Last week, in Congress, the patent reform debate kicked into high gear with the movement of several bills aimed at curbing abusive patent litigation. In the House Judiciary Committee, “the Innovation Act” (HR 3309), which was introduced by Chairman Bob Goodlatte (R-VA) last month, went through the markup process on Wednesday. The final strong bi-partisan vote of 33 to 5 sent the bill to the House floor.
During markup, Goodlatte’s own manager’s amendment was included in the legislation. The most important aspect of this amendment was the removal of the Section 18 expansion of the covered business method (CBM) amendments. This pivot, made by the chairman, almost ensures passage of the bill in the House. The Innovation Act also seeks to crack down on patent trolls by including ways to lessen the burden of litigation on companies. CompTIA and TechVoice support the Innovation Act, particularly with respect to provisions that enhance end-user protection.
Moreover, an amendment made last week that provides courts with additional discretion relating to discovery and fee-shifting in respect to frivolous lawsuits is also a welcomed addition. While we seek stronger steps on this front, language was inserted by Congressman Jason Chaffetz (R-UT) requiring greater specificity in demand letters.
On the Senate side of Capitol Hill, Senators Patrick Leahy (D-VT) and Mike Lee (R-UT) introduced a bill targeting patent trolls. Known as the “Patent Transparency and Improvement Act of 2013,” this bill provides provisions that include greater transparency of patent ownership and customer-suit exception. It also addresses the issue of demand letters. While some may see Leahy’s legislation as more of a moderate approach to reform, the thought is that he will work with his Senate colleagues to incorporate more specific provisions. Particularly, he may look to work with Senators like John Cornyn (R-TX), Orrin Hatch (R-UT), and Charles Schumer (D-NY), all of whom have previous pieces of legislation that tackle these issues. CompTIA supports the steps Leahy has taken in addressing abusive patent litigation.
CompTIA and TechVoice wrote letters to Goodlatte and Leahy expressing support for both pieces of legislation. We expect legislation to move forward and take greater shape after the Thanksgiving holiday. The next step for the Goodlatte legislation is a vote by the full House, possibly before the Christmas holiday. In the Senate, the Leahy bill could move to the markup process soon, where other provisions will likely be added.
