Obama Signs First Major Patent Law Change in a Generation
President Obama signed a bill into law on Friday, Sept. 16, that marks the first major change to American patent law in almost 60 years. The bipartisan Leahy-Smith America Invents Act will enable the U.S. Patent and Trademark Office to set its own fees, hire more patent examiners and decrease the time it takes for a patent to be issued after filing.
Perhaps the most controversial change in the America Invents Act is the shift from a first-to-invent system to a first-to-file system. First-to-file patent systems are in use in all countries except for the United States, and grant the right of patent to the first person or persons to file for a particular invention, regardless of the date of invention. The American first-to-invent system is unique in that it grants that right to the person who first conceptualizes an invention, even if another party files a patent on the same invention beforehand. The first-to-file system will not go into effect until March 16, 2013.
Proponents of the change point out that the current system greatly increases the time required to issue patents and creates a roadblock preventing new products, and in turn new jobs, from entering the U.S. economy. Presently it can take up to three years for a patent to be issued. The first-to-invent system is a major factor in delays, they claim, as patent disputes between inventors can drag out for months as each attempts to prove who was the first to invent. The first-to-file system would obviate any such claims.
Currently there are approximately 1.2 million pending patents, with more than 700,000 applications that have yet to be reviewed. Combined with the ability to hire more employees, the patent office hopes that the first-to-file system will reduce patent processing time to 12 months.
"Somewhere in that stack of applications could be the next technological breakthrough, the next miracle drug," Obama said. "We should be making it easier and faster to turn new ideas into jobs."
On the other hand, detractors argue that the new law will disproportionally hurt inventors who do not have the funding of large corporations. A patent cannot be filed until it has been reduced from a concept to the actual invention; a more well-financed organization could theoretically steal a concept from a small business and execute its creation faster, securing the patent without dispute.
"The first-to-file system requires a new level of discipline for small inventors because they sometimes show their inventions to colleagues or investors before they file, or don't have the resources to file before they know that the product will be viable in the marketplace," explained Rick Brenner, CEO of Prime Line, Bridgeport, Conn. "The benefit is that this should speed up the process of getting a patent approved and reduce the litigation of who was first to invent."
The patent office applauded the bill, which was originally passed on Sept. 9 on an 89-9 vote. Representatives said the change will bring American patent law more in line with the laws of other nations, which will increase patent-holder's abilities to protect their inventions in other countries. Still, some countries such as China continue to adhere to loose copyright and patent laws. Google and Apple, two companies which have experienced trademark issues with China, backed the bill. Whether it will place increased pressures on that country to bring its law into line with the rest of the world remains to be seen.
For the White House's press release on the Leahy-Smith America Invents Act including key points of the law, visit the White House's press office here.
- Companies:
- Prime Line
Kyle A. Richardson is the editorial director of Promo Marketing. He joined the company in 2006 brings more than a decade of publishing, marketing and media experience to the magazine. If you see him, buy him a drink.