Senate Judiciary Committee considering IPR reforms

The U.S. Senate Judiciary Committee released a new version of the Patent Act (S. 1137) that includes reforms to the inter partes review (IPR) system. The reforms were drafted in response to complaints from BIO and PhRMA that the IPR system is being abused by hedge funds to manipulate stock prices, and that the U.S. Patent and Trademark Office has implemented it in ways that greatly diminish the ability of companies to protect intellectual property (see BioCentury, May 18).

The new "manager's amendment" to S. 1137 would apply the district court claim construction standard for reviewing patent claims in IPR proceedings, according to a summary provided by Judiciary Committee Chairman Sen. Chuck Grassley (R-Iowa). It also would give the PTO director discretion to reject an IPR challenge if allowing the challenge "would not serve the interests of justice." ...