Posts Tagged: "115th Congress"

This week on Capitol Hill, the Senate appropriations Committee will hold a hearing on efforts leading to advanced nuclear reactor technology while the Senate rules committee will consider a bill that would amend the nomination process and the required qualifications for the Register of Copyrights. Over in the House of Representatives, hearings on artificial intelligence applications for national defense, Google’s data collection practices and a recently passed bill for bridging the digital divide will also take place this week.

This week on Capitol Hill is another light one in terms of hearings focusing on topics related to technology and innovation. Although the House of Representatives is in session all week after the Columbus Day holiday, there are no hearings scheduled for the week as of Sunday,  and the House is about to enter a few weeks’ worth of district work periods. In the Senate, the Commerce Committee convenes a hearing to look at recent consumer data privacy laws passed in Europe and California, and the Banking Committee explores the potential of blockchain and cryptocurrencies in the national financial system.

This week in Capitol Hill hearings focuses solely on meetings happening at the U.S. Senate. The one hearing scheduled at the U.S. House of Representatives, which was to explore whether the Federal Communications Commission (FCC) was addressing small business concerns regarding 21st century telecom systems, has been postponed to a later date. In the Senate, the Commerce Committee will hold hearings on automated system for rail vehicles and challenges in the creation of rural infrastructure for broadband Internet. The Indian Affairs Committee is also exploring broadband challenges and the Superfund Subcommittee will discuss the Environmental Protection Agency’s (EPA) implementation of science transparency rules.

One panel witness, Rachel King, CEO of the Rockville, MD-based biotech firm GlycoMimetics, said that she was greatly concerned by the effects of the IPR process and how it weakens the company’s ability to enforce its own patents. “There are very few areas of the nation’s economy that are as dependent on patents as the biotechnology industry,” King said. “Our investors rely on the strength of patents in order to make investments in companies like ours and we need to make sure that these rights are robust and enforceable.” King was very supportive of the STRONGER Patents Act as a piece of legislation that properly addresses the current deficiencies with the IPR process.

Congresswoman Lofgren is now opposing a rule change she previously endorsed as an original co-sponsor of a bill that would have changed the claim construction rule in exactly the same way proposed by Director Iancu… But how is adopting a rule that would have already been the law had Lofgren had her way possibly frustrate or disregard Congress? Of course, we aren’t supposed to ask that question. Once the “patent troll” boogeyman card is played everything else is supposed to fade away.

On the morning of Wednesday, July 11th, the House Small Business Committee held a hearing titled Innovation Nation: How Small Businesses in the Digital Technology Industry Use Intellectual Property. Though the witness panel was not quite as one-sided as those seen testifying in front of the House IP Subcommittee in recent years, an informed observer could not help but conclude that yet another opportunity to seriously address the damaged state of the U.S. patent system was missed to the detriment of many of the small businesses which the committee purports to protect.

New patent legislation would rectify some of the damage done by several court rulings and by Congress.  It would reestablish the fundamental constitutional principle that a U.S. patent secures certain rights in private property. Reps. Thomas Massie (R-KY) and Marcy Kaptur (D-OH) have introduced H.R. 6264, the Restoring America’s Leadership in Innovation Act.

Late yesterday, Senator Orrin Hatch (R-UT), co-author of the Hatch-Waxman Act, filed an amendment in the Senate Judiciary Committee to address what many characterize as abusive inter partes review (IPR) filings relating to brand name pharmaceuticals. According to Senator Hatch, his amendment is intended to restore the careful balance the Hatch-Waxman Act struck to incentivize generic drug development. The Hatch-Waxman Act encourages generic drug manufacturers to challenge patents of brand name drugs by filing Abbreviated New Drug Applications with the Food and Drug Administration, which can and typically does result in patent infringement litigation in federal district court.

Earlier today USPTO Director Andrei Iancu testified at an Oversight Hearing before the House Judiciary Committee. In addition to detailing forthcoming changes to post grant proceedings, Director Iancu fielded many questions on patent eligibility. “The issue is very significant. It is significant to the Office, to our applicants, and it is significant to the entire industry,” Iancu responded to Congressman Collins. “In some areas of technology, it is unclear what is patentable and what is not, and that can depress innovation in those particular areas. Our plan at the PTO is to work within Supreme Court jurisprudence to try and provide better guidelines. What we think is in and what we think is out, and provide, hopefully, forward looking guidance that helps examiners and the public understand what at least from the PTO’s point of view we think is right.”

Why did the Supreme Court intentionally destroy the U.S. patent system? That is a question many have been asking themselves in the wake of more than a decade of dubious decisions that continually erode patent rights and limit what is patent eligible… It is because of the Supreme Court that high-tech startups are unable to obtain patent protection necessary to attract investors… Investors simply aren’t interested in many U.S. high-tech startups because they know many patents in the software, biotech and medical arenas are extremely difficult to obtain, and even if obtained will be impossible to keep thanks to the curtailing of what is patent eligible by the Supreme Court… It is time for Congress to take control of America’s patent policy and legislatively reform Section 101.

“Let’s talk a bit about intellectual property rights,” Undersecretary of Commerce and Director of NIST Walter Copan said at the LES Silicon Valley conference on Wednesday, April 25, 2018. “IP rights are American property rights.” This simple, declarative statement by Director Copan was as important as it was direct. These words were spoken on the morning after the United States Supreme Court issued its decision in Oil States v. Greene’s Energy, which rather than saying patents are a property right instead called patents merely a “government franchise.”

Interestingly, in the history of the entire CBM program, only three petitions have ended with final written decisions upholding all claims as valid. That’s 1 percent of all CBM petitions ultimately resulting in a final decision in favor of the patent owner… If Congress enacts legislation to mix the CBM program with IPRs and PGRs, which Rep. Issa seemed to contemplate during the hearing, then you just get the worst of both worlds: an environment in which any person could challenge any patent on the widest number of statutory grounds, and it all happens outside of the federal judiciary without a jury trial.

Earlier today Congressman Darrell Issa (R-CA), announced that he will not seek re-election in 2018 and will retire from Congress. Issa, who currently Chairs the House’s Judiciary Committee’s Subcommittee on Courts, Intellectual Property and the Internet has been an outspoken advocate for the need for more patent reform… If Republicans hold on to a majority in the House it seems likely that Congressman Doug Collins (R-GA) will take over as Chair of the House IP Subcommittee. Collins, an ally to inventors and creators, is currently Vice-Chair of the House IP Subcommittee. If Collins is granted the gavel that would be good news for patent owners and those generally supportive of strong intellectual property rights.

First, I predict that the United States Supreme Court will find post grant procedures under the America Invents Act to be unconstitutional. It is my belief they took Oil States not as a patent case, but rather as an Administrative State case, and if that is correct this could be the first in a series of decisions over a number of years that will pull authority back from the growing Administrative State and toward the Judiciary. Second, in the event the Supreme Court does not declare post grant challenges unconstitutional, I predict the new USPTO Director will substantially modify PTAB rules and procedures, making them more fair and balanced. Third, again assuming my first prediction is incorrect, I predict the PTAB will continue to ignore Eleventh Amendment immunity and will likewise rule Indian Tribes do not deserve to claim sovereign immunity when in front of the PTAB. This will set up a showdown at the Federal Circuit that will ultimately be settled by the Supreme Court, likely in 2019. Finally, I predict there will be continued discussion about patent reform, with the conversation becoming increasingly pro-patent as Members of Congress continue to see undeniable proof that the U.S. patent system is regressing while the patent systems of the EU and China are on the rise. More specifically, I predict that the U.S. will fall out of the top 10 for patent protection in the annual Chamber IP Index, which will send a shockwave through the Capitol.