Mr. President, I support Senator Feinstein's amendment to restore the grace period under current law and eliminate the so-called first-inventor-to-file provisions of the legislation. This is the No. 1 outstanding issue of concern my…
Mr. President, I support Senator Feinstein's amendment to restore the grace period under current law and eliminate the so-called first-inventor-to-file provisions of the legislation. This is the No. 1 outstanding issue of concern my constituents have raised with me, particularly small and independent inventors. It is a technical and complex issue, one about which experts in patent law have strong disagreements. But I think the bill would be much better without these provisions.
For shorthand, a lot of people talk about this issue as first- inventor-to-file versus ``first-to-invent.'' But, in my view, this terminology just confuses the issue. My constituents are most concerned about the loss of the unconditional 1-year grace period under current law. Both a first-to-invent and a first-inventor-to-file system could have the grace period; there is no inherent inconsistency. I am not sure why the two issues have been merged. Frankly, people who talk about priority fights and interferences are completely missing the point. The concerns are all about the grace period.
My constituents tell me that the current law grace period is crucial to small and independent inventors, for numerous reasons. First, it comports with the reality of the inventive process. An idea goes through many trials, errors, and iterations before it becomes a patent- worthy invention. Small inventors in Nevada tell me that sometimes they may have conceived an idea as an improvement to the apple; and it turns out to be a new type of orange. The grace period allows inventors the time to refine their inventions, test them, talk issues through with others, all without worry of losing their rights if these activities result in an accidental disclosure or the development of new ``prior art.''
Second, the grace period comports with the reality of small entity financing through friends, family, possible patent licensees, and venture capitalists. The grace period allows small inventors to have conversations about their invention and to line up funding, before going to the considerable expense of filing a patent application.
In fact, in many ways, the 1-year grace period helps improve patent quality--inventors find out which ideas can attract capital, and focus their efforts on those ideas, dropping along the way other ideas and inventions that don't attract similar interest and may not therefore be commercially meaningful.
These inventors therefore believe that the effective elimination of the grace period in the law is therefore a serious blow. They tell me that now they will have to try to file many more applications, earlier in the process. They tell me that the balm of ``cheap provisionals'' is snake oil, because a provisional still has to meet certain legal standards, meaning that you still have to spend a lot for patent counsel, which is the biggest single expense of filing an application. Because they can't afford to file that many applications, regular or provisional, they will have to give up on some inventions altogether. If that is so, it wouldn't just be bad for them, it would be bad for the creation of innovation in America.
They also are concerned that it will be harder to get VC funding because they will have filed applications on inventions that weren't quite the right ones. The added risk about whether they can ensure that the provisional application will be adequate to provide protection to this slightly modified but commercially more meaningful invention will be enough to scare off already difficult to obtain venture capital funding.
The legislation doesn't turn a blind eye to these problems. It provides a type of grace period, triggered by inventor disclosures. Will this new, significantly more scaled back grace period work? Maybe. I don't know. I can tell you that the independent inventors in Nevada swear by a code of secrecy and nondisclosure until they are far enough along to get patent protection. It would require a sea change in culture to be able to benefit from this very limited inventor's disclosure-triggered grace period.
Further, there are legitimate questions about how this new disclosure provision would work--for instance, what happens when an invention that is disclosed leads to other, different ideas and disclosures that update the state of the art before the application has been filed? How is an inventor going to be able to prove that changes in an ``ecosystem of technology'' were necessarily derived from her disclosure?
I would also note that I appreciate that PTO Director Kappos has been doing great work in terms of reaching out to small inventors, trying to make things cheaper and more efficient for them; trying to demystify the PTO for them. If any PTO Director could make this work, I feel confident he is the one who can do it.
But, you know what, if it ain't broke, don't fix it. Our current system has helped make America the most innovative country in the world; I will venture to say the most innovative society in world history. Our innovation system is the envy of the world. We don't need to harmonize with them; they are trying to figure out how we do it. This is one area where nothing is broken, and I am very worried about unintended consequence, especially when a lot of the folks arguing about this issue are not even talking about the thing that matters--the grace period.
Accordingly, I support the Feinstein amendment. And I encourage my colleagues to support it too. I am not making this argument as the Senate majority leader, but as the Senator from Nevada--if the current grace period isn't broke, then we absolutely shouldn't fix it with something that my constituents tell me, with alarm, may make it harder for them to patent their innovations.
Mr. President, I ask unanimous consent that the order for the quorum call be rescinded.