Patent Fairness - About The Coalition

Who We Are

The Coalition for Patent Fairness is a diverse group of companies and industry associations dedicated to protecting consumers and enhancing U.S. innovative potential by strengthening our nation's patent system.

A strong system of patent protection is essential in today's fast-paced economy. To encourage cutting edge research and break-through technologies, strong patent protections must guard intellectual property rights to foster innovation and economic growth.

The major part of U.S. patent laws were shaped in the 1950's, a time when highly integrated global markets were not the norm and the modern technology revolution had not yet begun. The networked, interoperable devices on which our economy today relies were more science fiction than everyday reality. In addition, the number of patents issued annually in the early '50's was less than one-quarter of today's volume and patent litigation was a tool of last resort, not first resort. Things have dramatically changed since those days. In order to keep the U.S. competitive, our patent system needs to catch up with the 21st Century economy that drives the world economy today. This requires the action of Congress.

The current patent system leaves U.S. consumers and businesses at a clear disadvantage. The U.S. economy is increasingly bogged down in patent disputes that drain billions of dollars that would otherwise be invested in creating jobs, developing new innovations, passing savings along to consumers and increasing shareholder value. At the same time, the ability of companies to create innovative new products for American consumers is severely hampered by imbalances in the patent system. Instead of innovating and developing new products, companies are forced to focus more on the risks of innovation than the benefits to consumers and society as a whole.

A broad and growing group of institutions and experts on innovation and competitiveness - including the National Academy of Sciences, the Federal Trade Commission, the Council on Foreign Relations and legal scholars from the nation's top universities - are calling for reform to our patent system. The editorial boards of the nation's most prominent publications - including the New York Times, Wall Street Journal and the Los Angeles Times - have joined the chorus calling for congressional action.

The Supreme Court has taken up a greater number of patent-related cases this term than in several years, a signal unto itself about the high court's concerns about the patent system. Moreover, in each of its recent rulings on patent cases, the Justices ruled overwhelmingly for the position consistent with proponents of reform. During oral arguments, the Justices have described troubling elements of the patent system today as "worse than meaningless" and "gobbledygook." And of course, despite predictions of great harm to the legal system, to American innovation and to the economy promised by the opponents of reform should the high court rule against them, the Justice's rulings have led to no such problems.

As significant patent holders themselves - including many of the top 10 U.S.- based patent recipients - the members of the Coalition for Patent Fairness strongly support and depend on the protection of intellectual property to operate their businesses. We support a strong, robust and balanced patent system, but believe the abuses that have become a part of the current system harm our economy, consumers and innovation.

To address the problem, the Coalition for Patent Fairness proposes the following principles be a part of comprehensive patent reform legislation:

Damage awards should be based on common sense standards. In a world where a device can be made up of thousands of patented components, patent infringement damages should be proportionate to the value of the component in question rather than the entire product.
The standard for assessing "willful infringement" - which triggers a tripling of ordinary damages - must ensure "willful" damages are only assessed where there is truly egregious conduct and all parties' right to counsel is protected.
To encourage companies to keep their R&D programs in the U.S., patent laws governing how global damages are awarded should be revised so that foreign companies are not advantaged over U.S.-based companies.
The practice of "forum shopping" should end, ensuring patent lawsuits are resolved in courts that have a reasonable connection to the underlying claim.

The members of the Coalition for Patent Fairness strongly support the bipartisan, bicameral patent reform legislation in the House and Senate, both called the Patent Reform Act of 2007, introduced by Senators Patrick Leahy (D-Vt.) and Orrin Hatch (R-Utah) and Representatives Howard Berman (D-Calif.) and Lamar Smith (R-Texas). In 2007, the Coalition will work closely with Members of Congress to continue the effort to implement common sense reforms that will end abuse and modernize the patent system for the benefit of all users.