Committee Action on Patent Bill a Victory for Innovation and U.S. Economy Alike, CCIA Says

File Under: News, 2007, CCIA

Jul 18, 2007

The House Judiciary Committee’s passage today of the Patent Reform Act of 2007 promises a better future for U.S. innovators and a revitalization of the intellectual property system that is critical to the nation’s economy.

The Computer & Communications Industry Association urges swift passage of the measure by both chambers of Congress so that the President may sign it into law.

Today’s vote reaffirms that intellectual property law must not simply enrich rights holders but, as the Founders themselves wrote, “promote the progress of science and useful arts.” Today’s action is a step towards restoring balance to the patent system, rewarding those who create and hindering those who would abuse the system for unjustified gain.

The Patent Reform Act promises to check the proliferation of questionable and low-quality patents, as well as the ease with which such patents can be exploited in litigation. CCIA applauds its provisions for post-grant review, which will improve patent quality and provide a cost-effective alternative to litigation. Countless dubious IT patents are already on the books, and the Patent and Trademark Office (PTO) issues thousands more every month. Because innovators cannot feasibly evaluate the quality, business intent and applicability of every patent issued, the post-grant review provisions create an efficient procedure for verifying the legitimacy of patents.

We wholeheartedly support the bill’s provision on apportionment of damages, which sets up a common sense framework for giving the inventor what he or she is entitled to, not more nor less. High-tech products and services often include hundreds, sometimes thousands of possibly patentable functions. Too often current law results in damages that are wildly disproportionate to the relative economic contribution of the patent.

The U.S. economy relies on IT for basic business processes and for research and development. As innovative creators of IT products and services, our members seek and own patents but, as is characteristic of complex technologies, also license the technologies of others. As both creators and users, our members experience all sides of patent disputes. We believe in the balance, fairness and efficiency that this legislation is designed to restore. CCIA congratulates the Judiciary Committee for its two years of intensive work and careful compromises that produced this groundbreaking legislation. We look forward to working with the entire Congress to see this effort through to completion.