Congress Considering Reforming Patent Laws
 
September 1, 1999
 

The American Investors Protection Act of 1999, H.R. 1907, passed the House on a roll call vote on August 5, 1999, and awaits Senate action. This bill is the resurrection of previously defeated bills in the Senate concerning certain areas of patent reform. It was stated by the sponsor, Rep. Coble, that the previous Senate objections have been taken care of and should receive more favorable consideration in the Senate.

This 105-page bill limits the first-inventor defense solely to a class of rights dealing with "methods of doing or conducting business." Congress explicitly intends in this bill, not to create a first-inventor defense or prior user rights for any other process, method, product or other statutorily recognized class of patentable rights. The bill will also grant the opportunity to collect royalties from the time the patent application is published. Diligent inventors will get a minimum patent term of 17 years.

Small businesses will be protected if they are first to invent and use a process so they don't have to pay others who usurp their technology and patent it. The publication of U.S. Patent Applications by foreigners will be immediately published in the U.S., eliminating the 18 month publishing period that gives an advantage to foreign corporations. The bill also improves the PTO re-examination procedure by permitting a third party ("inter parties re-examination") to request a re-examination but that the third party waives the right to appeal if they lose. If the inventor loses, the inventor may still appeal to the Federal Circuit.