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Unions oppose patent overhaul

Unions oppose patent overhaul

Several leading trade unions in the US have expressed their concerns over proposed legislation to overhaul the country’s patent system.

Since July, three of the major unions, including the American Federation of Labor-Congress of Industrial Unions (AFL-CIO) – which represents 10 million workers nationwide – have been petitioning Congress.

The AFL-CIO objects to the new legislation because it changes how courts apportion damages when a company is found to infringe a patent. At present, US courts assess the value of the entire product when a small part of the product infringes a patent, but supporters of the bills want Congress to base damages only on the value of the infringing piece.

The unions also questioned how the legislation would allow a new way of challenging patents after they're issued, called post-grant review. The bills would allow companies sued for patent infringement a new way to file challenges with USPTO.

A United Steelworkers letter stated nearly 70 percent of patents filed in the US come from manufacturing firms: ‘These bills would allow an endless loop of legal challenges after patents are awarded that will make it more difficult for US patent holders to prevail against frivolous challenges.’

However, both the Senate and the House of Representatives approved versions of the bill in July, and House leaders have targeted it for passage by the end of the year.

Representatives of large tech vendors are confident there will be support for the legislation when Congress returns from summer recess in early September.

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