[Congressional Record Volume 140, Number 137 (Tuesday, September 27, 1994)]
[House]
[Page H]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: September 27, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
                 U.S. PATENT SYSTEM SET FOR DESTRUCTION

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentlewoman from Maryland [Mrs. Bentley] is recognized for 5 minutes.
  Mrs. BENTLEY. Mr. Speaker, recently negotiated intellectual property 
agreements with Japan have telegraphed the future for the American 
patent system. The Assistant Secretary and Commissioner of the Patent 
and Trademark Office recently signed an agreement with Japan to reduce 
the life term of a patent.
  Mr. Lehman is pushing to change the patent term to 20 years from date 
of filing an application for a patent. The GATT has a minimum of 20 
years from the date of filing, but the Lehman/Japan agreement would 
reduce the life of a patent.
  For example, the Genetic Engineering News reports that under the 
Lehman proposal, the average biotech patent could lose 3 to 4 year's 
protection. That means research will be cut back and a $7 billion 
industry will be struggling to be competitive.
  America is the world leader in software but under this new term the 
United States will be a has been in world software markets because the 
lifespan of a patent will be shortened. Although software has a 
comparatively short lifespan, the concepts do not. Spreadsheets are one 
example of an invention still generating billions of dollars in annual 
revenue.
  Changing the patent term is not the only issue Japan is pushing. 
Secretary of Commerce Ron Brown recently signed an agreement with the 
Japanese Ambassador to publish our patent applications 18 months after 
filing. For decades that information has been secret until the patent 
is published under the American system. Now after 18 months that 
information will be made public, even before an invention may be 
completed or a patent issued.
  With this early pre-grant publication, Japan will be able to learn 
about our most advanced technology, even vital information left out in 
filing a foreign patent. It also will make it difficult to capitalize 
an invention.
  Why is our Government doing this to the American patent system when 
it is a well known fact that it is the basis for the industrial might 
of America?
  The answer. Japan has been very critical of our patent laws because 
our system is different from theirs. Japan has focused on our first-to-
invent system, our so-called submarine patents, and our section 104 
which limit proofs of invention to those generated in the United States 
or those generated by certain United States citizens while serving 
abroad.
  With this GATT agreement, Japan is winning--getting what it wants. If 
the patent term is 20 years measured from filing date, publication 18 
months from filing--and international proof of invention--not limited 
to proofs arising in the United States--then the American system no 
longer is unique.
  A foreign competitor also will be able to file interferences based on 
evidence filed abroad and tie up our patents. In short, American 
inventors are getting the short end of the stick in the GATT and in the 
Lehman-Brown-Japan agreements.
  Why should American citizens be concerned about the patent system?
  This 20-year term from filing is the most devastating inclusion in 
GATT. It is a serious threat to the economic well being of the United 
States. We literally are giving up our technological lead for the next 
100 years if we allow this term to be changed in the GATT.
  We must fight for our patent system and not allow the Government 
change it without public hearings. I can tell you from first-hand 
knowledge that American small business and inventors will shut down 
these changes. It is only a few multinationals and Japan who are 
pushing the changes.
  We have led the world in innovation and creativity. In 1993, the 
United States had 59,588 influential patents, which is almost twice as 
many as Japan, Italy, the United Kingdom, France, and Germany combined. 
This was achieved under the 17-year patent system with everything 
secret until issuance. Even the Patent Commissioner admitted in 
testimony that the ``process under the old system--inventors--have the 
benefit of the greater term. It is as simple as that.''
  Mr. Speaker, we are rapidly pushing American inventors over a cliff 
in a second American Pearl Harbor with these changes in the patent 
system.

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