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CNet NewsRenewed objections this week from the Bush administration could complicate the passage of a sweeping patent law rewrite backed by seemingly every prominent hardware and software maker on the map.
As the so-called Patent Reform Act of 2007 awaits action in the U.S. Senate, the Bush administration is once again raising alarms about the proposal's effects on mainstream manufacturers and small inventors. (Here's the entire letter (PDF) sent Monday to Senate Judiciary Committee Chairman Patrick Leahy (D-Vt.), whose panel approved an amended version of the proposal last summer.)
The Bush administration says it doesn't have any qualms about "modernizing" the patent system in ways designed to weed out bad patents and boost the efficiency of the process. But it strongly opposes the Senate bill in its current form because it "doesn't yet strike the right balance for all innovators," Under Secretary of Commerce for Intellectual Property Jon Dudas told reporters in a conference call Tuesday morning.
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The administration's key concern is a section that it argues waters down the ability of judges to award damages in patent suits as they see fit, potentially depriving patent holders of the right to obtain the compensation they deserve. Right now, the Senate bill doesn't give judges or juries enough discretion in deciding how much to award, Dudas said. That's been arguably the biggest sticking point all along among supporters and opponents of the bill.
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In addition to the Bush administration, major manufacturers (think General Electric, 3M, and Procter & Gamble), pharmaceutical makers, biotechnology and nanotechnology companies, venture capitalists, small businesses and inventors, some universities and research institutions, and companies like Qualcomm oppose the measure. They all tend to have business models that rely heavily on vigorous enforcement of their patents and therefore object to efforts to limit the damages they can receive if their inventions are infringed.
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