Posts Tagged: "Capitol Hill"

This week on Capitol Hill, the Senate appropriations Committee will hold a hearing on efforts leading to advanced nuclear reactor technology while the Senate rules committee will consider a bill that would amend the nomination process and the required qualifications for the Register of Copyrights. Over in the House of Representatives, hearings on artificial intelligence applications for national defense, Google’s data collection practices and a recently passed bill for bridging the digital divide will also take place this week.

It would be a tragic mistake to blame federal tech transfer underperformance on Bayh-Dole. Bayh-Dole needs no amending. Bayh-Dole demonstrates how secure patent rights are the lynchpin to society’s getting the greatest benefit from federal research dollars.

This week on Capitol Hill is another light one in terms of hearings focusing on topics related to technology and innovation. Although the House of Representatives is in session all week after the Columbus Day holiday, there are no hearings scheduled for the week as of Sunday,  and the House is about to enter a few weeks’ worth of district work periods. In the Senate, the Commerce Committee convenes a hearing to look at recent consumer data privacy laws passed in Europe and California, and the Banking Committee explores the potential of blockchain and cryptocurrencies in the national financial system.

This week in Capitol Hill hearings focuses solely on meetings happening at the U.S. Senate. The one hearing scheduled at the U.S. House of Representatives, which was to explore whether the Federal Communications Commission (FCC) was addressing small business concerns regarding 21st century telecom systems, has been postponed to a later date. In the Senate, the Commerce Committee will hold hearings on automated system for rail vehicles and challenges in the creation of rural infrastructure for broadband Internet. The Indian Affairs Committee is also exploring broadband challenges and the Superfund Subcommittee will discuss the Environmental Protection Agency’s (EPA) implementation of science transparency rules.

This week in Capitol Hill hearings, it will be a relatively light week all around, and particularly so for those who focus on intellectual property, technology and innovation. Indeed, there are few hearings on tap for the week that might be of interest. Nevertheless, financial services innovation, health care cost reductions will be discussed in the Senate on Tuesday.

Earlier today Congressman Darrell Issa (R-CA), announced that he will not seek re-election in 2018 and will retire from Congress. Issa, who currently Chairs the House’s Judiciary Committee’s Subcommittee on Courts, Intellectual Property and the Internet has been an outspoken advocate for the need for more patent reform… If Republicans hold on to a majority in the House it seems likely that Congressman Doug Collins (R-GA) will take over as Chair of the House IP Subcommittee. Collins, an ally to inventors and creators, is currently Vice-Chair of the House IP Subcommittee. If Collins is granted the gavel that would be good news for patent owners and those generally supportive of strong intellectual property rights.

First, I predict that the United States Supreme Court will find post grant procedures under the America Invents Act to be unconstitutional. It is my belief they took Oil States not as a patent case, but rather as an Administrative State case, and if that is correct this could be the first in a series of decisions over a number of years that will pull authority back from the growing Administrative State and toward the Judiciary. Second, in the event the Supreme Court does not declare post grant challenges unconstitutional, I predict the new USPTO Director will substantially modify PTAB rules and procedures, making them more fair and balanced. Third, again assuming my first prediction is incorrect, I predict the PTAB will continue to ignore Eleventh Amendment immunity and will likewise rule Indian Tribes do not deserve to claim sovereign immunity when in front of the PTAB. This will set up a showdown at the Federal Circuit that will ultimately be settled by the Supreme Court, likely in 2019. Finally, I predict there will be continued discussion about patent reform, with the conversation becoming increasingly pro-patent as Members of Congress continue to see undeniable proof that the U.S. patent system is regressing while the patent systems of the EU and China are on the rise. More specifically, I predict that the U.S. will fall out of the top 10 for patent protection in the annual Chamber IP Index, which will send a shockwave through the Capitol.

Unlike previous years where we had near unanimity on the biggest moments, this year we see wide variety of thought, from SCOTUS to Capitol Hill to the DOJ… Steve Kunin focus primarily on the Supreme Court patent cases, which Bob Stoll also mentions but then goes on to discuss the lack of momentum for more patent reform and the nomination of a new Director for the USPTO as key moments. Paul Morinville also mentions the political on Capitol Hill, but focuses on Members of Congress not buying into the patent troll narrative like they once did. Erik Oliver focuses on a rebound in the patent market, Alden Abbott sees a pro-innovation, pro-patent Assistant Attorney General for Antitrust as a dramatic shift for the DOJ. Ben Natter, Jess Sblendorio and Alexander Callo focus on the Supreme Court’s decision in Matal v. Tam, which declared the prohibition against registering disparaging trademarks unconstitutional.

This week US Inventor, an inventor organization working in Washington DC and around the US to advocate for strong patent protection for inventors and startups, rolled out the U.S. Inventor Act in the House of Representatives… Early stage funding for U.S. startups has dropped 62%. We are at a 40 year low in new business formation. What used to be approximately 85% of all venture capital invested in U.S. startups is now about half invested in China’s startups. Not surprisingly, in communist China, the startup market is booming, growing by 23%. As a result, China has taken the lead in swaths of new technologies, including technologies critical to our national security like artificial intelligence (AI). AI runs not only our power grids, but our tanks and ships. We will soon be mired in the swamp of a national security disaster as China moves even further ahead and we are forced to purchase these products from them.

The rule treating the transfer of a patent prior to its commercial exploitation as being available for long-term capital gains treatment would be repealed… Obviously, it is disheartening to see Republican leadership move to treat patents in this way, which suggests they do not view patents as a private property right. Not viewing patents as a private property right has become a growing and disturbing trend.

Overrule eBay v. MercExchange and grant permanent injunctions to victorious patent owners as a matter of right. This singular change to U.S. patent laws – which is also found within the STRONGER Patent Act at Section 106 – would rectify much of the mischief caused by Congress and the Courts over the last 12 years. No single decision has so singularly tilted the balance between patent owners and technology implementers. Indeed, if you ask knowledgeable innovators and patent owners about the one decision or event they would undue if they could in order to bring the system back to some acceptable level of equilibrium and the answer will either be to overrule eBay v. MercExchange or to do away with post grant challenges at the PTAB.

On Thursday, October 12th, a pair of letters addressed to the bipartisan leadership of the Senate Judiciary Committee were delivered in an attempt to inform Senators on that committee of various issues in play regarding the recent patent deal between multinational pharmaceutical firm Allergan and the sovereign St. Regis Mohawk Tribe. The two groups sending the letters represent stakeholders in the U.S. patent system coming from very different backgrounds who realize that there are fundamental flaws in the system created by inter partes review (IPR) proceedings which are carried out at the Patent Trial and Appeal Board (PTAB).

There is growing speculation among Capitol Hill watchers that the Judiciary Committee may soon be ready to hold a nomination hearing to vet Iancu’s credentials to serve as USPTO Director, perhaps as soon as this month. Although there’s a strong chance that the hearing would focus on recent developments like the Allergan-St. Regis Mohawk Tribe patent arbitrage deal, the hearing will be the patent world’s first true glimpse into Iancu’s vision for the role of the USPTO in promoting America’s innovation economy… Some additional details have begun to emerge thanks to a public response to a questionnaire submitted by Iancu to the Senate Judiciary Committee. This filing and attached documents help to flesh out many of the details surrounding the patent attorney’s experience as well as his viewpoints on certain trends affecting patent system stakeholders as outlined in articles and speeches given by this individual.

The patent deal with the St. Regis tribe doesn’t shield the patents from validity challenges coming from a Hatch-Waxman trial recently concluded in Texas federal court. “To be clear, if the District Court ruling is adverse to Allergan’s patent position, and there is an FDA approval of a generic version of RESTASIS®, that product could enter the market many years in advance of the listed patent expiry dates,” Allergan’s note reads. The drugmaker further argues that the IPR process in force at the PTAB undermines the 33-year-old Hatch-Waxman statutory regime regarding validity challenges to pharmaceutical patents, is subject to changes to validity proceedings implemented within the executive branch which are not impartial, and creates an unfair burden on innovators by opening patents to challenge proceedings which are often inconsistent before both the PTAB and the Court of Appeals for the Federal Circuit, the court to which PTAB decisions can be appealed.

Senator McCaskill (D-MO) has introduced a bill to abrogate the sovereign immunity of Indian tribes as a defense in inter partes review (IPR) proceedings at the United States Patent and Trademark Office. Indeed, the sole purpose of McCaskill’s short, ill-conceived and hastily assembled bill is to make it impossible for Native American Indian Tribes that own patents to assert sovereign immunity when those patents are challenged in proceedings at the Patent Trial and Appeal Board… What this means is McCaskill’s bill cannot and will not remove claims of sovereign immunity from PTAB proceedings. McCaskill’s bill would only discriminate against Native American Indian Tribes.