Hatch, Cannon propose changes in patent law

Senate, House bills aim to strengthen U.S. role in the global economy

Published: Tuesday, April 24, 2007 12:12 a.m. MDT
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WASHINGTON — A laptop computer can have about 3,000 patents working at one time, yet the last time Congress approved changes to patent law, the laptops consumers use today did not exist.

Sen. Orrin Hatch and Rep. Chris Cannon, both R-Utah, are sponsoring identical bills in the House and Senate that aim to make the first overall changes to patent law in 50 years.

While not everyone is happy with the legislation, almost everyone agrees changes are needed.

Patents protect people's inventions. From the basic, such as a flip-top cap on a tube of toothpaste — or the tube itself — to more complex items such as specific separate components of a cell phone, the key pad, a battery or the contents of a pill, patent issues are involved. If an inventor applies for and receives a patent for something, no one else can claim credit — or get money — for that item.

Companies have complained that litigation and damage awards have actually hindered research and development of new and better inventions. Complicated cases take up money and time that could be better devoted to coming up with new ideas and putting them into the hands of consumers, they say.

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Hatch said on the Senate floor last week that the bill is "designed to ensure that the United States remains at the forefront of developing and translating new ideas into tangible goods and services through an effective patent review and protection system. ... Patent law is vital to our nation's ability to compete in the global economy."

Cannon said this is one of the most important pieces of legislation Congress will tackle this year. Hatch and Cannon sit on their chambers' respective Judiciary Committees, which will take up the bills.

Simplified process

Patent law is a complicated issue, but at its most basic level the bills seek to make patents better and more adaptable, compared to what other countries are doing, as well as cut back on abusive and costly lawsuits, according to the measures' sponsors.

"Now, more than ever, it is important to ensure efficiency and increased quality in the issuance of patents," Hatch said. "This in turn creates an environment that fosters entrepreneurship and the creation of jobs, two significant pillars in our economy."

In his floor speech, Hatch noted that there are more than 3,200 technology companies and 500 in the life sciences, and they are experiencing 8 percent year-over-year growth in Utah. All deal with the patent process, he said.

"Utah leads the Western states region in creating and sustaining these companies," Hatch said.

But the bill, which is similar to legislation Hatch co-sponsored in the last Congress, basically pits software and technology companies against biotech and pharmaceutical companies, which want different types of changes.

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