Thursday, February 23, 2012

Patent Groups Cry Foul Over Latest Continuing Resolution

September 21, 2011 | 5:04 PM

A range of companies say the latest continuing resolution proposed in Congress lacks promised language designed to prevent appropriators from raiding fees paid to the Patent and Trademark Office.

ISeveral groups that advocate on a behalf of both large and small companies complained that the CR undermines the gentleman's agreement that allowed the landmark patent reform bill to be passed earlier this month.

In a compromise with House appropriators, the sponsors of the America Invents Act agreed to strip out language that prohibited Congress from allocating patent fees to different programs.

"Unfortunately, now, just days after the enactment of the act, we are deeply concerned to learn that the CR does not contain the promised language," the Innovation Alliance, which represents a range of smaller tech companies, wrote in a letter to leaders in the Senate and the House. "We strongly believe that for the reforms to work as intended, the promised language ending fee diversion must be included in all bills making appropriations for the USPTO."

In a letter of its own, the Coalition for 21st Century Patent Reform, which includes companies like Johnson & Johnson and General Electric, pointed out that even if Congress doesn't actually take patent fees for other purposes, without the language, the PTO cannot access new fees.

"Unless an anomaly is included in the CR, the USPTO will lose $50 million each month the CR is in effect," the letter said. "The problem is that during the 7 weeks of the CR, the USPTO is held to a spending rate based on last year's appropriations - this rate ignores the fact that the USPTO will be collecting significantly more fees to support implementation of the act."

The America Invents Act was signed by President Obama on Friday and is the most significant reform of the U.S. patent system in about 60 years.

The Intellectual Property Owners Association also sent a letter urging lawmakers to include the language in the latest CR.

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Juliana Gruenwald

Tech Writer

E-Mail: jgruenwald@nationaljournal.com.


Juliana Gruenwald has been covering tech and telecom issues for more than a decade for National Journal, Interactive Week, BNA and Congressional Quarterly. This is her second stint with National Journal. She was recruited by NJ in 1998 to help launch its first tech policy publication, Technology Daily. She left in 2000 to cover international tech and telecom issues for Ziff Davis Media's Interactive Week magazine. She started her career at United Press International as the wire service's first Helen Thomas Intern. She has a Bachelor of Arts degree from the University of Minnesota. A Minneapolis native, she misses the lakes but not the cold.


Josh Smith

Tech Reporter

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Josh Smith covers technology policy as a staff reporter for National Journal. He previously interned at National Journal Daily, a Senate press office, and the Deseret News in Salt Lake City where he covered the state legislature, courts, and crime. In 2009 he graduated with honors from Southern Utah University after managing an award-winning student newspaper as editor-in-chief. Josh has received state, regional and national awards for his political and policy reporting, including first place in CapitolBeat’s 2009 Best of Statehouse Reporting college competition. A native of drop-dead-gorgeous Utah, Josh lives in Virginia with his wife, Amber.