The Senate is set to consider legislation that some independent inventors fear will reshape the U.S. patent system in favor of big corporations.
The sweeping bill would force some inventions to be made public before they are fully protected by a patent, tamper with the basic concept of a patent granting exclusive property rights to a patent holder, and loosen congressional oversight of the U.S. Patent and Trademark Office.
"From a large company's point of view, it can be beneficial, but for independent inventors, it's deadly," said Kevin Delaney, president of the National Patent Assn. in Washington.
The House has already passed the bill, HR 1907. Given the pitched battle that has been waged by supporters and critics of the legislation, patent reform is unlikely to sail through the Senate on this, its third swing. But observers say recent compromises mean some form of patent legislation may be passed this session.
Some of the largest corporations in America, including IBM Corp., Ford Motor Co. and Monsanto Co., are determined to change what they consider an antiquated federal patent system. U.S. patent laws, which have undergone only one major overhaul, in 1953, were first written in the late 1700s.
The big companies that make up Intellectual Property Owners and the 21st Century Patent Coalition, which claim to account for 30% of patents issued by the U.S. Patent and Trademark Office, want speedier access to information about inventions, protection of trade secrets from patent holders and a more efficient patent office.
Patent reform legislation, which would move U.S. patent laws closer to those of Japan and many European countries, is important to U.S. companies' ability to compete in a fast-paced global market, according to the legislation's proponents.
Many small companies and individual inventors disagree. They worry about the growing influence of big business, including biotech and high-tech companies, on the patent system. They say legislation such as HR 1907 will make it more expensive and risky for individuals and small entities to try to patent their ideas, thus squelching the very innovation the U.S. needs in the global market.
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Here's a brief look at key parts of the bill:
* Inventors' rights: One of the few parts of the bill that is not controversial, it is meant to protect individual inventors from bogus invention-promotion firms. It would require an invention promotion service to disclose how many customers earn more money from their inventions than they paid to the promotion service and how many customers were able to license their inventions with help from the firm.
