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Monday, October 29, 2007
Phyllis Schlafly :: Townhall.com Columnist
The Patent Act Is a Cheat on Americans
by Phyllis Schlafly
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When displaced American workers complain about outsourcing U.S. manufacturing jobs to take advantage of cheap Chinese factory labor, and about using low-paid Asians here on H-1B visas to take engineering and computer jobs, the globalists and multinational corporations have a ready answer. They recite in chorus: Don't worry, be happy, because American technology and innovation enable us to compete in the global market.

But now those same globalists and multinationals are trying to outsource our technology and innovation advantage by delivering a body blow to our patent system. This plan comes under the deceptive label Patent "Reform" Act (H.R. 1908), and it's already been rushed through the U.S. House.

Our patent system is the reason why nearly all the world's great inventions are American, giving us a standard of living that is the envy of the world. The right of inventors, large and small, to own their own inventions is so important that it (along with copyright) is the only "right" protected in the original U.S. Constitution, preceding all the more famous rights spelled out in constitutional amendments.

A combination of foreigners who make a business of stealing our intellectual property, and the multinationals who want to avoid paying royalties to small inventors, have ganged up to get Congress to do their bidding. The battle is going on behind closed doors between the corporations with highly paid lobbyists vs. the small inventors and businesses who produce 40 percent of U.S. innovation.

This attempt to bully the small guys with legislation doesn't make sense. But it's rolling through the halls of Congress because it has dodged publicity.

Item No. 1: The Patent "Reform" Act would change the rule for granting patents from the American first-to-invent requirement to the foreign procedure called first-to-file. This provision is arguably unconstitutional: The U.S. Constitution protects the ownership "right" for inventors, not filers.

There is no good reason to prefer any foreign procedure over the successful American system. And there is a mighty good reason not to: First-to-file would bring a tsunami of applications ground out by the multinationals' large staffs, leaving the small inventors buried in paper.

Item No. 2: The Act would make it mandatory for the U.S. Patent Office to publish (i.e., post on the Internet) all inventions 18 months after date of application, thereby repealing the option now used by 37 percent of American inventors to prevent publication by agreeing not to file in foreign countries. The big winner of this nasty provision would be the Asian pirates who sit at their computers and steal American inventions between publication at 18 months and 32 months, which is the average time it takes for a patent to be granted.

Item No. 3: The act would create post-grant review, a process that would enable patent infringers to challenge the validity of a patent after it is issued without going to court, thereby making the inventor's ownership vulnerable and reducing his ability to attract venture capital to produce it. The big winners would be the multinationals with lots of lawyers.

Item No. 4: The act would reduce the damages that a judge and jury can award to an inventor after proof that his invention has been stolen or infringed. Again, the winners would be the multinationals with big legal departments and deep pockets.

Item No. 5: The act would weaken protections under U.S. trade laws that prevent foreign pirates from exporting their products made with stolen intellectual property into the United States. The result would be a perverse incentive to export our technology and jobs to foreign countries.

The advocates of the Patent Act say that it is needed to reduce patent litigation. Au contraire: The bill is more likely to increase, not reduce litigation, and the percentage of lawsuits has remained constant for the last 15 years at about only 1.5 percent of all patents granted.

In 2007, the Supreme Court and the Federal Circuit (which hears patent appeals) handed down several precedent-changing decisions about patents that appear to shift the balance of power away from independent inventors and small businesses. The Patent "Reform" Act was written before any of these important decisions, and we should wait and see their effect before rushing in with new legislation.

There are a couple of problems with our current patent process that need fixing, but the Patent "Reform" Act doesn't address those. Congress should restore to the U.S. Patent Office the revenue from the fees paid by inventors with their applications, which Congress took away in 1999 in order to divert the money to federal spending projects.

With more revenue, the Patent Office could hire and train more qualified examiners so that patent applications could be processed within 18 months. Americans cannot afford to get it wrong about protecting our patent system. It is crucial to maintaining our world leadership in technology and innovation.

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About The Author

Phyllis Schlafly is a national leader of the pro-family movement, a nationally syndicated columnist and author of Feminist Fantasies.
 
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Not surprising
First of all I'd like to say this is a very interesting topic, and a good article that brings to light yet another regulation that's trying to get through our lawmakers without being noticed.

"The advocates of the Patent Act say that it is needed to reduce patent litigation. Au contraire: The bill is more likely to increase, not reduce litigation..."

We shouldn't be surprised when advocates of new regulation espouse its merits while cleverly not mentioning any bad side effects. I can't say for sure, but I'll bet those supporting this legislation are the same group that will benefit from more employment when litigation increases. Just another example of business using government to give them an edge at the expense of those that don't have lobbying power.

There are some very interesting viewpoints on patent law, too. Some free market thinkers have been against copyright and patents to a degree, although I'm not entirely sure why. I've always thought an inventor or artist should have protections for what they create. I'll have to do more research on this.

Of course that can cause problems when one person basically copies another's work, but makes some small changes to try and make it appear different enough so they don't get sued. Should that be allowed? If so, to what degree?

One simple reform is needed...
--
...in the legislative process.

When the proponents of a statute win passage of the bill they've sponsored, the privilege of NAMING the enacted legislation goes to those who advocated and voted against it.

Thus we would lose euphemistic (and frankly fraudulent) titles like "Family and Motherhood Apple Pie Ironclad Protection Against Child Molesters Act" names in favor of descriptions such as "The Pork-Barreling Nanny State Permanent Employment for Incompetent Doughnut-Sucking Police Chiefs Program."

After all, if the Congress is going to pass unconstitutional, corrupt, and destructive legislation, shouldn't there be an element of fair advertising to better facilitate the accurate public perception of these toxic waste products of the governmental process?


--

A patent lie
A great article that explains one of the issues of patents and how detrimental they can be is "A Patent Lie" from the Cato institute.

http://www.cato.org/pub_display.php?pub_id=8278

It gives an example of Vonage being sued by Verizon for patent infringement for their internet phone service. In the end consumers would suffer with less choices, less competition, higher prices.

And SJ Doc...very funny post! I agree with you.

Congressional 'fixes'
Whenever congress decides to 'fix' something, I wonder right away who's proposing it and who's paying for it. Phyllis has the same view and she usually finds what stinks by following her talented nose.

Not only does the congress create the problem with the patent office by under funding it, a gov't operation that deserves adequate funding far more than 90% of their discretionary 'earmark' spending, but they propose 'fixes' that undermine the property rights of inventers, innovators and creators by allowing others to steal those rights.

This is nothing new: The environmentalists have been stealing property rights by dictating through bureaucrats and judges what a landowner can do with his property with no just compensation; we've seen 'eminent domain' corrupted into a system where gov't can grab any property it's in its predatory interests to sieze; we've seen gov't regulate PRIVATE enterprise in favor of big business that doesn't want the competition; etc.

Wouldn't you know that this was a democrat initiative in a democrat congress - the same party, incidentally, that gave us the wholesale transfer of missle guidance technology to the Red Chinese - a potentially powerful enemy?

We all know that the left holds the constitution in utter contempt. This is just one more example.

globalism
Just another example of globalism and giving away our national sovereignty for corporate interests.

Scumbags are running our country.

BTW China is not a "potentially" powerful enemy. They ARE a powerful enemy.

read these articles. I am not OK with having the fox guard the henhouse. China shot down one of our dead satelites. Just letting us know what they could do to us in war. They also hacked into the Pentagon computers.

http://www.worldnetdaily.com/news/article.asp?ARTICLE_ID=53 287

http://www.worldnetdaily.com/news/article.asp?ARTICLE_ID=53 271


I'd Have to Hear from Someone I Trust
Coz I have not noticed any particular expertise on the part of Ms. Schlafly.

I've only read a few articles of hers, and when I'm familiar with the subject matter, I tend to strongly disagree with her. Not a good track record in my book.

But I Will Say This --
-- if Congress is considering it, it's *probably* a bad idea.

Anna -- Chinese Satellites
They shot down one of *their* dead satellites.

Knowing a little something about how the Defense Department works, I seriously doubt they "hacked" into any computers at the Pentagon. Nor did they need to, when they could buy all the secrets they needed from insiders.

Alby
They shot down one of OUR dead satelites. Imgine how we would wage war without satelites for targeting?

I read more than one article on Drudge that they were successful at hacking into Pentagon computers.

They are also running a couple of our ports. China is not our friend.

Gutting our patent system
I have been practicing patent law for 27 years, and I agree with this article. My biggest concern is that this bill creates a new way of calculating damages that will make it profitable to infringe patents and thereby gut the patent system. The Patent Office is in the worst shape I have seen in my career, and its recent new regulations to try to reduce its work load will unnecessarily reduce the rights of inventors. I probably will retire before the stuff really hits the fan, but I am very concerned about what this destruction of our patent system will do to our economy.

Patent System and More
Why are we allowing foreigners to lobby our congress? Why is congess and President Bush trying to give away our country?
This is the same thing as trying to get the Law of the Sea treaty rammed through Congress.

It naturally follows ...
that no man can serve two masters. Homeland vs money.

Anna, Alby
The Chinese shot down their own satellite using technology obtained from Hughes and Loral, a transfer that was approved by Clinton in return for big cash transfers to his personal interests.

Does anyone really wonder why the klintons and the Chinese are on such friendly terms? Below is a 1/19/07 article:

http://www.washingtonpost.com/wp-dyn/content/article/2007/0 1/18/AR2007011801029.html

In taking out the satellite, the debris is potentially hazardous to any other space flight, manned or unmanned, that may encounter these projectiles travelling at approximately 17,000 miles per hour.

Where are the insufferably squawking enviros when the Chinese are polluting and trashing the environment?

Can this country really be so insane as to put the klintons back in the WH?

First "LOST" and now this?!!!
Is there anything these pinheaded congress-bastards won't do to destroy our country?!

Washington
Just how long are We the People going to roll
over and play dead while our leaders sell the
country right from under us along with the ports
and highways ?
I have been voting longer than some of you have
been alive, and We need to be worried.
How many of you write and call your senators ?
We are at the point of speak up or shut up.
In all of my years I don't ever remember being so discussed with our leadership as a whole.
Lobbyist are running the country.
There is no one as I see it to vote for in the
next election.
My motto is Bring it on home and rebuild AMERICA.
No campaign contributions, re-elect no one.

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