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Senate Judiciary Committee Chairman Patrick Leahy, D-Vt., and...

Senate Judiciary Committee Chairman Patrick Leahy, D-Vt., and Sen. Mike Lee, R-Utah, bowed their long-anticipated Patent Transparency and Improvements Act (PTIA) Monday. Sheldon Whitehouse, D-R.I., is an original co-sponsor of the bill. As anticipated (CD Oct 28 p9), the bill…

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mirrors many provisions in the Innovation Act (HR-3309), including provisions requiring plaintiffs to disclose more complete ownership information to the court and defendants, and to disclose additional information to the U.S. Patent and Trademark Office. Like HR-3309, the Senate’s PTIA also allows courts to stay an infringement lawsuit against a product’s end-users when the manufacturer is also included in the lawsuit and provided the stay meets certain court guidelines. The PTIA also makes changes to some PTO review programs and directs PTO to increase its outreach and education resources for small businesses. The bill also requires PTO, the GAO and the Administrative Office of the U.S. Courts to prepare reports on the secondary patent market, the sale of U.S. government-owned patents, patent quality during PTO examinations and the creation of a pilot program for patent small claims courts. Unlike HR-3309, the Senate version includes a provision that codifies the FTC’s power to target abusive demand letters as an unfair and deceptive practice under Section 5 of the FTC Act (http://1.usa.gov/1ip7TIz). NCTA praised the introduction of the Senate bill Monday, arguing that “responsible legislative reforms to discourage unnecessary patent litigation are sorely needed so that American companies can focus on innovation, job creation and economic growth instead of frivolous litigation.”