patent reform reactions
The Professional Inventors Alliance USA is freaking out over a proposed patent rule change, to grant patents to first-inventor-to-file instead of first-inventor-to-invent. According to the PIAUSA’s President Ron Riley, this “unconscionable” and “unconstitutional” procedural change will “strip individuals of their constitutional rights and kill American invention”.
How might these dire consequences occur?
The first-to-file system would no longer reward American inventors for their original ideas, designs and years of hard work. Instead, large companies – even foreign companies – that somehow learn of an idea that was not theirs to begin with could file before the actual inventor and claim the patent rights.
Well — I’m sympathetic to that argument, not particularly wanting large companies to be able to swoop in on little-known inventions. Seems like the problem might be solved by a simple and inexpensive notice-filing system akin to the trademark intent-to-use application. (Of course that would create additional problems, like comparing the notice-filing application to the ultimate application….)
But still, what caught my eye, besides the absurdly extreme language, was the description of first-to-invent as a ‘constitutional’ right. In Art. I, Sect. 8, Clause 8, the Constitution grants to Congress the exclusive Power
To promote the Progress of Science and useful Arts, by securing for limited Times to Authors and Inventors the exclusive Right to their respective Writings and Discoveries;
The first-to-file might surely exclude some inventors from patent protection. But so does the first-to-invent system, which excludes any independent invention that cannot be proved to have been reduced to practice first or which happens to have been invented seconds later. Indeed, if I correctly recollect my patent priority timeline, the timeline was full of rather arbitrary lines in the sand about what can be proved when to establish priority. Each one of these points in time offers an opportunity for actual inventors to lose out (albeit to other ‘actual inventors’). So there currently are plenty of actual inventors who are deprived of the rights to their inventions, but somehow first-to-invent is suddenly a ‘Constitutional’ right.
Oh well. Shifting from first-to-invent to first-to-file is ultimately just a convenience for the PTO and brings the US into line with most of the rest of the world on that matter. Just logically, and also to avoid any grabby-big-business problems, I too would probably prefer first-to-invent. But with so many other more serious problems with the patent system, and so many other ways for grabby big businesses to screw their employee inventors, I can hardly get worked up about a shift to first-to-file.
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» patents dot bust, 2004-12-13 (score:45)» serial numbers are non-copyrightable, 2004-12-07 (score:22)
» open content as solution to exploitation of indigenous IP, 2005-12-09 (score:22)
» solar systems in spaaaaace, 2008-02-15 (score:21)
Suppose you are a small independent inventor with an invention but cannot afford to hire patent lawyers to file a patent. To raise the funds you need, you might want to start selling your product or hawking your idea to investors.
Doesn’t first-to-file make this much more dangerous for you by creating the risk that someone who sees your product and has more resources will file the patent first? With first-to-invent, the existence of your product or prototype establishes you as the rightful holder of the patent. It would appear that first-to-file makes it rather more difficult to get started.
This is the basic claim of those concerned with the impact of first-to-file on the small innovator: that for various reasons small innovators are less able to get to the PTO in time, and lose out in the race. I am sympathetic to that argument, & generally like first-to-invent better than first-to-file. But the first-to rule applies in the relatively small number of cases where two inventors invent at roughly the same time and one beats the other to the Patent Office. I think the other problems with the PTO are so egregious that if I had to trade away first-to-invent to get other reforms then I would be happy to do so.
This example brings up a couple of other questions, though, relating to prior art, trade secrecy and conduct. Patent examination includes examination of prior art. If an invention has been known or used in the US or patented in another country; or published, publicly used, or on sale in this country more than one year prior to application then there is prior art disqualifying the patent. I would be most unhappy if the prior art definitions were diminished. You describe two inventor behaviors: (1) selling the product, which would certainly count as prior art (the on-sale bar). And (2), hawking the idea to investors, which may or may not count as prior art depending on whether it’s public, for sale, etc. Inventors often protect themselves in that situation with NonDisclosure Agreements. NDAs effectively turn a product into a trade secret, and patents are privileged compared to trade secrets. But, a breach of NDA would certainly constitute bad faith & there are remedies in the patent application now to handle that. I would be upset if the bad faith provisions went away.