Why Harry Reid Blocked Patent Reform, And Why that is a Good Thing

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 Last week Senator Patrick Leahy announced that he will remove current patent legislation from the Senate Judiciary Committee’s agenda for now.

Why is this a good thing? The measures under consideration go far beyond what is necessary or desirable to combat abusive patent litigation, and, in fact, would do serious damage to the patent system. As it stands, many of the provisions assume that every patent holder is a patent troll. Drafting legislation in this way seriously weakens the ability of every patent holder to enforce a patent. This approach clearly favors a business model that does not rely on patents and tilts the balance in favor of patent infringers, thereby discouraging investment in innovation.

From the NationalJournal

As negotiations fell apart Wednesday, Republicans and reform advocates began throwing stones at the majority leader.

A bipartisan compromise meant to slay “patent trolls” quickly fell apart Wednesday in the Senate, and stakeholders wasted little time casting blame on Harry Reid.

The majority leader told Senate Judiciary Committee Chairman Patrick Leahy this morning that a patent-litigation reform bill would not get to the floor even if it passed through Leahy’s panel, according to multiple sources close to the negotiations on and off Capitol Hill.

The warning, those sources say, is due in large part to opposition from a diverse array of interests who were not fully supportive of the reform efforts: trial attorneys, the biotech industry, and pharmaceutical companies.

Sen. John Cornyn—the leader of the Republican Party’s pro-patent-reform bloc—seized on the argument that Reid was at fault for killing the bill.

“Patent reform is something the White House wants, House Democrats supported, and an area where there’s bipartisan agreement in the Senate,” Cornyn said in a statement. “It’s disappointing the Majority Leader has allowed the demands of one special interest group to trump a bipartisan will in Congress and the overwhelming support of innovators and job creators.”

Reid’s office did not respond to requests for comment.

Under pressure from Reid, Leahy issued a statement that his panel was taking patent reform off its agenda indefinitely, just a day before it was scheduled to vote on a compromise that stakeholders believed was at or extremely near the finish line.

The announcement caught several reform advocates off guard. Many believed the committee, which has delayed consideration several times, was finally ready to hold a vote on language Cornyn and Sen. Chuck Schumer had been working on for weeks.

But just when optimism had reached new heights, everything collapsed.

“At 9 o’clock we were on track. By 11 we were off track.” said a leader of one patent-reform coalition.

Sen. Chuck Grassley, the Judiciary Committee’s top Republican, also alluded to Reid’s involvement.

“I am surprised and disappointed that the Senate Democrat leadership is not willing to move forward on a bill that we’ve worked on so hard and were ready and expecting to mark up tomorrow,” Grassley said in a statement. “We put in a good faith effort to get to this point, and it’s too bad that the bill is being pulled from the agenda.”

Another lobbyist, while noting that Reid played a major role in ending negotiations, also cautioned that a full agreement had not yet emerged.

“Ultimately, Leahy was not able to find the consensus,” the lobbyist said. “He had hoped that the desire to get a bill would trump the stakeholders’ desire to get more precisely what they wanted, but both sides decided that no bill at this time was better than what they considered a ‘bad’ bill.”

Whatever the case, this much is clear: Patent reform is all but dead in Congress this year.

This article appears in the May 22, 2014 edition of NJ Daily.

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