House patent reform bill tracks Senate version closely

House Judiciary chairman Lamar Smith (R-Texas) unveiled a patent reform bill Wednesday that closely tracks a version passed by the Senate earlier this month.

“Unfortunately, our outdated patent system has become a barrier to innovation and invites lawsuits from holders of questionable patents seeking to extort millions of dollars from companies. We cannot protect the technologies of today with the tools of the past," Smith said.

“We need reforms that discourage frivolous suits, enhance patent quality and streamline international principles. Better patents lead to products and innovations that generate jobs and drive economic growth."

Like the Senate bill, Smith's legislation switches the U.S. to a first-to-file system for awarding patents from a first-to-invent system. Smith said the change would simplify the process of applying for a patent, while small inventors have argued it will remove incentives for innovation.

The House bill would also allow the U.S. Patent and Trademark Office to keep the fees it collects and use the money to hire additional examiners to address a backlog of more than a million patent applications.

"The America Invents Act introduced in the House tracks closely with its bipartisan counterpart that recently passed the Senate," said Senate Judiciary chairman Patrick Leahy (D-Vt.), who sponsored the bill that passed the upper chamber.

"The similarity in the bills is no coincidence. We have been working on a bicameral, bipartisan basis for six years now, and the Senate bill, which overwhelming passed earlier this month, was structured on the original patent reform bill introduced by Chairman Smith in 2005."

Steve Miller, general counsel for intellectual property at Proctor & Gamble told the House Judiciary Subcommittee on Intellectual Property that his firm and other stakeholders are concerned about certain provisions in the bill, such as the addition of a post-grant review process he argued could cause delays and uncertainty.