The Leahy-Smith America Invents Act, which was signed into law today by President Obama, constitutes a major overhaul of United States patent law. Changes brought about by the Act will become effective at different times. However, patentees, patent applicants, and patent challengers should immediately reevaluate their business plans and policies in light of these changes. As noted in my firm's "IP Law Alert: Major Overhaul of U.S. Patent Law", issues of initial concern to all businesses (not just technology businesses) include:
- 15 percent surcharge on patent fees effective September 26, 2011.
- "Micro entities" will be entitled to a 75% reduction in patent fees. Small entities other than micro entities continue to be entitled to a 50% reduction in such fees. Micro entities include inventors with incomes less than three times the median household income (i.e., an inventor whose income in 2010 was less than $148,335.00) who have not been named as inventors on more than four previously filed non-provisional U.S. patent applications. Also included within the definition of micro entities are low income organizations assigned rights from such inventors, and institutions of higher education.
- U.S. will move toward a first-to-file system for determining priority of invention.
- New procedures for reviewing and correcting patents will be available starting September 16, 2012.
- Business method patents will be subject to increased scrutiny.
- Patent marking rules have been relaxed.
- The best mode defense to patent infringement charges has been eliminated.
A copy of the Act is posted here.
