Small Biz Calls Patent Bill More of the Same

By Josh Smith | Thursday, April 7, 2011 | 11:04 a.m.

With the House set to mark up its version of patent reform as soon as next week, some small business groups say this year’s process is once again leaving them out of the loop.

The debate over how to fix a backlogged patent system has been bogged down for half a decade. Congress is now as close as ever to finally passing legislation, but some groups say this latest version is just more of the same.

These groups, including Innovation Alliance, IEEE-USA, and CONNECT -- the San Diego-sponsored program to help startups -- among others, are smarting after being left out of stakeholder meetings, including one on Thursday morning.

“At this time when innovation and intellectual property are so vital, now, more than ever, small businesses should be involved,” said Timothy Tardibono, public policy director for CONNECT.

As a contrast, Tardibono cited March 30 testimony by a Cisco executive before the House Subcommittee on Intellectual Property, Competition, and the Internet. At that hearing, Cisco Systems Senior Vice President Mark Chandler described spending “a good part of February locked in a room” with Patent and Trademark Office Director David Kappos and lawyers for the Commerce Department and an unidentified “large pharmaceutical company,” developing proposals to fix the patent system.

But the sponsor of the House bill, Judiciary Chairman Lamar Smith, R-Texas, said he has sought input from all sides.

“I and my staff have met with various associations and groups representing small businesses and independent inventors throughout the process of working on the House patent reform proposal,” Smith said in a statement to National Journal. “We will continue to meet with relevant stakeholders in the coming weeks as the Committee considers this important legislation to modernize our patent system.” 

Small business groups have voiced concerns over key provisions in both the House and Senate bills. The Senate passed its version of patent reform last month.

Keith Grzelak, of IEEE-USA, part of an international professional technology association, said startups have been sidelined for years and lawmakers have taken a very “closed-door” approach to drafting the various patent bills.

“There are changes in these bills that could shut down the next generation of startups,” Grzelak said.

He said congressional leaders and their staffs met with his organization when requested, but policymakers have rarely sought input or asked small-business representatives to testify.

“The majority of the stakeholders who will be affected by this are being excluded,” Grzelak said.

Senate Judiciary Chairman Patrick Leahy, D-Vt., has cited support from the Small Business and Entrepreneurship Council, which has said that “small firms will in no way be disadvantaged” by the major changes in the bill.

“Indeed,” Leahy said, “the legislation is crucial to fulfilling the promise that we make to small businesses and independent inventors that if they put in the hard work, the United States is the place where a great invention will be rewarded.”