Apr
4
Reid commited to get patent reform to floor
Posted by Dirk Avery at 7:55 am under Legislation, Patent.
Rick Merritt, from EE Times, writes,
A spokeswoman for Senator Harry Reid (D-Nev.) said the majority leader is committed to bring the Patent Reform Act (S-1145) to the Senate floor in the current working session which ends in late May. “It could come up as early as next week,” she said.
The Senate bill echoes many of the provisions of a bill that passed the House of Representatives (H.R. 1908) last fall…
Individual inventors and pharmaceutical companies have rallied against the measure, claiming it would weaken the patent system that protects their innovations.
The IEEE-USA came out strongly opposed to the bill, saying it would weaken the patent system and thereby harm an already bad job market for US engineers. The group also compiled a list of about 200 generally medium-sized companies and universities who opposed the bill. The list included some large concerns such as the AFL-CIO, the American Intellectual Property Lawyers Association, General Electric, Medtronic and Texas Instruments…
A spokeswoman for Senator Patrick Leahy (D-Vt.) who co-sponsors the bill said a group of fairly minor amendments to the legislation were released recently. However, they did not address the most controversial provisions of the bill including efforts to limit damages, use of certain court venues and a post-grant review process.
The last thing the patent system needs is a political band-aid meant to appease certain lobbies. Carefully thought out legislation that addresses root problems, in light of the effects of recent Supreme Court cases, is the only thing that will ultimately improve the system.
RE: S1145 (Patent Reform)
As a small inventor I might concur that our patent system is in need of some reform, but I am very concerned that the bill in its present form picks winners and losers among industries with different business models in a way that has never before been attempted in patent law or practice.
Sen. Jeff Sessions (R-Ala.) has sponsored an unusual provision at the urging of the nation’s banks granting them immunity against an active patent lawsuit, potentially saving them billions of dollars. The amendment would prevent a small Texas company called DataTreasury from collecting damages from banks for infringing on its patented method for digitally scanning, sending and archiving checks. The provision introduced by Sessions did not name DataTreasury but was carefully tailored to apply to that company and its “check collection” system. The patents were upheld last summer by the U.S. Patent and Trademark Office after they were thoroughly challenged.
Justification of the Sessions Amendment seems to be that the Check 21 Act forced the banks to adopt new check processing procedures with the “innocent” banks (who were “merely complying” with government regulation) thereby finding themselves opportunistically and indiscriminately sued for infringement by a“patent troll.” This view, however, fails to recognize that:
1). The (Data Treasury) patents in question were filed years before the Check 21 Act.
The Data Treasury patents have withstood the best legal challenges the banks could buy, and that some of the more responsible banks have admitted the validity of the patents by licensing them. And every entity that has been sued almost surely had opportunity to negotiate a license before being sued. That DT approached the Banks as early as 1999 to license its’ technology to them and was rebuffed by the banks.
2). The Check 21 Act legalized “Check Imaging” and does not force Banks to comply with its usage. Banks remain free to process checks the old way or themselves invent a non-infringing new way or license use of the Data Treasury roadmap for a modest portion of the savings it offers. Nothing in the Check 21 Act requires banks infringe the Data Treasury patents.
3). Check 21 made it possible for the banks to dramatically reduce check clearance costs, relative to then current processes. Check 21 was opportunity, not burden!!
4). Immunity would be secured through government compensation to DataTreasury, which would in effect force taxpayers to finance the cost of patent infringement on behalf of banks, to the tune of approximately $1 billion +, according to the Congressional Budget Office. Scarcely any plausible justification has been given.
Any idea that the Sessions Amendment is justified as “relief” is simply preposterous. It is no more or less than the financial lobby buying a “Get out of Jail Free” card from congress and appears to be far less like meaningful reform and much more like a license for infringers to steal.
Overall, this bill with this Amendment is a great disservice to the small technology companies and independent inventors that drive American innovation. Reforms are needed. But this Bill, with or without Sessions, should go back to committee in a Congress with a purer heart.
This is the industry that Sessions champions:
The “innocent banks” and their ilk:
From: Chief Executive (U.S.)5/1/2001 Author: PRINCE, C.J
It’s not every CEO who freely admits to swiping other people’s ideas–although, truth be told, the vast majority of successful chief executives have probably taken the liberty. But ask Richard Kovacevich, CEO OF WELLS FARGO, whether he prefers inventing ideas or stealing them and he’s quick with his response. “Oh, I’d much rather steal an idea,” the 57-year-old CEO says matter-of-factly. “Quite frankly, it’s much easier mentally. I have no pride about that.”
(IN A NUT SHELL)-A brief sent to President Bush. SUBJECT,Patent reform legislation—– Dear President Bush; In the name of truth justice and the American way, (THE WAY IT IS SUPOSED TO BE), I ask that you veto (S1145) if it contains Senator Jeff Sessions,(UNCONCIONABLE AMMENDMENT). Hopefully in your mind , as well as in mine, this ammendment must be struck down. Please review the following brief, regarding the hidious actions of Senator Sessions and a small companys quest for justice.
A legal battle has been raging between Data Treasury and the financial institutions for over five years. Thus far, the banks have lost ground on all patent related issues. In their quest to invalidate these patents, they have spent in excess of ( seven hundred million dollars). The USPTO. has re-examined the patents and found them to be fully valid and enforceable. Having failed in every court attempt, the banking industry has stooped to an unconscionable new low. They have enlisted Senator Jeff Sessions, R-Ala, backed by the the Financial Round Table. (The Financial Round Table is an institution that represents the nations one hundred largest banks). Their goal, to add an amendment to the patent reform bill. The purpose, to remove all financial responsibility, for patent infringement from the banks, should Data Treasury prevail in court. The responsibility will then be passed on to the American tax payer. The US. Government estimates this responsibility to be in excess of( one billion dollars). Private estimates range from (five to twenty billion. dollars.) I challenge Jeff Sessions to give a logical explanation as to why he is attempting to get the banks off the financial hook. Personally, I do not believe greed nor political contributions to be logical explanations. How can we condone banks attempting to buy a new law, if they are dissatisfied with existing legislation? How can we condone political corruption , that assaults our legal system in such a manner ? How can we condone putting a price on Truth, Justice and the American way? This nonsense has got to stop! I am a share holder of Data Treasury stock and have been for eight years. Yes, my concern is for my investment but, above all my concern is for the future of this country. I challenge each and every member of the Senate and the Congress, that believes that our legal system must not be offered for sale, to vote this legislation down! This E-mail is being sent in hopes that you will use it ,or any portion their of to bring this travesty of justice, to the attention of the American public! Respectfully submitted, F. Paul DiMaria.