Managing Intellectual Property

Damages divide in focus as US reform is re-launched

01 April 2009

Managing Intellectual Property

Patent reform is back on the agenda in Congress. But, says Eileen McDermott in New York, industry remains divided - especially over how to calculate damages

The US Senate and House Judiciary Committees last month introduced bipartisan, bicameral legislation in the 111th Congress seeking fundamental changes to the US patent system.

The new bills – S515 and HR1260 – are the latest versions of the Patent Reform Act introduced in the last two Congresses. Last year's Senate bill S1145 was removed from the Senate calendar in May. The House of Representatives passed parallel, but not identical, legislation (HR1908), but legislation has to be approved by both Houses and the president to be enacted.

Despite some changes, the latest bills maintain the most controversial provisions, such as new rules for damages calculations in patent infringement proceedings, limitations on the criteria for establishing venue in US courts and the creation of an interlocutory appeal system for claim construction decisions.

The damages provision is the biggest sticking point. The bills seek to calculate damages for patent infringement based upon...



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