[Congressional Record (Bound Edition), Volume 145 (1999), Part 20]
[Senate]
[Page 29418]
[From the U.S. Government Publishing Office, www.gpo.gov]



           PATENT REFORM AND INVENTOR PROTECTION LEGISLATION

  Mr. LIEBERMAN. Mr. President, I rise to express my support for S. 
1798, the American Inventors Protection Act. Yesterday I became a co-
sponsor of the patents reform legislation, which was recently reported 
out of the Senate Judiciary Committee. It is my understanding that the 
provisions contained in that legislation are being folded into a larger 
bill, which also addresses satellite television and other matters. 
Although I urge passage of this larger bill, in my comments today I 
will speak only to the provisions dealing with patent reform and 
inventor protection, provisions which I strongly believe will provide 
vital new protections both to businesses and to individual inventors. 
In particular, I am pleased to see an entire title dedicated to 
regulating invention promoters, many of whom are little more than con 
artists. In 1995 I introduced the ``Inventor Protection Act'' of 1995, 
which was the first bill to target the unsrupulous firms that take 
advantage of inventors' ideas and dreams. Several of my bill's 
provisions now appear in the House and Senate legislation, and I am 
glad to see that the work we did in the 104th Congress, combined with 
the efforts of others since, should finally result in the passage of 
long needed protections against invention promotion scams.
  The American Inventors Protection Act is a well-rounded bill. It 
reduces patent fees and authorizes the Comissioner of the Paetnt and 
Trademark Office (PTO) to report to Congress on alternative fee 
structures. The goal here, as with other titles of the legislation, is 
to make our patent system as accessible as possible to all. Another 
reform would save money for parties to a patent dispute. It allows 
third parties the option of expanded inter pates reexamination 
procedures; these new procedures before the PTO will decrease the 
amount of litigation in federal district court.
  The ``First Inventor Defense'' is a vital new provision for 
businesses and other inventors caught unaware by recent court decisions 
allowing business methods to be patented. It is simply unfair that an 
innovator of a particular business method should suddenly have to pay 
royalties for its own invention, just because of an unforeseeable 
change in patent law. It is my understanding that any kind of method, 
regardless of its technological character, would be included within the 
scope of this definition, provided it is used in some manner by a 
company or other entity in the conduct of its business.
  Two other provisions provide greater predictability and fairness for 
inventors. One title guarantees a minimum patent term of 17 years by 
extending patent term in cases of unusual delay. Another allows for 
domestic publication of patent applications subject to foreign 
publication. I support the changes made to this provision since the 
last Congress, changes which should satisfy the concerns of independent 
inventors that their ideas might be copied before their patents are 
granted.
  Finally, I applaud the new regulations and remedies which will 
provide inventors with enhanced protections against invention promotion 
scams. Each year thousands of inventors lose tens of millions of 
dollars to deceptive invention marketing companies. In 1994, as then-
Chairman of the Subcommittee on Regulation and Governmental Affairs, I 
held a hearing on the problems presented by the invention marketing 
industry. Witness after witness testified how dozens of companies, 
under broad claims of helping inventors, had actually set up schemes in 
which inventors spend thousands for services to market their 
invention--a service that companies regularly fail to provide.
  The legislation I introduced in 1995 used a multi-faceted approach to 
separate the legitimate companies from the fraudulent and guarantee 
real protection for America's inventors. I am gratified that a number 
of the provisions from my bill have been used in a title of this year's 
patent reform legislation specially devoted to invention marketing 
companies. Both bills provide inventors with enhanced protections 
against invention promotion scams by creating a private right of action 
for inventors harmed by deceptive fraudulent practices, by requiring 
invention promoters to disclose certain information in writing prior to 
entering into a contract for invention promotion services, and by 
creating a publicly available log of complaints received by the PTO 
involving invention promotes.
  The provisions contained in the American Inventors Protection Act 
represent our best hope for passage of meaningful patent reform. I urge 
my colleagues to support their passage to ensure that inventors as well 
as their ideas are adequately protected.

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