The U.S. Senate is set to vote this Thursday on two bills that could significantly empower patent trolls. The Patent Eligibility Restoration Act (PERA) would bring back many of the abstract computer patents that have been barred for the past 10 years under Supreme Court precedent. Meanwhile, the PREVAIL Act would severely limit how the public can challenge wrongly granted patents at the patent office.
Tell Congress: No New Bills For Patent Trolls
EFF has sent letters to the Senate Judiciary Committee opposing both of these bills. The letters are co-signed by a wide variety of civil society groups, think tanks, startups, and business groups that oppose these misguided bills. Our letter on PERA states:
Under PERA, any business method, methods of practicing medicine, legal agreement, media content, or even games and entertainment could be patented so long as the invention requires some use of computers or electronic communications… It is hard to overstate just how extreme and far-reaching such a change would be.
If enacted, PERA could revive some of the most problematic patents used by patent trolls, including:
- The Alice Corp. patent, which claimed the idea of clearing financial transactions through a third party via a computer.
- The Ameranth patent, which covered the use of mobile devices to order food at restaurants. This patent was used to sue over 100 restaurants, hotels, and fast-food chains just for merely using off-the-shelf technology.
- A patent owned by Hawk Technology Systems LLC, which claimed generic video technology to view surveillance videos, and was used to sue over 200 hospitals, schools, charities, grocery stores, and other businesses.
The changes proposed in PERA open the door to patent compounds that exist in nature which nobody invented
A separate letter signed by 17 professors of IP law caution that PERA would cloud the legal landscape on patent eligibility, which the Supreme Court clarified in its 10-year-old Alice v. CLS Bank case. “PERA would overturn centuries of jurisprudence that prevents patent law from effectively restricting the public domain of science, nature, and abstract ideas that benefits all of society,” the professors write.
The U.S. Public Interest Research Group also opposes both PERA and PREVAIL, and points out in its opposition letter that patent application misuse has improperly prevented generic drugs from coming on to the market, even years after the original patent has expired. They warn:
“The changes proposed in PERA open the door to patent compounds that exist in nature which nobody invented, but are newly discovered,” the group writes. “This dramatic change could have devastating effects on drug pricing by expanding the universe of items that can have a patent, meaning it will be easier than ever for drug companies to build patent thickets which keep competitors off the market.”
Patients’ rights advocacy groups have also weighed in. They argue that PREVAIL “seriously undermines citizens’ ability to promote competition by challenging patents,” while PERA “opens the door to allow an individual or corporation to acquire exclusive rights to aspects of nature and information about our own bodies.”
Generic drug makers share these concerns. “PREVAIL will make it more difficult for generic and biosimilar manufacturers to challenge expensive brand-name drug patent thickets and bring lower-cost medicines to patients, and PERA will enable brand-name drug manufacturers to build even larger thickets and charge higher prices,” an industry group stated earlier this month.
We urge the Senate to heed the voices of this broad coalition of civil society groups and businesses opposing these bills. Passing them would create a more unbalanced and easily exploitable patent system. The public interest must come before the loud voices of patent trolls and a few powerful patent holders.
Tell Congress to reject pera and prevail
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