[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 1137 Introduced in Senate (IS)]

114th CONGRESS
  1st Session
                                S. 1137

  To amend title 35, United States Code, and the Leahy-Smith America 
  Invents Act to make improvements and technical corrections, and for 
                            other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 29, 2015

Mr. Grassley (for himself, Mr. Leahy, Mr. Cornyn, Mr. Schumer, Mr. Lee, 
Mr. Hatch, and Ms. Klobuchar) introduced the following bill; which was 
       read twice and referred to the Committee on the Judiciary

_______________________________________________________________________

                                 A BILL


 
  To amend title 35, United States Code, and the Leahy-Smith America 
  Invents Act to make improvements and technical corrections, and for 
                            other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Protecting 
American Talent and Entrepreneurship Act of 2015'' or the ``PATENT 
Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
Sec. 3. Pleading requirements for patent infringement actions.
Sec. 4. Customer-suit exception.
Sec. 5. Discovery limits.
Sec. 6. Procedures and practices to implement recommendations of the 
                            Judicial Conference.
Sec. 7. Fees and other expenses.
Sec. 8. Requirement of clarity and specificity in demand letters.
Sec. 9. Abusive demand letters.
Sec. 10. Transparency of patent transfer.
Sec. 11. Protection of intellectual property licenses in bankruptcy.
Sec. 12. Small business education, outreach, and information access.
Sec. 13. Studies on patent transactions, quality, and examination.
Sec. 14. Technical corrections to the Leahy-Smith America Invents Act 
                            and other improvements.
Sec. 15. Effective date.
Sec. 16. Severability.

SEC. 2. DEFINITIONS.

            (1) Director.--The term ``Director'' means the Under 
        Secretary of Commerce for Intellectual Property and Director of 
        the United States Patent and Trademark Office.
            (2) Office.--The term ``Office'' means the United States 
        Patent and Trademark Office.

SEC. 3. PLEADING REQUIREMENTS FOR PATENT INFRINGEMENT ACTIONS.

    (a) Elimination of Form 18.--Not later than 1 month after the date 
of enactment of this Act, the Supreme Court, using existing resources, 
shall eliminate Form 18 in the Appendix to the Federal Rules of Civil 
Procedure (Complaint for Patent Infringement).
    (b) Pleading Requirements.--
            (1) Amendment.--Chapter 29 of title 35, United States Code, 
        is amended by inserting after section 281 the following:
``Sec. 281A. Pleading requirements for patent infringement actions
    ``(a) Pleading Requirements.--In a civil action in which a party 
asserts a claim for relief arising under any Act of Congress relating 
to patents, a party alleging infringement shall include in a complaint, 
counterclaim, or cross-claim for patent infringement, except as 
provided in subsection (c), the following:
            ``(1) An identification of each patent allegedly infringed.
            ``(2) An identification of each claim of each patent 
        identified under paragraph (1) that is allegedly infringed.
            ``(3) For each claim identified under paragraph (2), an 
        identification of each accused process, machine, manufacture, 
        or composition of matter (referred to in this section as an 
        `accused instrumentality') alleged to infringe the claim.
            ``(4) For each accused instrumentality identified under 
        paragraph (3), an identification with particularity, if known, 
        of--
                    ``(A) the name or model number (or a representative 
                model number) of each accused instrumentality; or
                    ``(B) if there is no name or model number, a 
                description of each accused instrumentality.
            ``(5) For each claim identified under paragraph (2), a 
        description of the elements thereof that are alleged to be 
        infringed by the accused instrumentality and how the accused 
        instrumentality is alleged to infringe those elements.
            ``(6) For each claim of indirect infringement, a 
        description of the acts of the alleged infringer that are 
        alleged to contribute to or induce the direct infringement.
    ``(b) Dismissal for Failure To Meet Pleading Requirements.--The 
court shall, on the motion of any party, dismiss any count or counts of 
the complaint, counterclaim, or cross-claim for patent infringement if 
the requirements of paragraphs (1) through (6) of subsection (a) are 
not met with respect to such count or counts. The fact that a party 
pleads in accordance with subsection (c) shall not be a basis for 
dismissal if the party nonetheless states a plausible claim for relief 
sufficient under the Federal Rules of Civil Procedure.
    ``(c) Information Not Accessible.--If some subset of information 
required to comply with subsection (a) is not accessible to a party 
after an inquiry reasonable under the circumstances, consistent with 
rule 11 of the Federal Rules of Civil Procedure, an allegation 
requiring that information may be based upon a general description of 
that information, along with a statement as to why the information is 
not accessible.
    ``(d) Amendment of Pleadings.--Nothing in this provision shall be 
construed to affect a party's leave to amend pleadings as specified in 
the Federal Rules of Civil Procedure. Amendments permitted by the court 
are subject to the pleading requirements set forth in this section.
    ``(e) Confidential Information.--A party required to disclose 
information described under subsection (a) may file information 
believed to be confidential under seal, with a motion setting forth 
good cause for such sealing. If such motion is denied by the court, the 
party may seek to file an amended pleading.
    ``(f) Exemption.--Subsection (a) shall not apply to a civil action 
that includes a claim for relief arising under section 271(e)(2).
``Sec. 281B. Early disclosure requirements for patent infringement 
              actions
    ``(a) Definitions.--In this section--
            ``(1) the term `financial interest'--
                    ``(A) means--
                            ``(i) with regard to a patent or patents, 
                        the right of a person to receive proceeds from 
                        the assertion of the patent or patents, 
                        including a fixed or variable portion of such 
                        proceeds; and
                            ``(ii) with regard to the patentee, direct 
                        or indirect ownership or control by a person of 
                        more than 20 percent of the patentee; and
                    ``(B) does not mean--
                            ``(i) ownership of shares or other 
                        interests in a mutual or common investment 
                        fund, unless the owner of such interest 
                        participates in the management of such fund; or
                            ``(ii) the proprietary interest of a 
                        policyholder in a mutual insurance company or a 
                        depositor in a mutual savings association, or a 
                        similar proprietary interest, unless the 
                        outcome of the proceeding could substantially 
                        affect the value of such interest;
            ``(2) the term `patentee' means a party in a civil action 
        that files a pleading subject to the requirements of section 
        281A;
            ``(3) the term `proceeding' means all stages of a civil 
        action, including pretrial and trial proceedings and appellate 
        review; and
            ``(4) the term `ultimate parent entity' has the meaning 
        given the term in section 261A.
    ``(b) Early Disclosure Requirements.--Notwithstanding the 
requirements of section 299B, a patentee shall disclose to the court 
and each adverse party, not later than 14 days after the date on which 
the patentee serves or files the pleading subject to the requirements 
of section 281A--
            ``(1) the identity of each--
                    ``(A) assignee of the patent or patents at issue, 
                and any ultimate parent entity thereof;
                    ``(B) entity with a right to sublicense to 
                unaffiliated entities or to enforce the patent or 
                patents at issue, and any ultimate parent entity 
                thereof; and
                    ``(C) entity, other than an entity the ultimate 
                parent of which is disclosed under subparagraph (A) or 
                (B), that the patentee knows to have a financial 
                interest in--
                            ``(i) the patent or patents at issue; or
                            ``(ii) the patentee, and any ultimate 
                        parent entity thereof; and
            ``(2) for each patent that the patentee alleges to be 
        infringed--
                    ``(A) a list of each complaint, counterclaim, or 
                cross-claim filed by the patentee or an affiliate 
                thereof in the United States during the 3-year period 
                preceding the date of the filing of the action, and any 
                other complaint, counterclaim, or cross-claim filed in 
                the United States during that period of which the 
                patentee has knowledge, that asserts or asserted such 
                patent, including--
                            ``(i) the caption;
                            ``(ii) civil action number;
                            ``(iii) the court where the action was 
                        filed; and
                            ``(iv) if applicable, any court to which 
                        the action was transferred;
                    ``(B) a statement as to whether the patent is 
                subject to an assurance made by the party to a 
                standards development organization to license others 
                under such patent if--
                            ``(i) the assurance specifically identifies 
                        such patent or claims therein; and
                            ``(ii) the allegation of infringement 
                        relates to such standard; and
                    ``(C) a statement as to whether the Federal 
                Government has imposed specific licensing requirements 
                with respect to such patent.
    ``(c) Disclosure of Financial Interest.--
            ``(1) Publicly traded.--For purposes of subsection 
        (b)(1)(C), if the financial interest is held by a corporation 
        traded on a public stock exchange, an identification of the 
        name of the corporation and the public exchange listing shall 
        satisfy the disclosure requirement.
            ``(2) Not publicly traded.--For purposes of subsection 
        (b)(1)(C), if the financial interest is not held by a publicly 
        traded corporation, the disclosure shall satisfy the disclosure 
        requirement if the information identifies--
                    ``(A) in the case of a partnership, the name of the 
                partnership, the address of the principal place of 
                business, and the name and correspondence address of 
                the registered agent;
                    ``(B) in the case of a corporation, the name of the 
                corporation, the location of incorporation, and the 
                address of the principal place of business; and
                    ``(C) for each individual, the name and 
                correspondence address of that individual.
    ``(d) Provision of Information to the United States Patent and 
Trademark Office.--Not later than 1 month after the date on which the 
disclosures required under subsection (b) are made, the patentee shall 
provide to the United States Patent and Trademark Office a filing 
containing the information disclosed pursuant to subsection (b)(1).
    ``(e) Confidential Information.--
            ``(1) In general.--A patentee required to disclose 
        information under subsection (b) may file, under seal, 
        information believed to be confidential, with a motion setting 
        forth good cause for such sealing.
            ``(2) Home address information.--For purposes of this 
        section, the home address of an individual shall be considered 
        to be confidential information.''.
            (2) Conforming amendment.--The table of sections for 
        chapter 29 of title 35, United States Code, is amended by 
        inserting after the item relating to section 281 the following 
        new items:

``281A. Pleading requirements for patent infringement actions.
``281B. Early disclosure requirements for patent infringement 
                            actions.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the date of enactment of this Act and shall apply to any 
action for which a complaint is filed on or after that date.

SEC. 4. CUSTOMER-SUIT EXCEPTION.

    (a) In General.--Chapter 29 of title 35, United States Code, is 
amended by adding at the end the following:
``Sec. 299A. Customer stay
    ``(a) Definitions.--In this section--
            ``(1) the term `covered customer' means a retailer or end 
        user that is accused of infringing a patent or patents in 
        dispute based on--
                    ``(A) the sale, or offer for sale, of a covered 
                product or covered process without material 
                modification of the product or process in a manner that 
                is alleged to infringe a patent or patents in dispute; 
                or
                    ``(B) the use by such retailer, the retailer's end 
                user customer, or an end user of a covered product or 
                covered process without material modification of the 
                product or process in a manner that is alleged to 
                infringe a patent or patents in dispute;
            ``(2) the term `covered manufacturer' means a person who 
        manufactures or supplies, or causes the manufacture or supply 
        of, a covered product or covered process, or a relevant part 
        thereof;
            ``(3) the term `covered process' means a process, method, 
        or a relevant part thereof, that is alleged to infringe the 
        patent or patents in dispute where such process, method, or 
        relevant part thereof is implemented by an apparatus, material, 
        system, software or other instrumentality that is provided by 
        the covered manufacturer;
            ``(4) the term `covered product' means a component, 
        product, system, service, or a relevant part thereof, that--
                    ``(A) is alleged to infringe the patent or patents 
                in dispute; or
                    ``(B) implements a process alleged to infringe the 
                patent or patents in dispute;
            ``(5) for purposes of this section, the term `end user' 
        shall include an affiliate of such an end user, but shall not 
        include an entity that manufactures or causes the manufacture 
        of a covered product or covered process or a relevant part 
        thereof;
            ``(6) the term `retailer' means an entity that generates 
        its revenues predominately through the sale to the public of 
        consumer goods or services, or an affiliate of such entity, but 
        shall not include an entity that manufactures or causes the 
        manufacture of a covered product or covered process or a 
        relevant part thereof; and
            ``(7) for purposes of the definitions in paragraphs (5) and 
        (6), the terms `use' and `sale' mean the use and the sale, 
        respectively, within the meanings given those terms under 
        section 271.
    ``(b) Motion for Stay.--In a civil action in which a party asserts 
a claim for relief arising under any Act of Congress relating to 
patents (other than an action that includes a cause of action described 
in section 271(e)), the court shall grant a motion to stay at least the 
portion of the action against a covered customer that relates to 
infringement of a patent involving a covered product or covered process 
if--
            ``(1) the covered manufacturer is a party to the action or 
        a separate action in a Federal court of the United States 
        involving the same patent or patents relating to the same 
        covered product or covered process;
            ``(2) the covered customer agrees to be bound as to issues 
        determined in an action described in paragraph (1) without a 
        full and fair opportunity to separately litigate any such 
        issue, but only as to those issues for which all other elements 
        of the common law doctrine of issue preclusion are met; and
            ``(3) the motion is filed after the first pleading in the 
        action but not later than the later of--
                    ``(A) 120 days after service of the first pleading 
                or paper in the action that specifically identifies the 
                covered product or covered process as a basis for the 
                alleged infringement of the patent by the covered 
                customer, and specifically identifies how the covered 
                product or covered process is alleged to infringe the 
                patent; or
                    ``(B) the date on which the first scheduling order 
                in the case is entered.
    ``(c) Manufacturer Consent in Certain Cases.--If the covered 
manufacturer has been made a party to the action on motion by the 
covered customer, then a motion under subsection (b) may only be 
granted if the covered manufacturer and the covered customer agree in 
writing to the stay.
    ``(d) Lift of Stay.--
            ``(1) In general.--A stay entered under this section may be 
        lifted upon grant of a motion based on a showing that--
                    ``(A) the action involving the covered manufacturer 
                will not resolve major issues in the suit against the 
                covered customer, such as that a covered product or 
                covered process identified in the motion to lift the 
                stay is not a material part of the claimed invention or 
                inventions in the patent or patents in dispute; or
                    ``(B) the stay unreasonably prejudices or would be 
                manifestly unjust to the party seeking to lift the 
                stay.
            ``(2) Separate actions.--In the case of a stay entered 
        under this section based on the participation of the covered 
        manufacturer in a separate action described in subsection 
        (b)(1), a motion under paragraph (1) may only be granted if the 
        court in such separate action determines that the showing 
        required under paragraph (1) has been made.
    ``(e) Waiver of Estoppel Effect.--If, following the grant of a 
motion to stay under this section, the covered manufacturer in an 
action described in subsection (b)(1)--
            ``(1) obtains or consents to entry of a consent judgment 
        involving one or more of the issues that gave rise to the stay; 
        or
            ``(2) fails to prosecute to a final, non-appealable 
        judgment a final decision as to one or more of the issues that 
        gave rise to the stay,
the court may, upon motion, determine that such consent judgment or 
unappealed final decision shall not be binding on the covered customer 
with respect to one or more of the issues that gave rise to the stay 
based on a showing that such an outcome would unreasonably prejudice or 
be manifestly unjust to the covered customer in light of the 
circumstances of the case.
    ``(f) Rule of Construction.--Nothing in this section shall be 
construed to limit the ability of a court to grant any stay, expand any 
stay granted pursuant to this section, or grant any motion to 
intervene, if otherwise permitted by law.''.
    (b) Conforming Amendment.--The table of sections for chapter 29 of 
title 35, United States Code, is amended by adding at the end the 
following:

``299A. Customer stay.''.

SEC. 5. DISCOVERY LIMITS.

    (a) Amendment.--Chapter 29 of title 35, United States Code, as 
amended by section 4, is amended by adding at the end the following:
``Sec. 299B. Discovery in patent infringement action
    ``(a) Discovery in Patent Infringement Action.--
            ``(1) In general.--Except as provided in subsections (b) 
        and (c), in a civil action arising under any Act of Congress 
        relating to patents, discovery shall be stayed during the 
        pendency of 1 or more motions described in paragraph (2) if the 
        motion or motions were filed prior to the first responsive 
        pleading.
            ``(2) Motions described.--The motions described in this 
        paragraph are--
                    ``(A) a motion to dismiss;
                    ``(B) a motion to transfer venue; and
                    ``(C) a motion to sever accused infringers.
    ``(b) Discretion To Expand Scope of Discovery.--
            ``(1) Resolution of motions.--A court may allow limited 
        discovery necessary to resolve a motion described in subsection 
        (a) or a motion for preliminary relief properly raised by a 
        party before or during the pendency of a motion described in 
        subsection (a).
            ``(2) Additional discovery.--On motion, a court may allow 
        additional discovery if the court finds that such discovery is 
        necessary to preserve evidence or otherwise prevent specific 
        prejudice to a party.
    ``(c) Exclusion From Discovery Limitation.--
            ``(1) Voluntary exclusion.--The parties to an action 
        described in subsection (a) may voluntarily consent to be 
        excluded, in whole or in part, from the limitation on discovery 
        under subsection (a).
            ``(2) Claims under section 271(e).--This section shall not 
        apply to a civil action that includes a claim for relief 
        arising under section 271(e).
    ``(d) Rules of Construction.--
            ``(1) Timeline for responsive pleadings.--Nothing in this 
        section shall be construed to alter the time provided by the 
        Federal Rules of Civil Procedure for the filing of responsive 
        pleadings.
            ``(2) Exchange of contentions.--Nothing in this section 
        shall prohibit a court from ordering or local rules from 
        requiring the exchange of contentions regarding infringement, 
        non-infringement, invalidity or other issues, by 
        interrogatories or other written initial disclosures, at an 
        appropriate time determined by the court.''.
    (b) Conforming Amendment.--The table of sections for chapter 29 of 
title 35, United States Code, as amended by section 4, is amended by 
inserting after the item relating to section 299A the following:

``299B. Discovery in patent infringement action.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the date of enactment of this Act and shall apply to any 
action for which a complaint is filed on or after that date.

SEC. 6. PROCEDURES AND PRACTICES TO IMPLEMENT RECOMMENDATIONS OF THE 
              JUDICIAL CONFERENCE.

    (a) Judicial Conference Rules and Procedures on Discovery Burdens 
and Costs.--
            (1) Rules and procedures.--The Judicial Conference of the 
        United States, using existing resources, should develop rules 
        and procedures to implement the discovery proposals described 
        in paragraph (2) to address concerns regarding the asymmetries 
        in discovery burdens and costs that may arise in a civil action 
        arising under any Act of Congress relating to patents.
            (2) Rules and procedures to be considered.--The rules and 
        procedures to be developed under paragraph (1) should address 
        each of the following:
                    (A) Discovery of core documentary evidence.--To 
                what extent each party to the action is entitled to 
                receive core documentary evidence and should be 
                responsible for the costs of producing core documentary 
                evidence within the possession or control of each such 
                party, and to what extent each party to the action may 
                seek noncore documentary discovery as otherwise 
                provided in the Federal Rules of Civil Procedure.
                    (B) Electronic communication.--If the parties 
                request discovery of electronic communication, how such 
                discovery should be phased to occur relative to the 
                exchange of initial disclosures and core documentary 
                evidence, and appropriate limitations to apply to such 
                discovery.
                    (C) Additional document discovery.--The manner and 
                extent to which the following should apply:
                            (i) In general.--Each party to the action 
                        may seek any additional document discovery 
                        beyond core documentary evidence as permitted 
                        under the Federal Rules of Civil Procedure, if 
                        such party bears the reasonable costs, 
                        including reasonable attorney's fees, of the 
                        additional document discovery.
                            (ii) Requirements for additional document 
                        discovery.--Unless the parties mutually agree 
                        otherwise, no party may be permitted additional 
                        document discovery unless such a party posts a 
                        bond, or provides other security, in an amount 
                        sufficient to cover the expected costs of such 
                        additional document discovery, or makes a 
                        showing to the court that such party has the 
                        financial capacity to pay the costs of such 
                        additional document discovery.
                            (iii) Good cause modification.--A court, 
                        upon motion and for good cause shown, may 
                        modify the requirements of subparagraphs (A) 
                        and (B) and any definition under paragraph (3). 
                        Not later than 30 days after the pretrial 
                        conference under rule 16 of the Federal Rules 
                        of Civil Procedure, the parties shall jointly 
                        submit any proposed modifications of the 
                        requirements of subparagraphs (A) and (B) and 
                        any definition under paragraph (3), unless the 
                        parties do not agree, in which case each party 
                        shall submit any proposed modification of such 
                        party and a summary of the disagreement over 
                        the modification.
                            (iv) Computer code.--A court, upon motion 
                        and for good cause shown, may determine that 
                        computer code should be included in the 
                        discovery of core documentary evidence. The 
                        discovery of computer code shall occur after 
                        the parties have exchanged initial disclosures 
                        and other core documentary evidence.
                    (D) Discovery sequence and scope.--The manner and 
                extent to which the parties shall discuss and address 
                in the written report filed pursuant to rule 26(f) of 
                the Federal Rules of Civil Procedure the views and 
                proposals of each party on the following:
                            (i) When the discovery of core documentary 
                        evidence should be completed.
                            (ii) Whether additional document discovery 
                        will be sought under subparagraph (C).
                            (iii) Any issues about infringement, 
                        invalidity, or damages that, if resolved before 
                        the additional discovery described in 
                        subparagraph (C) commences, might simplify or 
                        streamline the case.
            (3) Scope of documentary evidence.--In developing rules or 
        procedures under this section, the Judicial Conference should 
        consider which kinds of evidence constitute ``core documentary 
        evidence''.
            (4) Definitions.--In this subsection the term ``electronic 
        communication'' means any form of electronic communication, 
        including email, text message, or instant message.
    (b) Judicial Conference Patent Case Management.--The Judicial 
Conference of the United States, using existing resources, should 
develop case management procedures to be implemented by the United 
States district courts and the United States Court of Federal Claims 
for any civil action arising under any Act of Congress relating to 
patents, including initial disclosure and early case management 
conference practices that--
            (1) will identify any potential dispositive issues of the 
        case; and
            (2) focus on early summary judgment motions when resolution 
        of issues may lead to expedited disposition of the case.

SEC. 7. FEES AND OTHER EXPENSES.

    (a) Sense of Congress.--It is the sense of Congress that, in patent 
cases, reasonable attorney fees should be paid by a non-prevailing 
party whose litigation position or conduct is not objectively 
reasonable. As the Supreme Court wrote in adopting this legal standard 
in the context of fee shifting under section 1447 of title 28, United 
States Code, this standard is intended to strike a balance; in patent 
cases, a more appropriate balance between protecting the right of a 
patent holder to enforce its patent on the one hand, and deterring 
abuses in patent litigation and threats thereof on the other.
    (b) Amendment.--Section 285 of title 35, United States Code, is 
amended to read as follows:
``Sec. 285. Fees and other expenses
    ``(a) Award.--In connection with a civil action in which any party 
asserts a claim for relief arising under any Act of Congress relating 
to patents, upon motion by a prevailing party, the court shall 
determine whether the position of the non-prevailing party was 
objectively reasonable in law and fact, and whether the conduct of the 
non-prevailing party was objectively reasonable. If the court finds 
that the position of the non-prevailing party was not objectively 
reasonable in law or fact or that the conduct of the non-prevailing 
party was not objectively reasonable, the court shall award reasonable 
attorney fees to the prevailing party unless special circumstances 
would make an award unjust.
    ``(b) Covenant Not To Sue.--A party to a civil action who asserts a 
claim for relief arising under any Act of Congress relating to patents 
against another party, and who subsequently unilaterally (i) seeks 
dismissal of the action without consent of the other party and (ii) 
extends to such other party a covenant not to sue for infringement with 
respect to the patent or patents at issue, may be the subject of a 
motion for attorney fees under subsection (a) as if it were a non-
prevailing party, unless the party asserting such claim would have been 
entitled, at the time that such covenant was extended, to dismiss 
voluntarily the action without a court order under rule 41 of the 
Federal Rules of Civil Procedure, or the interests of justice require 
otherwise.
    ``(c) Recovery of Award.--
            ``(1) Certification; disclosure of interested parties.--
                    ``(A) Initial statement.--A party defending against 
                a claim of infringement may file, not later than 14 
                days before a scheduling conference is to be held or a 
                scheduling order is due under rule 16(b) of the Federal 
                Rules of Civil Procedure, a statement that such party 
                holds a good faith belief, based on publicly-available 
                information and any other information known to such 
                party, that the primary business of the party alleging 
                infringement is the assertion and enforcement of 
                patents or the licensing resulting therefrom.
                    ``(B) Certification.--Not later than 45 days after 
                being served with an initial statement under 
                subparagraph (A), a party alleging infringement shall 
                file a certification that--
                            ``(i) establishes and certifies to the 
                        court, under oath, that it will have sufficient 
                        funds available to satisfy any award of 
                        reasonable attorney fees under this section if 
                        an award is assessed;
                            ``(ii) demonstrates that its primary 
                        business is not the assertion and enforcement 
                        of patents or the licensing resulting 
                        therefrom;
                            ``(iii) identifies interested parties, if 
                        any, as defined in paragraph (2) of this 
                        subsection; or
                            ``(iv) states that it has no such 
                        interested parties.
                A party alleging infringement shall have an ongoing 
                obligation to supplement its certification under this 
                subparagraph within 30 days after a material change to 
                the information provided in its certification.
                    ``(C) Notice to interested party.--A party that 
                files a certification under subparagraph (B)(iii) 
                shall, prior to filing the certification, provide each 
                identified interested party actual notice in writing by 
                service of notice in any district where the interested 
                party may be found, such that jurisdiction shall be 
                established over each interested party to the action 
                for purposes of enforcing an award of attorney fees 
                under this section, consistent with the Constitution of 
                the United States. The notice shall identify the 
                action, the parties, the patents at issue, and the 
                interest qualifying the party to be an interested 
                party. The notice shall inform the recipient that the 
                recipient may be held accountable under this subsection 
                for any award of attorney fees, or a portion thereof, 
                resulting from the action in the event the party 
                alleging infringement cannot satisfy the full amount of 
                such an award, unless the recipient renounces its 
                interest pursuant to subparagraph (E) or is otherwise 
                exempt from the applicability of this subsection.
                    ``(D) Accountability for interested parties.--Any 
                interested parties who are timely served with actual 
                notice pursuant to subparagraph (C) and do not renounce 
                their interests pursuant to subparagraph (E) or are not 
                otherwise exempt from the applicability of this 
                subsection may be held accountable for any fees, or a 
                portion thereof, awarded under this section in the 
                event that the party alleging infringement cannot 
                satisfy the full amount of the award. If a true and 
                correct certification under clause (i) or (ii) of 
                subparagraph (B) is timely filed with the court, 
                interested parties shall not be subject to this 
                subparagraph.
                    ``(E) Renunciation of interest.--Any recipient of a 
                notice under subparagraph (C) may submit a statement of 
                renunciation of interest in a binding document with 
                notice to the court and parties in the action not later 
                than 120 days after receipt of the notice under 
                subparagraph (C). The statement shall be required to 
                renounce only such interest as would qualify the 
                recipient as an interested party.
                    ``(F) Institutions of higher education exception.--
                Any institution of higher education (as defined in 
                section 101(a) of the Higher Education Act of 1965 (20 
                U.S.C. 1001(a)) or under equivalent laws in foreign 
                jurisdictions), or a non-profit technology transfer 
                organization whose primary purpose is to facilitate the 
                commercialization of technologies developed by 1 or 
                more institutions of higher education, may exempt 
                itself from the applicability of this subsection by 
                filing a certification that it qualifies for the 
                exception provided for in this subparagraph with the 
                court and providing notice to the parties.
                    ``(G) Interest of justice exception.--Any recipient 
                of a notice under subparagraph (C) may intervene in the 
                action for purposes of contesting its identification as 
                an interested party or its liability under this 
                subsection, and a court may exempt any party identified 
                as an interested party from the applicability of this 
                subsection as the interest of justice requires.
            ``(2) Interested party.--In this section, the term 
        `interested party'--
                    ``(A) means a person who has a substantial 
                financial interest related to the proceeds from any 
                settlement, license, or damages award resulting from 
                the enforcement of the patent in the action by the 
                party alleging infringement;
                    ``(B) does not include an attorney or law firm 
                providing legal representation in the action if the 
                sole basis for the financial interest of the attorney 
                or law firm in the outcome of the action arises from 
                the attorney or law firm's receipt of compensation 
                reasonably related to the provision of the legal 
                representation;
                    ``(C) does not include a person who has assigned 
                all right, title, and interest in a patent, except for 
                passive receipt of income, to an entity described in 
                paragraph (1)(F), or who has a right to receive any 
                portion of such passive income; and
                    ``(D) does not include a person who would be an 
                interested party under subparagraph (A) but whose 
                financial interest is based solely on an equity or 
                security interest established when the party alleging 
                infringement's primary business was not the assertion 
                and enforcement of patents or the licensing resulting 
                therefrom.
    ``(d) Claims Under Section 271(e).--
            ``(1) Applicability.--Subsections (a), (b), and (c) shall 
        not apply to a civil action that includes a claim for relief 
        arising under section 271(e).
            ``(2) Award in certain claims under section 271(e).--In a 
        civil action that includes a claim for relief arising under 
        section 271(e), the court may in exceptional cases award 
        reasonable attorney fees to the prevailing party.''.
    (c) Conforming Amendment and Amendment.--
            (1) Conforming amendment.--The item relating to section 285 
        of the table of sections for chapter 29 of title 35, United 
        States Code, is amended to read as follows:

``285. Fees and other expenses.''.
            (2) Amendment.--Section 273 of title 35, United States 
        Code, is amended by striking subsections (f) and (g).
    (d) Effective Date.--The amendments made by this section shall take 
effect on the date of enactment of this Act and shall apply to any 
action filed on or after such date.

SEC. 8. REQUIREMENT OF CLARITY AND SPECIFICITY IN DEMAND LETTERS.

    (a) In General.--Chapter 29 of title 35, United States Code, as 
amended by section 5, is amended by adding at the end the following:
``Sec. 299C. Pre-suit written notice
    ``(a) Applicability.--Subsection (b) shall not apply--
            ``(1) to written communication between parties--
                    ``(A) regarding existing licensing agreements;
                    ``(B) as part of an ongoing licensing negotiation, 
                provided that the initial written notice complied with 
                the requirements of subsection (b) of this section; or
                    ``(C) sent after the initial written notice, 
                provided that the initial written notice complied with 
                the requirements of subsection (b) of this section; or
            ``(2) if the court determines it is in the interest of 
        justice to waive the requirements of subsection (b).
    ``(b) Written Notification Requirements.--
            ``(1) In general.--In a civil action alleging infringement 
        of a patent in which the plaintiff has provided written notice 
        of the accusation of infringement to the party accused of 
        infringement prior to filing the action, the initial written 
        notice shall contain the information required under paragraph 
        (2) or be subject to paragraph (3).
            ``(2) Required information provided in initial written 
        notice.--The initial written notice described in paragraph (1) 
        shall contain, at a minimum--
                    ``(A) an identification of--
                            ``(i) each patent believed to be infringed, 
                        including the patent number; and
                            ``(ii) at least one claim of each patent 
                        that is believed to be infringed;
                    ``(B) an identification of each product, process, 
                apparatus, or chemical composition, including any 
                manufacturer thereof, that is believed to infringe one 
                or more claims of each patent under subparagraph (A);
                    ``(C) a clear and detailed description of the 
                reasons why the plaintiff believes each patent 
                identified under subparagraph (A) is infringed;
                    ``(D) notice to the intended recipient that the 
                intended recipient may have the right to a stay of any 
                suit in accordance with section 299A;
                    ``(E) the identity of any person with the right to 
                enforce each patent under subparagraph (A); and
                    ``(F) if compensation is proposed, a short and 
                plain statement as to how that proposed compensation 
                was determined.
            ``(3) Additional time to respond.--If the initial written 
        notice provided to the defendant prior to the filing of the 
        civil action did not contain the information required by 
        paragraph (2), the defendant's time to respond to the complaint 
        shall be extended by an additional 30 days.''.
    (b) Conforming Amendment.--The table of sections for chapter 29 of 
title 35, United States Code, as amended by section 5, is amended by 
adding at the end the following:

``299C. Pre-suit written notice.''.
    (c) Willful Infringement.--Section 284 of title 35, United States 
Code, is amended--
            (1) in the first undesignated paragraph, by striking ``Upon 
        finding'' and inserting ``(a) In General.--Upon finding'';
            (2) in the second undesignated paragraph, by striking 
        ``When the damages'' and inserting ``(b) Assessment by Court; 
        Treble Damages.--When the damages'';
            (3) by inserting after subsection (b), as designated by 
        subparagraph (B), the following:
    ``(c) Willful Infringement.--A claimant seeking to establish 
willful infringement may not rely on evidence of pre-suit notification 
of infringement unless that notification complies with the standards 
set out in section 299C(b)(2).''; and
            (4) in the last undesignated paragraph, by striking ``The 
        court'' and inserting ``(d)  Expert Testimony.--The court''.
    (d) Effective Date.--The amendments made by this section shall take 
effect on the date that is 1 year after the date of enactment of this 
Act and shall apply to any action for which a complaint is filed on or 
after that date.

SEC. 9. ABUSIVE DEMAND LETTERS.

    (a) Bad-Faith Demand Letters.--Chapter 29 of title 35, United 
States Code, as amended by section 8, is amended by adding at the end 
the following:
``Sec. 299D. Bad-faith demand letters
    ``(a) Definition.--In this section, the term `affiliated person' 
means a person affiliated with the intended recipient of a written 
communication.
    ``(b) Civil Penalties for Certain Unfair or Deceptive Acts or 
Practices in Connection With Abusive Demand Letters.--A person who 
commits an unfair or deceptive act or practice within the meaning of 
section 5(a)(1) of the Federal Trade Commission Act (15 U.S.C. 
45(a)(1)), in connection with the assertion of a United States patent, 
and who engages in the widespread sending of written communications 
representing that the intended recipients, or any persons affiliated 
with those recipients, are or may be infringing, or have or may have 
infringed, the patent and may bear liability or owe compensation to 
another, shall be deemed to have violated a rule defining an unfair or 
deceptive act or practice described under section 18(a)(1)(B) of the 
Federal Trade Commission Act (15 U.S.C. 57a(a)(1)(B)) if--
            ``(1)(A) the communications falsely--
                    ``(i) represent that administrative or judicial 
                relief has been sought against the recipient or others; 
                or
                    ``(ii) threaten litigation if compensation is not 
                paid, the infringement issue is not otherwise resolved, 
                or the communication is not responded to; and
            ``(B) there is a pattern of false statements or threats 
        described in subparagraph (A) having been made without 
        litigation or other relief then having been pursued;
            ``(2) the assertions contained in the communications lack a 
        reasonable basis in fact or law, because--
                    ``(A) the person asserting the patent is not a 
                person, or does not represent a person, with the 
                current right to license the patent to, or to enforce 
                the patent against, the intended recipients or any 
                affiliated persons;
                    ``(B) the communications seek compensation on 
                account of activities undertaken after the patent has 
                expired;
                    ``(C) the communications seek compensation for a 
                patent that has been held to be invalid or 
                unenforceable in a final judicial or administrative 
                proceeding that is unappealable or for which any 
                opportunity for appeal is no longer available;
                    ``(D) the communications seek compensation for 
                activities by the recipient that the sender knows do 
                not infringe the patent because such activities are 
                authorized by the patentee;
                    ``(E) the communications falsely represent that an 
                investigation of the recipient's alleged infringement 
                has occurred; or
                    ``(F) the communications falsely state that 
                litigation has been filed against, or a license has 
                been paid by persons similarly situated to the 
                recipient; or
            ``(3) the content of the written communications is likely 
        to materially mislead a reasonable recipient because the 
        content fails to include facts reasonably necessary to inform 
        the recipient--
                    ``(A) of the identity of the person asserting a 
                right to license the patent to, or enforce the patent 
                against, the intended recipient or any affiliated 
                person;
                    ``(B) of the patent issued by the United States 
                Patent and Trademark Office alleged to have been 
                infringed; and
                    ``(C) if infringement or the need to pay 
                compensation for a license is alleged, of an 
                identification of at least one product, service, or 
                other activity of the recipient that is alleged to 
                infringe the identified patent or patents and, unless 
                the information is not readily accessible, an 
                explanation of the basis for such allegation.
    ``(c) Enforcement by Federal Trade Commission.--
            ``(1) Powers of commission.--The Federal Trade Commission 
        shall enforce this section in the same manner, by the same 
        means, and with the same jurisdiction, powers, and duties as 
        though all applicable terms and provisions of the Federal Trade 
        Commission Act (15 U.S.C. 41 et seq.) were incorporated into 
        and made a part of this section.
            ``(2) Privileges and immunities.--Any person who engages in 
        an act or practice described in subsection (b) shall be subject 
        to the penalties and entitled to the privileges and immunities 
        provided in the Federal Trade Commission Act (15 U.S.C. 41 et 
        seq.).''.
    (b) Technical and Conforming Amendment.--The table of sections for 
chapter 29 of title 35, United States Code, as amended by section 8, is 
amended by inserting after the item relating to section 299C the 
following:

``299D. Bad-faith demand letters.''.

SEC. 10. TRANSPARENCY OF PATENT TRANSFER.

    (a) Patent and Trademark Office Proceedings.--
            (1) In general.--Chapter 26 of title 35, United States 
        Code, is amended by inserting after section 261 the following:
``Sec. 261A. Disclosure of information relating to patent ownership
    ``(a) Definitions.--In this section:
            ``(1) Period of noncompliance.--The term `period of 
        noncompliance' refers to a period of time during which the 
        assignee or the ultimate parent entity of an assignee of a 
        patent has not been disclosed to the United States Patent and 
        Trademark Office in accordance with this section.
            ``(2) Ultimate patent entity.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the term `ultimate parent entity' has 
                the meaning given such term in section 801.1(a)(3) of 
                title 16, Code of Federal Regulations, or any successor 
                regulation.
                    ``(B) Modification of definition.--The Director may 
                by regulation modify the definition of the term 
                `ultimate parent entity'.
    ``(b) Requirement To Disclose Assignment.--An assignment of all 
substantial rights in an issued patent shall be recorded in the Patent 
and Trademark Office--
            ``(1) not later than the date on which the patent is 
        issued; and
            ``(2) when any subsequent assignment is made that results 
        in a change to the ultimate parent entity--
                    ``(A) not later than 3 months after the date on 
                which such assignment is made; or
                    ``(B) in the case of an assignment made as part of 
                a corporate acquisition that meets the reporting 
                thresholds under section 7A(a)(2) of the Clayton Act 
                (15 U.S.C. 18a(a)(2)), not later than 6 months after 
                the closing date of such acquisition.
    ``(c) Disclosure Requirements.--A disclosure under subsection (b) 
shall include the name of the assignee and the ultimate parent entity 
of the assignee.
    ``(d) Failure To Comply.--In a civil action in which a party 
asserts a claim for infringement of a patent, if there was a failure to 
comply with subsection (b) for the patent--
            ``(1) the party asserting infringement of the patent may 
        not recover increased damages under section 284 or attorney 
        fees under section 285 with respect to infringing activities 
        taking place during any period of noncompliance, unless the 
        denial of such damages or fees would be manifestly unjust; and
            ``(2) the court shall award to a prevailing accused 
        infringer reasonable attorney fees and expenses incurred in 
        discovering the identity of any undisclosed entity required to 
        be disclosed under subsection (b), unless such sanctions would 
        be manifestly unjust.''.
            (2) Applicability.--The amendment made by paragraph (1) 
        shall apply to any patent for which a notice of allowance is 
        issued on or after the date of enactment of this Act.
            (3) Conforming amendment.--The table of sections for 
        chapter 26 of title 35, United States Code, is amended by 
        adding at the end the following new item:

``261A. Disclosure of information relating to patent ownership.''.
    (b) Regulations.--The Director may promulgate such regulations as 
are necessary to establish a registration fee in an amount sufficient 
to recover the estimated costs of administering section 261A of title 
35, United States Code, as added by subsection (a), to facilitate the 
collection and maintenance of the information required by the 
amendments made by this section and section 3(b) of this Act, and to 
ensure the timely disclosure of such information to the public.

SEC. 11. PROTECTION OF INTELLECTUAL PROPERTY LICENSES IN BANKRUPTCY.

    (a) In General.--Section 1522 of title 11, United States Code, is 
amended by adding at the end the following:
    ``(e) Section 365(n) shall apply to cases under this chapter. If 
the foreign representative rejects or repudiates a contract under which 
the debtor is a licensor of intellectual property, the licensee under 
such contract shall be entitled to make the election and exercise the 
rights described in section 365(n).''.
    (b) Trademarks.--
            (1) Amendment.--Section 101(35A) of title 11, United States 
        Code, is amended--
                    (A) in subparagraph (E), by striking ``or'';
                    (B) in subparagraph (F), by adding ``or'' at the 
                end; and
                    (C) by adding after subparagraph (F) the following 
                new subparagraph:
                    ``(G) a trademark, service mark, or trade name, as 
                those terms are defined in section 45 of the Act of 
                July 5, 1946 (commonly referred to as the `Trademark 
                Act of 1946' (15 U.S.C. 1127));''.
            (2) Conforming amendment.--Section 365(n)(2) of title 11, 
        United States Code, is amended--
                    (A) in subparagraph (B)--
                            (i) by striking ``royalty payments'' and 
                        inserting ``royalty or other payments''; and
                            (ii) by striking ``and'' after the 
                        semicolon;
                    (B) in subparagraph (C), by striking the period at 
                the end of clause (ii) and inserting ``; and''; and
                    (C) by adding at the end the following new 
                subparagraph:
                    ``(D) in the case of a trademark, service mark, or 
                trade name, the licensee shall not be relieved of any 
                of its obligations to maintain the quality of the 
                products and services offered under or in connection 
                with the licensed trademark, service mark or trade 
                name, and the trustee shall retain the right to oversee 
                and enforce quality control for said products and/or 
                services.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the date of enactment of this Act and shall apply to any case 
that is pending on, or for which a petition or complaint is filed on or 
after, such date of enactment.

SEC. 12. SMALL BUSINESS EDUCATION, OUTREACH, AND INFORMATION ACCESS.

    (a) Small Business Education and Outreach.--
            (1) Resources for small business.--Using existing 
        resources, the Director shall develop educational resources for 
        small businesses to address concerns arising from patent 
        infringement.
            (2) Small business patent ombudsman.--The existing small 
        business patent outreach programs of the Office, in 
        consultation with the relevant offices at the Small Business 
        Administration and the Minority Business Development Agency, 
        shall provide education and awareness regarding resources 
        available for those persons responding to allegations of patent 
        infringement.
    (b) Improving Information Transparency for Small Business and the 
United States Patent and Trademark Office Users.--
            (1) Web site.--Using existing resources, the Director shall 
        create a user-friendly section on the official Web site of the 
        Office to notify the public when a patent case is brought in 
        Federal court and, with respect to each patent at issue in such 
        case, the Director shall include--
                    (A) information disclosed under section 261A of 
                title 35, United States Code, as added by section 10, 
                and section 281B(b) of title 35, United States Code, as 
                added by section 3; and
                    (B) any other information the Director determines 
                to be relevant.
            (2) Format.--In order to promote accessibility for the 
        public, the information described in paragraph (1) shall be 
        searchable by patent number, patent art area, and entity.

SEC. 13. STUDIES ON PATENT TRANSACTIONS, QUALITY, AND EXAMINATION.

    (a) Study on Secondary Market Oversight for Patent Transactions To 
Promote Transparency and Ethical Business Practices.--
            (1) Study required.--The Director, in consultation with the 
        Secretary of Commerce, the Secretary of the Treasury, the 
        Chairman of the Securities and Exchange Commission, the heads 
        of other relevant agencies, and interested parties, shall, 
        using existing resources of the Office, conduct a study--
                    (A) to develop legislative recommendations to 
                ensure greater transparency and accountability in 
                patent transactions occurring on the secondary market;
                    (B) to examine the economic impact that the patent 
                secondary market has on the United States;
                    (C) to examine licensing and other oversight 
                requirements that may be placed on the patent secondary 
                market, including on the participants in such markets, 
                to ensure that the market is a level playing field and 
                that brokers in the market have the requisite expertise 
                and adhere to ethical business practices; and
                    (D) to examine the requirements placed on other 
                markets.
            (2) Report on study.--Not later than 18 months after the 
        date of enactment of this Act, the Director shall submit a 
        report to the Committee on the Judiciary of the House of 
        Representatives and the Committee on the Judiciary of the 
        Senate on the findings and recommendations of the Director from 
        the study required under paragraph (1).
    (b) Study on Patent Small Claims Procedures.--
            (1) Study required.--
                    (A) In general.--The Director of the Administrative 
                Office of the United States Courts, in consultation 
                with the Director of the Federal Judicial Center and 
                the United States Patent and Trademark Office, shall, 
                using existing resources, conduct a study to examine 
                the idea of developing a pilot program for patent small 
                claims procedures in certain judicial districts within 
                the existing patent pilot program mandated by Public 
                Law 111-349.
                    (B) Contents of study.--The study under 
                subparagraph (A) shall examine--
                            (i) the necessary criteria for using small 
                        claims procedures;
                            (ii) the costs that would be incurred for 
                        establishing, maintaining, and operating such a 
                        pilot program; and
                            (iii) the steps that would be taken to 
                        ensure that the procedures used in the pilot 
                        program are not misused for abusive patent 
                        litigation.
            (2) Report on study.--Not later than 1 year after the date 
        of enactment of this Act, the Director of the Administrative 
        Office of the United States Courts shall submit a report to the 
        Committee on the Judiciary of the House of Representatives and 
        the Committee on the Judiciary of the Senate on the findings 
        and recommendations of the Director of the Administrative 
        Office from the study required under paragraph (1).
    (c) Study on Business Method Patent Quality.--
            (1) GAO study.--The Comptroller General of the United 
        States shall, using existing resources, conduct a study on the 
        volume and nature of litigation involving business method 
        patents.
            (2) Contents of study.--The study required under paragraph 
        (1) shall focus on examining the quality of business method 
        patents asserted in suits alleging patent infringement, and may 
        include an examination of any other areas that the Comptroller 
        General determines to be relevant.
            (3) Report to congress.--Not later than 1 year after the 
        date of enactment of this Act, the Comptroller General shall 
        submit to the Committee on the Judiciary of the House of 
        Representatives and the Committee on the Judiciary of the 
        Senate a report on the findings and recommendations from the 
        study required by this subsection, including recommendations 
        for any changes to laws or regulations that the Comptroller 
        General considers appropriate on the basis of the study.

SEC. 14. TECHNICAL CORRECTIONS TO THE LEAHY-SMITH AMERICA INVENTS ACT 
              AND OTHER IMPROVEMENTS.

    (a) Section 325(e)(2) of title 35, United States Code, is amended 
by striking ``or reasonably could have raised''.
    (b) PTO Patent Reviews.--
            (1) Clarification.--
                    (A) Scope of prior art.--Section 18(a)(1)(C)(i) of 
                the Leahy-Smith America Invents Act (35 U.S.C. 321 
                note) is amended by striking ``section 102(a)'' and 
                inserting ``subsection (a) or (e) of section 102''.
                    (B) Effective date.--The amendment made by 
                subparagraph (A) shall take effect on the date of the 
                enactment of this Act and shall apply to any proceeding 
                pending on, or filed on or after, such date of 
                enactment.
            (2) Authority to waive fee.--Subject to available 
        resources, the Director may waive payment of a filing fee for a 
        transitional proceeding described under section 18(a) of the 
        Leahy-Smith America Invents Act (35 U.S.C. 321 note).
    (c) Technical Corrections.--
            (1) Novelty.--
                    (A) Amendment.--Section 102(b)(1)(A) of title 35, 
                United States Code, is amended by striking ``the 
                inventor or joint inventor or by another'' and 
                inserting ``the inventor or a joint inventor or 
                another''.
                    (B) Effective date.--The amendment made by 
                subparagraph (A) shall be effective as if included in 
                the amendment made by section 3(b)(1) of the Leahy-
                Smith America Invents Act (Public Law 112-29).
            (2) Inventor's oath or declaration.--
                    (A) Requirement to execute.--Section 115(a) of 
                title 35, United States Code, is amended in the second 
                sentence by striking ``shall execute'' and inserting 
                ``may be required by the Director to execute''.
                    (B) Effective date.--The amendment made by 
                subparagraph (A) shall be effective as if included in 
                the amendment made by section 4(a)(1) of the Leahy-
                Smith America Invents Act (Public Law 112-29).
            (3) Assignee filers.--
                    (A) Benefit of earlier filing date; right of 
                priority.--Section 119(e)(1) of title 35, United States 
                Code, is amended, in the first sentence, by striking 
                ``by an inventor or inventors named'' and inserting 
                ``that names the inventor or a joint inventor''.
                    (B) Benefit of earlier filing date in the united 
                states.--Section 120 of title 35, United States Code, 
                is amended, in the first sentence, by striking ``names 
                an inventor or joint inventor'' and inserting ``names 
                the inventor or a joint inventor''.
                    (C) Effective date.--The amendments made by this 
                paragraph shall take effect on the date of the 
                enactment of this Act and shall apply to any patent 
                application, and any patent issuing from such 
                application, that is filed on or after September 16, 
                2012.
            (4) Derived patents.--
                    (A) Amendment.--Section 291(b) of title 35, United 
                States Code, is amended by striking ``or joint 
                inventor'' and inserting ``or a joint inventor''.
                    (B) Effective date.--The amendment made by 
                subparagraph (A) shall be effective as if included in 
                the amendment made by section 3(h)(1) of the Leahy-
                Smith America Invents Act (Public Law 112-29).
            (5) Specification.--Notwithstanding section 4(e) of the 
        Leahy-Smith America Invents Act (Public Law 112-29; 125 Stat. 
        297), the amendments made by subsections (c) and (d) of section 
        4 of such Act shall apply to any proceeding or matter that is 
        pending on, or filed on or after, the date of the enactment of 
        this Act.
            (6) Time limit for commencing misconduct proceedings.--
                    (A) Amendment.--The fourth sentence of section 32 
                of title 35, United States Code, is amended by striking 
                ``1 year'' and inserting ``18 months''.
                    (B) Effective date.--The amendment made by this 
                paragraph shall take effect on the date of the 
                enactment of this Act and shall apply to any action in 
                which the Office files a complaint on or after such 
                date of enactment.
            (7) Patent owner response.--
                    (A) Conduct of inter partes review.--Paragraph (8) 
                of section 316(a) of title 35, United States Code, is 
                amended by striking ``the petition under section 313'' 
                and inserting ``the petition under section 311''.
                    (B) Conduct of post-grant review.--Paragraph (8) of 
                section 326(a) of title 35, United States Code, is 
                amended by striking ``the petition under section 323'' 
                and inserting ``the petition under section 321''.
                    (C) Effective date.--The amendments made by this 
                paragraph shall take effect on the date of the 
                enactment of this Act.
    (d) Management of the United States Patent and Trademark Office.--
            (1) In general.--Section 3(b)(1) of title 35, United States 
        Code, is amended in the first sentence--
                    (A) by striking ``be vested with the authority to 
                act in the capacity of the'' and inserting ``serve as 
                Acting,''; and
                    (B) by inserting before the period ``or in the 
                event of a vacancy in the office of the Director.''.
            (2) Effective date.--The amendments made by paragraph (1) 
        shall take effect on the date of enactment of this Act and 
        shall apply with respect to appointments and vacancies 
        occurring before, on, or after the date of enactment of this 
        Act.

SEC. 15. EFFECTIVE DATE.

    Except as otherwise provided in this Act, the provisions of this 
Act shall take effect on the date of enactment of this Act, and shall 
apply to any patent issued, or any action filed, on or after that date.

SEC. 16. SEVERABILITY.

    If any provision of this Act, or an amendment made by this Act, or 
the application of such provision or amendment to any person or 
circumstance, is held to be invalid, the remainder of this Act, or an 
amendment made by this Act, or the application of such provision to 
other persons or circumstances, shall not be affected.
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