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Friday, March 07, 2008
Merrill Matthews :: Townhall.com Columnist
Protect Inventors from Patent Pirates
by Merrill Matthews
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Have you ever wondered why virtually no breakthrough drugs are invented in garages, as various Internet and software companies have done?

Maybe it's because the science of modern medicine is so complex that it requires a nano-molecular-bio-chemical laboratory to invent, say, a purple pill.

But there's a darker reason why new medicines aren't being developed in your neighbor's garage: It's simply too hard to enforce patents.

If your neighbor had invented Nexium, he'd need an army of lawyers to protect his patent — because it would come under attack the minute he filed it.

Today's patent protection process is fundamentally broken. And its weaknesses are being exploited by copycat artists looking to make a quick buck off someone else's hard work. Congress is hoping to fix the problem, but it will get a lot of resistance.

When even the big pharmaceutical companies are losing ground in court, the little guy doesn't stand much of a chance.

It's a shame. Inventors of drugs are responsible for literally thousands of life-saving treatments. Yet every time they invent a cure, they're forced to play Russian roulette in the courtroom defending their patents from constant lawsuits filed by generic companies.

Much of this problem stems from an area of patent law known as "inequitable conduct," which is grounds for invalidating a patent.

Here's how it works:

Let's say you invent a green pill that cures hangovers. So you immediately file a patent to protect it. When filing that patent, you must disclose a wide range of information to government authorities, including how the drug was invented, lab results about its effects, and profiles of similar drugs already on the market. Your application is reviewed, accepted, and you are issued a patent giving you exclusive rights to sell the green pill for 17 years.

But what if you stole part of your invention from someone else's existing patent but didn't mention it in your application? In that case, your green-pill patent could be challenged — even after it had been issued — on the grounds of "inequitable conduct."

If a court found that you deliberately withheld required information from your patent application in order to deceive regulators, your patent could be ruled unenforceable by a judge. In legal speak, you'd have been found guilty of "inequitable conduct."

Or at least, that's how the inequitable conduct rule is supposed to work.

In reality, this process is often abused — and has become backdoor for undermining even the most legitimate inventions.

The problem arises from the fact that the standards currently used to determine inequitable conduct are vague and inconsistent. On the issue of what information needs to be disclosed, the law says that an applicant needs to provide any information that would be expected by a "reasonable examiner." Needless to say, that leaves far too much for interpretation. Continued...

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About The Author

Merrill Matthews, Ph.D., is a resident scholar with the Institute for Policy Innovation.

Good job, GunnyG
I thought their was something oddly familiar about these various jerks - and the background exaggerations that just didn't fit the lameness of their comments seemed to be a common denominator. Maybe Hal's lilly as well...

It's like the hydra of Greek mythology.
________________________________________________

Phyllis Schlafly has already written of the latest attempts to gut the patent process with the 'first to file' legal scam. Rather than apply the correct remedy to the US patent process, which would be to fund it at the level it deserves, given its constitutionally mandated importance and the complexity of the process, its funding is treated the way the left treats another constitutionally mandated authority, i.e. military funding.

If need be, provide it with the funding and staff it requires, at the expense of non-mandated, wasteful and extraneous agencies such as education, energy, commerce, etc that are little more than homes for liberal lawyers and others who can't make it in the real world.

The Lawyers are the Problem
Once again, here is a huge debate over an important part of our country that is being ruined by ambulance chasers. The answer is loser pays. If the cost of the endless failed lawsuits against patent holders (or doctors, or drug companies, or insurance companies, or people that build playgrounds or shovel the snow from their sidewalks, etc.) were put fully upon the lawyers who are knowingly using this tactic as extortion and/or a lottery, this would stop. We could then discuss the real problems with the patent system (healthcare system, drug development, lack of playgrounds, absurd warning labels on coffee, etc) if there really are any. But, once again, we're talking about major changes to the patent system here rather than a simple change to the tort system.

"... of the lawyers, by the lawyers, and for the lawyers..."
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