throbber
S1034
`March 1, 2011
`CONGRESSIONAL RECORD — SENATE
`Small businesses are the economic
`the life sciences, all across the Com-
`I ask unanimous consent that we set
`engine of the American economy. Ac-
`monwealth, especially in greater Phila-
`aside the Kirk-Pryor amendment and
`cording to the Small Business Adminis-
`delphia and greater Pittsburgh as well
`go back to the pending business, which
`tration, small businesses employ just
`as in points in between. The medical
`is the managers’ amendment.
`over half of all private sector employ-
`The PRESIDING OFFICER. Without
`device sector and pharmaceutical in-
`ees and create over 50 percent of our
`objection, it is so ordered.
`dustries are offering some of the most
`nonfarm GDP. Illinois alone is home to
`Mr. LEAHY. Mr. President, I under-
`exciting opportunities for economic
`258,000 small employers and more than
`stand there will be another Senator
`growth anywhere in the Common-
`885,000 self-employers.
`who will come down and speak, and in
`wealth.
`Small businesses are helping to lead
`the meantime I suggest the absence of
`So when I think about the diversity
`the way on American
`innovation.
`a quorum.
`and the strength of our Common-
`These firms produce 13 times more pat-
`The PRESIDING OFFICER. The
`wealth, I am convinced that Penn-
`ents per employee than large patenting
`clerk will call the roll.
`sylvania’s best days are ahead of us.
`firms, and their patents are twice as
`The bill clerk proceeded to call the
`That said, despite all of the under-
`likely to be among the most cited
`roll.
`lying strengths and advantages we
`among all patents. Small business
`Mr. LEAHY. Mr. President, I ask
`have, we have an economy that is
`breakthroughs led to the development
`unanimous consent that the order for
`struggling. We have job creation that
`of airplanes, FM radio, and the per-
`the quorum call be rescinded.
`is far too slow. As I said repeatedly
`sonal computer. Unfortunately, the
`The PRESIDING OFFICER. Without
`throughout my campaign for the Sen-
`share of small-entity patents is declin-
`objection, it is so ordered.
`ate seat and as I have said since then,
`ing, according to a New York Univer-
`Mr. LEAHY. Mr. President, I ask
`I think there are two vital priorities
`sity researcher.
`unanimous consent that the distin-
`While S. 23 takes great strides in re-
`that we need to focus on first and fore-
`guished Senator from Michigan, Ms.
`forming our patent system, it can still
`most here in Washington. The first is
`STABENOW, be recognized as though in
`be daunting for a small business owner
`economic growth and the job creation
`morning business.
`or inventor to obtain a patent. In many
`that comes with it, and the second is
`The PRESIDING OFFICER. Without
`instances, the value of a patent is what
`restoring fiscal discipline to a govern-
`objection, it is so ordered.
`keeps that new small business afloat.
`ment that has lost all sense of fiscal
`The Senator from Michigan.
`It is vital for America’s future com-
`discipline. These two, of course, are
`(The remarks of Ms. STABENOW are
`petitiveness, her economic growth, and
`closely related. We will never have the
`printed
`in today’s RECORD under
`her job creation that these innovators
`kind of job growth we need and we de-
`‘‘Morning Business.’’)
`spend their time developing new prod-
`serve until we get our fiscal house in
`ucts and processes that will build our
`order.
`future, not wading through govern-
`But I look at them as separate issues.
`ment redtape. Our amendment would
`I think they should be at the top of our
`help small firms navigate the bureauc-
`priority list. I am absolutely convinced
`racy by establishing the U.S. Patent
`we can have terrific economic growth,
`and Trademark Office Ombudsman
`terrific job growth. We can have the
`Program to assist small businesses
`prosperity we have been looking for.
`with their patent filing issues. The pro-
`In fact, it is actually inevitable if the
`vision was first conceived as part of the
`Federal Government follows the right
`Small Business Bill of Rights, which I
`policies, remembering first and fore-
`introduced in the House, to expand em-
`most that prosperity comes from the
`ployment and help small businesses
`private sector, it does not come from
`grow. The Small Business Bill of
`government itself, but that govern-
`Rights and this amendment are en-
`ment creates an environment in which
`dorsed by the National Federation of
`the private sector can thrive and cre-
`Independent Business. I am proud to
`ate the jobs we so badly need. I would
`have this as part of a 10-point plan to
`argue that the government does that
`be considered here in the Senate.
`I wish to thank Senator MARK PRYOR
`by doing four things and doing them
`of Arkansas, who is the lead Demo-
`well.
`cratic cosponsor of this amendment. He
`The first is to make sure we have a
`is a strong and consistent supporter of
`legal system that respects property
`small business, and I appreciate his
`rights, because the clear title and own-
`partnership on this important pro-
`ership and ability to use private prop-
`gram. I also thank Chairman LEAHY
`erty is the cornerstone of a free enter-
`and Ranking Member GRASSLEY and
`prise system.
`their staffs for working with us on this
`It requires, second, that the govern-
`amendment and for preserving this
`ment establish sensible regulations
`critical legislation.
`that are not excessive, because exces-
`Our Founding Fathers recognized the
`sive regulation—and frankly we have
`importance of a strong patent system
`seen a lot of excessive regulation re-
`that protects and incentivizes innova-
`cently—too much regulation always
`tors. I look forward to supporting S. 23,
`has unintended consequences that curb
`which will provide strong intellectual
`our ability to create the jobs we need.
`property rights to further our techno-
`logical advancement.
`A third thing a government always
`In sum, we should help foster innova-
`needs to do is provide a stable cur-
`tion by protecting innovators, espe-
`rency, sound money, because debasing
`cially small business men and women,
`one’s currency is the way to ruin, not
`and I urge adoption of the amendment.
`the way to prosperity.
`Mr. President, I yield the floor.
`Fourth, governments need to live
`The PRESIDING OFFICER. The Sen-
`within their means. They cannot be
`ator from Vermont.
`spending too much money and they
`AMENDMENT NO. 121
`cannot have taxes at too high a level.
`Mr. LEAHY. Mr. President, I thank
`It is so important that government
`the Senator from Illinois for his con-
`spending remain limited and, frankly,
`tribution to this effort.
`
`f
`PATENT REFORM ACT OF 2011—
`Continued
`The PRESIDING OFFICER. The Sen-
`ator from Pennsylvania.
`Mr. TOOMEY. Mr. President, it is a
`great privilege and honor for me to be
`able to represent the big, wonderful, di-
`verse Commonwealth of Pennsylvania
`in the Senate. Pennsylvania is a won-
`derful State. It has a terrific range of
`great attributes. It has big, bustling
`cities such as Philadelphia and Pitts-
`burgh at opposite ends; has all
`throughout the Commonwealth beau-
`tiful, historical boroughs such as Em-
`maus and Gettysburg. We go from the
`banks of the Delaware all the way to
`the shores of Lake Erie.
`In a State this big, of course, we have
`a wide range of very vital industries.
`We have old industries that we have
`had for a long time and are still very
`important
`employers:
`agriculture,
`coal, steel, and many others. We are a
`big manufacturing State, manufac-
`turing goods of all kinds. We have a
`huge service sector, especially in the
`fields of education, medicine, finance,
`tourism, and many others. We have
`some relatively new and very exciting
`industries in our Commonwealth that I
`am very hopeful will lead to an accel-
`eration of job growth soon. I am think-
`ing in particular of the natural gas and
`the Marcellus shale. I am thinking of
`
`f
`RECESS
`The PRESIDING OFFICER. Under
`the previous order, the Senate stands
`in recess until 2:15 p.m.
`Thereupon, the Senate, at 12:34 p.m.,
`recessed until 2:15 p.m. and reassem-
`bled when called to order by the Pre-
`siding Officer (Mr. WEBB).
`
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`S1035
`March 1, 2011
`CONGRESSIONAL RECORD — SENATE
`much less than we have today, for sev-
`that would
`legislation
`their income and making up for the dif-
`introduced
`eral reasons. One, of course, govern-
`ference by running up to the limit on
`clearly take that risk off the table en-
`ment spending is the political alloca-
`their credit cards. When this family
`tirely. My bill is called the Full Faith
`tion of capital rather than the alloca-
`reaches the limit on all of the credit
`and Credit Act. It simply says, in the
`tion of free people and a free economy.
`cards they have, who thinks it is a
`event we reach the debt limit without
`The political allocation is always less
`good idea to give them another credit
`having raised it, it instructs the Treas-
`efficient than that of men and women
`card?
`ury to make sure the debt service is
`I think most folks in Pennsylvania
`engaging in free enterprise.
`the top priority. This guarantees that
`Secondly, the reason too much spend-
`think it is probably time to reexamine
`we would not default on our Treas-
`ing is problematic is because it ulti-
`the spending and look at the real prob-
`uries, we would not create a financial
`mately always has to be paid for with
`lem that has gotten the family in this
`crisis of any kind, and maybe, more
`higher taxes. Higher taxes clearly im-
`situation. I think that is where we are
`importantly, it would be a great reas-
`pede economic growth and prevent job
`as a government. I think we need to
`surance to the millions of Americans
`creation. They do that in many ways,
`fundamentally reexamine the spending
`who have lent this government their
`not the least of which is diminishing
`we have been engaged in.
`money, the millions of Americans who
`I will say clearly, I think failure to
`the incentives to make investments, to
`hold Treasury bonds in their IRAs,
`raise the debt limit promptly upon
`take risks, to launch new enterprises,
`their 401(k)s, their pension plans.
`reaching it is not optimal and it would
`to hire new workers.
`The retirees who live in Allentown,
`I would argue that of these four pri-
`be very disruptive. I hope that does not
`PA, who have lived modestly, saved
`orities, the government is not doing
`come to pass. But I happen to think
`money, and with their retirement sav-
`such a great job. The failure is most
`the most irresponsible thing we could
`ings have invested in the U.S. Treas-
`egregious when it comes to the level of
`do is simply raise this debt limit and
`ury, I think those folks deserve the
`spending that has recently developed in
`run up even more debt without making
`peace of mind of knowing that the first
`this town. The recent surge in spending
`changes to the problems that got us
`priority is going to make sure we
`amounts to about a 25-percent increase
`into this fix.
`honor the obligations and stay current
`Specifically what I think we need to
`in the size of the government virtually
`on our debts.
`do is have real cuts in spending—now,
`overnight.
`I want to take a moment to thank
`The government is now spending—
`not later, not at some distant hypo-
`Senator VITTER, because yesterday he
`this Federal Government alone—fully
`thetical point in time in the future but
`came down to the floor and introduced
`25 percent of our entire economic out-
`now. That is one.
`my legislation as an amendment to the
`Second, I think we need real reform
`put. Frankly, this huge surge in spend-
`current patent reform bill. I hope we
`in the spending process, reform in the
`ing has not worked. The unemploy-
`will be able to soon pass my amend-
`way Congress goes about its business,
`ment rate has stayed near to 10 per-
`ment. I hope we will soon get to a vote
`because the process is part of what has
`cent, our deficits are now over $11⁄2 tril-
`here on the Senate floor. The real rea-
`gotten us here.
`lion in a single year. That is more than
`son is, I want to remove this false spec-
`I wish to see a balanced budget
`10 percent of our entire economy.
`ter of a default on our debt, so we can
`amendment, one with real teeth, one
`Of course, when you run annual defi-
`have an honest debate over how we are
`that requires our books to be balanced,
`cits where you are spending more than
`going to get spending under control—
`one that limits the total spending to a
`you bring in, that shortfall is made up
`what kind of spending cuts we are
`reasonable percentage of our economy,
`for with new borrowings. So we have
`going to have right now, and what kind
`and one that makes it harder to raise
`been adding to our debt at what I think
`of reforms we are going to make to the
`taxes. I think that would be a very
`is an alarming pace. I would argue that
`process going forward.
`good development. But that will take
`this mounting debt is already today
`I do not think we can kick this can
`several years, at best, if we can get
`costing us job growth. It is costing us
`down the road anymore. We have been
`that implemented. Of course, all of the
`jobs because it creates a tremendous
`doing that for a long time. As I said
`States have to agree.
`uncertainty in our economic future
`earlier, it never ends well when govern-
`In the meantime, I would hope we
`when we are not on a sustainable fiscal
`ments continue taking on too much
`could have statutory spending caps,
`path. That uncertainty itself discour-
`debt. Nobody here that I know wants to
`limits to how much the Federal Gov-
`ages entrepreneurs and job creators
`see a government shutdown. Nobody
`ernment can spend, and a mechanism
`from doing the kinds of things we need.
`wants to see the disruption that would
`The risks are very real. History is re-
`that would redress the problem if for
`come from failing to raise the debt
`plete with examples of countries that
`some reason we exceeded those limits.
`limit at some point. But nor can we
`As we have had this debate over
`have accumulated too much debt.
`proceed with business as usual.
`whether we should attach these condi-
`Frankly, it never ends well. Very often
`All across Pennsylvania I hear every
`tions to raising the debt limit, some
`it leads to very high rates of inflation.
`day when I am back home how impor-
`have suggested this is a very dangerous
`It can lead to much higher interest
`tant it is that this government learn to
`discussion to have, because failure to
`rates, which can have a crippling effect
`live within its means as Pennsylvania
`immediately raise the debt limit, some
`on job growth. It can even lead to fi-
`businesses and families have done.
`have suggested, amounts to a default
`nancial disruptions which can be very
`Let me close by saying I still remain
`on our Treasury securities, on the bor-
`harmful, as we have recently seen.
`absolutely convinced we can have a
`With the recent acceleration in the
`rowings we have already incurred.
`terrific economic recovery. We can
`That is not true. I think it is irre-
`size of our deficits and the increase in
`have a booming economic growth and
`sponsible to suggest that. The fact is
`our debts, we are now rapidly closing
`the tremendous job creation that goes
`the ongoing revenue from taxes that
`in on the statutory limit to the
`with it. It is overdue, but it can still
`will be collected whether or not we im-
`amount of money that the Federal
`arrive if we pass the kind of policies
`mediately raise the debt limit—the on-
`Government is permitted to borrow
`that create the right environment.
`going revenue is more than 10 times all
`under law. That is an amount of over
`I am convinced the 21st century will
`the money needed to stay current on
`$14 trillion, but the truth is we are rap-
`be another great American century and
`our debt service. In fact, in the last 20
`idly closing in on that limit. We will
`Pennsylvania will be at the forefront.
`years, there have been four occasions
`get there fairly soon.
`I yield the floor.
`The administration has suggested
`when we have reached the debt limit
`The PRESIDING OFFICER. The Re-
`that we ought to, here in Congress,
`without immediately raising it, and we
`publican leader.
`Mr. MCCONNELL. Mr. President, I
`vote to raise that limit with no condi-
`never defaulted on our debt. This coun-
`want to extend my congratulations to
`tions attached. I have to tell you I
`try never will. So I do not think we
`the Senator from Pennsylvania for his
`think it is a very bad idea. This brings
`should have a discussion about some-
`initial speech, including his comments
`to mind the case of a family that is
`thing that is not going to happen. But
`about his important amendment, which
`routinely living beyond their means.
`since some in the administration have
`is actually pending to the patent bill
`They routinely are spending more than
`raised the specter of a default, I have
`
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`S1036
`March 1, 2011
`CONGRESSIONAL RECORD — SENATE
`which hopefully we will have an oppor-
`vented products, and got patents which
`Our Nation can’t afford to slow inno-
`were protected. People weren’t copying
`vation anymore. While China is invest-
`tunity to vote on in the very near fu-
`their products, and they were able to
`ing billions in its medical technology
`ture.
`grow and produce jobs in our country.
`sector, we are still bickering about reg-
`I yield the floor.
`Having a patent system that works
`Mr. ALEXANDER. Mr. President, I
`ulations. While India encourages inven-
`for small business is particularly crit-
`tion and entrepreneurship, we are still
`suggest the absence of a quorum.
`ical to creating jobs in America. But
`The PRESIDING OFFICER. The
`giving our innovators the runaround,
`our patent laws haven’t had a major
`playing a game of red light/green light
`clerk will call the roll.
`update since 1952. The system is out-
`The assistant bill clerk proceeded to
`with the R&D tax credit.
`dated and has become a burden on our
`America can no longer afford to be a
`call the roll.
`innovators and entrepreneurs. Because
`country that churns money and shuf-
`Mr. LEAHY. Mr. President, I ask
`of these outdated laws, the Patent and
`fles paper, a country that consumes,
`unanimous consent that the order for
`Trademark Office faces a backlog of
`imports, and spends its way through
`the quorum call be rescinded.
`over 700,000 patent applications and too
`huge trade deficits. We need to be a na-
`The PRESIDING OFFICER. Without
`often issues low-quality patents. One of
`tion that makes things again, that in-
`objection, it is so ordered.
`these 700,000 patents may be the next
`vents stuff, that exports to the world, a
`Mr. LEAHY. Mr. President, I am soon
`implantable pacemaker or new therapy
`country where you can walk into any
`going to ask for a vote on the Leahy-
`for fighting cancer, but it just sits in
`store on any street in any neighbor-
`Grassley-Kyl managers’ amendment. It
`that backlog.
`hood, purchase the best goods, and be
`resolves a number of issues in the bill,
`Our current system also seems
`able to turn it over and see the words
`including fee diversion and business
`stacked against small entrepreneurs. I
`‘‘Made in the USA.’’
`method patents damages, venue issues.
`have spoken to small business owners
`In the words of New York Times col-
`Senators COBURN, SCHUMER, BENNET,
`and entrepreneurs across our State of
`umnist and Minnesota native Tom
`WHITEHOUSE, COONS, and others worked
`Minnesota who are concerned with the
`Friedman, we need to be focusing on
`with us on those issues. I would like to
`high cost and uncertainty of protecting
`‘‘nation building in our own Nation.’’
`vote on that and then go to the amend-
`their inventions. For example, under
`Well, as innovators and entrepreneurs
`ment offered yesterday by Senator
`the current system, when two patents
`across Minnesota have told me, our
`BENNET on satellite patent offices, with
`are filed around the same time for the
`country needs to spawn more of them.
`a modification, as well as the modified
`same invention, the applicants must go
`The America Invents Act would do just
`amendment offered by Senator KIRK
`through an arduous and expensive
`that.
`and Senator PRYOR on ombudsman. If
`First, the American Invents Act in-
`process called an interference to deter-
`we can do that, we can get much of this
`creases the speed and certainty of the
`mine which applicant will be awarded
`finished. But while I am waiting for
`patent
`application
`process
`by
`the patent. Small inventors rarely, if
`the—just so everybody will know, I am
`transitioning our patent system from a
`ever, win interference proceedings be-
`going to ask for a vote on that very
`first-to-invent system to a first-inven-
`cause the rules for interference are
`soon. But I am waiting for the ranking
`tor-to-file system. This change to a
`often stacked in favor of companies
`member to come back.
`first-inventor-to-file system will in-
`with deep pockets. This needs to
`I see the distinguished senior Senator
`crease predictability by
`creating
`change.
`from Minnesota, and I yield to her.
`Our current patent system also ig-
`brighter lines to guide patent appli-
`Ms. KLOBUCHAR. Mr. President,
`nores the realities of the information
`cants and Patent Office examiners. By
`first, I commend Chairman LEAHY and
`age in which we live.
`simply using the filing date of an appli-
`the entire Judiciary Committee for
`In 1952, back when the patent bill
`cation to determine the true inventor,
`their work on this bill. The chairman
`came about, the world wasn’t as inter-
`the bill increases the speed of the pat-
`has endured so many ups and downs
`connected as it is today. There was no
`ent application process, while reward-
`and different versions, and we would
`Internet. People didn’t share informa-
`ing novel, cutting-edge innovations.
`not be here today if not for him.
`tion the way they do in this modern
`To help guide investors and inven-
`I rise to speak in support of the
`age. They had party telephone lines
`tors, this bill allows them to search the
`America Invents Act, a bill to overhaul
`then. In 1952, most publicly available
`public record to discover with more
`our patent system, which plays such a
`information about technology could be
`certainty whether their idea is patent-
`critical role in our economy. It is one
`found in either patents or scientific
`able, helping eliminate duplication and
`of the main reasons America has been
`publications. So patent examiners only
`streamlining the system. At the same
`able to maintain its competitive edge.
`had to look to a few sources to deter-
`time, the bill still provides a safe har-
`The Commerce Department esti-
`mine if the technology described in a
`bor of a year for inventors to go out
`mates that up to 75 percent of the eco-
`patent application was both novel and
`and market their inventions before
`nomic growth in our Nation since
`nonobvious.
`having to file for their patents. This
`World War II is due to technological in-
`Today, as we all know, there is a vast
`grace period is one of the reasons our
`novation—innovation made possible by
`amount of information readily avail-
`Nation’s top research universities, such
`a patent system that protects the
`able everywhere you look.
`as the University of Minnesota, sup-
`rights to that innovation.
`It is unrealistic to believe a patent
`port this bill. The grace period protects
`I have seen the importance and suc-
`examiner would know all of the places
`professors who discuss their inventions
`cess of the patent system firsthand in
`to look for this information, and even
`with colleagues or publish them in
`Minnesota, which has brought the
`if the examiner knew where to look, it
`journals before filing their patent ap-
`world everything from the pacemaker
`is unlikely he or she would have the
`plication. The grace period will encour-
`to the Post-it note. In Minnesota, we
`time to search all of these nooks and
`age cross-pollination of
`ideas and
`know how important the patent system
`crannies. The people who know where
`eliminate concerns about discussing in-
`is to our economy. We rank sixth in
`to look are the other scientists and
`ventions with others before a patent
`the Nation in patents per capita and
`innovators who also work in the field.
`application is actually filed.
`have the second highest number of
`But current law doesn’t allow partici-
`Moreover, this legislation helps to
`medical device patents over the last 5
`pation by third parties in the patent
`ensure that only true inventions re-
`years. Companies such as 3M, Ecolab,
`application process despite the fact
`ceive protection under our laws. By al-
`and Medtronic are well-known leaders
`that third parties are often in the best
`lowing third parties to provide infor-
`in innovation, but Minnesota also sup-
`position to challenge a patent applica-
`mation to the patent examiner, the
`ports innovative small businesses such
`tion. Without the benefit of this out-
`America Invents Act helps bridge the
`as NVE Corporation and Arizant
`side expertise, an examiner might
`information gap between the patent ap-
`Healthcare. We are now first per cap-
`grant a patent for technology that sim-
`plication and existing knowledge.
`ita, in fact, for Fortune 500 companies
`ply isn’t a true invention—it is simply
`The legislation also provides a mod-
`in our State, and that is in large part
`not an actual invention—and these
`ernized, streamlined mechanism for
`because of innovation. So many of
`low-quality patents clog the system
`third parties who want to challenge re-
`these companies started small, in-
`and hinder true innovation.
`cently issued, low-quality patents that
`
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`

`

`S1037
`March 1, 2011
`CONGRESSIONAL RECORD — SENATE
`On page 57, strike lines 17 through 23, and
`On page 86, line 9, strike ‘‘(i)’’ and insert
`should never have been issued in the
`insert the following:
`‘‘(j)’’.
`first place. Eliminating these poten-
`On page 91, between lines 14 and 15, insert
`‘‘(b) PRELIMINARY INJUNCTIONS.—If a civil
`tially trivial patents will help the en-
`the following:
`action alleging infringement of a patent is
`tire patent system by improving cer-
`(b) NO PROVISION OF FACILITIES AUTHOR-
`filed within 3 months of the grant of the pat-
`tainty for both users and inventors.
`IZED.—The repeal made by the amendment in
`ent, the court may not stay its consideration
`The legislation will also improve the
`subsection (a)(1) shall not be construed to
`of the patent owner’s motion for a prelimi-
`patent system by granting the U.S.
`authorize the provision of any court facili-
`nary injunction against infringement of the
`Patent and Trademark Office the au-
`ties or administrative support services out-
`patent on the basis that a petition for post-
`side of the District of Columbia.
`thority to set and adjust its own fees.
`grant review has been filed or that such a
`On page 91, line 15, strike ‘‘(b)’’ and insert
`proceeding has been instituted.’’.
`Allowing the Office to set its own fees
`‘‘(c)’’.
`On page 59, strike lines 13 through 19.
`will give it the resources to reduce the
`On page 91, line 23, strike ‘‘under either
`On page 59, line 20, strike ‘‘(g)’’ and insert
`current backlog and devote greater re-
`subsection’’ and all that follows through
`‘‘(f)’’.
`sources to each patent that is reviewed
`‘‘shall certify’’ on page 92, line 2.
`On page 65, line 21, strike ‘‘18 months’’ and
`to ensure higher quality patents.
`On page 92, line 7, before the semicolon in-
`insert ‘‘1 year’’.
`The fee-setting authority is why
`sert the following: ‘‘, not including applica-
`On page 66, line 3, strike ‘‘18 months’’ and
`IBM, one of the most innovative com-
`tions filed in another country, provisional
`insert ‘‘1 year’’.
`applications under section 111(b), or inter-
`On page 66, lines 4 and 5, strike ‘‘and shall
`panies around—by the way, the host of
`national applications filed under the treaty
`apply only to patents issued on or after that
`the ‘‘Jeopardy’’-winning Watson—well,
`defined in section 351(a) for which the basic
`date.’’ and insert ‘‘and, except as provided in
`the IBM facility there that actually de-
`national fee under section 41(a) was not
`section 18 and in paragraph (3), shall apply
`veloped Watson was in Rochester, MN.
`paid’’.
`only to patents that are described in section
`In fact, IBM, which has its facilities in
`On page 92, between lines 7 and 8, insert
`2(o)(1).’’.
`Rochester and the Twin Cities, as well
`the following:
`On page 66, line 8, after the period insert
`as many other places in this country,
`‘‘(3) did not in the prior calendar year have
`the following: ‘‘During the 4 year period fol-
`a gross income, as defined in section 61(a) of
`was granted a record 5,896 patents in
`lowing the effective date of subsections (a)
`the Internal Revenue Code (26 U.S.C. 61(a)),
`and (d), the Director may, in his discretion,
`2010. IBM supports this bill. It allows
`exceeding 3 times the most recently reported
`continue to apply the provisions of chapter
`the Patent Office to set its own fees
`median household income, as reported by the
`31 of title 35, United States Code, as amended
`and run itself like a business, and that
`Bureau of Census; and’’.
`by paragraph (3), as if subsection (a) had not
`is good for companies such as IBM, as
`On page 92, strike lines 8 through 25.
`been enacted to such proceedings instituted
`well as for small entrepreneurs.
`On page 93, line 1, strike ‘‘(3) has not as-
`under section 314 (as amended by subsection
`Mr. President, as chair of the Sub-
`signed, granted, conveyed, or is’’ and insert
`(a)) or under section 324 as are instituted
`committee on Competitiveness, Inno-
`‘‘(4) has not assigned, granted, conveyed, and
`only on the basis of prior art consisting of
`is not’’.
`vation, and Export Promotion, I have
`patents and printed publications.’’.
`On page 93, lines 4 and 5, strike ‘‘has 5 or
`On page 69, line 2, strike ‘‘18 months’’ and
`been focused on ways to promote inno-
`fewer employees and that such entity has’’
`insert ‘‘1 year’’.
`vation and growth in the 21st century.
`and insert ‘‘had’’.
`On page 69, line 14, strike ‘‘18 months’’ and
`Stakeholders from across the spectrum
`On page 93, line 7, strike ‘‘that does’’ and
`insert ‘‘1 year’’.
`agree that this bill is a necessary step
`all that follows through line 11, and insert
`On page 74, line 22, strike ‘‘18 months’’ and
`to ensure that the United States re-
`the following: ‘‘exceeding 3 times the most
`insert ‘‘1 year’’.
`mains a world leader in developing in-
`recently reported median household income,
`On page 75, line 16, strike ‘‘18 months’’ and
`novative products that bring pros-
`as reported by the Bureau of the Census, in
`insert ‘‘1 year’’.
`On page 75, line 22, strike ‘‘18 months’’ and
`the calendar year preceding the calendar
`perity and happiness to those in our
`year in which the fee is being paid, other
`insert ‘‘1 year’’.
`country. Globalization and techno-
`On page 76, line 5, strike ‘‘18 months’’ and
`than an entity of higher education where the
`logical advancement have changed our
`insert ‘‘1 year’’.
`applicant is not an employee, a relative of an
`economy. This legislation will ensure
`On page 77, strike line 23 and all that fol-
`employee, or have any affiliation with the
`that our patent system truly rewards
`lows through page 78, line 6.
`entity of higher education.’’.
`innovation in the 21st century. Our
`On page 78, line 7, strike ‘‘(b)’’ and insert
`On page 93, strike lines 12 through 17, and
`patent system has to be as sophisti-
`‘‘(a)’’.
`insert the following:
`On page 78, line 20, strike ‘‘(c)’’ and insert
`‘‘(b) APPLICATIONS RESULTING FROM PRIOR
`cated as those who are inventing these
`‘‘(b)’’.
`EMPLOYMENT.—An applicant is not consid-
`products and those who at times are
`On page 79, strike lines 1 through 17, and
`ered to be named on a previously filed appli-
`trying to steal their ideas. That is
`insert the followin

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