The debate continues to rage over the America Invents Act,
recently signed by President Obama, the first major revision to
US Patent Law in more than half a century. Is it good for
innovation or bad? Does it favor small business or large?
Steve Perlman, a serial entrepreneur credited with inventing QuickTime and WebTV,
and currently CEO of OnLive, a game streaming service, recently offered his opinion.
Perlman sees little benefit for the small guy in the newly revised patent system.
Under the old law, an individual inventor or small business could attempt to prove in
court that they had been the first to invent patentable subject matter that a larger
or more powerful company was claiming as their own. But now, because the US is
adopting the first-to-file rule, which grants patents to the first inventor to file for the
patent, rather than the first to invent, there is concern that small inventors will be at
a disadvantage because they often try to shop their patents before filing, or may not
have the money to pursue a patent application which can be costly.
Perlman also states that the new law does nothing to prevent so-called ?patent
trolls? from litigating as a business strategy. Patent trolls are companies, often
formed for the purpose of patent litigation, that acquire or license patent portfolios
not to use them for manufacturing products, but as swords to sue other companies
whose products arguably infringe. These efforts can be financially rewarding,
producing legal settlements and judgments. But critics argue they do little for
innovation and economic growth. Because of ?patent trolls? legitimate companies
often acquire patent portfolios for defensive purposes, using money that might be
best spent elsewhere in order to avoid or protect against such lawsuits.
We?ll highlight counter arguments in future posts on this blog.
For more information on the America Invents Act and its impact on your business,
contact Schein & Cai.
Schein & Cai was recently named one of the Top US Patent Firm for 2010 by
Intellectual Property Today?. We assist companies in Silicon Valley and beyond,
including San Jose, Santa Clara, Mountain View, Sunnyvale, Morgan Hill, Oakland,
San Francisco, Palo Alto, San Mateo, Santa Cruz, South San Francisco, Daly City,
Cupertino, Saratoga and Emeryville.
Source: http://www.sacattorneys.com/legalblog/the-new-patent-law-small-business-and-individual-inventors/
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