Innovation Alliance Members Join More Than 100 Other Stakeholders in Letter Urging Key Lawmakers to Approach Patent Reform with Caution

Washington, D.C. – Members of the Innovation Alliance – along with more than 100 other signatories, including universities, venture capital firms, research parks, large companies, and small and mid-sized companies representing the electronics, telecommunications, life sciences, computer hardware, financial services, chemical, and biotechnology industries – today sent a letter to key lawmakers in the U.S. House of Representatives and U.S. Senate to urge a cautious, equitable and deliberate approach to patent reform. 

The letter, which was addressed to House Speaker Nancy Pelosi, House Minority Leader John Boehner, Senate Majority Leader Harry Reid and Senate Minority Leader Mitch McConnell, expressed concern with certain provisions of The Patent Reform Act of 2007 (H.R. 1908/S. 1145).  “[W]e strongly believe that certain provisions, such as those dealing with apportionment of monetary damages for patent infringement, expansive PTO rule making authority, an open-ended post grant opposition system, and a narrow grace period will not strengthen our patent system but instead will fundamentally undermine patent certainty, discourage investment in innovative technologies, and reduce publication and collaborative activities among academic scientists.”

More than 100 stakeholders, representing a wide range of universities, technology and service industries, signed the letter to express concern about the adverse consequences the bill, as written, would have on their ability to innovate.  “For companies (directly, and as university licensees) in industries such as ours, the consequences -- greater bureaucracy, inability to rely on valid patents, weakened protections against infringement and a decreased access to capital -- would be devastating.  The harm to investment in tomorrow’s technologies would be felt immediately, and would hurt U.S. competitiveness for years to come.  As the U.S. presses for strong patent protections abroad, Congress should preserve strong protections at home, so that we retain our competitive edge in the global economy.”

“This is just the tip of the ice berg,” stated Eric Thomas, spokesperson for the Innovation Alliance.  “As Congress takes up these patent reform bills, more stakeholders from a range sectors across the country that rely on strong patents are waking up and motivated to voice their concerns.  It’s difficult for smaller, innovative firms to dedicate the resources needed to engage in the process in Washington, but this letter shows they are ready to speak out for patent reforms that are equitable and meaningful.  Patents are their lifeblood.”  

The Innovation Alliance, a coalition of entrepreneurial companies seeking to enhance America’s environment for innovation and competitiveness through improved patent quality, advocates reforms that focus on improving patent quality, enhancing certainty and preserving market-based valuations of patents.  A key element of patent reform should be the protection of emerging, pro-innovation, patent-dependent businesses and their surrounding ecosystem.

The letter expressed support for The Innovation Agenda, which calls for improving intellectual property protections, strengthening the patent system and ending the diversion of patent fees, among other important goals.  It also welcomed the leadership of House Courts, the Internet and Intellectual Property Subcommittee Chairman Howard Berman (D-CA) and Senate Judiciary Committee Chairman Patrick Leahy (D-VT) in working to address several of the patent reform suggestions outlined by the National Academies and others in their recently introduced legislation. 

In the letter, the signatories state: “We remain committed to working with Congress in support of proposals to strengthen the U.S. patent system in ways that will preserve and promote innovation in businesses large and small, throughout all sectors of the economy.  We therefore request, in the spirit of The Innovation Agenda, that you ensure that Congress carefully, deliberatively, and thoughtfully addresses these concerns as it considers the most dramatic patent reform legislation in over 50 years.”

“These companies helped build the U.S. innovation economy, and we hope lawmakers will take note of the concerns they expressed today,” continued Thomas.  “We look forward to working with Congress to enact measured and meaningful patent reform. Congress needs to acknowledge that our patent system is already experiencing radical change resulting from multiple patent-related cases decided by the U.S. Supreme Court cases over the last 18 months.  It is vitally important that Congress recognize that the legal landscape is quickly changing and should consider the potential impact of the proposed legislation in the current dynamic environment.”  

A copy of the letter is attached.  To learn more about the Innovation Alliance and its members, please visit www.innovationalliance.net.

The Innovation Alliance is a coalition of entrepreneurial companies seeking to enhance America’s innovation environment by improving the quality of patents granted and protecting the integrity of the U.S. patent system.  To learn more, visit www.innovationalliance.net.

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