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{{#section:United_States_Patent_and_Trademark_Office|USPTO}}{{#section:United_States_Patent_and_Trademark_Office|USPTO2}}
=Current Issues Facing the Patent System={{#section:United_States_Patent_and_Trademark_Office|USPTO}}{{#section:United_States_Patent_and_Trademark_Office|USPTO2}}
More recentlyOpponents criticize patent pools for the potential of anti-competitive behavior and collusion, primarily with regards to substitute patents. Substitute or non-essential patents cover competing technologies that can be developed in parallel without risk of infringement [http://www.wipo.int/export/sites/www/ip-competition/en/studies/patent_pools_report.pdf]. Certain patent pools have been found to share competitively sensitive information such as marketing and pricing strategies and R&D findings.[http://www.wipo.int/export/sites/www/ip-competition/en/studies/patent_pools_report.pdf] The Department of Justice and Federal Trade Commission stated that patent pools may create barriers to entry for new firms since the required patents will be inaccessible [http://www.justice.gov/sites/default/files/atr/legacy/2007/07/11/222655.pdf (DOJ)] In order to address the concerns raised against patent pools, the Department of Justice (DOJ) has taken steps to standardize patent pools in order to prevent violations of antitrust laws. The DOJ requires the following characteristics for a patent pool:
===Support=== '''Efficiency''': These restrictions allow for patentees and standard setting organizations to maximize the benefits of creating patent pools. The creation of patent pools mainly benefits the owners of complementary and essential patents. Essential patents are patents required for a product or process to meet a given sector's technical standards. Cross-licensing between companies in a patent pool facilitates building upon previous technologies and increases the efficiency of innovation by organizing complementary intellectual property assets under one contract [http://www.wipo.int/export/sites/www/ip-competition/en/studies/patent_pools_report.pdf (WIPO)]. Mutually blocking patents often slow technological developments as neither party can make use of its technology without infringing on the other party's patent. By forming a patent pool, both parties can develop substitute technologies without risk of infringement. '''Cost Reduction''': Companies can also reduce the amount spent on litigation by settling disputes with the creation of patent pools. This would benefit small- and medium-sized businesses that usually cannot afford the costs of expensive litigation. [http://www.wipo.int/export/sites/www/ip-competition/en/studies/patent_pools_report.pdf (WIPO)] Transaction costs as well as royalties can also be lowered in a patent pool. ===Criticisms=== '''Elimination of Competition''': Opponents criticize patent pools for the potential of anti-competitive behavior and collusion, primarily with regards to substitute patents. Substitute or non-essential patents cover competing technologies that can be developed in parallel without risk of infringement [http://www.wipo.int/export/sites/www/ip-competition/en/studies/patent_pools_report.pdf]. Patent pools formed between companies holding substitute patents eliminate competition in that particular technological sector. The [http://www.wipo.int/export/sites/www/ip-competition/en/studies/patent_pools_report.pdf|World Intellectual Property Organization] refers to patent pools exhibiting this behavior as cartels. Certain patent pools have been found to share competetitively sensitive information such as marketing and pricing strategies and R&D findings.[http://www.wipo.int/export/sites/www/ip-competition/en/studies/patent_pools_report.pdf] For example, R&D information and developments could be shared in grant-back provisions, where companies share new or downstream technologies and innovations with members of the pool without additional fees. '''Licensing Practices''': If a patent pool restricts its members from licensing its patents independently, it lowers the incentive to produce alternatives and inflates the costs of goods or technology for consumers. The Department of Justice and Federal Trade Commission stated that patent pools may create barriers to entry for new firms since the required patents will be inaccessible [http://www.justice.gov/sites/default/files/atr/legacy/2007/07/11/222655.pdf (DOJ)] Additionally, downstream products or firms may unknowingly use technology protected by a patent pool. An article published by the [http://www.nber.org/chapters/c10778.pdf| NBER] claims that these companies may then be burdened by cumulative taxes and a time holdup in production. '''Pricing''': Given agreements between patent holders to reduce royalties, there may be collusion to fix higher prices for consumers. Technology may become inaccessible to a large number of consumers, hurting the overall public good.
Patent Trolls are an innovation bogeymen. Numerous research articles and legislation have been focused on ways to curb troll activity, making patent trolls one of the most publicly denounced issues in the patent system. Experts dispute terms for such corporations, labeling them as either Patent Assertion Entities (PAEs) or Non-Practicing Entities (NPEs). PAEs are defined by the Federal Trade Commission as companies that earn revenue by purchasing patents and accusing companies using those patented technologies of infringement.[https://www.ftc.gov/policy/studies/patent-assertion-entities-pae-study] NPEs are firms that rely on Patent Licensing activities for revenue.
[http://www.unifiedpatents.com/news/2016/5/30/2015-patent-dispute-report] Patent litigation involving NPEs accounted for approximately 67% of cases reviewed by District Courts in 2015. Approximately 90% of high-tech patent litigation in 2015 was related to NPEs.<ref name="unified" /> Patent Trolls generate revenue through suing or threatening to sue businesses that infringe on patents. Typically, the damages asked for by Patent Trolls are far beyond the market value of the patent in order to scare small businesses in the initial demand letter, when pressing them to pay the fee to license the patent.
==Proposed Patent Reform==
'''[[Protecting American Talent and Entrepreneurship (PATENT) Act]]''':{{#section:Protecting_American_Talent_and_Entrepreneurship_(PATENT)_Act| PatentAct}}Below is a table containing brief overviews of the bills pertaining to innovation that have been passed or introduced by the 114th Congress.
no edit summary
=Acts with pages=
The following acts have their own pages:
*114, Ways & Means Committee, [[Innovation Promotion Act]]. See also https://www.congress.gov/bill/113th-congress/house-bill/2605
*114, H.R.9 [[Innovation Act]]. See also [[H.R. 9: Innovation Act]]
*114, S.1137 [[Protecting American Talent and Entrepreneurship (PATENT) Act]]
*114, H.R.2045 [[Targeting Rogue and Opaque Letters (TROL) Act]]
*114, S.632 [[Support Technology and Research for Our Nation’s Growth (STRONG) Patents Act]]
*114, H.R.1896 [[Demand Letter Transparency Act]]
*114, H.R.1832 [[Innovation Protection Act]]
*112, H.R.1249 [[America Invents Act]]
*112, S. 1138 [[Prize Fund for HIV/AIDS Act]]
*113, S. 627 and 115, S. 295 [[Medical Innovation Prize Fund Act]]
*113, H.R.845 [[The Shield Act]]
*113, S. 2146 [[Patent Fee Integrity Act]]
*114, S.1137 [[PATENT Act]]
*114, S.632 [[STRONG Patents Act]]
*114, [[S. 1890: Defend Trade Secrets Act of 2016]]
{| {{table}}
| align="center" style="background:#f0f0f0;"|'''Bill'''
| align="center" style="background:#f0f0f0;"|'''Congress'''
| align="center" style="background:#f0f0f0;"|'''Sponsor'''
| align="center" style="background:#f0f0f0;"|'''Committee'''
| align="center" style="background:#f0f0f0;"|'''Reports'''
| align="center" style="background:#f0f0f0;"|'''Last Action'''
|-
| [[Innovation Promotion Act|H.R.2605 - Manufacturing Innovation in America Act of 2013]]||113th Congress (2013-2014)||Rep. Schwartz, Allyson Y. [D-PA-13] (Introduced 06/28/2013)||House - Ways and Means||||06/28/2013 Referred to the House Committee on Ways and Means.
|-
| [[H.R. 9: Innovation Act|H.R.9 - Innovation Act]]||114th Congress (2015-2016)||Rep. Goodlatte, Bob [R-VA-6] (Introduced 02/05/2015)||House - Judiciary||H. Rept. 114-235||02/25/2016 Committee on Small Business and Entrepreneurship. Hearings held.
|-
| [[Protecting American Talent and Entrepreneurship (PATENT) Act|S.1137 - PATENT Act]]||114th Congress (2015-2016)||Sen. Grassley, Chuck [R-IA] (Introduced 04/29/2015)||Senate - Judiciary||||02/25/2016 Committee on Small Business and Entrepreneurship. Hearings held.
|-
| [[Targeting Rogue and Opaque Letters (TROL) Act|H.R.2045 - Targeting Rogue and Opaque Letters Act of 2015]]||114th Congress (2015-2016)||Rep. Burgess, Michael C. [R-TX-26] (Introduced 04/28/2015)||House - Energy and Commerce||H. Rept. 114-877||12/16/2016 Placed on the Union Calendar, Calendar No. 688.
|-
| [[Support Technology and Research for Our Nation’s Growth (STRONG) Patents Act|S.632 - STRONG Patents Act of 2015]]||114th Congress (2015-2016)||Sen. Coons, Christopher A. [D-DE] (Introduced 03/03/2015)||Senate - Judiciary||||02/25/2016 Committee on Small Business and Entrepreneurship. Hearings held.
|-
| [[Demand Letter Transparency Act|H.R.1896 - Demand Letter Transparency Act of 2015]]||114th Congress (2015-2016)||Rep. Polis, Jared [D-CO-2] (Introduced 04/20/2015)||House - Judiciary||||05/15/2015 Referred to the Subcommittee on Courts, Intellectual Property, and the Internet.
|-
| [[Innovation Protection Act|H.R.1832 - Innovation Protection Act]]||114th Congress (2015-2016)||Rep. Conyers, John, Jr. [D-MI-13] (Introduced 04/16/2015)||House - Judiciary||||05/15/2015 Referred to the Subcommittee on Courts, Intellectual Property, and the Internet.
|-
| [[America Invents Act|H.R.1249 - Leahy-Smith America Invents Act]]||112th Congress (2011-2012)||Rep. Smith, Lamar [R-TX-21] (Introduced 03/30/2011)||House - Judiciary; Budget||H. Rept. 112-98||09/16/2011 Became Public Law No: 112-29. (TXT | PDF)
|-
| [[Prize Fund for HIV/AIDS Act|S.1138 - Prize Fund for HIV/AIDS Act]]||112th Congress (2011-2012)||Sen. Sanders, Bernard [I-VT] (Introduced 05/26/2011)||Senate - Health, Education, Labor, and Pensions||||05/15/2012 Committee on Health, Education, Labor, and Pensions Subcommittee on Primary Health and Aging. Hearings held. With printed Hearing: S.Hrg. 112-570.
|-
| [[Medical Innovation Prize Fund Act|S.495 - Medical Innovation Prize Fund Act]]||115th Congress (2017-2018) | Get alerts||Sen. Sanders, Bernard [I-VT] (Introduced 03/02/2017)||Senate - Health, Education, Labor, and Pensions||||03/02/2017 Read twice and referred to the Committee on Health, Education, Labor, and Pensions.
|-
| [[The Shield Act|H.R.845 - Saving High-Tech Innovators from Egregious Legal Disputes Act of 2013]]||113th Congress (2013-2014)||Rep. DeFazio, Peter A. [D-OR-4] (Introduced 02/27/2013)||House - Judiciary||||04/08/2013 Referred to the Subcommittee on Courts, Intellectual Property, And The Internet.
|-
| [[Patent Fee Integrity Act|S.2146 - Patent Fee Integrity Act]]||113th Congress (2013-2014)||Sen. Feinstein, Dianne [D-CA] (Introduced 03/13/2014)||Senate - Judiciary||||03/13/2014 Read twice and referred to the Committee on the Judiciary.
|-
| [[PATENT Act|S.1137 - PATENT Act]]||114th Congress (2015-2016)||Sen. Grassley, Chuck [R-IA] (Introduced 04/29/2015)||Senate - Judiciary||||02/25/2016 Committee on Small Business and Entrepreneurship. Hearings held.
|-
| [[STRONG Patents Act|S.632 - STRONG Patents Act of 2015]]||114th Congress (2015-2016)||Sen. Coons, Christopher A. [D-DE] (Introduced 03/03/2015)||Senate - Judiciary||||02/25/2016 Committee on Small Business and Entrepreneurship. Hearings held.
|-
| [[S. 1890: Defend Trade Secrets Act of 2016|S.1890 - Defend Trade Secrets Act of 2016]]||114th Congress (2015-2016)||Sen. Hatch, Orrin G. [R-UT] (Introduced 07/29/2015)||Senate - Judiciary | House - Judiciary||S. Rept. 114-220; H. Rept. 114-529||05/11/2016 Became Public Law No: 114-153. (TXT | PDF)
|-
|
|}
=United States Patent and Trademark Office=
==Patent Pools==
Patent pools are agreements between patent owners to share, or cross-license, their own patents with one another.[http://www.wipo.int/export/sites/www/ip-competition/en/studies/patent_pools_report.pdf (WIPO)] Generally, patent pools cover mature and complex technologies that require complementary patents to develop compatible products and services. [http://www.wipo.int/export/sites/www/ip-competition/en/studies/patent_pools_report.pdf (WIPO)]. Complementary patents are patents that are must be used together for the development of a specific new product, and therefore, necessitate shared licensing [http://www.wipo.int/export/sites/www/ip-competition/en/studies/patent_pools_report.pdf (WIPO)].
# Essential patents included only.
# Pricing in downstream production cannot be affected by or discussed by members of the patent pool. [http://www.wipo.int/export/sites/www/ip-competition/en/studies/patent_pools_report.pdf].
==Patent Trolls==
{{#section:The Judiciary Committee in the House of Representatives has raised concerns regarding the effect of Truth Behind Patent Trolls on small business, startups, and non-tech companies given their lack of resources to defend themselves. As reported by the American Intellectual Property Law Association (AIPILA)|trolls}}Currently, there is no systematic data that proves the average cost of patent litigation is $650,000 regardless of company size. Approximately 55% existence of patent lawsuits filed by patent trolls are against businesses earning less than $10 million. The Judiciary Committee also reports and that 40% of [[Small Business Research| small businesses] targeted by Patent Trolls suffer from significant business setbacks requiring changes in strategy, shut-downs, a decrease in valuation or slows in growthquantifies their financial effects on companies. <ref name="patenttrollsbob" />
=Patent Reform[[America Invents Act]]={{#section:Leahy_Smith_America_Invents_Act|aia}}
<section begin=Patent_Reform />
'''[[Innovation Act]]''':{{#section:Innovation_Act| summary}}
'''[[Protecting American Talent and Entrepreneurship (PATENT) Act]]''':{{#section:Protecting_American_Talent_and_Entrepreneurship_(PATENT)_Act| PatentAct}}
<section end=Patent_Reform />
===Bills Relevant to Innovation===
{| class="wikitable"
|-
! Bill
! Prognosis
! Sponsor
!Full Title
!Date Introduced
!Status
|-
|[[S. 1890: Defend Trade Secrets Act of 2016]] [https://www.govtrack.us/congress/bills/114/s1890]
|Enacted
|Orrin Hatch (R-Utah)
|A bill to amend chapter 90 of title 18, United States Code, to provide Federal jurisdiction for the theft of trade secrets, and for other purposes.
|JUL 29, 2015
|Enacted — Signed by the President on May 11, 2016
|-
|[[H.R. 9: Innovation Act]] [https://www.govtrack.us/congress/bills/114/hr9]
|36%
| Bob Goodlatte (R-Virginia)
| To amend title 35, United States Code, and the Leahy-Smith America Invents Act to make improvements and technical corrections, and for other purposes.
|Feb 5, 2015
|Reported by Committee on Jun 11, 2015
|-
|[[S. 1137: PATENT Act]] [https://www.govtrack.us/congress/bills/114/s1137]
|36%
| Charles “Chuck” Grassley (D-Iowa)
|A bill to amend title 35, United States Code, and the Leahy-Smith America Invents Act to make improvements and technical corrections, and for other purposes.
|Apr 29, 2015
|Reported by Committee on Jun 4, 2015
|-
|[[H.R. 2045: Targeting Rogue and Opaque Letters Act of 2015]] [https://www.govtrack.us/congress/bills/114/hr2045]
|24%
| Michael Burgess (R-Texas)
|To provide that certain bad faith communications in connection with the assertion of a United States patent are unfair or deceptive acts or practices, and for other purposes.
|Apr 28, 2015
|Reported by Committee on Apr 29, 2015
|-
|[[H.R. 1832: Innovation Protection Act]] [https://www.govtrack.us/congress/bills/114/hr1832]
|5%
| John Conyers Jr. (D-Michigan)
|To provide for the permanent funding of the United States Patent and Trademark Office, and for other purposes.
|Apr 16, 2015
|Referred to Committee on Apr 16, 2015
|-
|[[S. 632: STRONG Patents Act of 2015]] [https://www.govtrack.us/congress/bills/114/s632]
|4%
| Chris Coons (D-Delaware)
|A bill to strengthen the position of the United States as the world's leading innovator by amending title 35, United States Code, to protect the property rights of the inventors that grow the country's economy.
|Mar 3, 2015
|Referred to Committee on Mar 3, 2015
|-
|[[S. 926: Grace Period Restoration Act of 2015]] [https://www.govtrack.us/congress/bills/114/s926]
|4%
| Tammy Baldwin (D-Wisconsin)
|A bill to amend the patent law to promote basic research, to stimulate publication of scientific documents, to encourage collaboration in scientific endeavors, to improve the transfer of technology to the private sector, and for other purposes.
|Apr 14, 2015
|Referred to Committee on Apr 14, 2015
|-
|[[H.R. 2370: End Anonymous Patents Act]] [https://www.govtrack.us/congress/bills/114/hr2370]
|0%
| Theodore Deutch (D-Florida)
|To amend title 35, United States Code, to require disclosure of ownership and transfers of ownership of patents, and for other purposes.
|May 15, 2015
|Referred to Committee on May 15, 2015
|-
|[[H.R. 1896: Demand Letter Transparency Act of 2015]] [https://www.govtrack.us/congress/bills/114/hr1896]
|0%
| Jared Polis (D-Colorado)
|To amend chapter 26 of title 35, United States Code, to require the disclosure of information related to patent ownership, and for other purposes.
|Apr 20, 2015
|Referred to Committee on Apr 20, 2015
|}
== Market of Ideas ==<section endbegin=Patent_Reform Market_of_Ideas />[[Market of Ideas Research Notes]]
=References=
<references>
<ref name = "BBCGovTrack"> [httphttps://www.bbcgovtrack.comus/congress/bills/news114/world-us-canada-34331761hr9#] 'Who is Martin Shkreli - 'the most hated man in America?'H.R. 9: Innovation Act', ''BBC News'', (Wasington)govtrack.us. </ref><ref name="unifiedinnovationactsummary">[httphttps://wwwjudiciary.unifiedpatentshouse.comgov/newswp-content/uploads/2016/502/30/2015-patent-dispute-report782015_InnovationAct3.pdf] '2015 Patent Dispute ReportThe Innovation Act', ''Unified PatentsJudiciary Committee: Chairman Bob Goodlatte'',(San JoseWashington, CAD.C.). </ref><ref name="patenttrollsbobPAsummary"> [https://www.judiciary.housesenate.gov/theimo/media/doc/Patents,%2004-innovation29-act/15,%20PATENT%20Act%20-%20One%20Pager.pdf] 'The Innovation Protecting American Talent and Entrepreneurship Act (PATENT) Act: Short Summary', "Senate Committee on the Judiciary Committee: Chairman Bob Goodlatte", (Washington, D.C.). </ref><ref name="Radicalpatentactgovtrack"> [https://www.washingtonpostgovtrack.com/national/health-science/radical-bill-seeks-to-reduce-cost-of-aids-drugs-by-awarding-prizes-instead-of-patentsus/2012congress/05bills/19114/gIQAEGfabU_story.htmls1137] ''Radical' bill seeks to reduce cost of AIDS drugs by awarding prizes instead of patentsS.1137: PATENT Act', ''Washington Post'govtrack.us'. </ref><ref name="BUUSPTO report"> [http://www.buuspto.edugov/lawsites/journals-archivedefault/scitech/volume131files/documents/wei_webUSPTOFY15PAR.pdf] Marylnn Wei, 'Should Prizes Replace Patents? A Critique of the Medical Innovation Prize Act of 2005United States Patent and Trademark Office Performance and Accountability Report: Fiscal Year 2015'. , "Boston University Journal of Science & Technology LawUnited States Patent and Trademark Office", (Boston: 2007Alexandria, Virginia). </ref>[[Category: Internal]][[Category:Innovation Policy]]
