Missed Opportunity For Real Patent Reform

U.S. patent reform has passed in the Senate and is now only a presidential signature away from law, but many continue to see the legislation putting small inventors at a disadvantage and doing nothing to curb vague and overlapping patents. Its first-to-file provisions are likely to mean fewer patents for small businesses and entrepreneurs, who often can’t afford the legal fees and other expenses needed to file an application quickly.

Under the America Invents Act, however, the Patent Office will be able to set its own fees. Congress will continue to have some budgetary power, but fees collected above the Patent Office’s budget will be placed into escrow and the Patent Office can petition for their release. Fees will go up for some filers, but small entities will likely see fee reductions under a new provision.

After Canada switched to a first-to-file system in 1989, the share of patents granted to small inventors dropped significantly, according to a new University of Pennsylvania study. ◆