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Message: Patent Reform Hits Wall in Senate !
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Apr 13, 2008 08:40AM

AP
Patent Reform Hits Wall in Senate
Friday April 11, 6:33 pm ET
By Christopher S. Rugaber, AP Business Writer

Patent Reform Legislation Hits Wall in Congress As Compromise Effort Fails in Senate
WASHINGTON (AP) -- A bill to reform U.S. patent law, which split the business community and sparked a fierce lobbying battle, hit a roadblock late Thursday in the Senate and may not move forward this year.

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Supporters of the legislation, which includes high-tech and financial services companies, had hoped that a compromise would be reached on several contentious issues and that a Senate vote would take place next week. The House passed a version of the bill last year.

But Sen. Patrick Leahy, D-Vt., sponsor of the legislation, said that "just a handful of words" have stalled debate on the bill, which is unlikely to be revived in an election year, especially with Congress focused on the ailing economy.

"Thousands of hours have been spent in negotiations to address the concerns of 100 Senators, hundreds of Representatives, and dozens of stakeholders," Leahy said. "This was a missed opportunity."

The Coalition for Patent Fairness, a group of over 150 high-tech and financial services companies, and other advocates of reform argue that legislation is needed to improve patent quality and reduce what they consider excessive amounts of litigation.

Cisco Systems Inc., a member of the coalition, said last year it faced 30 infringement suits, up from only three 10 years ago. Microsoft Corp., Intel Corp. and Bank of America Corp. are also members of the coalition.

The House and Senate reform bills would have allowed more information to be presented to patent examiners, created more opportunities to review patents after they are issued, and sought to tie damages awarded in infringement cases more closely to the innovation represented by the patent.

But opposition mounted last year, as pharmaceutical and biotech companies were joined by venture capital firms, individual inventors, and unions, who argued the reforms would weaken patent protection and make it harder to bring new products to market.

Negotiations foundered this week over damages and other issues, lobbyists following the bill said. Technology companies, whose products may include dozens of patented parts, want awards more closely tied to the specific patent that was infringed, rather than to the entire value of the product.

Opponents say that would reduce damage awards and make it easier to infringe patents.

Mark Isakowitz, a lobbyist for the Coalition for Patent Fairness, said in an e-mailed statement that the group "will continue to work with the bill's sponsors" in an effort to secure a vote on the legislation.

An aide to the Senate Judiciary Committee, which Leahy chairs, said, "We don't like to close the door on anything. But it's unclear when it will come up in the future."

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Apr 13, 2008 04:47PM
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