EXHIBIT 2012
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`EXHIBIT 2012EXHIBIT 2012
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`Congressional Record
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`United States
`of America
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`PROCEEDINGS AND DEBATES OF THE 112th
`
` CONGRESS, FIRST SESSION
`
`Vol. 157
`
`WASHINGTON, TUESDAY, MARCH 8, 2011
`
`No. 34
`
`Senate
`
`The Senate met at 9:30 a.m. and was
`called to order by the Honorable JEFF
`MERKLEY, a Senator from the State of
`Oregon.
`
`PRAYER
`The Chaplain, Dr. Barry C. Black, of-
`fered the following prayer:
`Let us pray.
`Almighty God, whose word has
`taught us to pray without ceasing,
`guide us to pray according to Your
`will. May our Senators pray not only
`in challenging times, or to ask for spe-
`cial blessings, but because they love
`You and desire to do Your will. Remind
`them that our Nation was born in the
`spirit of prayer and that the interces-
`sion of righteous people has helped
`America survive and prosper. Use their
`vibrant prayer life to make them kind
`but firm, compassionate but resolute,
`loyal but independent. May Your grace
`be sufficient for all their needs.
`We pray in Your loving Name. Amen.
`
`f
`
`PLEDGE OF ALLEGIANCE
`The Honorable JEFF MERKLEY led the
`Pledge of Allegiance, as follows:
`I pledge allegiance to the Flag of the
`United States of America, and to the Repub-
`lic for which it stands, one nation under God,
`indivisible, with liberty and justice for all.
`
`f
`
`APPOINTMENT OF ACTING
`PRESIDENT PRO TEMPORE
`The PRESIDING OFFICER. The
`clerk will please read a communication
`to the Senate from the President pro
`tempore (Mr. INOUYE).
`The assistant legislative clerk read
`as follows:
`
`U.S. SENATE,
`PRESIDENT PRO TEMPORE,
`Washington, DC, March 8, 2011.
`To the Senate:
`Under the provisions of rule I, paragraph 3,
`of the Standing Rules of the Senate, I hereby
`appoint the Honorable JEFF MERKLEY, a Sen-
`
`ator from the State of Oregon, to perform
`the duties of the Chair.
`DANIEL K. INOUYE,
`President pro tempore.
`Mr. MERKLEY thereupon assumed
`the chair as Acting President pro tem-
`pore.
`
`f
`RESERVATION OF LEADER TIME
`The ACTING PRESIDENT pro tem-
`pore. Under the previous order, the
`leadership time is reserved.
`
`f
`MORNING BUSINESS
`The ACTING PRESIDENT pro tem-
`pore. Under the previous order, the
`Senate will be in a period of morning
`business for 2 hours, with Senators per-
`mitted to speak therein for up to 10
`minutes each, with the time divided or
`controlled between the two leaders or
`their designees, with the minority con-
`trolling the first hour and the majority
`controlling the next hour, with 30 min-
`utes under the control of the Senator
`from Massachusetts.
`The Senator from Wyoming is recog-
`nized.
`
`f
`GASOLINE PRICES
`Mr. BARRASSO. Mr. President, I
`come to the floor of the Senate to dis-
`cuss an issue that is critically facing
`the American people: It is the price of
`gasoline at the pump. It is something
`that, in my opinion, will impact our
`economy, impact the economic recov-
`ery we are all hoping will continue in
`this country. But with every penny the
`cost of gasoline goes up, it has been es-
`timated it takes about a billion dollars
`away from the amount of money that
`can be spent on other things in this
`country and to growing the economy.
`We are at a point where the Amer-
`ican people, who have to balance their
`budgets every year—and States have to
`do it, of course. Washington doesn’t do
`that, but the American people do. They
`
`have to focus on their pocketbooks.
`When they are going to fill up with gas
`at the pump and are noticing that they
`are approaching a point where it is
`going to be $100 to get a fill-up, they
`worry about the impact on the quality
`of their life, their ability to put food on
`the table for their children, and cloth-
`ing on their children, and even have
`the money to get back and forth to
`work—those fortunate enough to have
`jobs.
`One can say: Well, is it really a prob-
`lem? I believe it is. I filled up yester-
`day morning in Casper. A young man
`in front of me at the filling station was
`filling up his pickup truck. He was
`watching the numbers go up and up. I
`filled up a week ago in Wyoming as
`well. We use a lot of gasoline in Wyo-
`ming. We travel long distances. I was
`filling up in the evening. I put my cred-
`it card in, and it stopped at $75 because
`apparently they have to reset these
`pumps. One would think that with $75
`one would have enough money to fill
`up. But not as these gas prices con-
`tinue to rise.
`My concern is that so much of this
`money is being sent overseas to people
`who are trying to blow us up. We have
`an opportunity to be much more secure
`in our energy resources by developing
`our energy resources at home. It just
`seems that this administration’s poli-
`cies are making it that much harder.
`One may say: How high can gasoline
`prices go? With the unrest in the Mid-
`dle East, a front-page story a few days
`ago in USA TODAY said: ‘‘If unrest
`spreads, gas may hit $5 a gallon’’—$5 a
`gallon by summer.
`We need to do some things in this
`country that this administration has
`continued to block. We need to find
`more of our own energy, be reliant
`more on ourselves and less on foreign
`sources of energy. That means doing
`three things: exploring offshore, ex-
`ploring on Federal land, and exploring
`in Alaska. We know there are huge re-
`serves of oil, of energy in those loca-
`tions. Yet day by day those efforts are
`
`∑ This ‘‘bullet’’ symbol identifies statements or insertions which are not spoken by a Member of the Senate on the floor.
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`Patent Owner Exhibit 2012
`Petition for IPR Review of Patent No. 8,059,015
`Page 1
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`

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`S1348
`March 8, 2011
`CONGRESSIONAL RECORD — SENATE
`ture if Senators are willing to sit down
`month—but it must add closer to
`We need to be smart about where we
`are going here. The GDP of our country
`and forge it and make it real. The
`200,000 jobs per month before we can
`is measured by our total expenditures
`President’s fiscal commission made
`say the economy is truly expanding
`of consumption of the American peo-
`very clear that our budget cannot be
`again. Imposing additional government
`ple, it is measured by our investments,
`balanced by cutting spending alone.
`spending cuts before this has happened,
`it is measured by government spending
`The American people deserve a serious
`as House Republicans want, would be
`and investment, and by our exports
`dialogue and adult conversation within
`taking an unnecessary chance with the
`minus our imports. That is the GDP.
`the Congress about our fiscal situation,
`recovery.’’
`That is how you measure GDP. How
`Zandi estimates that the cuts in-
`discretionary spending, entitlements,
`can these folks sit here and say if you
`cluded in the Republican continuing
`and revenues. We need to work to-
`cut the government spending you are
`resolution would lead to 700,000 fewer
`gether in a bipartisan process to de-
`not going to cut the GDP, which is
`jobs by the end of 2012. Federal Reserve
`velop a long-term solution to reduce
`what every major economic analysis
`Chairman Ben Bernanke said last week
`both our current budget deficit and our
`has said?
`that the Republican continuing resolu-
`staggering debt. And, yes, we will need
`So yes, we have to cut waste; yes, we
`tion would reduce growth and cost our
`to reduce Federal spending and make
`have to cut some spending; yes, we
`economy about a couple hundred thou-
`appropriate changes to our entitlement
`have to be responsible. But let us be re-
`sand jobs.
`programs to meet the fiscal challenges
`sponsible in a responsible way, by look-
`Last month, a Goldman Sachs econo-
`facing our country. But everything ev-
`ing at the overall budget and the places
`mist warned that the Republican cuts
`erything—tax reform, spending and en-
`we can reduce, at a tempo that doesn’t
`could reduce economic growth in the
`titlements—needs to be on the table.
`do injury to our ability to invest in
`United States by 1.5 to 2 percentage
`Mr. President, this is one of the mo-
`America’s future, to create the jobs for
`points this year.
`ments the Senate was intended to live
`Additional spending cuts would also
`the future, but nevertheless send the
`up to to provide leadership. To find
`go against the thrust of our economic
`right message to the marketplace and
`common ground. To level with the
`policies. The Federal Reserve is hold-
`to the American people.
`American people and be honest with
`We have done that before. We saw the
`ing short-term interest rates close to
`each other. We will no doubt continue
`longest expansion in America’s history.
`zero and purchasing hundreds of bil-
`to be frustrated and angry from time
`Staring us in the face is the largest
`lions of dollars in long-term Treasury
`to time, but I believe that more often
`economic opportunity of a lifetime.
`bonds, in an effort to hold down long-
`than not, we can rise to the common
`The energy marketplace is a $6 trillion
`term interest rates. The tax cut agree-
`ground of great national purpose. A lot
`market with 6 billion potential users
`ment we made last year is also helping
`of us like to talk about American
`today, rising to about 9 billion over the
`to create jobs and boost our economy.
`exceptionalism. But now we need to get
`next 30 years. But we are not engaged
`It doesn’t raise taxes, includes a 2 per-
`beyond the permanent campaign and
`in that. Two years ago, China produced
`cent payroll tax holiday, extends emer-
`the ideological agenda—and instead do
`5 percent of the world’s solar panels.
`gency unemployment insurance bene-
`the exceptional things that will keep
`Today, they produce 60 percent, and
`fits and allows businesses to expense
`America exceptional for generations to
`the United States doesn’t have one
`their investments this year.
`come.
`The American people deserve better
`company in the top 10 companies of the
`I thank the Chair, and I yield the
`than the approach taken by the House
`world’s solar panel producers. What are
`floor.
`of Representatives that cuts critically
`we
`doing? The
`biggest
`trans-
`The PRESIDING OFFICER. The Sen-
`needed research funding, eliminates
`formational market staring the United
`ator from Vermont.
`jobs and reduce economic growth,
`States in the face is the energy mar-
`hurts our competitiveness and could
`ket, and we should be here putting an
`push our economy into a ‘‘double dip’’
`energy policy in place, an education
`recession.
`policy in place, an infrastructure in-
`There is a better way for us to re-
`vestment policy in place, and a re-
`solve our budget problems. Let’s go
`search policy for technology and med-
`back to what worked before and can
`ical that soars, that takes America
`work again if we are willing to bite the
`into the future, creates the jobs we
`bullet. In the early 1990s, our economy
`need for the next generations, and re-
`was faltering because deficits and debt
`duces the deficit in responsible ways,
`were freezing capital. We had to send a
`not in this unbelievable reckless, meat
`signal to the market that we were ca-
`axe, hatchet budget that is being pre-
`pable of being fiscally responsible. We
`sented to us by the House of Represent-
`did just that and as result we saw the
`atives. We need to
`find common
`longest economic expansion in history,
`ground.
`The minority continues to criticize
`created more than 22 million jobs, and
`President Obama about the lack of
`generated unprecedented wealth
`in
`progress in creating jobs. Last month,
`America, with every income bracket
`the economy added 192,000 jobs and the
`rising. But we did it by making tough
`unemployment rate declined from 9
`choices.
`Now is the moment for America to
`percent to 8.9 percent. This is one of
`reach for the brass energy ring—to go
`the best job reports since the recession
`for the Moon here on Earth by building
`began more than 3 years ago. It shows
`our new energy future—and, in doing
`that the economic recovery is begin-
`so, create millions of steady, higher
`ning to gain momentum. However the
`paying jobs at every level of the econ-
`unemployment rate is still too high
`omy. Make no mistake: Jobs that
`and we need both small and big busi-
`produce energy in America are jobs
`nesses to increase jobs if we are going
`that stay in America. The amount of
`to see a meaningful decrease in unem-
`work to be done here is just stunning.
`ployment. The House continuing reso-
`It is the work of many lifetimes. And it
`lution will make that more difficult.
`Republican economist Mark Zandi
`must begin now. This shouldn’t be a
`says that now is not the time to imple-
`partisan issue, but instead of coming
`ment the cuts included in the House
`together to meet the defining test of a
`continuing resolution. In a recent re-
`new energy economy and our future.
`There is a bipartisan consensus just
`port, Zandi said. ‘‘The economy is add-
`waiting to lift our country and our fu-
`ing between 100,000 and 150,000 per
`
`f
`PATENT REFORM ACT OF 2011
`The PRESIDING OFFICER. Under
`the previous order, the Senate will re-
`sume consideration of S. 23, which the
`clerk will report.
`The assistant legislative clerk read
`as follows:
`A bill (S. 23) to amend title 35, United
`States Code, to provide for patent reform.
`Pending:
`Reid/Ensign amendment No. 143, to include
`public institutions of higher education in
`EPSCOR jurisdictions in the definition of a
`micro entity.
`Reid amendment No. 152 (to Reid amend-
`ment No. 143), to provide an effective date.
`The PRESIDING OFFICER. The Sen-
`ator from Vermont.
`Mr. LEAHY. Mr. President, American
`ingenuity and innovation have been a
`cornerstone of the American economy
`from the time Thomas Jefferson exam-
`ined the first patent to today. The
`Founders recognized the importance of
`promoting innovation. The Constitu-
`tion explicitly grants Congress the
`
`f
`CONCLUSION OF MORNING
`BUSINESS
`Mr. LEAHY. Mr. President, I ask
`unanimous consent that all remaining
`morning business time be yielded back.
`The PRESIDING OFFICER. Without
`objection, morning business is closed.
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`Patent Owner Exhibit 2012
`Petition for IPR Review of Patent No. 8,059,015
`Page 2
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`

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`S1349
`March 8, 2011
`CONGRESSIONAL RECORD — SENATE
`ent reform this week, Austan Goolsbee,
`power to ‘‘promote the progress of
`KLOBUCHAR, Senator GILLIBRAND, Sen-
`the chair of the President’s Council of
`science and useful arts by securing for
`ator COONS and the other Democratic
`Economic Advisers, illustrated this
`limited times to inventors the exclu-
`cosponsors of the bill when I thank the
`point by noting that when Alexander
`sive rights to their respective discov-
`four senior Republican members of the
`Graham Bell applied for a patent that
`eries.’’
`Judiciary Committee, Senator HATCH,
`The discoveries made by American
`led to the telephone, it was granted in
`Senator GRASSLEY, Senator KYL and
`inventors and research institutions,
`a month. The patent in 1974 that led to
`Senator SESSIONS for working with us.
`commercialized by American compa-
`the cell phone took less than three
`Innovation and economic development
`nies and protected and promoted by
`years. The average time this year for a
`are not uniquely Democrat or Repub-
`American patent laws, have made our
`patent to be processed is almost three
`lican objectives, so we worked together
`years and several thousand take far
`system the envy of the world.
`to find the proper balance for Amer-
`The Senate has before it the America
`longer.
`ica—for our economy, for our inven-
`I want to commend Austan Goolsbee,
`Invents Act. This will keep America in
`tors, for our consumers. It is both a
`the chairman of the Council of Eco-
`its longstanding position at the pin-
`process and a result that should make
`nomic Advisers. His white board pres-
`nacle of innovation. This bill will es-
`us all proud.
`entation this week on the importance
`tablish a more efficient and stream-
`The last time Congress significantly
`of patent reform shows we need to help
`lined patent system that will improve
`updated the patent system was more
`America win global competition and
`patent quality and limit unnecessary
`than a half century ago. In the inter-
`create jobs. The creation of more than
`and counterproductive litigation costs,
`vening decades, our economy has
`220,000 jobs in the private sector last
`while making sure no party’s access to
`changed dramatically. A patent system
`month, the creation of 1.5 million jobs
`court is denied.
`developed in our 1952 economy before
`over the last 12 months, and the unem-
`I was glad to see the overwhelming
`the Internet, before cell phones, before
`ployment rate finally being reduced to
`bipartisan vote in favor of ending de-
`computers, before photocopiers, even
`8.9 percent are all signs that the efforts
`bate and invoking cloture that was
`before the IBM Selectric typewriter,
`we have made over the last two years
`cast yesterday. Yesterday was one of
`needs to be reconsidered in light of 21st
`to stave off the worst recession since
`the rare instances ever in Vermont
`century realities, while staying true to
`the Great Depression are paying off
`where snow impeded us and made it im-
`the consistent constitutional impera-
`and the economic recovery is taking
`possible for us to get back. I am de-
`tive of encouraging innovation and in-
`hold. The almost full percent point
`lighted to be back here for what I hope
`vention.
`drop in the unemployment rate over
`will be the successful conclusion and
`Our patent laws that were the envy
`the last three months is the largest de-
`vote on our legislation.
`of the world in the 20th century des-
`cline in unemployment since 1983. De-
`This is, after all, the product of eight
`perately need to be updated if we are
`spite interruptions of economic activ-
`hearings over the last three Con-
`going to compete effectively and win
`ity in many parts of the country
`gresses, hundreds of meetings, and doz-
`the future. China and the European
`caused by winter weather over the last
`ens of briefings. I again thank Sec-
`Union are improving their patent laws.
`months and days, despite the extraor-
`retary Locke and PTO Director Kappos
`We can’t remain complacent. If we are
`dinary rise in oil prices, the Dow Jones
`for their involvement, their wise coun-
`going to win the global competition by
`industrial average has climbed back to
`sel and their support.
`out-innovating the rest of the world,
`Last Congress, I introduced the Pat-
`over 12,000 from a low point of 6,500.
`we need a patent system that works in
`ent Reform Act of 2009 as a precursor
`Passage of the America Invents Act
`the 21st century.
`to the America Invents Act today,
`should help bolster our economic re-
`The array of voices heard in this de-
`along with Senator HATCH and others,
`covery and keep us on the right path
`bate represent virtually all sectors of
`and our bill was the subject of consid-
`toward business development and job
`our economy, all interests in the pat-
`eration and amendments over several
`creation.
`ent system. They have not been uni-
`According to an article in the New
`thoughtful sessions of markups in the
`form, as expected, but they know the
`York Times just a couple of weeks ago,
`Senate Judiciary Committee in March
`legislative process is one of com-
`patent applications last year amounted
`and April of 2009. At that time, Senator
`promise and accommodation where
`to 2,000 a day. There are currently 1.2
`KYL asked that I convene a meeting
`possible, and it has been that way dur-
`million patent applications in the pipe-
`with the Director of the Patent and
`ing the 6 years we have been at work
`line. Among them could be the next
`Trademark Office to discuss whether
`on this bill. Three major areas of con-
`medical miracle, the next energy
`there were further changes the office
`cern emerge from this discussion. The
`breakthrough, the next leap in com-
`needed in the legislation to improve
`America Invents Act addresses each
`puting ability, or the next killer app.
`the office’s efficiency. We held those
`one of them.
`We should be doing all we can to help
`discussions, and we held countless
`First, there is significant concern
`the PTO Director. It makes no sense
`other meetings and briefings with in-
`about delays in the patent application
`that it takes 2 years for an inventor to
`terested parties in an effort to improve
`process. The Patent and Trademark Of-
`get an initial ruling on his or her pat-
`the legislation, again on a bipartisan
`fice, PTO, currently has a backlog of
`ent application and another year or
`basis. Bruce Cohen in my office, Aaron
`more than 700,000 unexamined patent
`more to receive a patent, this during a
`Cooper, Ed Pagano and others, had
`applications. There are several reasons
`time when technology changes some-
`meeting after meeting just as prede-
`for this, not the least of which is the
`times by the hour, to say nothing by
`cessors of theirs had. In short, we spent
`PTO is overwhelmed with patent appli-
`the year and the 2 year and 3 year. As
`a whole lot of time making sure this
`cations and doesn’t have the resources
`the New York Times reporter Edward
`was done right and we did it in a bipar-
`necessary to work through that back-
`Wyatt notes: ‘‘The delays and ineffi-
`tisan manner. Bolstering the American
`log.
`ciencies are more than a nuisance for
`economic recovery and strengthening
`The Director of the PTO often says
`inventors . . . . [P]atent delays cost
`our efforts
`in global competition
`the next great invention that may
`jobs, slow the economy and threaten
`should not be matters of partisanship
`drive our economic growth may be
`the ability of American companies to
`or political advantage.
`waiting on the shelf, waiting to be
`The process of discussions, debates
`compete with foreign businesses.’’
`granted. Some estimate that each
`Second, there is a concern about the
`and deliberation has resulted in legis-
`issued patent represents three to 10
`quality of patents that have issued.
`lation that is going to be a much-need-
`jobs. We can ill-afford to keep so many
`Just as high quality patents are the
`ed boon to our economy. It is also a
`job-creating patents backlogged at the
`key to innovation, low quality patents
`model for our legislative process. It
`PTO. The America Invents Act author-
`are a drag on the economy because
`shows what you can do when you set
`izes the PTO to set its fees and ensures
`they provide monopoly rents over prod-
`aside partisan rhetoric and instead ne-
`that the PTO will have access to those
`ucts or processes that were not inven-
`gotiate and collaborate together in
`fees. We want the PTO to work through
`tive.
`good faith.
`its backlog and be current. In his white
`Patent examiners are facing a dif-
`I know I speak for Senator KOHL,
`ficult task given the explosion in the
`board presentation on the need for pat-
`Senator
`WHITEHOUSE,
`Senator
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`Patent Owner Exhibit 2012
`Petition for IPR Review of Patent No. 8,059,015
`Page 3
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`

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`S1350
`CONGRESSIONAL RECORD — SENATE
`number of applications and the increas-
`Fortunately, the courts have made
`ing complexity of those applications.
`great strides in addressing this issue,
`When Congress last overhauled the pat-
`and there is general consensus that leg-
`ent system in 1952, the PTO received
`islation need not and, in fact, should
`approximately 60,000 patent applica-
`not affect the law of damages as a re-
`tions; in 2009, it received more than
`sult.
`480,000.
`The Senate has before it bipartisan
`The America Invents Act will im-
`legislation that can lead to long-need-
`prove the quality of patents issued by
`ed improvements in our patent laws
`the PTO in several ways. At the outset,
`and system. This is a measure that can
`our legislation makes the common-
`help facilitate invention, innovation
`sense change that third parties who see
`and job creation, and do so in the pri-
`a patent application and know that it
`vate sector. This can help everyone
`is not novel and nonobvious, can assist
`from startups and small businesses to
`the PTO examiners by providing rel-
`our largest, cutting edge companies.
`evant information and explaining its
`The America Invents Act promotes
`relevance.
`innovation, and will improve our econ-
`The bill will also create a new post-
`omy, by addressing the impediments to
`grant review process for patents that
`innovation. As the President chal-
`recently issued to improve the quality
`lenges Americans to win the future,
`of patents in the system, as rec-
`Congress cannot afford to sit idly by
`ommended by the National Academy of
`while innovation—the engine of our
`Sciences, and it will streamline the
`economy—is impeded by outdated laws.
`current ‘‘inter partes’’ system so that
`Our legislation leverages the ingenuity
`it will be a more efficient alternative
`of our businesses, our universities, and
`to litigation.
`our independent inventors, and creates
`The third concern is that as business
`a system in which that ingenuity can
`competition has gone global, and pat-
`improve our economy. It will create
`ent applicants are increasingly filing
`jobs, improve products and reduce
`applications in the United States and
`costs for American companies and
`other countries for protection of their
`American consumers.
`inventions, our system puts American
`I began working on patent reform
`inventors and businesses at a disadvan-
`years ago, along with Chairman SMITH
`tage. The filing system in the United
`in the House, because of my belief that
`States differs from that in other pat-
`we needed a more efficient and stream-
`ent-issuing jurisdictions, which have
`lined system. For many years, patent
`‘‘first-inventor-to-file’’ systems. The
`law interested only a niche audience,
`difference causes confusion and ineffi-
`and developments were reported only
`ciencies for American companies and
`in trade publications. Now they are dis-
`innovators. The inefficiencies exist
`cussed everywhere from the front page
`both in the application process and in
`of the Wall Street Journal to the New
`determining what counts as ‘‘prior art’’
`York Times, and all three branches of
`in litigation. I ask unanimous consent
`government have taken an active role.
`to have printed in the RECORD an edi-
`The America Invents Act is about
`torial from today’s New York Times,
`economic development. It is about
`which calls the transition to first-in-
`jobs; it is about innovation; it is about
`ventor-to-file ‘‘simpler and cheaper’’
`consumers. All benefit under a patent
`and says it ‘‘should benefit the little
`system that reduces unnecessary costs,
`guy.’’
`removes inefficiencies, and holds true
`The PRESIDING OFFICER. Without
`to the vision of our Founders that Con-
`objection, it is so ordered.
`gress should establish a national policy
`(See exhibit 1.)
`that promotes the progress of science
`Mr. LEAHY. The America Invents
`and the useful arts.
`Act transitions to a first-inventor-to-
`When Thomas Jefferson examined
`file process, as recommended by the ad-
`that first patent in 1790—a patent that
`ministration, while retaining the im-
`went to a Vermonter—no one could
`portant grace period that will protect
`have predicted how the American econ-
`universities and small inventors, in
`omy would develop and what changes
`particular. We debated this change at
`would be needed for the law to keep
`some length in connection with the
`pace, but the purpose then remains the
`Feinstein amendment. That amend-
`purpose today: promoting progress.
`ment was rejected by the Senate by a
`If we are to maintain our position at
`vote of 87 to 13. The Senate has come
`the forefront of the world’s economy, if
`down firmly and decisively in favor of
`we are to continue to lead the globe in
`modernizing and harmonizing
`the
`innovation and production, if we are to
`American patent system with the rest
`continue to enjoy the fruits of the
`of the world.
`most creative citizens, then we must
`When we began the patent reform de-
`have a patent system that produces
`bate 6 years ago, there was also a sig-
`high quality patents, that limits coun-
`nificant concern that the costs and un-
`terproductive litigation over those pat-
`certainty associated with patent litiga-
`ents, and that makes the entire system
`tion had been escalating, which was re-
`more streamlined and efficient.
`sulting in a drag on innovation. Dam-
`Now is the time to bolster our role as
`age awards had been inconsistent and
`the world leader in innovation. Now is
`not always related to the value of the
`the time to create jobs at home. Now is
`invention. This disconnect and uncer-
`the time for Congress to act on patent
`tainty was a problem that also led to
`reform. I urge all Senators to support
`unreasonable posturing during licens-
`ing negotiations.
`the American Invents Act.
`
`March 8, 2011
`EXHIBIT 1
`[From the New York Times, Mar. 7, 2011]
`PATENTS, REFORM AND THE LITTLE GUY
`In the last decade, Congress has missed
`several chances to reform a patent system
`that is slow, costly and puts the United
`States at odds with the rest of the industrial
`world. On Wednesday, the Senate has an-
`other opportunity to reform the nation’s
`patent law.
`The America Invents Act offers a step to-
`ward a more effective and transparent patent
`protection system. This should encourage in-
`vestment in inventions and faster diffusion
`of ideas. The bill, which has broad bipartisan
`support, would boost the patent office’s re-
`sources by letting it keep all the fees it col-
`lects. This would enable it to speed up the
`review of patent applications—which cur-
`rently takes almost three years to process—
`and work through an immense backlog of
`715,000 applications.
`The bill should reduce costly litigation by
`creating an in-house system to look into
`claims of patent infringement before they go
`to court.
`The bill would also replace the first-to-in-
`vent standard prevailing in the United
`States—which grants formal protection to
`the creator of an innovation—with the first-
`inventor-to-file system used in most nations.
`This change would make it cheaper for
`American patent holders to get patent pro-
`tection around the world. But it has been
`met with vocal opposition from some groups
`of small businesses and inventors who claim
`the change would benefit big corporations at
`their expense.
`We disagree. The new law would make the
`process simpler and cheaper. That should
`benefit the little guy.
`Small inventors who needed time and
`money to fully develop and test their ideas
`could request a provisional patent until they
`were ready for a full filing. It costs $110. And
`because it is easy to determine who filed a
`patent first, the new system would better
`protect small inventors from challenges by
`corporations with deep pockets, reducing the
`chance of costly litigation.
`Right now, proving who invented some-
`thing first is difficult and expensive. Accord-
`ing to the patent office, it costs $400,000 to
`$500,000 to challenge a patent on the grounds
`of a prior invention. Most small inventors
`don’t have that kind of money. Big corpora-
`tions do.
`In fact, the current system mostly protects
`whoever files first for a patent. Of the last
`three million applications filed, only 113
`were granted to entities who filed second but
`proved they had invented first. In 88 of these
`cases, the winners were large corporations.
`The patent system is too cumbersome, and
`it doesn’t protect the small inventor. The
`America Invents Act is a smart reform.
`Mr. LEAHY. Mr. President, I suggest
`the absence of a quorum.
`The PRESIDING OFFICER. The
`clerk will call the roll.
`The assistant legislative clerk pro-
`ceeded to call the roll.
`Mr. WARNER. Mr. President, I ask
`unanimous consent the order for the
`quorum call be rescinded.
`The PRESIDING OFFICER. Without
`objection, it is so ordered.
`THE BUDGET
`Mr. WARNER. Mr. President, I rise
`today to add my voice to the debate
`that has been going on in the Chamber
`about spending proposals and how we
`get through the balance of this current
`fiscal year and ensure that we do not
`
`VerDate Mar 15 2010 23:36 Mar 08, 2011 Jkt 099060 PO 00000 Frm 00016 Fmt 0624 Sfmt 0634 E:\CR\FM\G08MR6.019 S08MRPT1
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`sroberts on DSKG8SOYB1PROD with SENATE
`
`Patent Owner Exhibit 2012
`Petition for IPR Review of Patent No. 8,059,015
`Page 4
`
`

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`S1351
`Marc