[Ip-health] AP: Patent Reform Bill on the Move This Week

[Mike Palmedo]

http://money.cnn.com/news/newsfeeds/articles/newstex/AFX-0013-18223449.htm

Patent bill on the move this week
July 18, 2007: 10:23 AM EST

WASHINGTON (AP) - The technology sector is advocating this week for
congressional approval of patent reform legislation that is opposed by
pharmaceutical and manufacturing companies.

Software and other high-tech companies argue the legislation, which will
be debated in the House and Senate on Wednesday, is critical to reducing
patent litigation that can result in large financial penalties and
hinder innovation.

Because many high-tech products, such as Apple Inc.'s iPod, may include
hundreds of patented components, industry groups say they are easy
targets for patent infringement suits based on inadvertent or minor
violations.

Pharmaceutical and biotech companies, meanwhile, counter rely on as few
as one or two patents for blockbuster drugs that can lead to $1 billion
in revenue or more. They counter that the legislation before Congress
would weaken the protection afforded by those patents, making it riskier
to spend hundreds of millions to develop the drugs.

Some technology firms that rely heavily on licensing patents, such as
Qualcomm Inc. (NASDAQ:QCOM) , share the drug companies' concerns and
oppose the House and Senate bills. San Diego-based Qualcomm licenses its
wireless technology to mobile phone manufacturers.

Supporters of the legislation believe the Senate and House Judiciary
Committees will nevertheless approve the bills. Lobbyists on both sides
expect the House panel to approve its legislation Wednesday, while the
Senate may not finish until Thursday.

'We're very optimistic that this is going to get done this week,' Emery
Simon, counsel to the Business Software Alliance, said. Members of the
Alliance include tech heavies such as Microsoft (NASDAQ:MSFT) Inc.,
Cisco Systems Inc. (NASDAQ:CSCO) and Intel Corp. (NASDAQ:INTC)


--
Mike Palmedo
Research Coordinator
Program on Information Justice and Intellectual Property
American University, Washington College of Law
4910 Massachutsetts Ave., NW Washington, DC 20016
T - 202-274-4442 | F 202-274-0659
mpalmedo@wcl.american.edu