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California Patent And Trademark Registration Reform

calbar.ca.gov, May 09, 2006

U.S. House of Representatives is considering legislation that may have far-reaching effects on United States patent law

Update on Pending 2005 Patent Reform Legislation

As you may be aware, the U.S. House of Representatives is considering legislation that may have far-reaching effects on United States patent law.  The changes proposed in the legislation, known as H.R. 2795 (the "Patent Reform Act of 2005"), affect not only the process of patent prosecution, but also litigation and other areas of patent law.  This legislative update is therefore provided by the Executive Committee of the Intellectual Property Section of the State Bar of California as a service to the members of the Section.

Since the legislation is still pending, we encourage you to contact your congressional representatives with any input you may have.  California Congressman Howard Berman is the ranking minority member of the House Subcommittee on the Courts, the Internet, and Intellectual Property. Other members of the Subcommittee from California include: Adam Schiff; Elton Gallegly; Darrell Issa; Zoe Lofgren; Maxine Waters; and Linda Sanchez.

Status

H.R. 2795 was introduced by Representative Lamar Smith of Texas on June 8, 2005.  The bill is currently undergoing hearings in the House Judiciary Committee's Subcommittee on the Courts, the Internet, and Intellectual Property. The current text of the proposed statute was introduced by Chairman Lamar Smith of Texas on July 26 as an Amendment in the Nature of a Substitute to H.R. 2795. The Subcommittee held a hearing on this version on September 15.

Congressional experts expect it will likely pass in some form, although all provisions are still subject to change, and the timing of its likely passage is subject to some debate.

Summary of Some of the Major Changes Proposed in the 2005 Patent Reform Act , as modified in the July 26, 2005 amendment:

  • First to file : The current U.S. system of "first to invent" would be changed to a more globally-harmonized "first inventor to file."
  • Prior User Rights : The existing provision on prior user rights may be extended to non-commercial users.
  • Post-Grant Opposition Procedures : The legislation proposes a new opposition period after grant, similar to the EPO style. 
  • Limitation on Enhanced Damages for Willful Infringement .
  • Elimination of the Best Mode Requirement .
  • Damages to be limited to the inventive contribution rather than being calculated on the sales price of an entire combination
  • Elimination of inequitable conduct claims in litigation in favor of investigation by the Director of breaches of redefined duty of candor
  • Preissuance submissions of prior art by third parties
  • Limitations on venue for infringement actions

     

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