• Calendar

    September 13, 2011 – Biotechnology/Chemical/ Pharmaceutical (BCP) Customer Partnership Meeting (U.S. Patent and Trademark Office) – Alexandria, VA (and webcast)

    September 14, 2011 – This Time It's Real — New U.S. Patent Reform Law Within Sight (Foley & Lardner) – 1:30 – 2:30 PM (ET)

    September 14, 2011 – Compulsory Licensing as an Emerging Global IP Issue (Intellectual Property Owners Association) – Los Angeles, CA

    September 14-16, 2011 – 85th Annual Meeting (Intellectual Property Institute of Canada) – Chicago, IL

    September 15, 2011 – Patent reform: prepare for the new post grant system (Managing Intellectual Property) – 12:00 – 1:30 PM (EDT)

    September 18-20, 2011 – Accelerating Intellectual Property and Innovation in South Africa*** (South African Department of Science and Technology) – Cape Town, South Africa

    September 18-20, 2011 – 2011 Annual Meeting (Association of Intellectual Property Firms) – Chicago, IL

    September 19-20, 2011 – Tech Transfer Summit Europe*** (Tech Transfer Summit Ltd.) – Paris, France

    September 19-21, 2011 – Business of Biosimilars & Biobetters*** (Institute for International Research) – Boston, MA

    September 21-22, 2011 – Forum on European Pharmaceutical Regulatory Law*** (C5) – Brussels, Belgium

    September 22-23, 2011 – FDA Boot Camp*** (American Conference Institute) – Boston, MA

    September 26-27, 2011 – Biosimilars and Biobetters*** (SMi Group) – London, UK

    September 26-27, 2011 – Life Sciences Business Development & Acquisitions in Emerging Markets (American Conference Institute) – New York, NYNew York, NY

    September 28, 2011 – The Impact of Stanford v. Roche on Private Party Transactions:  Inventor Ownership and Government Rights Under Bayh-Dole (American Bar Association) – 1:00 – 2:30 PM (ET)

    October 3-4, 2011 – Tech Transfer Summit North America*** (Tech Transfer Summit Ltd.) – Bethesda, MD

    October 4-5, 2011 – Maximizing Pharmaceutical Patent Lifecycles*** (ACI) –

    October 5-6, 2011 – Biotech Patenting*** (C5) – London, UK

    October 24-26, 2011 – Developing IP Strategies for Crystalline Forms*** (International Quality & Productivity Center) – London, UK

    October 25-26, 2011 – FDA Boot Camp Devices Edition*** (American Conference Institute) – Chicago, IL

    October 25, 2011 – Innovation and Commerce — Global Legal Considerations (U.S. Patent and Trademark Office and Federal Circuit Bar Association) – Tokyo, Japan

    October 26, 2011 – A Discussion with Robert Stoll of the USPTO (Association of Intellectual Property Firms) – 1:00 – 2:00 PM (EDT)

    October 26-27, 2011 – Joint Judicial Conference (U.S. Court of Appeals for the Federal Circuit and Tokyo Intellectual Property High Court) – Tokyo, Japan

    November 9, 2011 – Optimizing Relations with the USPTO: All the Questions You Always Wanted to Ask and Could Never Get Answers For (Association of Intellectual Property Firms) – 12:30 – 1:30 PM (EST)

    November 2-4, 2011 – Biotechnology from the Ground Up (Management Forum and JNB Marketing & Events) – San Diego, CA

    November 30 to December 1, 2011 – Advanced Forum on Biotech Patents*** (American Conference Institute) – Boston, MA

    ***Patent Docs is a media partner of this conference or CLE

  • Boston Skyline American Conference Institute (ACI) will be holding its 13th Advanced Forum on Biotech Patents on November 30 to December 1, 2011 in Boston, MA.  The conference will allow attendees to:

    • Analyze the biosimilar approval pathway development process and get insight on the likely FDA regulations covering biosimilars;
    • Assess the impact patent reform is expected to have on biotech patenting for both companies and practitioners;
    • Determine the implications of the CAFA's Myriad decision and how it affects 35 U.S.C. § 101 subject matter definitions;
    • Investigate the effects of the recent Supreme Court decisions in Stanford v. Roche and Microsoft v. i4i;
    • Implement tools to navigate the 35 U.S.C. § 112 written description requirement in a post-Centocor environment;
    • Utilize techniques to manage obvious-type double patenting concerns following Sun v. Lilly and Amgen v. Roche and discover its uses as a litigation tool;
    • Defend yourself from claims of inequitable conduct with the new standards elucidated in Therasense;
    • Ascertain the difficulties in claiming joint infringement following McKesson and Akamai; and
    • Employ winning strategies to navigate international filing issues in Europe and emerging markets.

    Brochure In particular, ACI's faculty will offer presentations on the following topics:

    • Protection v. Exploitation:  Preparing for the Next Chapter in the Development of Biosimilars;
    • Examining the Potential Effect of Patent Reform on PTO Practices and Its Impact on Biotech Patents — keynote by Teresa Rea, Deputy Director of the U.S. Patent & Trademark Office;
    • Preparing for A Radical Overhaul of the U.S. Patent System: The Impact of Reform on Biotech Patent Strategies;
    • Examining 35 U.S.C. 101 Subject Matter Patentability in the Wake of Myriad and Prometheus;
    • Microsoft v. i4i and Stanford v. Roche: Understanding Their Collective Implications for the Biotechnology Industry;
    • Confronting the Written Description Requirement Post-Centocor and Evaluating Its Impact on Biotech Patent Practices;
    • The Emergence of the New Obviousness Standard and Its Impact on Biotech Patenting: Taking a Closer Look at Obvious-Type Double Patenting — to be presented in part by Patent Docs author Kevin Noonan;
    • Inequitable Conduct following Therasense: Assessing Its Significance for Biotech Patent Litigation;
    • International Filing: Strategic Considerations and Advanced Tactics for Patenting Biotech Inventions Abroad;
    • Analyzing and Resolving the Difficulties of Claiming Joint Infringement After Akamai and McKesson; and
    • Creating Favorable Patent Tactics in Developing Countries.

    An interactive working group session entitled: "Integrating Changes at the PTO into Biotech Patent Practices" will be offered from 8:30 to 11:30 am on November 30, 2011.  A post-conference master class entitled: "Successful and Practical Strategies for Patenting Antibodies" will be offered from 9:00 am to 12:00 pm on December 2, 2011.

    The agenda for the Biotech Patents conference can be found here.  A complete brochure for this conference, including an agenda, detailed descriptions of conference sessions, list of speakers, and registration form can be obtained here.

    ACI - American Conference Institute The registration fee is $2,295 (conference alone), $2,895 (conference plus group session or master class), or $3,495 (conference, group session, and master class).  Those registering on or before September 30, 2011 will receive a $300 discount and those registering by October 28, 2011 will receive a $200 discount.  In addition, Patent Docs readers who reference the discount code "PD 200" will receive $200 off the current price tier when registering.  Those interested in registering for the conference can do so here, by calling 1-888-224-2480, or by faxing a registration form to 1-877-927-1563.

    Patent Docs is a media partner of ACI's Biotech Patents conference.

  • Stoll, Robert Foley & Lardner will be offering a web conference entitled "This Time It's Real — New U.S. Patent Reform Law Within Sight" on September 14, 2011 from 1:30 – 2:30 PM (ET).  The web conference features USPTO Commissioner for Patents Robert L. Stoll (at right), and former USPTO Deputy Director Sharon R. Barner and Harold C. Wegner of Foley & Lardner LLP.  The panel will address the House version of the Leahy-Smith America Invents Act (H.R. 1249), which was passed by the Senate on Thursday, and decipher practical implications of key provisions, various retroactive and prospective deadlines, and recommended steps to address the legislation.  In particular, the panelists will address the following questions and topics:

    • How will the United States implement "first-to-file"?
    • What prior art issues will change, and how will the Federal Circuit interpret them?
    • Cutting the backlog, will it happen?
    • Quality control: Major changes being implemented;
    • Post-grant review;
    Inter partes review;
    • Weeding out invalid patents post- and pre-grant;
    • "Best mode" violation penalty eliminated;
    Qui tam false marking suits abolished; and
    • Limiting inequitable conduct claims.

    Those interested in attending the webinar can register here.

  • AIPF The Association of Intellectual Property Firms (AIPF) will be offering a webinar entitled "Optimizing Relations with the USPTO: All the Questions You Always Wanted to Ask and Could Never Get Answers For" on November 9, 2011 from 12:30 – 1:30 PM (EST).  Stuart S. Levy of Sughrue Mion, PLLC and Jennifer C. Bailey of Hovey Williams LLP will participate in a question and answer webinar concerning the ins and outs of patent prosecution and will help attendees optimize their relations with the PTO and obtain the most efficient and best result for the client.  Mr. Levy brings over 37 years experience in ex parte proceedings relative to his tenure in the U.S. Patent and Trademark Office (PTO) as a former Primary Examiner, Supervisory Patent Examiner (SPE), and Administrative Patent Judge with the Board of Patent Appeals and Interferences (BPAI).  Among the questions to be addressed during the webinar are:

    • Do examiners always do their own searching?
    • How is the examination process different if the examiner is a primary versus a non-primary?
    • Are there allowance conferences and who sits in?
    • What does Quality Assurance do — who is assigned and do they do additional searching?
    • Can you hold video conferences with examiners for interviews?
    • How much discretion does an examiner have in managing his/her docket?
    • How is the Examiner's docket impacted by the new RCE docketing procedure?

    Attendees are invited to submit additional questions for discussion during the webinar to Jennifer Bailey at jcb@hoveywilliams.com.

    Those interested in registering for the webinar can do so here.

  • ABA The American Bar Association (ABA) Section of Intellectual Property Law, Section of Public Contract Law, and Center for Continuing Legal Education will be offering a live webinar entitled "The Impact of Stanford v. Roche on Private Party Transactions:  Inventor Ownership and Government Rights Under Bayh-Dole" on September 28, 2011 from 1:00 – 2:30 PM (Eastern).  James McEwen of Stein McEwen LLP (moderator); John E. McCarthy Jr. of Crowell & Moring, LLP; Sean M. O'Connor, Professor of Law at the University of Washington School of Law; and Susan Warshaw Ebner of Buchanan Ingersoll & Rooney, PC, will address the Stanford v. Roche decision, the history of the Bayh-Dole Act, the policy questions raised in the decision, and the practical consequences to both government and commercial contractors.

    The registration fee for the webcast is $95 for members of any of the sections sponsoring the webinar, $99 for government attorneys, $150 for ABA members, and $195 for the general public (for group fee options, please visit the event website).  Those interested in registering for the webinar, can do so here or by calling 800-285-2221.

  • San Diego Management Forum and JNB Marketing & Events and will be offering a three-day course entitled "Biotechnology from the Ground Up" on November 2-4, 2011 in San Diego, CA.  The course will offer presentations on the following topics:

    Day One
    • Introduction to Biotechnology
    • Introduction to Molecular Biology
    • Re-Expression of Proteins
    • Development of Production Organisms
    • Fermentation Technology and Large Scale Production

    Day Two
    • Process Optimization and Scale-Up
    • Analysis of Biopharmaceuticals
    • Product Recovery and Purification
    • Formulation Design of Biopharmaceuticals
    • Patenting in Biotechnology
    • Patent Workshop

    Day Three
    • Regulatory Considerations
    • Application of Regulatory Principles: Specifications, Characterization, Change Management and Comparability
    • Advances in Regulation: Biosimilars
    • Business Development in Biotechnology & Process Economics
    • Current and Future Developments

    Management Forum A complete agenda for the course can be found here and a brochure for the course can be found here.  Faculty for the course includes Patent Docs author Dr. Kevin Noonan of McDonnell Boehnen Hulbert & Berghoff LLP.

    The registration fee for each course is $1,950.  Those interested in registering for the course can do so here or by calling 310-372-4600.

  • By Kevin E. Noonan

    Judge Rader Accompanying the Federal Circuit's majority decision in Classen Immunotherapies, Inc. v. Biogen IDEC is a separate explication of "additional views" by Chief Judge Rader (at right) joined by Judge Newman.  These views tend towards the policy and philosophical implications of patent eligibility challenges before the Court in several cases (In re Bilski, Prometheus Laboratories, Inc. v. Mayo Collaborative Services, Association for Molecular Pathology v. U.S. Patent & Trademark Office, and the instant case), and it is clear that the Chief Judge does not believe § 101 is the proper vehicle for challenging the validity of these patents.

    The opinion begins by recalling that the language of Section 101 is very broad, and that challengers of patent-eligibility typically urge the Court to impose limits on scope not supported by statutory language.  The opinion likens this to "substantive due process" in other contexts, something the opinion suggests has more "historical and contextual" support because patent law has other provisions that protect against "vague" claims.  "[I]t is difficult to 'invent' any category of subject matter that does not fit within the four classes [recited in] the statute:  process, machine, [article of] manufacture or composition of matter," in Chief Judge Rader's view, and the Court should "decline to accept invitations to restrict subject matter eligibility," for "public policy" reasons.

    The opinion likens patent eligibility to a "'coarse filter' that excludes entire areas of human inventiveness" on "judge-created standards."  The result, according to Chief Judge Rader, is what he terms a "healthy dose of claim-drafting ingenuity" whereby claim drafters "devise new claim forms and language that evade the subject matter exclusions" created by judges.  The consequence is an increase in the "cost and complexity" of the patent system, which is bad enough, but "may cause technology research to shift to countries where protection is not so difficult or expensive."

    The opinion then illustrates these general principles with two specific examples.  The first are so-called "Beauregard" claims, which the opinion characterizes as being developed to circumvent limitations on claiming software caused by the Supreme Court's opinion in Gottschalk v. Benson, 409 U.S. 63 (1972).  This claim type substitutes language directed to "intangible [patent-ineligible] computer code" from Benson with language that recites "a[ patent-eligible] encoded tangible medium."  The implication is that the "invention" has not changed, just the claim language used to describe it.  The second example is the "Swiss-type" claim, devised to overcome restrictions in medical treatment claims created by the European Patent Convention.  These claims take the form of "use of a compound X for the manufacture of a medicament for the treatment of disease Y" instead of "a method of treating disease Y using compound X."  Such a reaction to judge-imposed limitations on patent eligibility is to be expected, according to the opinion, because patents by their nature "translate technology into text, i.e. patent claims," giving rise to the opportunity for "careful claim drafting or new claim forms" to be created to avoid restrictions on patent-eligible subject matter.  The opinion characterizes this situation as "a game where lawyers learn ingenuous ways to recast technology in terms that satisfy eligibility concerns."  The product of this exercise, termed "hollow" in the opinion, does not result in any "substantive improvement in the patent landscape" while causing "high costs on patent prosecution and litigation" and raising the possibility that patent protection will depend on (and reward) "gamesmanship."

    In addition, the opinion asserts that there is a "real-world [negative] impact" of such judge-made restrictions on innovation that could "drive research to more hospitable locations."  The opinion calls such a possibility "not theory but history," recounting as an example the difference in response to biotechnology patenting between the U.S. and Europe.  Europe "imposed [patent-]eligibility restrictions" on biotechnology inventions while the U.S. (principally as a result of the Supreme Court's Diamond v. Chakrabarty decision) "embraced strong patent protection" for biotechnology inventions.  (It cannot have escaped the Chief Judge's notice that one specific example of this difference involved patenting isolated DNA molecules.)  Such restrictions on patent eligibility had the following impact on innovation:

    Europe became known for subjecting such inventions to delays in the patent office, challenges in litigation, increases in cost, and uncertainties in the legal landscape.  With those difficulties as a primary contributing factor, investors, corporations, and clinics shifted their research from Europe to the United States.  See Opinion of European Union Economic and Social Committee, COM (1995) 661 final (July 11, 1996), (recognizing that "Europe is lagging further and further behind the USA," as evidenced by the stark contrast in number of biotech patents, firms, and products; proposing strong patent protection as in the United States to solve "Europe's backwardness"); Council Directive 98/44, 1998 O.J. (L 213) (EC) (finally providing some protection for biotech inventions to counter the trend of companies preferring to patent in the United States).  Thus, with some considerable blame on its eligibility doctrines, Europe lost innovation investment to the United States.  Our country became the world leader in biotechnology innovation.

    But "the tide can turn against us, too" the opinion cautions.  Thus, "judges should tread carefully when imposing new limits on the protection for categories of human innovation."  The correct approach, the Chief Judge counsels in his conclusion, is to use the "substantive conditions" of the patent statute, including "particularities of claim language" and "questions of prior art and adequate disclosure" to prevent overly-expansive claims rather than "litigation-spawned applications of section 101."

    Classen Immunotherapies, Inc. v. Biogen IDEC (Fed. Cir. 2011)
    Panel:  Chief Judge Rader and Circuit Judges Newman and Moore
    Opinion for the court by Circuit Judge Newman; additional views by Chief Judge Rader; dissenting opinion by Circuit Judge Moore


  • By Donald Zuhn

    Senate Floor After considering three amendments, rejecting two and tabling a third, the Senate today voted 89 to 9 in favor of H.R. 1249, the House version of the Leahy-Smith America Invents Act.  Opposing passage of the bill were Senators Barbara Boxer (D-CA), Maria Cantwell (D-WA), Tom Coburn (R-OK), Jim DeMint (R-SC), Ron Johnson (R-WI), Mike Lee (R-UT), John McCain (R-AZ), Claire McCaskill (D-MO), and Rand Paul (R-KY); Senators John Rockefeller IV (D-WV) and Marco Rubio (R-FL) did not vote; a list of Senators voting for passage can be found here.  While proponents of the bill secured a wide margin in favor of passage of the legislation, the margin was not as overhwelming as the Senate's 95-5 vote in favor of S. 23 in March (see "Senate Passes S. 23").

    Before voting on H.R. 1249, the Senate considered three amendments to the legislation.  The first amendment to be considered, SA 600 (Congressional Record (September 7, 2011) p. S5392), was submitted by Sen. Jeff Sessions (R-AL).  This amendment, which would have struck Section 37 concerning the calculation of the 60-day period for application of patent term extension (the so-called MedCo amendment), was rejected by a narrow 51-47 vote.  The second amendment to be considered, SA 595 (Congressional Record (September 7, 2011) p. S5390), was submitted by Sen. Cantwell.  This amendment, which offered a replacement for Section 18 providing a transitional program for covered business-method patents, was rejected by a 85-13 vote (with one Senator voting present).  The third and final amendment to be considered, SA 599 (Congressional Record (September 7, 2011) p. S5391), was submitted by Sen. Coburn.  This amendment, which would have replaced Section 22 of the House bill concerning USPTO funding with the USPTO funding provisions of S. 23, was tabled by a close 50-48 vote.  Under Senate rules, the agreement to table the third amendment was equivalent to defeating the amendment tabled.

    H.R. 1249 will now be sent to the President for his signature (based on the President's schedule, any signing is unlikely to occur tomorrow).

  • By James DeGiulio

    Teva's Patents Covering Copaxone Upheld in Infringement Suit

    Teva #2 Mylan failed in its efforts to dismiss Teva's patent suit over the multiple-sclerosis drug Copaxone when the patents directed to the active pharmaceutical ingredient (API) in the drug, glatiramer acetate, were upheld as valid.  In September 2008, Teva brought suit in the Southern District of New York against Sandoz, and in 2009 against Mylan, after both companies filed Abbreviated New Drug Applications (ANDAs) for Copaxone (see "Court Report," September 7, 2008 and November 8, 2009).  Teva asserted four patents in its infringement suits:  U.S. Patent Nos. 7,199,098, 6,939,539, 6,054,430, and 6,620,847.  Among other defenses, Mylan and Sandoz argued that the patents were invalid.  The defendants argued during claim construction that the claims were indefinite because the molecular weight of the compound was not described sufficiently, and both defendants moved for summary judgment on this issue.  Sandoz' motion was denied, while Mylan's motion was pending.  In October 2010, Teva attempted to force the defendants to provide advance notice of their intent to launch the generic.  This attempt was not successful.  On July 5, the District Court again denied Teva's request for an order directing the generic drug makers to provide the Court and Teva with 10 days notice prior to the launch of their generic Copaxone products, ruling that the defendants "are under no legal obligation" to provide such notice.  The trial was scheduled to begin today.

    Mylan #1 On August 29, Judge Barbara S. Jones issued a Memorandum and Order denying Mylan's summary judgment motion that the patents are invalid under 35 U.S.C. § 112 for not explicitly defining the molecular weight of the glatiramer acetate.  Mylan's main objection was that the definition focused on how the chemical compound is made.  The defendants also argued that the term "molecular weight" as it is used in the asserted patents was merely a "random amino acid composition" because it was made up of molecules with average molecular weights.  Judge Jones rejected this definition, adopting Teva's claim that the "copolymer-1" that makes up the drug is a mixture of molecules, all with different molecular weights.  The parties also disputed the term "average molecular weight," which Sandoz and Mylan asserted as subject to several interpretations, thus rendering term invalid.  However, Judge Jones noted that Teva had successfully argued during the prosecution of the patent that a person of ordinary skill would understand its meaning.  This was found to produce a presumption that the description complies with the provisions of 35 U.S.C. § 112.


    Mylan Found to Infringe One of Galderma's Oracea Patents

    Galderma Mylan was found to infringe one of five patents asserted against it, but managed to invalidate two of the five patents, in Galderma's suit against the generic drug maker for infringement of patents directed to the rosacea drug Oracea.  On October 19, 2010, Galderma filed suit in the District of Delaware, asserting that Mylan's ANDA infringed U.S. Patent Nos. 5,789,395, 5,919,775, 7,211,267, 7,232,572, and 7,749,532, which are directed to a once-daily administration of doxycycline for the treatment of acne rosacea.  Galderma launched two suits, which were later consolidated.  Mylan answered by asserting that the patents were invalid and unenforceable, and that its product did not infringe any of the claims of the five patents.  Mylan's ANDA was approved in July 2010, and Galderma quickly secured a preliminary injunction against Mylan, blocking the company from entering the market with its generic Oracea product.

    Mylan #2 On August 26, Judge Leonard P. Stark, in a detailed Opinion, determined that Galderma had proved by a preponderance of the evidence that Mylan's proposed generic rosacea drug infringed all of the asserted claims of the '532 patent (the "Chang" patent), which is not set to expire until on December 19, 2027.  The Chang patent, which was upheld in the face of anticipation, obviousness, inventorship, and written description challenges, covers the formulation for Oracea.  Judge Stark also ruled that Galderma had failed to prove that Mylan had infringed any claims of the other four patents, and that Mylan successfully demonstrated that the '395 and '775 patents were invalid.  These patents were invalidated due to inherent anticipation, where the prior art disclosed the use of a high dose of tetracycline to treat periodontitis or rheumatoid arthritis, diseases with similar properties as rosacea.

    Despite finding that Mylan's proposed product would infringe the Chang patent, Judge Stark declined to adopt the remedy suggested by Galderma, which was to convert the preliminary injunction in place into a permanent injunction.  Further, Galderma requested to change the effective date of FDA approval of Mylan's ANDA to a date no earlier than the expiration of the latest asserted, valid patent.  Judge Stark stated that while Galderma is entitled to some relief, neither party had prevailed in the entirety of its positions.  He also said it was noteable that the only patent Mylan was found to have infringed issued well after the company filed its ANDA.  As such, he said he would require the parties to submit briefs addressing the appropriate remedy and would leave the preliminary injunction in place for now.


    Shire Avoids Dismissal in Patent Suit over Generic Intuniv

    Shire Pharmaceuticals Impax and Watson were unsuccessful in their attempt to dismiss a patent infringement suit brought by Shire over a generic version of Shire's ADHD drug Intuniv.  On December 2, 2010, Shire and the inventors brought suit in the Northern District of California for patent infringement and a declaratory judgment against defendants Impax and Watson (see "Court Report," December 12, 2010).  Impax and Watson had both filed ANDAs for a generic form of guanfacine hydrochloride extended release tablets, and Shire asserted that this filing infringed U.S. Patent Nos. 5,854,290, 6,287,599, and 6,811,794.  Plaintiffs moved to dismiss all of defendants' counterclaims under Rule 12(b)(6) and to strike all their affirmative defenses Impax Laboratories under Rule 12(f).  Following Shire's motions, the defendants countered with a motion to dismiss the suit.  Impax and Watson argued that their answers to Shire's complaint are pleaded in the same fashion as the complaint itself.  Following this logic, defendants concluded that if the District Court dismissed their counterclaims and defenses, it should dismiss the complaint as well.

    Watson Pharmaceuticals On August 29, in an Order Denying Motions to Dismiss, Judge Richard Seeborg denied both plaintiffs' and defendants' motions.  Judge Seeborg noted that there would be little benefit in requiring parties to replead their claims and counterclaims with additional factual allegations.  Shire has been aggressively litigating its patent rights to Intuniv over the past year, having also brought suit against Mylan and Sandoz in West Virginia and Colorado federal court, respectively.

  • By Donald Zuhn

    Senate Seal Earlier today, the Senate voted 93-5 to invoke cloture on a motion to proceed to H.R. 1249, the House version of the Leahy-Smith America Invents Act.  Opposing the motion were Senators Tom Coburn (R-OK), Jim DeMint (R-SC), Ron Johnson (R-WI), Mike Lee (R-UT) and Rand Paul (R-KY); Senators John Rockefeller IV (D-WV) and Marco Rubio (R-FL) did not vote on the motion; a list of Senators voting in favor of the motion can be found here.  The motion required a three-fifths majority vote of the Senate (i.e., 60 votes) to pass.

    As a result of the passage of the cloture motion, further consideration of H.R. 1249 by the Senate will now be limited to thirty hours (which includes the time used for roll call votes, quorum calls, reading of amendments, points of order, and inquiries to and responses by the Chair), no Senator will be allowed to speak on the legislation for more than one hour (Senators wishing to speak on the bill will be permitted to do so on a "first come, first served" basis), and only amendments to the bill presented prior to the cloture vote will be permitted.  According to the Senate Calendar of Business for Wednesday, September 7, the Senate will resume consideration of the motion to proceed to H.R. 1249 upon the conclusion of tomorrow's morning business.

    Coburn, Tom In a press release posted on his website today, Sen. Coburn (at left) provided a reason for his opposition to the cloture motion, declaring that "[f]ee diversion saps the lifeblood of the American economy — innovation and invention — in order to subsidize the desire of career politicians and appropriators in Congress to avoid hard choices," and adding that "[f]ee diversion operates like a tax on innovation, because it requires entrepreneurs to spend more money and time on activities than they would otherwise if patent fees remained fees."  Reviewing the history of the fee diversion provisions in the Senate version of the America Invents Act, Sen. Coburn states that:

    The Senate has already voted to end fee diversion, by a margin of 95 to 5.  That version of the bill the Senate passed included my amendment that sets up a new revolving fund at the Treasury in which user fees that are paid to the Patent and Trademark Office for a patent or a trademark go directly into the revolving fund for the office to use to cover its operating expenses.  Congress would no longer have the ability to take those fees and divert them to other programs; fee diversion would be ended once and for all — no more games, no more gimmicks.  My amendment was also in the bill that was passed by the House Judiciary Committee by a vote of 32 to 3.

    Unfortunately, the House gutted my amendment after negotiations with the House Appropriations Committee.  The appropriators are insisting, of course, that they have no intention of diverting fees.  History suggests they are not to be trusted.  They promised to end this practice in the past and kept doing it.

    There have been some reports that Sen. Coburn introduced a pre-cloture amendment to restore his previous anti-fee diversion provisions to H.R. 1249.  The Senator gives some credence to those reports by stating that:

    I intend to give Senate appropriators the chance to back up that claim by voting on my amendment to end fee diversion.  If my amendment fails, I will do everything in my power to slow the bill and highlight this egregious tax on innovation.