me first-to-file means all I need to do is come up with an idea, file it, and wait for someone else to figure out how to make it work. After they do all the R&D, studies to prove it is safe, testing, marketing... then I can show up and tell them they owe me big bucks for using my idea.
Take a look at Penn Gillet's patent. All he did was move a jet in a hot tub to a new location in the tub so that it was easier for it to be used in a way it has being used since jets were first put in hot tubs. Wow, obviously.
Wonder if I can get a patent on the idea of marketing black clothing to Goth kids?
07:45 PM on 09/17/2011
Not quite. THere are many ways to litigate a patent.

Marketing is not patentable. However, you can file trademarks or copyrights which are other forms of intellectual property that could apply to Goth clothing.

First to file simply gets you to the head of the line. Do you have enablement? (does it work?) can you demonstrate how to make it work? What about composition of matter - is yours the same as mine?
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02:44 PM on 09/16/2011
What politicians get money for stopping or pushing patent reform will tell you if it is good for Amrerica.
07:46 PM on 09/17/2011
And your point is?

There are actually bipartisan support from people on both sides for this. It has its drawbacks, but overall it can be made to work.