Patent Reform Bill Passes Congress
On September 8, 2011, the U.S. Senate passed and sent on to the White House the patent reform bill referred to as the “America Invents Act.” It passed the House this past March. President Obama is expected to sign it into law.
A stated purpose of the bill was to bring U.S. patent law into harmony with the patent laws of those countries that grant patents to the entity that is first to file rather than the first to invent. The U.S. Patent and Trademark Office (USPTO) says that issuing patents to the first person or company to file for the patent will bring clarity to the process by preventing inventors from coming out of the woodwork to challenge pending patents. Practically speaking, a switch to first-to-file will favor companies which treat the acquisition of patents as a core part of the inventive process.
The new law makes many other changes especially in the area of government fees to be charged. The USPTO is now authorized to set its own fees. The law allows it to increase its fees by 15% ten days after the law takes effect. Allowing the USPTO to increase its own funding may alleviate some of the backlog of patent examination.
The new law also does away with lawsuits based upon a patent owner’s failure to remove expired patent numbers from the patent markings on its products, so-called “false marking.” Also, private parties will no longer be able to share in penalties for other acts of false marking.
There are many other substantive changes in the patent law embodied in the bill including, for example:
- Assignees will now be allowed to file patent applications.
- Post-grant USPTO proceedings, especially ex parte reexamination, have been amended, and inter-partes reexaminations have been abolished. The patentee may also request “post-grant review” to consider all grounds for invalidity.
- Failure of an applicant to disclose the “best mode” for practicing the invention will no longer be grounds for invalidating the patent.
The various changes do not come into play all at once. Some do not become effective for sixty days after the President signs, and others not for a year.
Tom Nikolai (612) 392-7307 Tom.Nikolai@nm-iplaw.com
