September 17, 2009
Companies Tell Locke That Proposed Changes Could Harm U.S. Patent System
Reform under consideration in Congress would invite abuse
Washington D.C. – A group of nearly five dozen companies from across the country representing various sectors of the economy has asked U.S. Commerce Sec. Gary Locke for his support against Congressional proposals that would overwhelm an already struggling Patent and Trademark Office and invite abuse of the patent system.
In a letter sent to Locke’s office Monday, the group called attention to proposed changes to the post-grant review process that would invite large, deep-pocketed companies to subject valid patents to lengthy and expensive challenges repeatedly throughout the life of the patent.
Such abuse of the patent system would increase legal costs for patent holders, decrease certainty in a patent’s validity, and lower patent values for patent holders. It would particularly hurt small innovative companies and individual inventors who lack the financial resources to withstand repeat challenges to their patents by established rivals who might feel threatened by technological breakthroughs.
“Almost inherently, the basic patent examination function will suffer, with the result of longer patent pendency and lower patent quality,” the letter states. “We do not want that. The health of the PTO is extremely important to us, and we urge you to support no proposal which would undermine its core mission.”
"We believe there are appropriate reforms that could be undertaken internally at the USPTO. However, we strongly oppose any legislative attempt to weaken patent protection,” said William J. Jones, chairman of the Cummins-Alison Company, which makes and sells high-speed currency counting and counterfeit detection equipment used by banks, armored carriers, the gaming industry, retailers, and others throughout Alabama and the United States. “These changes will stifle American innovation by allowing those with deeper pockets to attack and tie-up valid patents. This is a time in our history when American businesses need more certainty, not more challenges.”
Brian Pomper of the Innovation Alliance stressed that these changes will impact all sectors of our national economy, including small inventors, established companies and universities.
“What people don’t realize is that strong patent protections are a critical factor in U.S. job creation. These are not small changes and our concerns are not hypothetical,” Pomper added.
“The U.S. patent system is the envy of the world and the cornerstone of the American entrepreneurial spirit. Any changes to the system need to be carefully considered and should be designed to enhance rather than undermine our global competitiveness,” Jones added.
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Read the letter here: