Obama Administration Condemns Patent Trolls

February 20, 2014. The White House news office released a statement regarding patents. It employs the term "patent trolls", without explaining the meaning of the term. It calls for legislation, but makes no legislative proposals. It recites recent actions taken by the U.S. Patent and Trademark Office (USPTO), and some things that the USPTO will do going forward.

It is significant that the White House news office is now employing the term "patent trolls". However, the statement is largely rhetorical, rather than substantive.

On the other hand, Michelle Lee, the acting head of the USPTO, gave a speech at a White House event on patents on February 20. She did not use the term "patent trolls".

Lee (at right) said that "Our work also includes actively engaging with the House and Senate as the legislative process moves forward. The patent system is the engine that powers our 21st century innovation economy. Even the most high-performance engine occasionally needs some fine-tuning. But I am confident our collaborative reform efforts will result in a patent system that performs at an unprecedented level of quality and economic output, benefiting us all."

Until recently, Lee worked for Google. Before that, she worked at the law firm of Fenwick & West.

The White House news office statement calls on the Congress to enact "common-sense patent reform legislation", and adds that "The Administration looks forward to continuing to work with Congress to deliver focused and effective patent reform legislation to the American people in the coming months".

The statement does not state what should be the content of legislation. It does not comment on HR 3309 [LOC | WW], the "Innovation Act", the patent bill passed by the House in December 5, 2013.

President Obama made a passing reference to patent legislation in his speech to the Congress on January 28, 2014. He said then, "let's pass a patent reform bill that allows our businesses to stay focused on innovation, not costly, needless litigation." See also, related story in this issue titled "President Obama Mentions Patents in State of the Union Address".

The statement says that "Today, the USPTO is announcing that it is exploring a series of measures to make it easier for the public to provide information about relevant prior art in patent applications, including by refining its third-party submission program, exploring other ways for the public to submit prior art to the agency, and updating its guidance and training to empower examiners to more effectively use crowd-sourced prior art."

It adds that "the USPTO will take steps to make it easier for technologists and engineers from industry and academia to provide relevant, technical training and expertise to patent examiners regarding the state of the art."

Also, "The USPTO will be  providing dedicated educational and practical resources to those who lack legal representation (i.e., pro se applicants) and will work with the AIA Pro Bono Advisory Council -- and through a newly appointed full-time Pro Bono Coordinator -- to expand the existing pro bono program established under the AIA to cover all 50 states. The Administration is calling on members of the patent bar to participate in the program." (Parentheses in original.)

Reaction. The Computer and Communications Industry Association (CCIA) and Consumer Electronics Association (CEA), both of which condemn patent trolls and advocate patent reform legislation, praised the announcement.

Matt Levy of the CCIA stated in a release that "The Obama Administration’s continued commitment to making our patent system support innovation, not litigation, is very exciting. We look forward to continuing our work with the Administration on reigning in patent trolls."

Gary Shapiro of the CEA stated in a release that "We commend the White House for its aggressive efforts to drive patent trolls back under the bridge. For years these trolls have extorted payments from small businesses and held back the growth of our economy, but those easy paydays must come to an end." ..."We appreciate the White House’s leadership on this important issue, and we urge the Senate to immediately pass legislation ending the patent troll racket.”

Verizon's Gail Levine stated in a release that "Verizon applauds the Administration’s patent quality initiative as one important step in reforming a patent litigation system that stifles innovation. Other reforms also are needed, however, and we continue to support Congress’s effort to enact meaningful patent litigation reform."

Charles Duan of the Public Knowledge stated in a release that "We applaud the White House for its continuing efforts to protect American innovators and the technology-consuming public by combatting abusive patent practices. Patent abuse is a growing problem that detriments the public. The steps being taken are not enormous steps, but they are steps in the right direction."

(Published in TLJ Daily E-Mail Alert No. 2,631, February 26, 2014.)