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June 19, 2007


The Honorable Patrick J. Leahy Chairman

Committee on the Judiciary United States Senate

Washington, D.C. 20510

The Honorable John Conyers, Jr. Chairman

Committee on the Judiciary U.S. House of Representatives Washington, D.C. 20515

The Honorable Howard L. Berman Chairman

Subcommittee on Courts, the Internet and Intellectual Property Committee on the Judiciary

U.S. House of Representatives Washington, D.C. 20515


The Honorable Arlen Specter Ranking Republican

Committee on the Judiciary United State Senate

Washington, D.C. 20510

The Honorable Lamar S. Smith Ranking Republican

Committee on the Judiciary U.S. House of Representatives Washington, D.C. 20515

The Honorable Howard Coble Ranking Republican Subcommittee on Courts, the Internet and Intellectual Property Committee on the Judiciary U.S. House of Representatives Washington, D.C. 20515


SENT VIA: EMAIL AND FACSIMILE

Dear Chairman Leahy, Chairman Conyers, Chairman Berman, Senator Specter, Representative Smith, and Representative Coble:

The more than 200 undersigned organizations are writing to voice serious concerns with certain provisions of The Patent Reform Act of 2007, S. 1145 and H.R. 1908. While we share the goal of making America more innovative and competitive, we find that certain aspects of the legislation will inadvertently accomplish the exact opposite by

undermining the value of patents. This will hinder innovation across the diverse sectors of the American economy we represent, including academia, agriculture, alternative energy, biotechnology, chemical, electronics, environmental technology, financial services, information technology, life sciences, manufacturing, nanotechnology, and telecommunications.

The United States has the most effective patent system in the world. The value America places on intellectual property has driven huge investments in research and development and resulted in critical inventions in virtually every field of endeavor. As Congress moves forward with its efforts to modernize the patent system, it must do so in a way that values and advances all American innovators. In our view, making the legislation effective and balanced requires four significant changes.


First, the section on apportionment of damages should be deleted from the legislation. The language is unclear, will increase litigation, and will force judges and juries to make complex calculations for which they are ill equipped. Chief Judge Paul Michel of the U.S. Court of Appeals for the Federal Circuit has said that the provision on apportionment of damages is unworkable and could throw the system into chaos. The U.S. Department of Commerce, parent agency for the Patent and Trademark Office (PTO) itself, has said that there is no reason to change current law in this area. Under current law, courts have discretion to evaluate the relevant facts of each case and flexibility to award appropriate damages on a case-by-case basis.

Second, we are united in our opposition to a new, open-ended, administrative post-grant review mechanism, which we believe is unreasonable and should be deleted. The post-grant review system as written in the bill could be used by virtually any third party that seeks to harass the patent holder. Patent owners need more certainty - not less -- that they can enforce their patents, invest and hire to expand their businesses, and market their innovations free from unending harassment. An open-ended post-grant opposition procedure would discourage investment and have a chilling effect on America's innovation engine.

Third, the PTO should not be granted overbroad and unprecedented substantive rulemaking authority. The U.S. Constitution expressly grants Congress the power to protect intellectual property. Delegating that authority to an administrative agency would be an unwise abdication of Congressional authority. Granting the PTO unfettered rulemaking authority would also create instability in the patent system because, over the 20-year term of a patent, the PTO could effect multiple changes to substantive patent law through rulemaking. This could significantly alter the value of existing patents. Congress and the courts are better suited for developing substantive standards through the legislative process.

Finally, the legislation must provide adequate grace periods to allow patent holders to adjust to changes to aspects in patent laws and rules, such as filing requirements. Academic institutions, small companies, and independent inventors need adequate flexibility to adapt to the mandates of a first-to-file system, and we believe the legislation as currently drafted lacks such flexibility.

We strongly urge you to make these important changes to the legislation, and we stand ready to work with you to craft the modifications. Like you, we want the most effective patent system for our country, and we believe the changes outlined above will help make S. 1145/H.R. 1908 more effective and balanced for all industries. We look forward to working with you toward this mutual goal.

Thank You. cc:

Members, Senate Committee on the Judiciary; and

Members, House Committee on the Judiciary.


National Organizations

Association of University Technology Managers (AUTM)

Northbrook, IL

Biotechnology Industry Organization Washington, DC

CropLife America Washington, DC

Innovation Alliance Washington, DC

Institute of Electrical and Electronics Engineers (IEEE)-USA

Washington DC

Medical Device Manufacturers Association

Washington, DC

NanoBusiness Alliance Skokie, IL

Small Business Exporters Association Of the United States

Washington, DC

Small Business Technology Council Washington, DC

The Center for Small Business and the Environment

Washington, DC

State and Individual Organizations

Abbott

Abbott Park, IL

Accelerated Technologies, Inc. Hackensack, NJ


Acorn Cardiovascular Inc. St. Paul, MN

As Capital Management Sewickley, PA

Adroit Medical Systems, Inc. Loudon, TN

Advanced Diamond Technologies, Inc. Romeoville, IL

Advanced Medical Optics, Inc. Santa Ana, CA

Advanced Neuromodulation Systems, Inc.

Plano, TX

Aero-Marine Company Port Townsend, WA

ALD NanoSolutions, Inc. Broomfield, CO

Allergan, Inc. Irvine, CA

ALIO Industries Wheat Ridge, CO

Almyra, Inc. Boxborough, MA

AmberWave Systems Corporation Salem, NH

Amylin Pharmaceuticals San Diego, CA

AngioDynamics, Inc. Queensbury, NY

Applied Medical

Rancho Santa Margarita, CA


Applied Nanotech, Inc. Austin, TX

Argentis Pharmaceuticals, LLC Memphis, TN

Arizona Biolndustry Association Scottsdale, AZ

ARYx Therapeutics Fremont, CA

Ascenta Therapeutics, Inc. San Diego, CA

Asthmatx, Inc. Mountain View, CA

Aware, Inc. Bedford, MA

Baxa Corporation Englewood, CO

BayBio

South San Francisco, CA

BioCardia, Inc.

South San Francisco, CA

BIOCOM

San Diego, CA

Mogen Idec Cambridge, MA

BioOhio Columbus, OH

Biotechnology Council of New Jersey Trenton, NJ

BlazeTech Corporation Cambridge, MA


Boston Scientific Corporation Boston, MA

BuzzLogic

San Francisco, CA

California Healthcare Institute La Jolla, CA

Canopy Ventures Lindon, UT

Carbide Derivative Technologies Chicago, IL

Cardiac Concepts, Inc. Minnetonka, MN

CardioDynamics San Diego, CA

Cell Genesys, Inc.

South San Francisco, CA

Celgene Corporation Summit, NJ

Center 7, Inc. Lindon, UT

Cincinnati Sub-Zero Products Cincinnati, OH

CogniTek Management Systems, Inc. Northfield, IL

Colorado Bioscience Association Denver, CO

Conceptus, Inc. Mountain View, CA

Connecticut United for Research Excellence

New Haven, CT


Coronis Medical Ventures Sunnyvale, CA

Cornell University Ithaca, NY

Corning Incorporated Corning, NY

Cummins-Allison Corporation Mt. Prospect, IL

Cryptography Research San Francisco, CA

CVRx Inc.

Maple Grove, MN

Dais Analytic Corporation Odessa, FL

Dartmouth Regional Technology Center, Inc.

Lebanon, NH

Deltanoid Pharmaceuticals Madison, WI

Digimarc Corporation Beaverton, OR

DirectPointe Lindon, UT

Dura-Line Corporation Knoxville, TN

Dynatronics Co. Cottonwood Heights, UT

Edwards Lifesciences Irvine, CA

Elan Pharmaceuticals, Inc.

San Diego and South San Francisco, CA


Ellman Innovations LLC Oceanside, NY

Enterprise Partners Venture Capital La Jolla, CA

Evalve, Inc Menlo Park, CA

Fallbrook Technologies Inc. San Diego, CA

FarSounder, Inc. Warwick, RI

Footnote.com Lindon, UT

Gambro BCT Lakewood, CO

Genomic Health, Inc. Redwood City, CA

Gen-Probe Incorporated San Diego, CA

Georgia Biomedical Partnership Atlanta, GA

Genzyme Cambridge, MA

Glacier Cross, Inc. Kalispell, MT

Glenview State Bank Glenview, IL

Hawaii Science & Technology Council Honolulu, HI

HealthCare Institute of New Jersey Bridgewater, NJ


HeartWare, Inc. Framingham, MA

Helius, Inc. Lindon, UT

iBIO Chicago, IL

Imago Scientific Instruments Madison, WI

Impulse Dynamics (USA), Inc. Orangeburg, NY

Indiana Health Industry Forum Indianapolis, IN

Institute of Electrical and Electronics Engineers (IEEE)-USA

Washington DC

InterDigital Communications Corporation

King of Prussia, PA

Intermolecular, Inc. San Jose, CA

Invitrogen Corporation Carlsbad, CA

Iowa Biotechnology Association Des Moines, IA

ISTA Pharmaceuticals Irvine, CA

Jazz Pharmaceuticals, Inc. Palo Alto, CA

Life Science Alley St. Louis Park, MN

LITMUS, LLC Little Rock, AR


LSI Corporation Allentown, PA

Lux Capital Management New York, NY

Luxul Corporation Salt Lake City, UT

Masimo Corporation Irvine, CA

Massachusetts Biotechnology Council Cambridge, MA

MassMEDIC Boston, MA

Maxygen Inc. Redwood City, CA

Medical College of Wisconsin Milwaukee, WI

MedImmune, Inc. Gaithersburg, MD

Metabasis Therapeutics, Inc. San Diego, CA

Metabolex, Inc. Hayward, CA

Metabolix, Inc. Cambridge, MA

Metacure (USA), Inc. Orangeburg, NY

MGI Pharma Inc. Bloomington, MN

MichBio

Ann Arbor, MI

New England Innovation Alliance Boston, MA

New Hampshire Biotechnology Council Portsmouth, NH

New Mexico Biotechnical and Biomedical Association

Albuquerque, NM

New York Biotechnology Association New York, NY

North Carolina Biosciences Organization

Research Triangle Park, NC

North Dakota State University Fargo, ND

Novartis Corporation New York, NY

Novasys Medical Inc. Newark, CA

NovoNordisk Princeton, NJ

NUCRYST Pharmaceuticals, Inc. Wakefield, MA

NuVasive, Inc. San Diego, CA

Nuvelo, Inc. San Carlos, CA

OpenCEL, LLC Glencoe, IL

Palmetto Biotechnology Alliance Columbia, SC


Pennsylvania Bio Malvern, PA

Physical Sciences Inc. Andover, MA

PointeCast Corporation Lindon, UT

Power Innovations International Lindon, UT

PowerMetal Technologies, Inc. Carlsbad, CA

Preformed Line Products Mayfield Village, OH

ProRhythm, Inc. Ronkonkoma, NY

Pure Plushy Inc. Lombard, IL

QUALCOMM Inc. San Diego, CA

QuantumSphere, Inc. Santa Ana, CA

QuesTek Innovations LLC Evanston, IL

Radiant Medical, Inc. Redwood City, CA

Retractable Technologies, Inc. Little Elm, TX

Rensselaer Polytechnic Institute Troy, NY

S & C Electric Company Chicago, IL


Salix Pharmaceuticals, Inc. Morrisville, NC

Sangamo Biosciences, Inc. Richmond, CA

Semprius, Inc Durham , NC

Small Business Association of Michigan Economic Development Center Lansing, MI

Smart Bomb Interactive Salt Lake City, UT

Smile Reminder Lindon, UT

SmoothShapes, Inc. Merrimack, NH

Solera Networks Lindon, UT

Southern California Biomedical Council Los Angeles, CA

South Dakota Biotech Association Sioux Falls, SD

Spiration, Inc. Redmond, WA

State of New Hampshire

Department of Resources and Economic Development

Concord, NH

StemCells Palo Alto, CA

SurgiQuest, Inc. Orange, CT


Symyx Technologies, Inc. Santa Clara, CA

Tech Council of Maryland/MdBio Rockville, MD

Technology Patents & Licensing Doylestown, PA

Tennessee Biotechnology Association Nashville, TN

Tessera, Inc. San Jose, CA

Texas Healthcare and Bioscience Institute

Austin, TX

The Cassie-Shipherd Group Newburyport, MA

The Norseman Group Parsippany, NJ

The Standup Bed Company Lubbock, TX

The Stella Group, Ltd. Arlington, VA

Three Arch Partners Porto Valley, CA

University of California System

University of Maryland College Park, MD

University of New Hampshire Durham, NH

University of North Carolina System

University of Utah Salt Lake City, UT


University of Wisconsin-Madison Madison, WI

USGI Medical San Clemente, CA

Vanderbilt University and Medical Center

Nashville TN

Virent Energy Systems, Inc. Madison, WI

Virginia Biotechnology Association Richmond, VA

Visidyne, Inc. Burlington, MA

VisionCare Opthamalogic Technologies,

Inc.

Saratoga, CA

Washington Biotechnology &

Biomedical Association Seattle, WA

WaveRx, Inc. Waltham, MA

Wayne State University Detroit, MI

Wescor, Inc. Logan, UT

Wilson Sonsini Goodrich & Rosati Palo Alto, CA

Wisconsin Alumni Research Foundation

(W) Madison, WI

Wisconsin Biotechnology and Medical

Device Association Madison, WI