What is Next in Patent Reform?
Although the healthcare debate has dominated the news headlines as of late, an equally important consideration for the pharmaceutical industry is the effort by Congress to pass legislation on patent reform. Congress may be moving closing to that goal. On Feb. 25, Sen. Patrick Leahy (D-VT), chairman of the Senate Judiciary Committee, issued a statement that lawmakers have reached a tentative agreement on reforming the country’s patent system.
Leahy did not specify details of the agreement, but said in a prepared statement that “in principle [it] preserves the core of the compromise struck in committee last year…We wanted to improve patent quality and the operations at the PTO [US Patent and Trademark Office] and address runaway damage awards that were harming innovation. We are close to a compromise that will address these issues. No one will think this a perfect bill, but we are close to a comprehensive patent-reform bill that benefits all corners of the patent community.“
Although the House passed a patent-reform bill in 2007, efforts to pass a Senate version have stalled, with the Senate trying to reach some consensus over the past several years. Recent attempts in 2009 included when the Senate Judiciary Committee introduced the Patent Reform Act of 2009. Areas of contention have included damages, venue, and post-grant review. A press report by Reuters indicates that the compromise would allow judges hearing patent-infringement cases to play a role in identifying appropriate damages and in evaluating the importance of an infringed patent as part of a product as well as allowing the patent office to set its own fees. The debate over patent reform has divided industries broadly speaking, with industries such as the pharmaceutical and biotechnology industries seeking greater protection and the computer and electronic industries seeking reform.
At the moment, the exact details of the patent-reform compromise is still conjecture until official information is released and is embodied into legislative proposals. But it will be an important matter for the pharmaceutical industry to watch in the coming weeks and months.
