A WELCOME REFORM

The United States Senate has taken a significant step toward addressing the longstanding issues within the patent system. Senators Chris Coons (D-DE) and Thom Tillis (R-NC) have introduced two crucial bills aimed at revitalizing the struggling U.S. innovation system. As chair and ranking member of the Senate subcommittee on Intellectual Property, they are well-positioned to drive these bipartisan bills forward.

Restoring Patent Eligibility:

One of the bills focuses on restoring patent eligibility and expanding the scope of inventions that can be patented, provided they meet other requirements of patent law. This legislation seeks to clarify and rectify the confusion and limitations brought about by Supreme Court decisions such as Mayo, Myriad, and Alice, which were issued a decade ago. The aim is to encourage increased investment in research and development (R&D), particularly in advanced technologies. Notably, this reform is critical for software technologies, as it would remove uncertainty and enable the protection of advanced software applications without compromising the breadth of patent claims.

Improving PTAB Practices:

The second bill addresses the flaws in the Patent Trial and Appeal Board (PTAB) by aligning its standards with those applied in the courts. Under the proposed legislation, future reviews conducted under the America Invents Act (AIA) would require standing and clear and convincing evidence while discouraging repetitive challenges. Currently, the number of challenges at the PTAB has far exceeded expectations and is not limited to clear-cut cases. Moreover, these challenges heavily rely on expert testimony, leading to an impediment to accessing the court system, with 88% of cases already pending in court. This skewed procedure has predominantly favored major tech giants, who have used it to overwhelm smaller competitors and significantly delay trial proceedings. The proposed bill aims to level the playing field, providing stronger positions for tech startups against these industry giants, ultimately resulting in higher valuations and increased merger and acquisition opportunities.

Decisive action from Congress is urgently needed to bolster innovation and enhance the competitiveness of startup companies. By supporting these reform bills, lawmakers can create an environment that fosters technological advancement and economic growth. It is crucial that we prioritize this issue to secure a brighter future for the nation’s inventors, entrepreneurs, and technological leadership.