Late Monday, the Senate began consideration of the Patent Reform Act of 2011 (S. 23). With many controversial provisions and a series of amendments filed, the debate promises to be hearty. Late last week, SIIA sent a letter voicing strong support for patent reform at the heart of the bill, such as PTO the funding and fee-setting authority that it needs to issue quality patents and properly conduct its operations (including patent fee diversion) and harmonizing the U.S. patent system’s “priority” rules with the international community by implementing a “first inventor to file” system.

However, SIIA also expressed concerns with several provisions in the bill as drafted and urged that the bill move forward without those provisions at this time. These provisions include new restrictions on inter partes reexamination and disincentives for use of that process, certain “litigation-related” provisions that may be a step backward from current law, and a so-called “tax strategy” provision that would prevent patents of tax software.

In response to the debate, the Obama Administration issued a formal position yesterday in support of the bill but also lends support for removing the venue and damages provision. While patent reform is a long-time priority of SIIA and its members, there are many details to be worked out on the way to effective reform. On the positive side, the level of bipartisan commitment to this issue is stronger than ever, and the House is expected to follow suit with the introduction of a companion bill and consideration by the Judiciary Committee in the coming weeks.

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