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<dc:title>115 HR 6557 IH: Inventor Protection Act</dc:title>
<dc:publisher>U.S. House of Representatives</dc:publisher>
<dc:date>2018-07-26</dc:date>
<dc:format>text/xml</dc:format>
<dc:language>EN</dc:language>
<dc:rights>Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.</dc:rights>
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<distribution-code display="yes">I</distribution-code><congress display="yes">115th CONGRESS</congress><session display="yes">2d Session</session><legis-num display="yes">H. R. 6557</legis-num><current-chamber>IN THE HOUSE OF REPRESENTATIVES</current-chamber><action display="yes"><action-date date="20180726">July 26, 2018</action-date><action-desc><sponsor name-id="R000409">Mr. Rohrabacher</sponsor> introduced the following bill; which was referred to the <committee-name committee-id="HJU00">Committee on the Judiciary</committee-name></action-desc></action><legis-type>A BILL</legis-type><official-title display="yes">To amend title 35, United States Code, to restore patent rights to inventors, and for other
			 purposes.</official-title></form>
	<legis-body id="HAF56FED32E644B8D8F794D79A47DEF7A" style="OLC">
 <section id="HF4E732201170429B95CC14ABDD7F97A7" section-type="section-one"><enum>1.</enum><header>Short title</header><text display-inline="no-display-inline">This Act may be cited as the <quote><short-title>Inventor Protection Act</short-title></quote>.</text> </section><section id="HF8A3B8B6F7A64FCF9438BC4B276A9EF8"><enum>2.</enum><header>Findings</header><text display-inline="no-display-inline">Congress finds the following:</text>
 <paragraph id="H67BA531BEA45424794E85DCD712ADABB"><enum>(1)</enum><text display-inline="yes-display-inline">Inventors have historically contributed significantly to innovation in the United States, and their continued dedication to inventing and sharing solutions to modern technical challenges is essential for the United States to maintain leadership in the global economy.</text>
 </paragraph><paragraph id="H1368861C6B89447DB6E3EA9FB80E5D23"><enum>(2)</enum><text display-inline="yes-display-inline">Inventors, not employees or investors, are the source of innovation intended by the Constitution (“securing to inventors”) and the Patent Act (“Whoever invents or discovers … may obtain a patent therefore … ).</text>
 </paragraph><paragraph id="H82BF373AC3E4438D914FA4C7118263BA"><enum>(3)</enum><text display-inline="yes-display-inline">Recent changes to patent laws and procedures and Supreme Court decisions have adversely affected inventors such that the promise of article I, section 8 of the Constitution of “securing for limited times to inventors the exclusive right to their discoveries” is no longer attainable.</text>
 </paragraph><paragraph id="HBB362674231649A1B7635C9AF2C0DC58"><enum>(4)</enum><text display-inline="yes-display-inline">Inventors are denied the fundamental right to “exclude others” by the Supreme Court’s 2006 decision in eBay Inc. v. MercExchange, L.L.C.</text>
 </paragraph><paragraph id="HE94F4A32EB8A46D49D20D4B7084F81D4"><enum>(5)</enum><text display-inline="yes-display-inline">Inventors were stripped of the right to file suit in their own judicial district by the Supreme Court’s 2017 decision in TC Heartland L.L.C. v. Kraft Foods Group Brands L.L.C.</text>
 </paragraph><paragraph id="HF2AF724A716D4D0F8DD2028AECFBBA7A"><enum>(6)</enum><text display-inline="yes-display-inline">Issued patents fail to secure inventors their exclusive rights because—</text> <subparagraph id="HE578FA5A0DE94296A970D67BAF625847"><enum>(A)</enum><text>the Patent Trial and Appeal Board declares 85 percent of granted patents invalid in postgrant reviews;</text>
 </subparagraph><subparagraph id="H994439CF41ED490093F65ABBC792BC2C"><enum>(B)</enum><text>many patents are subjected to multiple postgrant reviews; and</text> </subparagraph><subparagraph id="HE20B15096D90401F8ED8AEDD5F5D7857"><enum>(C)</enum><text>most inventors cannot afford the costs of defending a patent challenged in a single postgrant review, as these costs can reach hundreds of thousands of dollars.</text>
 </subparagraph></paragraph><paragraph id="HBDC08CB142064FFAA91E6A70F4CD1430"><enum>(7)</enum><text display-inline="yes-display-inline">Infringement trials can cost tens of millions of dollars and can take up to ten years to reach a final judgment after all appeals, making legal relief unattainable for inventors.</text>
 </paragraph><paragraph id="H7C8583C88DC748118B82A557B960AF18"><enum>(8)</enum><text display-inline="yes-display-inline">These obstacles have given rise to an “efficient infringement” business model whereby large corporations infringe patent rights held by inventors without concern for any legal consequences.</text>
 </paragraph><paragraph id="HB0B2A07EF4B24946917A60C613D856D7"><enum>(9)</enum><text display-inline="yes-display-inline">Patent protection has led to patient cures, positive changes to the standard of living for all people in the United States, and improvements to the agricultural, telecommunications, software, biotech, pharmaceutical, and electronics industries, among others.</text>
			</paragraph></section><section id="H6CCA23B0C2D944168AA0348643020803"><enum>3.</enum><header>Inventor protections</header>
 <subsection id="H83CA9D95329645A1B211AF5B492869E3"><enum>(a)</enum><header>Inventor-Owned patent</header><text display-inline="yes-display-inline">Section 100 of title 35, United States Code, is amended by adding at the end the following new subsection:</text>
				<quoted-block display-inline="no-display-inline" id="HF4A9B73BEBCA47ACB40FB8E60D56F26F" style="OLC">
 <subsection id="H3F41B3720CA04B028BC5C3C2E1F20377"><enum>(k)</enum><text display-inline="yes-display-inline">The term <quote>inventor-owned patent</quote> means a patent held entirely by the inventor of the claimed invention.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H9ECBE93DA8584475AA87AE76A9926717"><enum>(b)</enum><header>Inventor-Owned patent protections</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/35/32">Chapter 32</external-xref> of title 35, United States Code, is amended by adding at the end the following new section:</text>
				<quoted-block display-inline="no-display-inline" id="HBAB201E0FDC04292A22D49D3EA1A42F7" style="OLC">
					<section id="H3E9EAA0CC67A4FB3BC7B995C0123FC39"><enum>330.</enum><header>Inventor protections</header>
 <subsection id="HBCD9881347684BBA91EC56028716A274"><enum>(a)</enum><header>Patent and trademark office sole jurisdiction</header><text display-inline="yes-display-inline">No executive entity other than the Patent and Trademark Office may reexamine, review, or otherwise make a determination about the validity of an inventor-owned patent.</text>
 </subsection><subsection id="H02FB201E858949DE9540937F3D6E08C9"><enum>(b)</enum><header>Protection from administrative proceedings</header><text display-inline="yes-display-inline">The Patent and Trade Office may not reexamine, review, or otherwise make a determination about the validity of an inventor-owned patent unless voluntarily agreed to by the inventor.</text>
						</subsection><subsection id="H3F0ED431D1C94CB7AB992D52703576C1"><enum>(c)</enum><header>Choice of Venue</header>
 <paragraph id="HE9596B68F2E3428BA0F3A8B27248036B"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">An inventor may bring a civil action involving an inventor-owned patent in any district where the defendant is subject to the court’s personal jurisdiction or where the defendant has committed an act of infringement, regardless of whether the defendant has a regular and established place of business in such district.</text>
 </paragraph><paragraph id="H0F03266195A84F1EA79964B45B8FB4A8"><enum>(2)</enum><header>Venue for declaratory judgment claim</header><text display-inline="yes-display-inline">If an inventor is a citizen or a lawful permanent resident of the United States, any claim for declaratory judgement relating to any inventor-owned patent the inventor owns may only be entered in the district where such inventor is domiciled or a district for which such inventor has consented to jurisdiction.</text>
 </paragraph><paragraph id="H04CF291BF6554EA79238E66216485D48"><enum>(3)</enum><header>Transfer of Action Involving Inventor</header><text>If an inventor is a party to a civil action involving an inventor-owned patent the inventor owns, the court may not transfer the action to another district for convenience without consent of the inventor.</text>
 </paragraph></subsection><subsection id="H3D803AD1BCB544639AD6594AB6C493AF"><enum>(d)</enum><header>Expedited judicial proceedings</header><text display-inline="yes-display-inline">Unless voluntarily waived, an inventor asserting an inventor-owned patent in a civil action under section 281 shall be entitled to—</text>
 <paragraph id="HEE541CEFEE9F493A9CF1E1B1E631DA89"><enum>(1)</enum><text>a trial within 12 months after service of a complaint, with prioritization in the court’s docket, if necessary;</text>
 </paragraph><paragraph id="HCCA65A20AB2E44B4B645E152046582C4"><enum>(2)</enum><text>a trial no more than 7 days in duration;</text> </paragraph><paragraph id="H70AFF4C557C046E8A59C57F2EDECD2D2"><enum>(3)</enum><text display-inline="yes-display-inline">a maximum of 10 discovery requests for each party;</text>
 </paragraph><paragraph id="HEF8E613A010D4EBF922CEC9F98C83579"><enum>(4)</enum><text display-inline="yes-display-inline">pleadings limited to 100,000 words per party; and</text> </paragraph><paragraph id="H148CBE6CDAFD4387A11FB0271459E589"><enum>(5)</enum><text>such other provisions as the court determines appropriate to ensure relief is accessible to the inventor.</text>
							</paragraph></subsection><subsection id="HC43A15C9B9AF49EC9A95668AE070BBF7"><enum>(e)</enum><header>Presumption of irreparable harm</header>
 <paragraph id="H323BFB8EBD8B4C4DA4955EA433A50277"><enum>(1)</enum><header>Presumption</header><text>Upon finding infringement of an inventor-owned patent, the court shall presume that any infringement of such patent causes the inventor irreparable harm.</text>
 </paragraph><paragraph id="H0918723E44064FE692BCD9831A3292BC"><enum>(2)</enum><header>Overcoming the presumption</header><text display-inline="yes-display-inline">The presumption described in paragraph (1) may be overcome if the infringing party shows clear and convincing evidence that the inventor would not be irreparably harmed by further infringement of the patent.</text>
							</paragraph></subsection><subsection id="HE8BABCC870864A2596379900F0E71956"><enum>(f)</enum><header>Simplified damages</header>
 <paragraph id="H96C7F18B6B9F4472A930A6727606CEE1"><enum>(1)</enum><header>Alternative relief</header><text>An inventor that asserts a claim for infringement of an inventor-owned patent in a civil action under section 281 may elect relief under this subsection in lieu of relief under section 284.</text>
 </paragraph><paragraph id="H32B51DB5C8034E5AA909FF204F1A356C"><enum>(2)</enum><header>Relief under this subsection</header><text>If a request for relief under this subsection is made, the following provisions apply:</text> <subparagraph id="H738E6F278A674C289AE00A8656BC36C9"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">Upon a finding of infringement, the court shall award damages equal to the sum of—</text>
 <clause id="HA5100B65ABC343B18E723A72522F4750"><enum>(i)</enum><text>the greater of—</text> <subclause id="HA209BB7E4C6D44CEB2AFFC2CFD5D77F1"><enum>(I)</enum><text>the total profits attributable to the infringing party’s use of the patented invention; or</text>
 </subclause><subclause id="HA1131E622A334C16AF344BFAB798330C"><enum>(II)</enum><text>25 percent of the sales attributable to the infringing party’s use of the patented invention; and</text> </subclause></clause><clause id="H494288CB7F904FA8B57698250776C8DE"><enum>(ii)</enum><text>any interest and costs as fixed by the court.</text>
									</clause></subparagraph><subparagraph id="H130C2A79EE394FAAAB3344E001240218"><enum>(B)</enum><header>Infringement found willful</header>
 <clause id="H7FEC1F8DD2DC4BCB95D35DA1751D187C"><enum>(i)</enum><header>Treble damages available</header><text>If the court finds the infringement to be willful, the court may award damages equal to no more than three times the amount of any damages found in subparagraph (A), but shall not include any royalty payments.</text>
 </clause><clause id="H39033D6B0D434C348140B67A11C96B86"><enum>(ii)</enum><header>Presumption of willfulness</header><text>Infringement shall be presumed willful if the infringing party is an expert in the field of the invention.</text>
 </clause></subparagraph><subparagraph id="HE2AF0284A32340A394BE218D356129A2"><enum>(C)</enum><header>Attorneys fees</header><text display-inline="yes-display-inline">If an inventor successfully brings a claim for infringement of their inventor-owned patent, the court shall award the inventor any amount of their attorneys fees that exceeds 10 percent of the amount of any damages the court awards to the inventor.</text>
								</subparagraph></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
 </subsection><subsection id="H4B8ECB04112849CB859D32448D08A136"><enum>(c)</enum><header>Technical and conforming amendment</header><text>The table of sections for <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/35/32">chapter 32</external-xref> of title 35, United States Code, is amended by adding at the end the following:</text>
				<quoted-block display-inline="no-display-inline" id="H310D8E1907624EA29E51A283C8121FFE" style="OLC">
					<toc regeneration="no-regeneration">
						<toc-entry level="section">330. Inventor protections.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block>
			</subsection></section></legis-body></bill>


