Issa/Schiff Patent Bill Should Help Patent Courts Get it Right the First Time
ACT Analysis Shows Bill Will Reduce Costs for Small Firms and Stimulate Investment in Innovation
Washington – The U.S. District Court Patent Pilot Program (HR 5418) could significantly improve the environment for small business innovation according to an Association for Competitive Technology (ACT) Tech Environmental Impact Study released today. The analysis revealed that the bill will lead directly to lowering the costs of patent litigation and increasing the returns on investment for innovative companies, particularly for smaller firms.
“HR 5418 is a targeted program with a simple goal – increasing the technological and legal expertise of judges hearing patent cases. Better informed judges can weed out frivolous claims more easily, improving quality and reducing the cost of litigation. Less money for lawyers means more money for innovating,” said Braden Cox, Research and Policy Counsel for ACT.
Most federal judges today hear a wide variety of cases and therefore lack the proficiency to handle increasingly technical patent claims. This bill would improve judicial expertise with patents, by creating a pilot program to educate participating judges on patent law. Moreover, the program would help judges bring on tech savvy clerks to explain technical matters underlying patent claims. Judges would designate themselves to be included among a pool of possible judges to hear patent cases.
The Tech Environmental Impact Statement (TEIS) found that the legislation would improve environment for smaller technology companies in three key ways:
Expedites the Rejection of Bad Patents – Litigation costs often represent a significant burden on business, especially for smaller firms. Judges with patent expertise would run their courts more efficiently and productively, keeping lawyers in line and reducing legal fees.
Increases Returns on Innovation Investment – Encourages business spending and allows for increased returns on investment. Patents provide incentives for new inventions and help inventors earn a return on their work. Judicial expertise in patent law will improve the value of a patent through rigorous enforcement in infringement actions and proper disposition of bad patents. Increased judicial certainty allows innovators to keep on innovating.
Particularly favorable to small tech firms – Patents help protect the intellectual assets of all innovative firms, but patent litigation is cost that is a greater relative burden on the bottom-line of smaller firms. Better judicial enforcement of patent protections help small firms reap the benefits of their work.
Tech Environmental Impact Statements assess legislative, regulatory, and judicial activity to determine positive or negative effect on what ACT calls the Tech Environment. The Tech Environment is the system of legislative, regulatory, and judicial conditions under which technology companies operate, innovate, and compete.
Impact Statement on U.S. District Court Patent Pilot Program>>