WASHINGTON (Legal Newsline) – Federal lawmakers argued at a hearing Wednesday, held to discuss patent reform, that action must be taken to rein in so-called “patent trolls,” but agreed they must find the right balance.
“Almost everyone agrees this is a problem and a drag on our economy,” said U.S. Sen. Chuck Grassley, R-Iowa and chairman of the Senate Judiciary Committee. “But, there are those concerned that certain proposals could undermine the ability of legitimate patent holders to enforce their patent rights. They maintain that recent Supreme Court decisions on pleading standards, fee shifting and patent quality, as well as actions by the Federal Trade Commission and U.S. Patent and Trademark Office, have largely taken care of issues and comprehensive legislative action is unnecessary.
“I don’t dispute that we should preserve patent rights and valid patent enforcement tools. We do need to strike the right balance.”
Grassley
But Grassley said Congress should act “decisively” if it wants to alleviate the problems that are harming both small and big businesses.
“This will strengthen our patent system and benefit inventors, businesses and consumers alike,” he said at the panel hearing, “The Impact of Abusive Patent Litigation Practices on the American Economy.”
U.S. Sen. Patrick Leahy, D-Vt. and the ranking member of the committee, agreed there must be some compromise.
“Many have raised concerns that, if taken too far, litigation reforms like those in the House-passed Innovation Act would harm legitimate patent holders when they enforce their rights in court. I agree we must find a balance,” he said, adding that “abusive practices by bad actors are a discredit to our strong patent system, and it is in no one’s interest that they continue.”
Among those witnesses testifying before the panel were: Brad Powers, general counsel for KINZE Manufacturing Inc. in Iowa; Hans Sauer, deputy general counsel for intellectual property for Biotechnology Industry Organization in Washington, D.C.; Steven E. Anderson, vice president and general counsel for Culver Franchising System Inc. in Wisconsin; Dr. Michael R. Crum, vice president for economic development and business engagement at Iowa State University; and Krish Gupta, senior vice president and deputy general counsel for EMC Corporation in Massachusetts.
To read their complete testimonies, click here.
U.S. Sen. Chris Coons, D-Del., introduced the STRONG Patents Act earlier this month. On Wednesday, he cautioned his fellow lawmakers against enacting sweeping reforms.
“Our economy depends on American innovators to turn their ideas into new companies and new jobs. Patents protect those jobs, but almost everyone agrees that America’s patent system needs to be updated to stop abuse from patent trolls and help job-creating inventors,” said Coons, who is a member of the judiciary committee.
“The problem is that too many advocates for patent reform believe the only way to stop those abusing the system is to weaken protections for inventors.”
Weakening patents means weakening investments in research, and making it more difficult for inventors to find the investment capital they need, he said.
“America’s patent system needs to work for all inventors, and it shouldn’t be carved up to benefit certain industries over others,” Coons said. “Instead, we need a patent system that works for everyone, so Congress should have a real debate over the best way to fight against patent trolls while protecting the inventors our economy relies on.”
The Senate Small Business and Entrepreneurship Committee planned to hold its own hearing to discuss patent reform Thursday.
From Legal Newsline: Reach Jessica Karmasek by email at [email protected].
