Finally, Patent Reform Bill Becomes Law

President Obama has signed into law the Leahy-Smith America Invents Act (H.R. 1249) a bipartisan, bicameral bill that updates the patent system to encourage innovation, job creation and economic growth.

Both chambers of Congress overwhelmingly supported the proposal, which was sponsored by House Judiciary Committee Chairman Lamar Smith (R-Texas).  The House of Representatives passed H.R. 1249 by a vote of 304-117 earlier this year. The Senate passed the bill by a vote of 89-9.  Senator Patrick Leahy (D-Vermont) partnered with Chairman Smith on the legislation.  Congressman Smith led the House efforts on patent reform for more than six years.

“I am pleased to sign the America Invents Act.  This much-needed reform will speed up the patent process so that innovators and entrepreneurs can turn a new invention into a business as quickly as possible,” said President Obama. “I’m also announcing even more steps today that will help bring these inventions to market faster and create jobs. Here in America, our creativity has always set us apart, and in order to continue to grow our economy, we need to encourage that spirit wherever we find it.”

Chairman Smith (R-Texas): “The America Invents Act is one of the most significant job creation bills enacted by Congress this year. Our outdated patent system has been a barrier to innovation, unnecessarily delaying American inventors from marketing new products and creating jobs for American workers. It takes over three years to get a patent approved in the U.S.  American innovators are forced to wait years before they can hire workers and market their inventions.”

In a statement released on the occasion of the historic signing event, the White House said: “Passed with the President’s consistent leadership and strong bipartisan support, the America Invents Act represents the most significant reform of the Patent Act since 1952. It will give a boost to American companies and inventors who have suffered costly delays and unnecessary litigation, and let them focus instead on innovation and job creation.  These reforms were also a key recommendation of the President’s Council on Jobs and Competitiveness, which has been a strong advocate for patent reform as a way to support job creation and strengthen America’s competitiveness in the global economy.”

President Obama was joined at the signing by Acting Secretary of Commerce Rebecca Blank, US Patent and Trademark Office Director David Kappos, Ellen Kullman, CEO of DuPont and a Member of the President’s Jobs Council, John Lechleiter, CEO of Eli Lilly, as well as students from Thomas Jefferson High School for Science and Technology, Members of Congress who have been instrumental in passing the bill, and inventors and small business owners who will benefit from this reform.

Key Elements of America Invents Act

Summarizing the features of the new statute, the White House said that the America Invents Act will help businesses, inventors, and entrepreneurs in five immediate ways:

• A fast track option for Patent Processing within 12 Months: Instead of an average wait time of almost three years, the Patent and Trademark Office will be able to offer startups growing companies an opportunity to have important patents reviewed in one-third the time – with a new fast track option that has a guaranteed 12-month turnaround.  Patent ownership is a critical factor venture capital companies consider when investing in entrepreneurs hoping to grow their business.

• Reducing the current patent backlog: Under the Obama Administration, the patent backlog has already been reduced from over 750,000 patent applications to 680,000, despite a 4% increase in filings. The additional resources provided in the law will allow the Patent and Trademark Office to continue to combat the backlog of nearly 700,000 patent applications and will significantly reduce wait times.

• Reducing litigation: The Patent and Trademark Office will offer entrepreneurs new ways to avoid litigation regarding patent validity, at costs significantly less expensive than going to court.

• Increasing patent quality: The Patent and Trademark Office has re-engineered its quality management processes to increase the quality of the examinations and has issued guidelines that clarify and tighten its standards for the issuance of patents.  The legislation gives the USPTO additional tools and resources to further improve patent quality, and allows patent challenges to be resolved in-house through expedited post-grant processes.

• Increasing the ability of American Inventors to protect their IP abroad: The new law will harmonize the American patent process with the rest of the world to make it more efficient and predictable, and make it easier for entrepreneurs to simultaneously market products in the U.S. and for exporting abroad.  The Patent and Trademark Office has also expanded work-sharing with other patent offices around the world to increase efficiency and speed patent processing for applicants seeking protection in multiple jurisdictions.

Also See:

USPTO to Implement Inventor’s Oath or Declaration Provisions of the Leahy-Smith America Invents Act

U.S. Patent and Trademark Office Seeks Public Input on Proposed Fees

USPTO to Test New Post Final Rejection Option

USPTO Expands Patent Law School Clinic Certification Pilot Program

USPTO Launches Small Business Innovation Research Pilot Program